“This is an industry where customer service depends on accuracy and efficiency,” said Mick Jackson, operations director. “Yet 15 per cent of the staff cannot read to acceptable standards and one in five lacks basic numeracy skills.
“If we don’t deliver on time and in full, costs are incurred in making extra deliveries and taking back orders wrongly supplied.”
Skills for Logistics says employers are failing to claim their share of £720m ($1.4bn, €963m) of government funds for training that could dramatically improve productivity, recruitment and retention.
The industry turns over £75bn a year and employs 2.3m people, but draws just 2 per cent of the budget for publicly funded training. Construction employs similar numbers and receives 13 per cent, while engineering draws 19 per cent for a slightly bigger workforce.
“We in logistics don’t take up our fair share,” said Mr Jackson. “But the money will still be spent in sectors such as construction, engineering and hairdressing where the worth of qualifications is recognised and appreciated.”
Businesses that trained their staff saw significant benefits, he added. DHL Aviation, part of Deutsche Post, saved £400,000 in recruiting and temporary staffing costs after improving the literacy and numeracy of its workforce. Staff turnover had fallen two-thirds, absenteeism had plunged and productivity had risen 12 per cent.
Winfield Transport of Cannock, with 32 employees, had reduced fuel consumption by more economical driving and was saving on insurance costs because of a reduced accident rate.
Skills for Logistics is launching a “Skills Pay” campaign to increase take-up of training grants.
“The industry is at the heart of the economy,” said Mr Jackson. “Yet almost half the workforce falls below level two in qualifications [the equivalent of five good GCSEs] ... For the fifth largest sector in the fifth largest economy in the world, this is not something to be proud of.”
By John Willman, Business Editor, Financial Times Limited
Source: http://www.ft.com/cms/s/0/2cce22b2-bb1e-11dc-9fbc-0000779fd2ac.html