Malcolm Hyde, CBI: How investing in people improves productivity, so why aren't we all doing it?

People in a business were worth £17.61 trillion in 2013, more than twice as much as machinery or buildings.

It’s obvious they are key to helping a business grow and compete. Equally obvious is that businesses need to make sure they are getting the most out of all their employees to keep growing. By the end of the next decade, 90% of today’s workforce will still be in the jobs market.

Undoubtedly businesses want to do more, saying that building employee capabilities are among their top priorities. It’s hard to measure but the impact of training can lift annual budgets by 2% to 3%, paying back the programme’s cost several times over.

The impact of training can lift annual budgets by 2% to 3%
The impact of training can lift annual budgets by 2% to 3%

Even when businesses know what the returns can be, actually managing employee development throws up its own challenges.

For example, smaller enterprises might lack the capacity to run large programmes or some firms might just not know the best place to start.

Even when firms do get started, it doesn’t mean the challenges are over. They may have to front the initial cost before the rewards can be seen.

"Guidance, lessons learned and helpful tips are what’s needed to support businesses in their efforts to help staff progress..." - Malcolm Hyde, CBI

Guidance, lessons learned and helpful tips are what’s needed to support businesses in their efforts to help staff progress.

Many CBI members here in the South East are running programmes in leadership development and talent management.

They offer training across a range of topics from management, to technical areas of expertise, to workplace behaviour, running apprenticeships that bring young talent up through the company.

These are delivered both in house and through our fantastic network of colleges, universities and training centres. Links and co-operation between businesses and educational establishments are growing stronger and stronger at all levels.

Hadlow College is a fabulous exemplar of training for land and rural businesses – a sector very much at the heart of the Kent economy.

The University of Kent and its business school are honing the skills of our business leaders of tomorrow.

We look forward to seeing business productivity and job satisfaction improve.

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