The UK is still dealing with Groppling and what economists have called “the productivity puzzle.” Since the 2008 global financial crisis, export growth has been sluggish compared to international competitors such as the United States, Germany and France. Weak productivity holds wages back, slows economic growth and limits our ability to fund essential public services.
The government is well aware of the need to start growing. The industrial strategy has identified eight key sectors with the highest potential, emerging from the clean energy of Life Sciences. More recently, the creation of skills in England signals a renewed national effort to increase certain technological and industrial expertise. These moves are important, but they are only part of the puzzle.
A case of climbing
Jules Bennington – Chief Policy Officer, Chartered Management Institute, explains that a dynamic economy depends on consistent performance, learning and innovation and innovation and creativity. However, employer investment in training has plummeted, falling by 28% since 2005, even as the demand for employable skills continues to rise. Without decisive action to close skills gaps, the UK risks losing its growth ambitions.
Obviously, the challenge is not limited to technical knowledge. The National Foundation for Education Research (NEF) has shown that key employability skills such as collaboration, communication, planning, problem solving and decision making are critical to future success. The very skills that enable technological knowledge to be put to the best use, unlocking profitable productivity in all sectors.
Core Competencies: The foundation of good management
These important processes reflect the qualities of effective managers and leaders. They are enrolled in the Chartered Management Institute (CMI) Extraordinary for management and leadership, which sets the ethics, skills and leadership abilities to lead teams, drive innovation and manage change.
Strong management is not a “nice to have.” CMI analysis shows there are 8.4 million managers in the UK – around one in four. However, most have never been trained. Our best managers researched and found that:
- 82 percent were developed without formal training, to “become managers by accident.”
- Half Half is not management or leadership guidance.
- One in three managers – including a quarter of senior leaders – have never received any formal formal training.
International comparisons emphasize the cost of the gap. The analysis shows that the UK lags behind countries such as the US, Germany and Sweden in the management of roads – a deficit linked to low productivity.
Why management skills face everyone
Management and leadership skills are consistently identified as the most sought-after skills in skills assessments in England where demand lies in the most important sectors. The benefits of these skills extend beyond the economy – from advanced manufacturing to health and social care.
But good management isn’t just about hitting growth targets; It’s about creating great work. CMI research shows that having a supportive manager is the most influential factor in employees feeling heard and included. Effective managers are key to employee development, employee retention, adoption of new technologies such as AI, and supply chain coordination.
Wherever people work together, critical employability skills and good management are the glue that turns technical knowledge into tangible results.
Shared responsibility for action
Employers have an important role to play, but they cannot bridge the gap alone. The steep decline in employer-sponsored training highlights the need for strong public policy. At the same time, businesses have called for higher skills, especially in management and leadership.
That is why CMI encourages the government to retain the skills it has previously employed and the institution as tax literacy comes from growth and broad skills. We need a system that allows employers to access high-quality, affordable, accredited training – flexible enough to meet urgent business needs and tough enough to raise national standards.
A skills agenda for growth
Technology will always be important to economic development. But without the key recruitment and management skills identified by NFER and embedded in CMI’s Const standard, technical skills alone cannot bring productivity beyond the UK level.
If we want a globally competitive, strong and collaborative economy, we must invest not in people’s technical knowledge, but in how they work together to incorporate this knowledge. Now is the time to ensure that basic skills are recognized as room for productivity and good work.
NFER’s final report on the 2035 Priority Plan will be published on Tuesday 19 November.
