As the country gears up for another general election, the CIPD warns today that the UK lags well behind its competitors in Europe and much of the OECD in literacy and numeracy, learning and development, and digital skills. According to the new analysis, this is largely due to the fact that UK employers train less and invest less in skills than most other EU countries. In its report – From ‘inadequate’ to ‘outstanding’: making the UK’s skills system world class’ – the CIPD warns that the UK is sleepwalking into a low-value, low-skills economy which leaves the nation ill-prepared for its post-Brexit future, particularly if the UK is to face restrictions on accessing talent from outside of the UK. The HR body is urging the Government to make funding available to tackle the problem in the workplace. The analysis, which forms part of the CIPD’s formal response to the Government’s Industrial Strategy Green Paper, highlights multiple failings in the UK.

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The OECD has published a new report which uses data from firms in eight countries (Belgium, Brazil, Canada, Costa Rica, Japan, New Zealand, Norway, United Kingdom) to assess the link between ‘business dynamics’ and productivity. The study, Business Dynamics and Productivity, claims that a dynamic business environment plays ‘an important role not only as a key driver of job creation but also as an engine of productivity growth. A growing body of research highlights significant differences in business dynamics across countries and over time, in particular over the different phases of the business cycle.’ Although the definition of ‘dynamic’ remains vague, the report suggests that firms who go beyond the average that is expected of them are not only better equipped to capitalise on the good times but also better at dealing with major economic shocks. The report looks in depth at the question of whether business growth and productivity are best served by organic growth through job creation or non-organic growth through mergers and acquisitions.

As the UK triggers Article 50 to leave the EU, France goes through what could be a game changing Presidential election and the United States continues to struggle with an increasingly divisive administration it’s perhaps not surprising that global uncertainty appears to be pushing up levels of employee scepticism. Globally, employee engagement declined for the first time since 2012, according to a report from Aon Hewitt. According to an analysis of more than five million employees at more than 1,000 organisations around the world, levels dropped from 65 percent in 2015 to 63 percent in 2016. Less than one quarter (24 percent) of employees are highly engaged and 39 percent are moderately engaged. “The rise in populist movements like those in the U.S., the U.K. and other regions is creating angst within organisations as they anticipate the potential for a decrease in free labour flow,” explained Ken Oehler, Global Culture & Engagement Practice leader at Aon Hewitt.

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