WHY INVESTING IN STAFF TRAINING IS THE KEY TO RECRUITMENT AND RETENTION SUCCESS

In today’s competitive UK labour market, finding and keeping top talent has never been more challenging. With recent data revealing heightened job-seeker activity in January and increasing resignation rates, businesses need to rethink their strategies. One solution stands out: investing in staff training.

Let’s explore how focusing on upskilling your workforce can solve key recruitment and retention challenges, with insights from the UK and the Liverpool City Region.

Navigating the UK’s Labour Market Trends

As of late 2024, UK job vacancies had fallen to 818,000— their lowest since May 2021 [Statista, 2024]. While this represents a 15% year-on-year reduction, the competition for roles remains fierce. Graduate positions, for instance, now see an average of 140 applications each, a record high since 1991. [The Times, 2024]

Meanwhile, the trend of ‘job leavers’ surges every January. Whether it’s due to new-year motivations or burnout, many professionals look for opportunities that align with their values and career growth goals. Businesses must respond strategically to stand out in this dynamic landscape.

The Role of Vocational Training and Further Education

While higher education often takes the spotlight, vocational and technical training offered through Further Education (FE) is a crucial driver of workforce development, social mobility, and economic growth. These programmes equip individuals with practical, job-ready skills, catering directly to employer needs in industries such as healthcare, construction, digital technologies, and creative arts.

The City of Liverpool College, a leading FE institution, is a powerful example of how vocational training transforms lives and communities. Offering a range of employability, and professional development programmes, they support employee recruitment and retention. Initiatives include:

• Apprenticeships: Providing practical, hands-on training that enables new and existing employees to learn on the job while earning a qualification.
• Employability Training: Helping jobseekers of all ages upskill and transition into new careers through Skills Bootcamps developed with anchor employers.
• Professional Development: Upskilling existing employees to improve productivity and career progression opportunities.

By addressing skills gaps directly, colleges like City of Liverpool drive upward social mobility, enabling individuals from disadvantaged backgrounds to access high-paying, secure jobs. Their work also boosts regional productivity, as local talent pipelines better align with employer demand.

Why Training is Critical for Recruitment and Retention

Investing in staff training isn’t just about ticking a box—it’s a practical strategy for tackling recruitment and retention challenges. Here’s how:

• Enhanced Recruitment: Training opportunities make businesses more attractive to job seekers who value growth. Studies show that 68% of workers factor training into their decision to apply for a job (CIPD, 2024).
• Improved Retention: Companies offering comprehensive development programs report up to 34% lower turnover [LinkedIn Learning Report].

Moreover, vocational and technical training initiatives foster resilience in an ever-changing labour market, benefiting businesses and their employees alike.

Retaining Employees Through Learning Opportunities

Staff turnover is costly, with recruitment expenses often overshadowing initial training costs. So how can training support retention?

• Increased Engagement: Employees who engage in professional development are more invested in their roles and organisations and 45% more likely to stay with a company for three or more years. [Gallup, 2024]
• Pathways for Growth: By offering upskilling programs, companies provide clear progression routes, addressing the ambitions that often lead employees to seek external opportunities.
• A Culture of Loyalty: Employees who feel valued by their employers are less likely to leave.

How to Get Started with Staff Training Investments

For businesses ready to embrace training as a recruitment and retention tool, here are some actionable tips:

1. Conduct a Skills Gap Analysis: Identify areas within your team that would benefit from new expertise or technical skills.
2. Partner with FE Colleges: Collaborate with institutions like the City of Liverpool College to access tailored training and apprenticeship solutions.
3. Embrace Apprenticeships: Benefit from government incentives and create loyal talent pipelines.
4. Foster a Learning Culture: Embrace mentorship programs, fund external qualifications, or invest in digital training tools to engage employees.

Conclusion

In an ever-shifting labour market, investing in staff training isn’t just an expense—it’s a strategy for survival and growth. By focusing on development, organisations can recruit top talent, keep their existing workforce engaged, and enhance overall performance.

With inspiring examples like those in the Liverpool City Region, UK businesses have a clear blueprint to follow. Prioritise training today and reap the benefits of a more loyal and skilled workforce tomorrow.

By Kat Johnson, City of Liverpool College, College for Business

Do you need a free skills gap analysis? Want access to tailored training packages that support your business. Contact [email protected] and let us know how you’re approaching recruitment and retention in 2025!