The Federation of Small Businesses (FSB) is calling for companies offering on-the-job training to be recognised by policy makers for their role as trainers and their contribution to a skilled workforce.

According to the FSB's biennial survey on 8,700 members, called Putting the economy back on track: Skills and training, on-the-job training is the most popular and effective way of improving employee skills. Nearly 70 per cent of firms, which experienced sustained growth, had employees who taught themselves on the job, while over half had employees being trained by a superior.

Dr Gary Packham, head of enterprise at Glamorgan University, where the report was compiled, said: “Many small firms are finding that there are basic skills shortages in new staff and that it is not only efficient but effective to train their staff in-house. However, for the smallest firms, providing training can be a challenge, and certainly is a struggle when they train up their staff but aren’t recognised for it.” John Walker, FSB national policy chair, said: “It’s time small businesses that give their employees their own very beneficial training are officially recognised for doing so. The role small businesses play in this area of training the UK’s workforce should be properly acknowledged and the achievements of small firm employees actually recognised under official accreditation.

“In the current economic climate, it is also imperative that the government, employers and employees invest in the skills they need to both support small businesses and get people back into work during these difficult times.” Respondents also reported that the government’s ‘Train to Gain’ programme, which offers training schemes to small firms, is not meeting their training needs. This illustrates that it is often easier for small firms to provide their own tailored training for their employees."

The government, in yesterday's 2008 Pre-Budget Report, said that it will continue to re-prioritise all £350m of the planned growth in 'Train to Gain' funds between 2008-09 and 2010-11 to provide a more flexible training offer for SME employers.