Businesses risk losing future leaders by failing to provide sufficient training or opportunities in the downturn, an industry body has warned.
A nine-month study by the Chartered Management Institute (CMI) found that almost half of respondents feel they are not allocating sufficient resources to training and development as a result of the recession.
More than one-third of managers said they thought the development of senior staff in their organisation would decrease over the next six months, despite the fact more than half acknowledged that loss of skills would threaten future revenues.
CMI warned that many businesses are already facing a shortage of leadership experience as the economy begins to recover, given that more senior managers have been made redundant over the past year than junior staff.
Petra Wilton, director of policy and research at the CMI called on the government to do more to ensure that businesses are in a position to keep training their staff.
She said: “Where possible, organisations should look at other areas of the business before cutting back on training as skills development is essential if they are to be well placed when the economy eventually picks up.
“However, we realise that many organisations have now exhausted all over alternatives and the onus is now on the government to step up to the mark and deliver support.”
More than 80% of respondents called for tax breaks for investment in skills and training.
© Crimson Business Ltd. 2009