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02/02/2004
10% of UK workforce is incompetent: survey
Britain's employers believe that 10% of their staff – or around 2.4 million of the working population – are incompetent, according to a survey commissioned by the Learning and Skills Council (LSC).
A survey of 72,000 employers, the largest of its kind, also revealed that one-fifth of job vacancies in England remain unfilled because of a lack of skilled applicants – some 135,000 vacancies.
Almost half of employers reporting “skills shortage vacancies” said that they were losing business to competitors as a result of the lack of skilled workers. Other effects of skills shortages in the job market include poor customer service (52%) and an increased workload for existing staff (83%).
Skills gaps within employers’ existing workforces were also found to be a significant problem, with more than one fifth (22%) of employers saying the skills of their workforce were not up to scratch. Having an under-skilled workforce adversely affects the bottom line for more than 30% of these employers, who stated higher operating costs as a consequence.
Mark Haysom, Chief Executive of the LSC, said: “To remain competitive both nationally and internationally, English businesses must be strategic about staff training and development. This survey, the largest of its kind into the skills needs of employers in England, will allow us to better identify those specific areas most in need of investment, and continue our work with employers to develop solutions. We need businesses to recognise the issues at stake here and work in partnership with us.”
According to research by Ernst & Young, industry losses through lack of basic skills were estimated to be as high as £10 billion annually. The research also revealed that the same lack of basic skills costs a typical business with 50 employees £165,000 a year.
Output per hour worked is around 30% higher in the US, France and Germany than in the UK.
A recent DTi report stated that overall UK innovation was at best average compared to major international competitors.
(gmcg)
A survey of 72,000 employers, the largest of its kind, also revealed that one-fifth of job vacancies in England remain unfilled because of a lack of skilled applicants – some 135,000 vacancies.
Almost half of employers reporting “skills shortage vacancies” said that they were losing business to competitors as a result of the lack of skilled workers. Other effects of skills shortages in the job market include poor customer service (52%) and an increased workload for existing staff (83%).
Skills gaps within employers’ existing workforces were also found to be a significant problem, with more than one fifth (22%) of employers saying the skills of their workforce were not up to scratch. Having an under-skilled workforce adversely affects the bottom line for more than 30% of these employers, who stated higher operating costs as a consequence.
Mark Haysom, Chief Executive of the LSC, said: “To remain competitive both nationally and internationally, English businesses must be strategic about staff training and development. This survey, the largest of its kind into the skills needs of employers in England, will allow us to better identify those specific areas most in need of investment, and continue our work with employers to develop solutions. We need businesses to recognise the issues at stake here and work in partnership with us.”
According to research by Ernst & Young, industry losses through lack of basic skills were estimated to be as high as £10 billion annually. The research also revealed that the same lack of basic skills costs a typical business with 50 employees £165,000 a year.
Output per hour worked is around 30% higher in the US, France and Germany than in the UK.
A recent DTi report stated that overall UK innovation was at best average compared to major international competitors.
(gmcg)
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