Much has been reported in recent articles about the need for businesses not to stagnate the learning and personal development of their staff during this recession. If companies are to emerge strong and competitive, then their personnel need to be at the leading edge of their field; informed and educated.

However, since cash flow is only trickling at the moment, some companies are looking to cut back on their off site training course budgets and focusing instead on e-learning; utilising technology (generally the internet) to deliver training packages. They should beware though; in some cases it might be a little cheaper but there are some significant disadvantages to e-learning:

• e-learners can suffer poor motivation as they are often working on their own
• they might fall behind in their study due to lack of a proper timeframe and structure
• they don’t get the experience of fellow trainees who might otherwise share views and experiences in the classroom
• they lack the one to one, face to face interaction with a tutor
• e-tutors may not always be available when they’re needed
• poor technology such as slow internet connection or computer problems can greatly hinder the service
• the student might have to have quite high ICT skills in the first place
• e-courses often lack the ability to simulate hands-on techniques effectively

Many wise businesses in the UK recognise the importance in investing in the personal development and skills training of their staff. It’s believed by business leaders and business organisations alike that therein lies the key to businesses surviving and emerging from the recession more efficient and effective.

So the recent news announced by the Secretary of State of Universities, Innovation and Skills that the government are injecting an additional £140m to extend the funding of apprentices, is welcome. It has been praised by the TUC, whose general secretary noted:

“.. funding boost will give thousands of people the chance to re-train or learn new skills as apprentices. We also welcome plans to use procurement to ensure that any private sector company awarded a Government contract is committed to skills and apprentices too.”

It’s expected that £140m extra funding (in addition to the £1 billion already in place for the scheme) will help create an additional 35,000 apprenticeships next year, and indeed Prime Minister Brown has set a goal for one in five young people to be on an apprenticeship within ten years.

Many small to medium sized business managers are looking at this scheme, as well as the government’s ‘train to gain’ scheme to get the long term unemployed back to work, to strengthen their workforce and skills base. However, many still feel that unless more is done for banks to loosen their credit restrictions to assist cash flow, difficult times are still ahead.

The Trades Union Congress (TUC) has recently published a report urging the government to make state funding available to workers facing redundancy. The report, entitled ‘Skills in the Recession’ is positive about the government’s ‘train to gain’ scheme which is providing a £350m injection for small and medium size companies to train their staff. However, the TUC would like the scheme to go further by making it accessible to for those threatened with losing their jobs.

In addition, the report wished to see a relaxation in the benefits rule which states that those in education for more than 16 hours per week are excluded from claiming financial support, believing that extended training and their new learnt skills will help them find employment.

Brendan Barber, the TUC General Secretary commented:

“Providing more training will give the millions of people who have lost their jobs a better chance of returning to work as quickly as possible. The Government deserves credit for increasing investment in training, such as the extra £140 million announced this week to boost apprenticeships.

‘But more can be done, such as expanding Train to Gain to all those at risk of redundancy and removing the ‘16 hour rule’ that discourages benefit claimants taking further education courses.”

It’s clear that the personal development of staff is high on the agenda to help UK industry ride out the recession and emerge stronger, fitter and with a better trained workforce.

In this recent series on the importance of cash flow management, we have been focusing on steps the business manager can take to make sure they get the money in more efficiently and effectively. There is of course another side to the coin; that of controlling your company’s outgoings.

Many small business managers get so wrapped up in new business development (and perhaps getting money in), that they do not invest enough time and effort into analysing when best to spend their money.

It’s important not only to be able to have a daily snapshot of your current cash flow status, but also to be able to forecast ahead. This may involve some re-engineering of how you operate at the moment and may mean you have to invest time and effort into the personal development training of your staff and their use of computer software to be able to do it.

Not only will this daily picture and analysis help you better indentify late payers, but you’ll be able to know exactly when to place a new order to your suppliers based on their payment terms in relation to where you are today and what money you are going to get in. Bear in mind, as we have discussed previously, you need to take steps to make sure you are confident about when your invoices are being paid.

You must do everything you can to minimise risk and reduce your reliance on your business overdraft to assist you with your cash flow needs.