Where should your business invest funds in 2022? – FE News

It’s no secret that business landscapes are constantly changing, regardless of your industry. From manufacturing to digital, and everything in between, there are always new developments surfacing and new challenges for your business.

In some cases, these challenges can be met by thoughtful and strategic spending of your business funds.

But what are the challenges we are currently facing?

In some industries, like manufacturing, the problem is generational. In the 2022 economic forecasts recently published by Forbes, they highlighted a worrying trend: on one side of the generational divide, young people express a complete lack of interest in manufacturing jobs; on the other hand, skilled workers retire and take their skills and knowledge with them, with no one to pass them on to.

Other areas, like digital, face a whole different set of skills-based challenges. Instead of skills remaining the same and people changing, today’s digital workforce cannot keep pace with the skills needed by an ever-changing industry.

The ripple effect of these skill gaps? Research from the Resolution Foundation found that gaps in basic and technical skills lead to significant loss of productivity in the UK economy.

But the skills shortage is not the only problem facing the UK workforce.

The effects of the pandemic have caused many workers to reconsider their priorities. There has been an increase in the number of people changing direction in their careers, with a new emphasis on flexible or hybrid working as a compelling incentive. Despite this, the IET found that only 38% of organizations have redesigned their offering to meet this desire, leading to retention issues.

Further research by the Resolution Foundation has shown that over the past five years investment in the UK economy has increased by only 1%. This places us well behind the average investment of 16% that can be found in France, Germany and the United States. The report goes on to say that the main area of ​​underinvestment is human capital.

Sarah Clifford, Learning Manager at Futures Management Group, commented:

“Investing in your people with a strategic skills discovery plan fully helps any business plan for investment and growth where it deems necessary, both now and in the future.

At Futures, we provide a fully customized organizational needs analysis service to determine the resources and skills you need to support your business.

So if the question is where your company should invest its funding in 2022, the answer seems obvious: in its employees.

Investing in apprentices It has been proven to increase a company’s productivity. If you’re struggling to recruit new talent and pass on skills to your retiring workforce, apprenticeships could give your business a significant boost.

If your Current employees do not have the required level of skills, invest in building and developing their skills, rather than looking for new talent. The investment in their training will return to you through increased retention.

And don’t forget to invest in yourself – updating your business model to meet the changing needs of your workforce will stand you in good stead in the future.

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