UK Business Barometer

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The August UK Business Adviser Barometer survey questionnaire received 147 responses. With recent mention in the media of the increase in the rest of Europe in flexibility in the workforce versus skills lags in the UK, the emphasis in the August survey was on skills and externally sourced training.

In the first two questions in the survey we asked about shortages of Key Skills and Technical Skills and the results are presented in comparison with the results from the August UK Business Barometer Survey. The Business Advisors were asked how much their clients' businesses were constrained by these shortages, while respondents to the UKBB were asked how much their own businesses were constrained.

In the case of Key Skills, UKBB respondents appear more confident than those to this Survey, with 72% saying they were somewhat, slightly or not at all constrained, while UKBAB respondents think their clients' businesses are more constrained by these shortages, with only 53% of responses in this range.

For Technical Skills, the results from the two Surveys were in closer accord, with 59% of UKBAB respondents saying they were somewhat, slightly or not at all constrained, and 63% of UKBB respondents in the same range.

For 14% of respondents, most or substantially most clients use regular training to overcome skills shortages, but 52% find that few clients use training regularly. In contrast, 79% of Business Barometer respondents consider that regular training is very important or important to the success of their businesses.

		UKBB			UKBAB

Awareness of government support or initiatives on training is high amongst responding Advisors, with 70% placing themselves in the highly or moderately highly aware categories. UKBB respondents also feel informed in this area, but to a much lesser extent with 19% rating themselves very well informed or well informed.

		UKBB			UKBAB

A necessary condition for training to be undertaken is that employers feel it is worth their while. 54% of Advisors feel that the return to businesses on training is only sometimes sufficient, while UKBB respondents gave a mixed response to this, with 24% saying 'always' or 'mostly' and 36% saying 'sometimes', but with 30% saying 'rarely' or 'not at all'.

In terms of types of training, UKBAB respondents were most in favour of Management and Sales and Marketing training for their clients, in almost equal numbers, and much fewer from UKBAB than from UKBB thought that none of these types of training were needed. More UKBB respondents selected training in Sales and Marketing than the other options, although Management and IT were level second.

There were more votes by UKBAB respondents for Lost working hours, and then Cost as the principal adverse factors for their clients, although Cost scored 30% of UKBB respondents' total votes as the main reason for not using external training. This was followed by Lost working hours and then Quality.

Very few Advisors have over 50% of clients using web-based training, but 63% in total have at least 1% who make some use of it.

Training in systems processes was thought to be strongly attractive to clients by 18% of respondents, but 15% thought this would not be inviting.

64% of the respondents to the UKBAB reported that at least 1% of their clients already have volunteer mature business people as mentors, while 2% of UKBAB respondents find that at least 50% of their clients benefit in this way. Government is reviewing future funding for some volunteering organisations, and the Experience Corps, aimed specifically at utilising mature experience, will have to raise its own funds after March 2004. There is clearly a role for these volunteers, as 30% of respondents to the UKBB would value them highly or moderately highly, although 20% would not welcome their help at all.

		UKBB			UKBAB

The 48hrs per week rule of the working time directive is likely to affect many businesses, according to respondents to this Survey. 15% said that over 50% of clients would be adversely affected, with another 16% expecting between 25% and 50% to be harmed. Only 9% said there would be no effect on clients, but 11% returned a 'don't know'.

There was more uncertainty over the acceptability of offering longer holidays in lieu of a 48 hour week maximum: a total of 18% said that over 25% of clients would find this acceptable, but 27% returned 'don't know' on this one.

		UKBB			UKBAB

Views expressed are those of individual panellists and may not represent those of the IBA or the University of Nottingham.

Re: Q5. Is the return on investment in externally sourced training sufficient to encourage your clients to participate?

Referring to question 5. Few organisations appear to view training as an investment on which they should expect a return and perhaps most frightening of all, few senior managers seem to understand this expression!

The biggest drawback to firms providing training outside the narrow confines of their own systems is cost and the fact that they will be training staff who will use their acquired knowledge to go to other firms. Training has to be cheap enough for a small company's to be able to use the trained personnel effectively, small companies have not got the cash reserves to pay for training even if it benefited them. Basic training courses at local colleges often cost £500/600 for two or three days, there is not the incentive to lose working time to little perceived benefit.

There is probably too great an emphasis on training in discrete areas of knowledge because my perception (and that of colleagues) is that lack of management skills is the single biggest factor inhibiting the development of small businesses - esp micros.

If the 48 hour directive were applied to the sole trader/self employed, the country would grind to a halt.

More clients would value mentors if we could recruit, train and retain them. Those we have had usually stay on board for about six months. As regards working time regulations, we routinely advise clients with or thinking of taking on staff to get the staff member to sign a waiver so the regulations don't affect them particularly. Only a small number have employees.