Two-thirds of Scottish SMEs report skills shortages continue to impact business success

67% of Scotland’s small and medium-sized enterprise (SMEs) owners and managers have reported that skills shortages are impacting their business growth and profitability, according to new research by Censuswide, on behalf of The Open University (OU) in Scotland.

For businesses with 10-49 employees, this rocketed to 83%. 

The survey, completed by 200 owners and senior managers of Scottish SMEs, identified people management (25%), finance (24%), digital technologies (22%) and project management (20%) as the top areas in which respondents were experiencing skills shortages. 

Environmental concerns and their impact on business growth are also front and centre for Scottish SMEs, with 85% of organisations planning to invest in ‘green’ staff training. Priority training areas included developing innovative and sustainable ways of doing things (37%), making their business more sustainable (36%) and renewable energy (32%).   

The survey also highlighted a lack of awareness among SMEs of the access they have to Scottish Government-funded employee training support. Less than a third of businesses had heard of the Scottish Funding Council Upskilling Fund (31%) and the Part-Time Fee Grant (29%). 

32% of businesses surveyed also knew about the Flexible Workforce Development Fund (FWDF), which offers SMEs access to £5,000 of free and flexible online training with the OU in Scotland, supported by the Scottish Funding Council. However, more positively, 75% of respondents would be likely to consider accessing funds in the next 12 months.

David Allen – Partnerships Manager for Open University.

David Allen, Senior Partnerships Manager, The Open University in Scotland, said: “Despite two-thirds of businesses overwhelmingly reporting skill shortages, current financial and economic pressures mean training budgets are often squeezed at the expense of skills development. 

“This does not need to be the case. Through the Flexible Workforce Development Fund, SMEs can access fully funded high quality, flexible online training that addresses many of the core skills shortages facing them.

“Two-thirds of SMEs surveyed were unfamiliar with the available Scottish Government funded support. This is a core reason why the Open University in Scotland is determined to raise awareness of initiatives such as FWDF. 

“A positive outcome of our research is 75% of business owners surveyed are now likely to consider accessing Scottish Government-funded training in the next 12 months. It’s an opportunity for the taking.”

The survey findings also align with the experience of the Scottish charity Health in Mind, which recently undertook a training programme in partnership with the OU, utilising FWDF support.

Flora Henderson, Alliance Manager, Health in Mind commented: “The cost-of-living crisis, as well as the ongoing impact of the COVID-19 pandemic, has resulted in a tremendous increase in demand for our services. At the same time, staff are affected by workload and a continued impact on staff absence levels.

“It was a priority to continue to offer genuinely valuable development opportunities, intended to help staff feel supported to grow and develop in their role. The FWDF has allowed scarce resources to have more impact and encouraged wider participation than would otherwise be possible.”

For more information on the OU’s flexible online training and the Flexible Workforce Development Fund visit: https://www.open.ac.uk/business/fwdf  

Investing in Scotland’s workforce

Up to £15,000 for eligible businesses

Thousands of businesses can now apply for up to £15,000 to help retrain and upskill their workforce.

The Scottish Government’s Flexible Workforce Development Fund provides workers in organisations of all sizes with access to training courses through local colleges, the Open University in Scotland and Skills Development Scotland.

Now entering its sixth year, the fund is open to organisations who pay the UK Apprenticeship Levy and small-to-medium size business (SMEs).

The initiative plays a crucial role in Scotland’s National Strategy for Economic Transformation, which outlines how the Scottish Government will work to develop the best economic performance possible over the decade ahead.

Youth Employment and Training Minister Jamie Hepburn said: “We know times are tough for many businesses, so this funding will help them to continue investing in their workforce – addressing skills gaps and improving productivity. A skilled workforce is vital to our economy and we want as many businesses as possible to benefit from this scheme.

“For the first time, all eligible employers can access training available via local colleges, Skills Development Scotland and the Open University, tailored to their needs. This provides an incredible opportunity for workers to upskill at a time when many businesses are opting for new ways of working.

“I would encourage all employers to find out more about the opportunities available to them.”

The Flexible Workforce Development Fund (FWDF) was introduced in 2017-18 and aims to provide employers with flexible workforce development training opportunities tailored to their needs to support inclusive economic growth through upskilling and reskilling of employees.

Full information on the fund is available on the Scottish Funding Council website.

Find out how to access free professional training for employees with Edinburgh College


Businesses have the opportunity to learn about free professional training available for their staff at an information event hosted by Edinburgh College later this month.

The College is hosting the event both online and in-person at its Sighthill Campus from 8.30am with the aim of showcasing training opportunities available to SMEs and large companies through the Flexible Workforce Development Fund (FWDF). 

The information event, taking place on Thursday 24 February 2022, will see business delegates learn about the FWDF from Edinburgh College’s Business Development Advisors, as well as meeting expert lecturers who will discuss the range of subjects available to businesses and employees.    

Attendees will also hear from Tracey Bork, Head of People at Lothian Buses, about her experience of applying for fully funded training with Edinburgh College. 

If delegates cannot attend in person, the College is streaming the presentations and interview taking place during the event via Microsoft Teams. 

A link for the live stream and joining instructions will be available soon after registering for the event. Online delegates will have the opportunity to ask questions through a Q&A function within Teams.  

The College encourages anyone who intends to attend the event in person to take a lateral flow COVID-19 test before they arrive.  

The Flexible Workforce Development Fund, offered by the Scottish Government and the Scottish Funding Council, facilitated by Scottish colleges, offers larger organisations and SMEs, across the private, public and third sectors, an opportunity to apply for fully funded training for their teams.   

The funding provides SMEs with up to £5,000 of free training; and larger employers (those with an annual payroll bill of £3m+) with up to £15,000 of free training. 

To register your attendance either in person or online, please book via the Edinburgh College website

See the full event agenda below: 

TimeActivity
8.10amNetwork, coffee and morning roll.  
8.30amIntroduction to the College, training opportunities and funding options.
8.50amInterview with Tracey Bork, Head of People at Lothian Buses, about the client’s experience of accessing the fund through Edinburgh College.
9.05amA presentation from Edinburgh College and the Training Development team about professional training courses and management soft skills (CMI, CIPD, ILM, bespoke).  
9.15amA talk on ‘Adapting to new working conditions during the pandemic’ from John Chalmers – Learning and Development Manager at Business Stream. 
9.35amNetworking opportunity. 
9.50amRound-up and close. 

Edinburgh College helps hospitality get back into business with funded training

Edinburgh College is providing industry specific training to help hospitality and tourism businesses hit the ground running when the sector is allowed to reopen.

The training which allows SMEs up to £5,000 free training provided through the Flexible Workforce Development Fund (FWDF), is available straight away to help people upskill, reskill and give confidence to those who have been unable to work due to the pandemic.

Hospitality businesses are encouraged to attend a virtual information event hosted on Zoom on Wednesday 24 March, to find out more about Edinburgh College, the FWDF, and how the College’s Training and Development team can liaise with them to design and deliver bespoke training packages with courses to suit all employer and employee needs.

Courses range from REHIS Food Hygiene and Allergy Awareness through to Customer Service and Communication Skills, and Mental Health.

Businesses which pay the Scottish Government apprenticeship levy can apply for up to £15,000 worth of training, while SMEs can apply for up £5,000 of training without any contribution.

Edinburgh College Commercial Development Manager Liam Conway said: “We are excited to be hosting this information event for Hospitality businesses across Edinburgh and the Lothians.

“It is our hope that Hospitality businesses will be able to welcome visitors and guests back into their premises soon. In the build up to that becoming the case, Edinburgh College is ready to deliver training to Hospitality employees in time for their reopening – allowing firms to ensure employees’ continuing professional development and retraining is in place ahead of customers’ return.”

The virtual information event is taking place on Wednesday 24 March from 12 – 12.30pm.

To register for the event, please visit: Hospitality and Tourism Funded Training Event Tickets, Wed 24 Mar 2021 at 12:00 | Eventbrite

Edinburgh College provides free training to support businesses and staff

Edinburgh College is providing businesses across Edinburgh and the Lothians an opportunity to access training aimed at promoting positive mental health among all employees.

Recent research conducted by the Scottish Association for Mental Health (SAMH), published last week, shows that 50% of people with mental health problems have reported their mental health has been worse in the last few weeks than at the start of the coronavirus pandemic.

And while this statistic cannot be solely attributed to the isolation caused by the mass shift to home and remote working, employers do have a responsibility to ensure their teams have a work environment which is healthy for all.

Indeed, a recent study carried out in the United States by FlexJobs and Mental Health America (MHA) found that 75% of workers have experienced burnout in 2020, with 40% citing it as a direct result of the coronavirus pandemic with ongoing remote working appearing to be a contributing factor.

Edinburgh College’s Training and Development team is utilising financial support from the Scottish Government to offer free Mental Health and Resilience courses to businesses across Edinburgh and the Lothians to support their employees’ mental health – both inside and outside of the workplace.

Through the Flexible Workforce Development Fund, staff of all levels from firms of varying sizes can participate in courses including: Mental Health Awareness; Mental Health for Managers; Building Resilience; Understanding Depression and Anxiety, among many others. Bespoke training packages comprising elements from various courses can also be created to meet clients’ needs.

Prior to the COVID-19 pandemic, these courses would have been delivered on campus or at client offices, however the College’s Training and Development team has adapted to deliver courses via Zoom and Microsoft Teams – following the launch of its Virtual Professional Training Prospectus.

Edinburgh College has delivered 200 mental health training sessions in 2020. Since the start of term 2020/21 – August 2020 – 765 students have enrolled on mental health courses.

Edinburgh College Head of Commercial Jane Grant said: “Positive mental health is vital in all settings, including the workplace.

“Our team of expert trainers and lecturers are here to deliver training to support employers and employees in maintaining positive mental health across the organisation, particularly in the current times where teams and individuals are working in new and remote circumstances.”

Find out more about the Flexible Workforce Development Fund

Edinburgh College’s Training and Development team is holding an event to showcase the free training and development opportunities available to thousands of businesses across Edinburgh and the Lothians.

The virtual event will give businesses an introduction to the Flexible Workforce Development Fund (FWDF) – a fund which apprenticeship levy-paying businesses across the public, private and third sectors, can access to secure a wide range of training courses to help them to upskill and reskill their staff.

The event, which is taking place online via Zoom, is being held on Tuesday 1 December 2020 from 8.30-9.15am.

The College’s Training and Development team will deliver a short presentation on the fund before engaging in a question and answer session. Delegates will also hear from Kelly Cunningham of East Lothian Care and Accommodation Project (ELCAP) who will talk about her experience of utilising the FWDF to upskill and reskill her team.

Through the FWDF, businesses can apply for varying levels of funding towards training for their employees – up to £15k for apprenticeship levy-payers, and up to £5k for SMEs. This funding can be used by businesses of all different types.

Register your place for the Virtual Flexible Workforce Development Fund event here: 

https://www.eventbrite.co.uk/e/flexible-workforce-development-fund-event-tuesday-1-december-2020-tickets-129470918001

Upskilling and reskilling opportunities for employees

More employers across Scotland can now apply for funding to provide upskilling and reskilling opportunities for their existing staff.

The Flexible Workforce Development Fund (FWDF) helps businesses continue to invest in their workforce and is available for all of Scotland’s employers who are subject to the UK Government’s Apprenticeship Levy. For the first time, the fund will now be available for both levy payers and SMEs, across the private, public and third sectors.

In August the Scottish Government announced immediate investment in jobs to provide the foundations for a strong economic recovery from coronavirus (COVID-19). As part of this, the FWDF, which is now in its fourth year, was doubled to £20m for 2020/21, with £13 million made available through the first phase to allow colleges to provide additional support for levy paying employers.

The second phase of the fund, backed by £7 million, will also be utilised to respond directly to the impacts of the pandemic, and will open to applications 16 November 2020.

Of this, £5 million will be available to support SMEs through a college and Open University in Scotland partnership, while Skills Development Scotland will offer a new option which will test the use of private training providers for levy paying businesses who require specialist training.

Business, Fair Work and Skills Minister Jamie Hepburn said: “Opportunities for training are essential for both employers and employees, and in August we doubled funding for our Flexible Workforce Development Fund to £20 million for 2020/21 to ensure businesses across Scotland can continue to invest in their workforce.

“As this fund adapts and responds to the impacts of the pandemic, we will also see the introduction of additional delivery partners including the Open University in Scotland and private training providers for employers who require more specialist training.

“By strengthening upskilling the existing workforce, in partnership with colleges, we can retain jobs and support employers as they pivot and adapt to a new and very different working environment as a result of the pandemic.”

Andrew McRae, FSB’s Scotland policy chair, said: “This new funding could help many Scottish smaller businesses, and their staff teams, navigate the current crisis and ensure they’re prepared to take advantage of the recovery when it comes.

“FSB has been making the case to open up this cash pot to local firms, and we’d encourage all sorts of smaller operators to investigate how to access this support to build their business and develop their employees.”

Susan Stewart, Director of The Open University in Scotland, said: “The Open University in Scotland has led in the development of new skills for those facing redundancy, furlough or sectoral job pressures as a result of COVID-19.

“We welcome this funding which allows us to deliver support at scale to small and medium sized businesses across Scotland providing vital training as they adapt to new ways of working post pandemic.

“We will help businesses with a tailored, flexible package of online training to boost productivity and upskill and retrain employees particularly in those areas where skills gaps exist across Scotland like business management, digital, health and social care and the green economy.”

Find out more about the FWDF through The Open UniversityScottish Funding CouncilOur Skillforce.

More information on Phase 2 of the FWDF will also be available here shortly.

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A new scheme developed by the Scottish Government and Scottish Funding Council is offering Scottish businesses an opportunity to apply for up to £10,000 worth of training at Edinburgh College. The new Flexible Workforce Development Fund (FWDF) provides eligible employers with up to £10,000 worth of training from their local college, to upskill and reskill their existing workforce. Continue reading Opportunity for employers to apply for up to £10,000 worth of training at Edinburgh College