Government calls on employers to drive improved workforce productivity

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27 / 7 / 2015 Midnight

HM Treasury has published a paper setting out aims for the UK to build on recent successes in employment growth, by improving its workforce productivity. 

Fixing the foundations: creating a more prosperous nation outlines plans to help boost UK productivity, which would bring the country more in line with leading global economies. The government's framework for raising productivity is built on :

  • encouraging long term investment in economic capital, including infrastructure, skills and knowledge
  • promoting a dynamic economy that encourages innovation and helps resources flow to their most productive use.

What does this mean for employers?

The plans rely on employer investment in apprenticeships and skills development, and as such, contain a number of measures which will have an impact for employers in the NHS and across all sectors. Among proposed improvements to primary, secondary, professional and technical education, the report announces the introduction of a compulsory apprenticeship levy. This will require large employers to support the delivery of three million well funded, high quality apprenticeships. The paper claims that this will help to address 'employer underinvestment in training, which has seen a rapid decline in the amount and quality of training undertaken by employees over the last 20 years'.

In an email to its members, the Chartered Institute for Personnel Development (CIPD) has responded to these measures, welcoming the intentions behind them, but highlighting that a lot more needs to be done to address the country's skills challenges. It suggests that an employer levy risks taking money away from broader investment in workforce development. CIPD draws on its own recently published report, Productivity: getting the best out of people to highlight that more productive workplaces require good leadership and management, as well as investment in skills and training.

Download the full report Fixing the foundations: creating a more prosperous nation from the government website and access the CIPD report, Productivity: getting the best out of people.

Support from NHS Employers to develop the skills of your workforce

We have a range of resources, advice and guidance to support employers in the NHS to invest in and develop the skills of their current and future workforce. Find out more via our apprenticeships and traineeships web pages.

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