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News Release from: Barclays
Edited by the Manufacturingtalk Editorial
Team on 16 November 2007
Planning future workforce is a big
problem
When planning for future business, UK manufacturers reckon employee strategy is the most difficult part of any business plan, according to a commercial bank's survey.
Barclays Commercial Bank has said that UK manufacturers find the workforce the hardest single factor to plan for when considering the future success of their business Apparently 74% of business plans people strategy is the most difficult
This article was originally published on Manufacturingtalk on 22 Apr 2005 at 8.00am (UK)
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They was considered this to be even more important than trading overseas (15%) or additional cash flow (14%).
Recognising this need to prioritise people, the survey said that 40% of UK manufacturers have already invested more in recruitment and employee development over the last 12 months.
These findings echo the emphasis placed on workforce related issues in last week's Queen's speech.
It featured new measures around flexible working as well as an Education and Skills Bill designed to implement Lord Leitch's recommendations on adult skills.
Head of Manufacturing at Barclays Commercial Bank, Ray O'Donoghue, said: "It's revealing that people related issues such as the skills gap, retention and succession planning are seen by businesses as the hardest thing to get right when planning for the future.
Business leaders have been talking for some time about 'the war for talent' and this research shows just how tough it is to develop a successful people strategy".
He continued: "However, despite clear thinking about the impact these issues may have on a business, it's not always translating into solid, strategic action.
For example, 42% of manufacturers have not given thought to a comprehensive succession plan for their managing director or CEO and this could cause major disruption in the case of a sudden departure".
Acting chief executive of Investors in People, Simon Jones, said: "The emphasis that the UK's manufacturers are placing on their employees is encouraging.
However, if businesses are to remain competitive, they must factor all elements of their people requirements into their business planning.
Failure to employ the right people, with the right skills set, can have a real impact on the bottom line and prospects for future growth of a business".
Looking at business planning more widely, the research found that for 87% of manufacturing businesses, day-to-day pressures get in the way of effective long-term planning.
Worryingly, said Barclays in its report to manufacturingtalk.com, one in seven has no business plan in place at all and many of those that do fail to follow theirs consistently.
Barclays Business Banking was re-branded as Barclays Commercial Bank in November 2007.
The new identity is designed to have greater resonance with existing and target customers.
Barclays Commercial Bank supports mid-size and larger businesses across the UK through a network of relationship and industry sector specialists who help customers manage issues such as financing growth, international trade, risk management and business planning.
The Barclays research was conducted in October 2007 amongst over 500 mid-size and large corporates.
* About Barclays Commercial Bank - Barclays Commercial Bank provides relationship banking to 151,000 larger and medium business customers in the UK (GBP 1m to 1bn turnover).
Customers are served by a network of relationship and industry sector specialist managers who provide local access to an extensive range of products and services, as well as offering business information and support.
Customers are also offered access to the products and expertise of other businesses in the Group, particularly Barclays Capital and Barclaycard.
Barclays Asset and Sales Finance - a specialist business within Barclays Commercial Bank - provides customers with asset financing and leasing solutions.
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