The government is failing to understand the training needs
of small and medium-size companies, the Confederation of British
Industry said last month.
The organisation has published a report that calls on ministers to
make training more accessible to smaller firms to help improve
business performance.
The report also seeks to dispel the myth that SMEs neglect employee
development. The CBI said almost 90% of SMEs with more than five
staff provide informal, on-the-job training but that formal
training costs are disproportionately higher for smaller companies.
Courses are rarely sufficiently flexible for SMEs and there is a
lack of reliable advice on available learning opportunities.
The CBI said ministers must recognise SMEs' specific training
requirements and offer guidance, information and support to boost
competitiveness.
John Cridland, deputy director general at the CBI, said, "Smaller
firms understand the importance of training and productivity, but
the government must see that on-the-job training works for smaller
companies."
The report said a comprehensive Michelin-style UK training guide
should be introduced by the Department for Education and Skills,
the Department of Trade & Industry and local learning and
skills councils to rate training quality and flexibility.
LSCs should also produce a regional training factsheet to highlight
the help available and fund independent brokers to offer SME
training guidance.
The report also called for vocational qualifications to be made
more SME-friendly. It proposed breaking courses into units funded
by an LSC, so firms can access the relevant elements.
Cridland said, "SMEs account for over 55% of total employment, but
their employee development is not receiving the support it needs
and deserves."
The structure of smaller businesses means staff are required to
multiskill more than their larger counterparts, and the diversity
of SMEs poses a training challenge.
"The sheer variety of smaller firms means a one-size-fits-all
approach does not meet specific requirements," said Cridland.
"Training providers should offer tailored solutions, and the
government must actively support the development of SMEs."