New report highlights the importance of nurturing internal talent

By Rebecca Cooper, Head of People and Development ACT

Economic uncertainty has become a familiar backdrop for Welsh businesses in recent years. The rising cost of living, ongoing geopolitical instability, labour market pressures and cautious consumer spending; they 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 ten Welsh businesses expect their performance to improve in the coming 12 months. As well as this, 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.

And resilience is 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. But 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.

The last few shows 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.