Almost two-thirds of small businesses lose out on increased productivity, profitability and retention of staff by ignoring free or low cost training according to research from the Learning and Skills Council (LSC).

The research found that 57% of small business do not use the further education (FE) sector to train their employees although it offers a wide range of free and low cost courses.

It found that 43% of companies are not aware they could secure subsidised employee training at their local FE colleges.

However, 87% of small businesses said using an FE college to train its employees had benefited the company, 45% claimed it had increased productivity, and 11% claimed it had directly increased turnover.

It found that 58% of companies said FE training had boosted employee motivation and job satisfaction and 47% believed it had helped employee retention.

Bill Rammell, Higher and Further Education Minister said: “The findings clearly highlight the competitive benefits to employers of using Further Education training.

The challenge for FE providers is to engage with business so they make best use of this, and be aware of the choice, value, and relevance of training on offer. Providers must adapt to meet the needs of employers.”