More Efficient and Skilled Workforce Would Lead to a 20 Percent or More Profit Increase: New Research Urges Employers to Step Up Training Efforts

Results from a new survey "Training Out of the Recession," completed by The Economist Intelligence Unit, show that companies and organisations need to redouble their commitment to job training, calling employee skill enhancement a vital component to increased productivity and profits. Promethean, a global interactive technology company, commissioned the survey.

"The findings of the EIU analysis confirm that training not only leads to increases in productivity and customer satisfaction, but at least a 20 percent jump in profits," said Promethean's Chief Education Officer Jim Wynn. "Skills training is not just a growth issue, but a vital component for companies in surviving this recession. The challenge is that fewer employers are devoting adequate resources to training yet the benefits of training are hard to ignore."

The Promethean-Economist Intelligence Unit survey included 252 business executives and public sector workers from the U.K. and the US. 46 percent of the respondents were from the U.K. and the remaining respondents were from the US.

The survey found that high unemployment in the United Kingdom has taken a toll on the job prospects, skills and training of the working age population in the country. The level of U.K. unemployment stands at 8.4 percent, the highest since 1994[1] with 16-24 year olds worst affected (23% unemployment). A recent report by the International Labour Organisation said that the wide-spread long-term unemployment rate in the U.K. could result in "huge economic and social costs".

Though the U.K. government is under pressure to create jobs and kick-start economic recovery, employers say that jobs are not in short supply, rather workers with the appropriate skills and talent. The skills-gap, which determines the difference between the skills needed on the job and those possessed by the applicants, is of real concern to employers looking to hire competent employees.

"During this challenging time we are all making strides to combat unemployment so we must all recognize that training is a key component to stimulate growth and therefore an issue for employers, employees and the nation," Wynn said. "Improving the quality of training starts with increasing collaboration and interactivity to support a more personalised training experience. As a result, we will see a boost in productivity, the strengthening of our businesses and benefits to the economy as a whole."