Training and talent still key for SMEs

Businesses that spend money on training say they are best placed to save money (44%), improve staff motivation (33%) and increase retention of employees (52%).

These are the findings of the Nurturing Talent Report conducted by Cranfield School of Management on behalf of learndirect, the government backed training body.

The report interviewed well over 1,000 training decision makers in businesses across the country.  It highlights 78% of businesses believe training and development of people to create talent internally is much preferable to having to go outside to hire new people.

The cost benefits and impact on staff moral and retention are also valuable.

Despite this, only just over a third (34%) of employers have any kind of formal training programme in place.

Dr Emma Parry of Cranfield School of Management said:

With training budgets arguably amongst the first to go in a recession, this research demonstrates that growing your own is an effective way for organisations to obtain the skills they need while saving money.

Right now avoiding the steep commissions of recruiters for roles that could be filled internally is an investment worth making.

But the war for talent in terms of recruiting the very best is unlikely to abate.

Nevertheless, when competitors wobble as times get hard, there may be some great opportunities to attract their most valued staff to your business.

[Picture credit: derekb @ Flickr]