Productivity plan undermined by weak skills strategy

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The government’s productivity plan risks being fatally undermined unless more is done to address the country’s skills challenges, according to the CIPD, the professional body for HR and people development.

In response to the productivity plan Fixing the foundations: creating a more prosperous nation, published on Friday Ben Willmott, CIPD head of public policy, comments:

“Proposals in [the] productivity plan to increase the number and quality of apprenticeships and simplify and streamline the professional and technical education system are of course welcome, but only scratch the surface on solving the skills part of the UK’s productivity problem.

“We have a high proportion of people in low-skilled and low-paid jobs by international standards and an equally high degree of over-qualification with too many employees unable to use the skills they have because of poor leadership and people management, inadequate work organisation and poor job design.

“We also have a perfect storm of falling public and employer investment in further education and training. A simplistic focus on increasing employer investment in apprenticeships through a levy risks taking money away from broader investment in workforce development.”

The CIPD believes that solving these problems is reliant on a team effort, involving the government working closely with businesses, particularly SMEs, which are responsible for 60 percent of private sector employment in the UK.

Willmott continues:

“We welcome [the] announcement that Sir Charlie Mayfield will be leading a drive among large employers to boost workplace productivity but there needs to be much greater emphasis on the provision of high-quality low or no cost support, advice and guidance to help small businesses improve their people management and skills development capability and recognise the value of workforce investment. They also need help to access available public skills funding and high quality training to get the most from their people and grow.”

“It is also crucial that the government protects the adult skills budget from any further cuts as the UK’s ageing working population and rapid changes to working practices created by technology will increasingly require people in the labour market to train to keep their skills up-to-date and relevant to the changing requirements of employers.”

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  1. The Productivity plan will only succeed if the skills and resources of ‘the team’ are aligned to the needs of enterprises. Classical initiatives are likely to lead to plausible activity and fail to achieve the service outcomes envisaged.
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    OpenStrategies (www.openstrategies.com) embodies principles and an approach that identifies the ‘simplest amount of information to define complex situations, across multiple stakeholders’. This holistic approach provides a common language and focuses organisations on the Benefits to be achieved, while maintaining organisational sovereignty and governance.

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