Firms ‘under-use workers’ skills’

The Work Foundation said under-utilisation of skills was a particular problem at the lower end of the labour market, where jobs often offered little support or progression.

Workers were left feeling demotivated and under-used, which was hitting companies’ performance and productivity, said the research group.

Dr Paul Sissons, author of the report, said: “This is the missing side of the debate around skills. Skills under-utilisation can significantly affect the productivity of businesses and the wider economy, as well as impacting on the performance and progression of employees.

“From an employer’s perspective, under-use of skills can be a waste of a valuable asset. It can result in a less motivated workforce which may also be less productive. From the employee’s point of view, under-use of skills means little autonomy, responsibility or progression, along with the frustration of knowing one’s skills are going to waste.”

The report said there had been investment to tackle the problem in other countries including Norway, Finland, New Zealand, Australia, Singapore and Scotland, where a number of pilot projects had been launched.

The Government was urged to establish a workplace innovation fund to help firms trying to utilise the full skills of their employees.

A Business Department spokesman said: “The highest performing companies are those that use the talents of their staff to their fullest extent. By giving employers more control of how vocational training is designed and delivered, the Government is creating a stronger and more flexible skills system to help and encourage firms to develop the potential of their employees.

“Unprecedented investment in apprenticeships and increased emphasis on advanced training will give more employees the opportunity to continue learning throughout their professional lives.”