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Skilled Staff Make Profits-

Guest contributor is Dr. Mick Jackson, C.E. of Skills for Logistics.

Train and Survive Training designed to create highly skilled staff is paramount in generating sufficient profits to survive the recession. Improving the quality of personnel is even more important in the hard times than in the good times and suspending staff training at the moment is a false economy. The better the quality of the workforce then the better are the prospects to thrive and survive.

Significant research into the performance of the logistics sector has identified that employers view skills as vital in seeing their businesses survive the recession. The survey of around 4,500 logistics companies, carried out by Skills for Logistics (SfL), demonstrated that companies participating in training are more likely to be profitable than those that do not.

Results indicate that:-

• 83% of employers regard discretionary training as important, despite the economic downturn
  
• 41% of companies that had not participated in training saw a decrease in profitability, compared to 28% of companies that had trained.
  

Employers are telling us that especially in the current economic climate, training staff is crucial to performance. Research also clearly shows this link – businesses that take training seriously are more likely to survive through the current recession and beyond. Profitability is less likely to decrease and by sharpening the minds of their workforce through vocational training they are more likely to find new, more efficient ways of working. Better workforce skills mean better business and a brighter future.”

Companies may question the logic of investing scarce resources on staff training but research from the Sector Skills Development Agency report on Training and Establishment Survival concluded that companies that don’t train are two and half times more likely to fail - these companies do not have the skills and flexibility to compete successfully.
This is echoed by comments from Skills Secretary who has said that investing in training is essential to any business, but it is more important than ever in the current economic climate. Businesses investing in the skills of their staff do better than those that do not.

SfL research found that when training is provided, the economic trading environment and profit margins are not as big an issue compared to companies that don’t train. Companies that participate in training and skills development programmes appear better prepared to face business challenges.

In 2008, 44% of HR managers across all industry sectors expected to see cuts in their training budgets**, a figure which seems likely to be higher now.
SfL has been working to ensure that funding is available for employers to help them develop the skills of their workforce, particularly through this difficult economic time. Nearly half of all HR managers are expecting to see cuts in their training budgets** and so it is important that they know how to access the various funding channels for Apprenticeships and Modern Apprenticeships, National Vocational Qualifications, Scottish Vocational Qualifications and Skills for Life.

SfL can help businesses to access funding to develop their workforce through publicly funded vocational qualifications. For further information about how your Sector Skills Council can help your business email info@skillsforlogistics.org or call 01908 313360.

Skills for Logistics interviewed a sample of 4,777 companies based in England, Scotland, Wales and Northern Ireland. These interviews covered organisations of all sizes and across a cross sector of logistics business types, covering different modes and supply chains.”

Obituary -

Kevin Hay sadly died in tragic circumstances on September 5th at his home in Scotland.

Kevin, who served on both the NCA and DA Committee’s was a charismatic character in the courier scene – building up one of Scotland’s largest couriers companies, Citadel Couriers and then working with DMS (CitySprints predecessors) when they acquired his interest in 1999 until 2001.

Thereafter he had interests in nightclubs in Edinburgh until 2006. He was a great laugh, a true Scot and will be very sadly missed.