Successful companies value staff development in building strong businesses, here are two.

Fusion Personnel employs 150 staff packing fruit and vegetable produce for major retailers. A large proportion of the staff do not speak English as their first language and many had poor literacy and language skills. This led to some problems with mislabelling of produce, which affected the company's relationship with its customers. It also meant that staff were less productive because they were relying on colleagues to help with tasks involving writing. To address these issues the company developed a training programme, 'Dynamic Skills'. This delivers the basic literacy, numeracy and language skills staff need to perform their jobs effectively and to help them with everyday tasks such as filling in doctors' forms. 60 staff are now undertaking weekly training. Plans include becoming registered as a training provider, to further develop their training programme to allow staff to work towards NVQs, and to work with customers and suppliers as well as their own staff.

The Results
The business gains in staff retention; increased productivity and better quality of work; and improved customer relationships. Staff are more motivated and more satisfied with their jobs.

Simplastics, employing 20 staff, specialises in the manufacture of bespoke plastic and steel fabrications. Alan and Sue Burton took over in 2001 and quickly achieved a significant shift in the business by installing a new computer system. Making training a central policy of the business they encouraged the entire workforce to attend learndirect courses at the local IMC Fulwood Learning Centre (free through European funding). Each of the staff gets one and a half hours of work-time a week to follow their studies.

The Results
The IT skills of staff, right across the company, have improved dramatically. Stocktaking and financial reporting are done on a spreadsheet, and other office processes have been streamlined. Many staff are now taking more advanced courses and others have been able to improve general numeracy and literacy skills. Impressed with what learndirect has done for Simplastics, Alan and Sue have joined the steering committee for IMC Fulwood.

• Employees rate 'interesting and stimulating work' and 'providing training for all' among the four most important factors influencing job choice along with 'pay' and 'job security'. Source: The Work foundation /Future Foundation The Ethical Employee 2002
• In a large study of SMEs, firms employing between 10 and 20 employees who provided training had a significantly improved probability of survival, even when allowance was made for other factors. Source: Study by Small Firms Enterprise Development Initiative (SFEDI) and Centre for Enterprise 1999
• 64% of employers with 5-24 employees who had provided training reported that this led to an increase in labour productivity. For large companies the figures increase. 88% of employers with 200 - 499 employees provide both on-the job and off-the-job training. Source: Learning and Training at Work 2002 National Statistics office
• Internal skills gaps in small businesses create difficulties in introducing technological change (31%), or new working practices (28%) and impose increased operating costs (26%). Source employee skills survey 2001
• Most commonly reported activities for improving employee performance were learning by doing on the job (85%) discussions with the manager (81%) observing other employees (67%) and coaching or mentoring (61%). Source: FSB/SFEDI Survey 2001