One only has to look at recent figures released by the Markit/UK CIPS Services purchasing managers’ index which shows that the service sector, accounting for around 75 per cent of the UK economy, grew at its fastest rate in eight months in April 2013.
Companies, large and small, are growing in what can often be hostile economic conditions, and it is reassuring. The one consistent theme across all companies bucking the economic trend and managing to secure growth is that they have invested in their staff.
It is true that the economic downturn meant that many businesses had to scale back on the amount of time they were able to invest in training staff. Cutbacks in workforce and stagnant wages have resulted in people having to do more for less, with downtime for training purposes not necessarily being seen as a means to boost the bottom line.
SMEs can incorporate cost-effective training and development solutions for staff into their corporate strategy. First and foremost, staff training should not be a luxury, no matter what state the economy is in or whether your business is large or small. In an increasingly competitive industry, the importance of developing existing staff in order to retain them in the long run should be high on the agenda.
Furthermore, it is said that two-thirds of chief executives in the UK have found that skills gaps have hindered their growth prospects. This should come as no surprise. With our ageing population and with rising resignation rates, even in the recession, employee engagement and paying attention to pivotal roles are crucial steps to take.
For these reasons the Financial Skills Partnership has developed the smaller firms partners programme to offer SMEs an expanding range of online toolkits and guidance, as well as practical information to support them in developing the skills of their employees. Through annual membership, free until 2014, SMEs can access an array of resources containing thousands of pounds worth of content.
The programme does not focus only on existing staff, but also on prospective new recruits such as graduates and schoolchildren interested in pursuing an internship in the financial and professional services sectors in order to gain valuable work experience. Through the programme, FSP acts as an ‘enabler by providing online resources as well as information for SMEs on regulatory and non-regulatory topics related to skills. The aim to equip SMEs to operate and grow their business in an ever-changing industry climate.
A component of the programme is the training and competence toolkit that provides SMEs with the instruments to build their own schemes. The toolkit, and some other initiatives mentioned here, was partly funded by the UK Commission for Employment and Skills to provide businesses with the necessary resources to ensure that they are developing their staff. Essentially the toolkit helps companies make the most of their people and is flexible enough to be changed as businesses need change.
We must also remember that the Financial Conduct Authority stated that having an effective training and competence scheme was a business requirement. The toolkit clarifies the regulatory changes, including requirements of the retail distribution review, so businesses are kept up to date and develop staff in line with upcoming changes.
The toolkit guides companies through the process using examples of good working practice developed by practitioners in the financial services sectors. It provides pre-written templates you can use to create your business T&C Toolkit policy document. Everything you need is already there.
To find out more about how the Smaller Firms Partners scheme can help you grow your business, and up-skill your workforce, and to find out about our other resources, do get in touch with us.
Liz Field is chief executive of Financial Skills Partnership
Key points
The service sector, accounting for a significant amount of small to medium-sized enterprises in the financial services industry, has managed to grow despite tough economic conditions.
SMEs can incorporate cost-effective training and development solutions for staff into their corporate strategy.
Financial Skills Partnership has developed the smaller firms partners programme which offers SMEs an expanding range of online toolkits and guidance.
