Investing in people is more essential than ever in todayís market where employees íshop aroundí for the best career opportunities. But a new survey by Croner reveals that 85 percent of employers may not be spending enough on developing their staff.
The poll of HR managers by Croner, one of the UKís leading providers of business information and advice, found that only 14 percent believe businesses have got their training budgets íabout rightí, with only one percent saying theyíre spending too much.
Research by Croner last year revealed that 52 percent of organisations had cut their training budgets in 2003.
Richard Smith, employment law expert at Croner believes that, with a general shortage of key skills, especially in the areas of creativity, knowledge and new technologies, training is an essential tool in the íwar for talentí, and cutting the training budget could damage companiesí prospects of future success.
He says: As UK business moves from manufacturing to service industries, an organisationís competitive advantage depends of the quality of its human capital. Training that encompasses personal and career development of employees is essential to attracting, motivating, and retaining staff, and is therefore critical to business success.
Some employers arenít spending enough on training because they feel that recruiting new staff solves their skill-shortage problems. But this is a very expensive and laborious substitute, and shortsighted if there is talent that could be nurtured in the existing workforce. There is an argument to suggest that developing staff is less expensive and just as effective as recruiting new talent. Employers today talk about valuing people more than they ever have, but many employees feel more insecure now compared to long-gone days when a job was a íjob for lifeí.
Investing in people can make employees feel valued and therefore increase job satisfaction and security, and loyalty to their employer.
Croner is advising employers to assess the training and development needs of their staff to gauge whether their managers have the necessary skills to deliver effective training.
With so many HR professionals worried about management skills not keeping pace with organisational change, Croner is offering a free in-depth training pack, worth 75, that provides a valuable insight into three key
areas: leadership, employee development and equal opportunities training. Copies are available to download at www.croner.co.uk/hrdpack
Richard concludes: Our survey has clearly discovered that the HR profession thinks we need to spend more on training, and in todayís economic climate, I think this a priority concern for businesses.
HR profession tells industry - spend more on training
85% Believe Firms Risking Economic Futures by Not Spending Enough On Developing Staff