News and features

Mon, 8 Dec 2008

Training investment "essential" in retaining competitive edge

Service-led economy demands makes employee knowledge an asset, says CIPD.

Investing in employee training is an "essential" element of staying competitive in the modern knowledge-driven economy, the Chartered Institute of Personnel Development (CIPD) has said.

The organisation's learning and development advisor, Martyn Sloman, said firms now contend with each other on "value-added" services, including the skills and knowledge of their workforces.

Therefore, companies that fail to nurture this side of their business risk falling behind their competitors both domestically and around the world.

He cited India as an example where investment in developing employee knowledge is helping the country's technology firms to compete with established global brands like IBM and EDS.

However, the Entrepreneurship UK 2008 report from Deloitte indicates that the UK needs to do more to establish a culture of internal improvement.

It found that despite 31 per cent of firms saying the main barrier to growing their business is a shortage of quality staff, only 23 per cent focus on developing their existing employees through internal promotion.

>> Read more on how you can release the hidden skills of your staff, to help support your business growth.