Developing an employee training programme starts with a wider workforce planning strategy, where businesses link people and skills requirements to the organisation’s strategic objectives. As part of this exercise, businesses need to develop a clear understanding of existing skills and future requirements, and the resulting gaps between the two.

Choosing the right training vehicle

Filling those skills gaps should be an undertaking for the entire senior management team, and – as we covered in this article – finance directors have a key role to play. Writing a comprehensive training plan will enable all managers to identify the appropriate training for their teams and, in turn, the right funding sources. Apprenticeships are one of the most high-profile training pathways and can provide a valuable source of training budget for new and existing staff, but there are also other options that businesses can consider. 

Lizzie Rowley, Senior Skills Policy Adviser at the Chartered Institute for Personnel and Development (CIPD), states: “It’s important to use the right learning vehicle to meet your skills needs. Well-run apprenticeship programmes can deliver huge benefits to organisations, but they take at least 12 months, and there is the off-the-job training requirement of six hours to back-fill. It might be that a shorter, more modularised approach is more appropriate.” 

Skills Bootcamps – flexible training courses covering a range of sectors and lasting up to 16 weeks – are a useful part-funded option for employers to factor into their evaluations. Launched in late 2020, they can also be tailored to meet an employer's specific needs for training existing staff. Employers need to make a contribution of 10-30%, depending on their company size. There are also one-off training courses and the potential to develop in-house programmes.

Accessing local support

There is a wide range of local learning and skills support available, too. This can be in the form of advice, guidance for how to access funded or part-funded training courses or, in some instances, grants to cover associated costs, such as travel to training courses. The specific local support depends on the location, with approaches varying between the UK’s four nations and in England between devolved and non-devolved authorities.

It is also a changing landscape. Since 2014, Growth Hubs operated by Local Enterprise Partnerships (LEPs) have been one of the primary sources of localised skills support for businesses in England. However, with funding for LEPs ceasing from April 2024, some Growth Hubs are closing, while the operation of others is being transferred to the local authorities.

A good starting point in England is to contact the designated employer representative bodies (ERBs) for the Local Skills Improvement Plans (LSIPs), which were launched in 2022. LSIPs are being implemented in all 38 areas of the country and are administered by ERBs, which are typically – though not always – the local Chamber of Commerce. In addition, it is worth contacting local further education colleges and other training providers, which typically have dedicated employer engagement teams. These can advise on or help to develop bespoke training programmes and are generally well-versed in local funding sources.

For those businesses based in one of England’s 10 devolved combined authorities, there may be additional support. Many of the combined authorities are noted for developing strong regionally focused learning and development plans, which seek to address local issues in accessing training. Stephen Bashford, Strategic Director of Economy and Skills at the West of England Combined Authority, explains: “The combined authority’s employment and skills team is responsible for commissioning several business-focused skills programmes, including Workforce for the Future, Skills Bootcamps, Mayoral Priority Skills Fund and the UK Shared Prosperity Fund. These support workforce development by putting employer needs at the centre of the skills provision, aligning closely with the regional Employment and Skills Plan and LSIP.”

Sectoral support

Alongside local support, there is sometimes sectoral support, which tends to be more targeted. The Construction Industry Training Board (CITB) is one example. Adrian Beckingham, Strategy and Policy Director at the Construction Industry Training Board, says: “We look to use our funds to add value to the [government-funded] options already in place and address the obstacles in accessing training. In the construction sector, 93% of the companies are SMEs, and many struggle with the loss of productivity that comes with giving employees time off for training. Our grants help to cover these costs and our research shows around 50% of the apprentices we have coming through the construction industry wouldn’t happen without the additional support we provide.”

Applying for training grants

If applying for a training grant, businesses should check eligibility criteria early on to ensure that they meet the grant provider’s requirements. Most grants will target companies based on the size, location or sector and may have additional criteria in place, especially if the funding is seeking to encourage certain outcomes within the region or sector. 

It is also important to check funding windows and to understand how payments are made – for example, whether funding is provided upfront and if any payments are linked to achievement. Beckingham comments: “There are two elements when it comes to funding. First, we want to incentivise employers to give people training opportunities. Second, we want to encourage attainment, so we phase further payments around reaching levels of achievement. Ultimately, for the industry, getting recognised transferable qualifications is a key output of that investment.” Finally, there are typically reporting requirements, with grant winners expected to show evidence of how the grant has been used and outline the outcomes.