Slashing staff training is not the answer
A coalition of the UK's most senior businessmen and union leaders have taken the unprecedented step of calling on UK employers not to slash staff training in a bid to cut costs as the economic downturn bites.
In an open letter published in national newspapers, some of the UK's top business people, including Sir Michael Rake, Chairman of BT and the UK Commission for Employment and Skills, Sir Stuart Rose, Chairman of Marks & Spencer and Business in the Community, Mervyn Davies, Chairman of Standard Chartered plc, and Richard Lambert, Director General of the CBI, together with Brendan Barber, General Secretary of the TUC, urge employers to sustain or even increase their investment in training.
An extract reads: "Now is precisely the time to keep investing in the skills and talents of our people. It is the people we employ who will get us through. When markets are shrinking and order books falling, it is their commitment, productivity and ability to add value that will keep us competitive. Investing now in building new skills will put us in the strongest position as the economy recovers."
Likewise, Unite have called on finance companies not to make cuts in spending on skills training as the economic downturn gathers pace.
Graham Goddard, Unite Deputy General Secretary, said, "The tough economic climate demands that finance companies make smart decisions to ensure that their organisations are best placed to cope with the changing nature of such a competitive industry. As the regulatory environment in financial services changes it is important that staff are equipped with the skills and training they require to do their jobs.
"Unite is demanding that employers think carefully about where they make cost savings and do not sacrifice investment in their staff in a bid to make small financial savings."
The call to action comes as the government announced a streamlined package of business support products, Solutions for Business, that will make it easier for companies to access government help with key business issues, including skills.
Peter Mandelson, Secretary of State for Business, said, "During these difficult times many businesses will look at how to rein in costs. Evidence shows that those that invest in training are less likely to fail, and first class workplace skills will be key to prospering when the economy turns up.
"I know people face tough decisions, but I would urge businesses to invest in skills and training to ensure that they are well placed to take advantage of the opportunities when global economic conditions improve."
In offering his endorsement and support, the TUC General Secretary, Brendan Barber, said, "Employers are under more pressure now than they've ever been. Cutting staff training can seem like a quick fix, but it's not the solution. Research shows that companies who don't invest in training are two and a half times more likely to fail than those that do."