- Chartered Management Institute Press Release

Employers running the risk of losing their future leaders by failing to provide adequate training

Organisations across the UK are in danger of becoming ‘rudderless’ and stale, according to figures released today.  There are signs to suggest that business leaders know how to tackle the problem – but the Chartered Management Institute (CMI) is warning they won’t succeed without Government help.

The data, which comes from a series of research projects undertaken over the past 9 months, has been issued in the run up to Learning at Work Day (14 May 2009) – a national campaign spearheaded by the Campaign for Learning.

According to the findings, employers run the risk of losing their future leaders because they are failing to provide adequate training (46 per cent) or career opportunities (also 46 per cent) as a result of the recession.  With more senior function heads made redundant over the past year (2.3 per cent) than junior staff (1.3 per cent), many organisations are facing the prospect of a future without adequate leadership experience.

However, asked what can be done to rectify the situation, 82 per cent of respondents argued that their employer should focus on skills development as a route out of the recession.  Asked why, one-third (34 per cent) suggested that poor management skills will have a negative impact on future performance and 52 per cent suggested that loss of skills will also threaten costs and revenues.

Worryingly, the figures show that over one-third (38 per cent) of managers believe that their organisations’ management development will decrease over the next six months.  The proportion focusing on developing core staff has also dropped – from 44 per cent in September 2008 to 22 per cent at the end of March, 2009.

The findings make it clear that whilst employers realise that a skilled workforce is an integral part of the recovery process, they need Government support.  Just 22 per cent say ‘Government can do little to affect the downturn’ and 85 per cent believe tax breaks for investment in the skills of their workforce should have featured in the Budget.

Petra Wilton, director of policy and research at the Chartered Management Institute says, “Where possible organisations should look at other areas of the business before cutting back on training as skills development is essential if they are to be well placed when the economy eventually picks up.  However, we realise that many organisations have now exhausted all other alternatives and the onus is now on the Government to step up to the mark and deliver support.”

Tricia Hartley, chief executive at the Campaign for Learning says, “Learning at Work day aims to draw attention to the importance of workplace learning and skills.  The troubled economic climate means that the focus on skills, especially those necessary for business success is higher than ever.  During this unsettling time for workplaces, maintaining the ability and motivation to learn and adapt quickly to change is essential.  We should be reflecting on our skills needs at an individual and business level and taking action where needed.”

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