Equipping young people with core skills isn’t just the government’s job – retailers and centre owners have a responsibility too.
Upon launching his final report in December 2006, Lord Leitch famously described how improving skills is the key to unlocking people’s potential. He claimed the UK was no longer able to rely on natural resources and cheap labour, as it did in the 19th century, to maintain its prosperity. “In the 21st century, our natural resource is our people – and their potential is both untapped and vast. Skills are the key to unlocking that potential. The prize for our country will be enormous – higher productivity, the creation of wealth and social justice.” Never is this more true than during a downturn.
It is often tempting for recession-hit businesses to slash training budgets during times of hardship. The upshot of such dramatic and short-sighted cost-cutting measures could be businesses facing a skills shortage when the good times return. Speaking at the annual Skillsmart Retail Parliamentary reception, Skillsmart chairman Martin Beaumont said it is vital to continue training within the retail sector. “We mustn’t forget that we have nearly 3m people employed in retail and it’s their talents and skills that are key to sustaining us during these desperate times and preparing for the future and the upturn when it comes.”
Indeed, retail is a sector that has often been overlooked as a ‘serious’ profession, said Sainsbury’s chief executive Justin King, speaking at the same event, despite the crucial role it plays in the economy. “Somehow we were viewed as doing a lesser or inferior job to the jobs being done elsewhere in British industry.” However, King welcomed a “fundamental change in that attitude” as the retail sector is finally gets “the recognition it deserves for the jobs it creates and the wealth it creates”.
It is also key to demonstrate that a career in retail is one worth pursuing, said John King, chief executive of House of Fraser. “What we really want to do is showcase retail in all of its beautiful glory to the parents so we can say retail is not just about stacking shelves; it’s a serious, serious business,” he urged.
And this serious business needs serious employees. A recent report by CBI and KPMG found that four in 10 of London’s businesses complain of problems recruiting suitably qualified staff, despite rising unemployment. Yet, training budgets continue to be slashed.
Conversely, both Sainsbury’s and House of Fraser are pouring investment into their skills and training programmes. Sainsbury’s approach is multi-tiered: firstly, an internal opportunity portal brings together all job recruitment and skills information. Employees are offered Skills for Life training, where they learn core English and Maths skills. “Many of our 16 year olds actually leave school without basic skills,” explained Justin King. “We can bitch all we like but what I think we should do is engage in helping those 16, 17, 18 and often 20 and 30 and 40-year olds who haven’t acquired those skills, and want to.” Sainsbury’s also offers staff the opportunity to study for job related qualifications giving them nationally recognised, transferable skills.
House of Fraser, another keen proponent of the skills agenda, is a fierce supporter of the new Diploma in Retail Business – a new qualification for 14 to 19-year olds in England that will sit alongside GCSEs and A levels and give students hands-on experience of working in retail. “The diploma provides children coming out of school with knowledge about our industry, so they hit the ground running,” said John King.
Indeed support for training and improved skills in the area is springing up everywhere – Cheshire Oaks Retail Academy, based at McArthurGlen’s Cheshire Oaks Designer Outlet was a founding member of the National Skills Academy for Retail, a UK government-backed network of training centres designed to increase productivity in the sector.
The message at the Skillsmart event was clear: to those thinking of cutting investment: don’t. As Christine Russell MP said, retailers will be grateful in the long-term. “Business that recover the fastest, and the best, will be those who continue to invest in training and skilling their workforce.”
