Skills must be a top priority for the government say small business leaders

SME LEADERS FEAR NOT ENOUGH IS BEING DONE TO HELP THEM PREPARE THEIR WORKFORCE FOR THE END OF THE #BREXIT TRANSITION PERIOD 

Association of Colleges (AoC) has published its latest bi-annual research showing the majority (68%) of SMEs say that if their business is going to “survive and thrive” then skills must be a top priority for the government.

Despite recent high-profile skills speeches and announcements, almost 40% of SME decision-makers say that it is more difficult now than it was five years ago to find employees with the right skills, and 53% still do not think that enough is being done to help them skill and reskill their workforce as we get closer to the end of the Brexit transition period.

Almost one in two (45%) believe that it will become even more difficult to hire people with the right skills once the Brexit transition period has ended, and that the country’s skills gap will only get worse (44%).

The national survey of SME leaders – conducted by Opinium – also shows that the impact of Brexit is no longer the biggest worry for businesses – more than half (53%) saying that COVID-19 is now their key concern. More than two in five (44%) say that the skills gap in their sector is likely to increase because of threats such as COVID-19, and 54% believe that they are going to need to train their workforce to adapt to the opportunities and threats thrown up by the virus.

The study, released to mark Colleges Week (19 – 23 October), shows that seven in 10 (71%) believe colleges are important to business for training and retraining staff. As a business, 39% say they would look to train, retrain or upskill their employees through colleges, compared to 21% who would turn to a university or 13% online courses. A further 44% believe colleges are best placed to skill their future workforce, compared to universities (22%) and schools (21%).

Further evidence of the importance of colleges to the UK’s future workforce shows around six in 10 (59%) say that it is important that their business has staff with Level 3 qualifications, all of which can be gained at college.

David Hughes, Chief Executive, Association of Colleges said:

“The economic recovery has to be skills-led if we are to support businesses and people through this pandemic. It is only through training and retraining that we will be able to make sure that people have the skills they need to keep their jobs and to apply for new ones, and that businesses have the employees they need. Both will allow the country to grow back better.

Skills gaps did not emerge in this pandemic, they are long standing challenges which have been exacerbated by COVID-19 and the UK nearing the end of the Brexit transition period. Government has rightly expressed its commitment to prioritising skills, but now we need the investment to flow quickly to the right people and places. People and businesses need skills and training as an urgent priority if they are going to survive the coming months, and thrive in the coming years.

Colleges in every part of the country provide first-rate education and skills, working on average with more than 750 businesses in their local community, skilling, and reskilling business staff, helping them to overcome the problems of today and prepare for the challenges of tomorrow. Colleges already do so much to support business and they stand ready to do so much more.”

Joe Fitzsimons,  Senior Policy Advisor, Institute of Directors said:

“Skills are fundamental to business, and the coronavirus outbreak has only made this clearer. However, the pandemic has also put further pressure on a training system that was already in need of an upgrade. For many firms, with uncertain cashflow, it’s proving challenging to invest further in training staff. Business leaders are ready to work with the education sector and government to ensure we can address crucial skills gaps in the months and years ahead, and the UK’s colleges will undoubtedly be a key piece of the puzzle.”

British Chambers of Commerce, Head of People Policy, Jane Gratton said:

“To remain competitive in a global business environment, employers will need to invest in upskilling and reskilling people at all levels in the workforce. Business communities will want to see greater priority from the government on further education, digital and technical skills and creating a skills system that is more agile and responsive to their training needs. Colleges are key to boosting skills levels in local business communities across the country.”

Available for interviews to discuss the research and to celebrate the key role colleges play in Britain is David Hughes, Chief Executive of Association of Colleges and Sally Dicketts, President of AOC and Chief Executive of Activate Learning Group.

Methodology: The survey was undertaken by Opinium and surveyed 503 SME leaders.