CIPD advises government to target SME training spend at management level

CIPD advises government to target SME training spend at management level to ìdrive SMEs from recession to resilienceî

The Chartered Institute of Personnel and Development (CIPD) welcomes todayís announcement of 350 million extra support for skills training for SMEs, but warns that investment must be effectively targeted if it is to reap tangible benefits for the UK economy.

The CIPD advises that the best way to improve productivity across the workforce is to concentrate spend on training frontline managers. CIPD research shows that UK people management capability is extremely poor - just 37% of employees believe their manager helps to improve their performance and poor people management remains one of the biggest causes of stress and conflict at work.

Further research estimates that management deficiencies account for 10 – 15% of the productivity gap in the UK and the governmentís own research confirms that management training further improves workforce skills development threefold. The management capability of SMEs in the UK is of particular concern but it is also an area where government spend could make a real impact.

Dr John McGurk, Learning, Training and Development adviser, says:

ìAt a time when workers are likely to be under increasing pressure both at work and at home the business case for greater investment in people management skills is strengthened, as the morale and resilience of employees is fundamental to long-term competitiveness. This can only be achieved with trained managers leading engaged and motivated employees.

ìIf government is serious about making a long-term impact on UK productivity and not just a knee-jerk response to the impending recession, then the people management skills of our workforce should be high on its agenda. Todayís reallocation of funding should be about driving SMEs from recession to resilience.

ìThe opening up of funding beyond the small pot government currently allocates to leadership and management is welcomed. However CIPD calls on government to allocate a dedicated proportion of the Train to Gain budget for management and leadership training to improve the long-term performance of UK plc, particularly in the SME sector, where manager-owners have little direct experience of managing others.

ìThe CIPD has consistently urged businesses of all sizes to continue investment in staff training especially throughout the economic downturn, when staff skills and motivation become crucial to achieving business objectives. Cutting investment in learning and development also means that employers will risk struggling to compete when the economy picks up again.

ìThe reduction in the level of bureaucracy will be well received by business, who according to our own research, cite the burden and complexity of the paperwork involved as a primary deterrent to state funded training.î