In 2021 PwC released a report that detailed how a broad-based training program in areas such as digital skills and data could result in an additional 3.4% GDP growth and 200,000 new jobs in the UK alone. This would translate into billions in additional Government revenue enabling such a scheme to more than pay for itself. Indeed, upskilling programs have an incredibly strong track record of delivering eye popping ROI. A study by MIT Sloan School of Management found that a workforce training program focused on soft skills delivered, on average, a 250% ROI within a year of being completed. 

The benefits do not stop with increased revenue. A workforce trained in a variety of cutting-edge skills is also much more flexible and resilient. It is also a key driver of innovation. The more people who can understand and use the latest tech, the greater the chance of clever new applications being developed. Then there is the simple commercial necessity. Due to the skills gap in the UK, hiring specialists that can effectively use the latest tech can be an expensive and difficult process. Growing your own skilled team is in almost every instance much cheaper. It also has the added advantage that you can upskill your team on exactly the right skills you require. They can then apply this expertise from day one - there’s no lengthy onboarding processes.

So if the case for upskilling is so strong on both a national level and for individual businesses - why do so many SMEs decline to support these training programs?

The answer could be found in the way many SME businesses think about upskilling. First, there’s the philosophical argument that personal development is up to the individual. Indeed, it is only relatively recently that larger businesses have realised that digital training programs are not a perk but rather a commercial necessity - especially in light of the need to digitally transform.  

Second, there’s the perceived cost. For many SMEs training can be low on the priority list due to more pressing expenditures. It can be especially difficult to justify this type of expense in a volatile economy. Add to this the notion that training can be disruptive and difficult to administer and you can easily see why it can become a non-starter. However, this is an outdated view. Gone are the days when the only option was to send a team off for a week to a specialist company. Thanks to the advent of training technology there’s a huge range of ways people can learn new skills both online and in person. These programs can be tailored around both the needs of the individual and the business. The increase in options and flexibility has also pushed costs down making it a viable option for businesses of any size.  

Then there are the practical issues. What do you train people on, how do you ensure it remains relevant? Again, there is a wealth of tools and information online that can help businesses effectively tackle this challenge. You do not have to start from scratch. A simple first step is auditing the skills you already have within your business - you may be surprised by what hidden talents you unearth. From there you can identify gaps in expertise and start to think about how you would address them. This entire process is made much easier by open communication with your team. Find out what skills they want to acquire and see if you can match that to your requirements. People train faster if they are studying a skill that they already have a desire to learn.

The final hurdle is mentality. We all know that people regularly change jobs. For a business with more limited resources, it can seem incredibly risky to make this kind of investment if a newly trained individual may leave at a moment's notice. Indeed, there’s a certain logic that upskilling someone increases their ability to move jobs or demand higher pay. That’s very much a glass half empty view. Research clearly shows that businesses which invest in training programs have much higher staff retention rates, better company culture and generally higher morale. It should go without saying that happy workers are more productive workers.

Mass adoption of skills training within SMEs is not going to cure the UK’s productivity problem overnight but there’s no denying it will have a huge positive impact on growth and help to future proof careers that could become obsolete with the advent of AI-driven automation. For individual businesses it is one of the smartest investment decisions they can make. The first step on this journey is realising that upskilling technical skills is no longer just the preserve of bigger companies - it’s an affordable option open to everyone.