Employers rate skills shortages a key threat to retail sector
Employers across the retail sector see skills’ shortages as a significant threat to business performance in 2006, according to a business poll released today.
The poll into Foundation Degrees reveals that a staggering three out of four employers (72 %) predict that their business will be threatened in 2006 by a lack of skilled personnel to fill recruitment needs.
Furthermore, four out of five employers (79%) believe that they may suffer from a lack of skills amongst their existing workforce. However, despite recognising the enormity of the skills’ threat, still only 12% have actually been involved to date in designing courses to help combat the skills issues that their business faces.
Given that one of the greatest threats to business in 2006 (along with falling consumer spending) is judged to be increased competition in the marketplace (90%), employers in the retail sector are proving slow to take action to seize the skills’ initiative and increase their competitive edge.
With one in four employers in the sector (26%) doubting that they will meet business targets in the next financial year, this research serves as a call-to-action to employers to take control of their own business’ success.
The poll also identifies that the retail sector backs vocational qualifications as a concept, with an enormous 82% supporting vocational training provision – the highest percentage of any sector. 87% believe that there is a clear link between training and profitability and 98% agree that encouraging staff to increase their skills helps to increase employee
satisfaction and retention.82% state that the combination of academic knowledge and work-based experience – offered by Foundation Degrees – provides the best preparation for graduates entering the workforce. However, in spite of this, employers are still not going far enough: nearly one in five (18%) are not involved with any kind of vocational training for their workforce, let alone committed to the design of courses to help meet their specific business needs.
Bill Rammell, Minister for Lifelong Learning, Further and Higher Education, said: ” I am pleased to see employers in the retail sector continue to back vocational qualifications. I want more UK business leaders to come on board and commit to the design and delivery of Foundation Degrees.Foundation Degrees were introduced in 2001, designed in conjunction with business so that they are specifically tailored to individual employers’
needs and can help bridge sector-specific skills gaps. Feedback from early adopters such as Youngs Bluecrest and Radisson Edwardian show that these qualifications have real, quantifiable benefits to the bottom line. We’d like to see more employers seizing the skills initiative – and reaping the benefits.”
