Economic uncertainty has become a familiar backdrop for Welsh businesses in recent years. With factors such as the rising cost of living and ongoing geopolitical instability, businesses are cautious to spend. However, there is a key investment SMEs are continuing to make to boost their resilience, explains ACT’s Head of People and Development, Rebecca Cooper.
The rising cost of living, ongoing geopolitical instability, labour market pressures and cautious consumer spending have all played a part in dwindling confidence amongst business owners.
Despite this, the latest Economic Intelligence Wales Quarterly Report shows that Welsh businesses are continuing to invest, expand and plan for their future.
More than a quarter of UK SMEs reported growth over the past year, while nearly four in 10 Welsh businesses expect their performance to improve in the coming 12 months. In addition, business ‘births’ in Wales continued to outpace business ‘deaths’.
Given the unstable landscape of the last few years, it’s no surprise that the focus for many businesses has been to build resilience. With each new obstacle thrown at them, SMEs in Wales are continuing to rise to the challenge and adapt to not only get through but grow in the process.
Resilience is also often tied to investment; not whether a business should invest but where it should invest.
Capital expenditure and expansion plans can require significant financial commitment at a time when many businesses are understandably protective of their cash flow. Talent development, particularly in Wales, is an inexpensive yet lucrative strategy.
People are the most important driver of productivity, innovation and long-term growth for operations, so it makes sense that businesses with skilled, adaptable workforces are better equipped to respond to the unprecedented changes we have all had to face in recent years.
At a time when every expenditure must deliver value, apprenticeships, or work-based learning, offer one of the most effective development solutions for businesses.
With apprenticeship programmes fully funded through Welsh Government support, organisations can develop existing employees without the significant training costs often associated with workplace development.
Despite popular belief, apprenticeships are not confined to traditional trades or professional levels. Programmes span across all sectors, offering qualifications in everything from leadership and management, digital and customer service to business administration, health and social care and green skills.
Not only is work-based learning good for business resilience, it helps boost staff retention and productivity too, with learning and development consistently one of the leading factors of staff satisfaction.
Developing employees through structured programmes helps businesses build a pool of ‘own-grown’ talent, improving productivity and creating all-important progression pathways that support retention.
It also demonstrates a commitment to employees at a time when attracting and keeping skilled staff remains a big challenge.
That being said, funding alone doesn’t guarantee success. While monetary investment is minimal, ample investment in time and support is key to help your workforce succeed.
It’s also important to find the right training provider who can help you navigate the process and ensure courses align with your business objectives and desired outcomes.
As Wales’ largest training provider, ACT has been helping employers strengthen their teams’ skillsets for nearly decades. Just last year ACT worked with 1,350 employers to develop their workforce.
For organisations looking to make impactful yet low stakes investments this year, looking at how you can maximise the talent you already have is the smartest decision.
The last few years have shown just how much economic cycles can fluctuate and how confidence ebbs and flows. However, businesses that invest in their people continue to be in a better position to not only navigate these obstacles but thrive against this uncertain backdrop.
