Four out of 10 employers plan to increase training investment, survey finds

More than a third (41 per cent) of employers plan on increasing investment in training compared with preCOVID levels in response to accelerating changes to work, according to the 2021 CBI/Birkbeck, University of London Education and Skills Survey.

The April 2021 survey, completed by 252 respondents, revealed that over the next 3-5 years:

Companies expect to have greater need for people with skills at entry level (balance of +31 per cent), intermediate level (+38 per cent) and higher level (+39 per cent)

Employers most expect the need for other workplace skills unattached to qualifications – such as communication and teamwork – to increase (+41 per cent).

But compared with other skills, respondents are the least confident about meeting these skills needs (+34 per cent)

Developing workforce industryspecific technical knowledge (60 per cent), leadership & management (58 per cent) and advanced digital skills

(44 per cent) are priorities for firms

81 per cent of employers are confident they will be able to support young people over the next year, for example, through training and engagement with education.

The CBI Education and Skills Survey is published against a backdrop of many companies struggling to fill vacancies, as the economy reopens rapidly from the pandemic.

The latest Bank of England Agents’ Summary of Business Conditions noted that a mix of structural and COVID-related issues were presenting recruitment challenges in some sectors.

This contrasts with the longer-term outlook in this survey, where firms are more confident in their ability to access the skills they need in five years’ time.

In April 2021, before shortages began to bite, nearly four in five CBI/Birkbeck survey respondents were confident in their ability to meet entry level skill needs over the next 3-5 years through recruitment or training, but around one in five were not.

Matthew Fell, CBI chief UK policy director, said: “While four in 10 firms are stepping up to the plate and boosting investment in skills already, there is still a long way to go to reach the levels of investment needed to reskill the nation.

“CBI/McKinsey research shows that pre-pandemic the world of work was changing, with nine in 10 employees needing to gain new skills by 2030 to the tune of £13billion a year.

“COVID has only accelerated this trend further.

“Firms are currently facing a perfect storm of staff shortages worsened by rising levels of self-isolation.

“They’re taking immediate steps to resolve this, investing in skills and automation and strengthening inclusion.

“But the Government needs to play its part too on skills and immigration.

“Longer-term, the Skills & Post-16 Education Bill is an opportunity to deliver on the confidence of most firms that they can meet skills needs in 3-5 years’ time.

“To support individuals to gain new skills, the Government should make flexible, bitesize training more accessible before the Lifelong Learning Entitlement is introduced in 2025.

“Building closer local links between employers and education providers will also be key to supporting every UK region and nation to thrive and ensuring our economy can fire on all cylinders.”

Professor David Latchman, vice-chancellor, Birkbeck University of London said: “As the economy emerges from the events of the last 18 months, it is important that there is a renewed focus on ensuring that the workforce have the skills needed by employers not only to aid economic recovery but also to sustain future growth.

“Both higher and further education providers have an important role to play in play in meeting these needs.”