Management & Leadership Training Required For SME’s

A new study, which has been produced by the Ulster University Economic Policy Centre, has found that SME’s in Northern Ireland are lagging behind the rest of the UK when it comes to formal management and leadership training practices.

These sort of practices are vital in developing SME’s to ensure they fulfill their potential. However the picture is not as bad as it first sounds, as it seems that many, although not using formal management training, have a strategy in place in their business to internally train and up-skill their managers.

NI At Bottom Of UK Regional League Table

Here are the key findings from the report, as copied from an article on the Business Eye website. It says that:

• Only 33% of employees in Northern Ireland SMEs received management training in 2022, consistent with UK-wide figures but highlighting significant room for improvement. 
• Northern Ireland ranks at the bottom of the UK regional league table for management practice scores, with local managers less likely to adopt good practices compared to their counterparts in other regions. 
• Despite these challenges, the study found that many SMEs are engaging in informal or internal upskilling methods, with only a minority doing nothing in terms of management training. 

The report also made a number of recommendations for improvement, here they are as copied from the same website:

1. Creation of a Single M&L Training Portal: A dedicated online platform providing comprehensive information and a diagnostic tool to help managers identify training needs and connect with relevant courses. 
2. Introduction of a Skills Tax Credit: To incentivise investment in both internal and external M&L training, potentially improving adoption rates among SMEs. 
3. Formal Mentoring List: Establishment of a formal directory of mentors available to SMEs, particularly micro and small businesses that may lack resources for formal training. 
4. Review of Training Communication: Tailoring the language and promotion of training programs to better resonate with SMEs, emphasising relevance and practical benefits. 
5. Impact Evaluation: Encouraging businesses to internally review and measure the impact of training to ensure it meets expectations and drives business performance. 

Barriers To Participation In Training

And finally, speaking on the findings, Karen Bonner, who is the principle economist at the Ulster University Policy Centre, is quoted on the Business Eye website as saying:

“Through consultative interviews with a range of organisations, this research has uncovered more details about the barriers to participation in M&L training within SMEs in Northern Ireland, including financial challenges, time restrictions, lack of awareness, and promotional factors. What we now know is that there is a significant knowledge gap on where to find information on management courses and practices, which is something clearly reflected in our recommendation for a single M&L training information portal, amongst other actions.” 

Food for thought I suspect for many SME’s based here in NI.