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Inefficient staff training costs UK businesses £416m, data reveals

The report measured the national skill gap density at 4%, meaning one in 25 UK workers lack the skills to do their job as effectively as possible. 

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Inefficient staff training costs UK businesses £416m, data reveals
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UK businesses lose an estimated 21 million working hours a year on basic and mandatory staff training, costing £416m or the equivalent of 11,147 full-time jobs, according to figures from Skillcast. 

Business services spent the most time, with 3.3 million hours (£65.3m) on basic and mandatory training. 

This was followed by hospitality at 2.8 million hours (£55m), and wholesale and retail at 2.6 million hours (£51.4m). 

The primary sector, including farming, forestry and mining, lost the fewest hours at just over 359,000 (£7m), with transport and storage next at 506,666 (£10m).

The figures were published in the Skillcast Lost Hours Report, which examined how mandatory training is impacting working hours across 11 sectors, and ways to reclaim that time. 

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Training on health and safety or financial crime is essential in some roles, but Skillcast said it could be delivered more efficiently, freeing up employees to build higher-value technical, managerial, or supervisory skills. 

Vivek Dodd, CEO of Skillcast, said: “Inefficient training comes with a hefty price tag for businesses, and the UK economy. 

“It’s not just the time and money spent on training itself but the missed opportunities to develop employees’ skills in a way that delivers value. 

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“Essential training doesn’t have to be time-consuming – in fact, it’s often better when it’s not because employees are more likely to engage in it.”

Dodd added: “Targeted sessions, based on an individual’s skills requirements and role, ensure they’re meeting the standard while also giving them back time for building their professional and specialist skills.

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“Business services, which includes compliance-heavy sectors like accountancy and legal, appeared top of our list, suggesting that the bulk of training time is taken up with mandatory rather than value-added sessions. 

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“Others, like hospitality, tend to have high staff turnover so there may be less time to go beyond the basics, especially if people are working in potentially risky environments like kitchens.

“That’s why efficient training is even more important in sectors like these – no business can afford for employees to lose time covering the same ground.”

The report also measured the national skill gap density at 4%, meaning one in 25 UK workers lack the skills to do their job as effectively as possible. 

Hospitality showed the largest gap at 6.2%, followed by the public sector at 6%. 

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Information and communications had the smallest shortfall at 2%, with charities at 2.9%.

Dodd said: “As the time spent on mandatory training increases, so too does the proportion of staff who are not considered fully proficient in their role. 

“We developed FastTrack, a pre-course assessment, to help employers understand specific compliance training needs within their team. 

“Those who pass undertake a shorter, focused version of the course, while those with gaps are directed to the full course.” 

Dodd added: “This ensures organisations stay compliant, redistributing training time skill-specific training and avoiding employee fatigue.”

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