We must make most of talent

Jul 22 2008 by Liz Smith, The Journal

THE business world largely welcomed proposals announced yesterday to push forward with reforms to the benefits and welfare system that will encourage people back to work.

With rising skills shortages across the UK, it is vitally important that we make the most of all of the talent available to ensure that businesses can continue to grow and compete.

The North East has relatively high levels of incapacity benefit claimants compared to other parts of the country, yet at the same time we see business struggling to fill vacancies.

There are several great examples of North East companies who have taken a proactive approach to enabling individuals currently claiming incapacity benefit to get back into the world of work – recognising that there exists a pool of talent on their doorstep. Yesterday’s announcements will reinforce some of the good work that a number of regional companies are already taking.

Business will be pleased to see greater responsibilities on benefit claimants to try and get into work, coupled with better-tailored support for them to prepare for sustainable employment.

In a tight labour market, employers are keen to widen their recruitment pool as far as possible. Recruiting the long-term unemployed, disabled and former incapacity benefit claimants can help employers to address skills shortages, improve commitment from staff and forge links with the communities they serve. But taking on staff with limited recent experience and often complex personal problems is not straightforward and support is needed both for employer and applicant.

Yesterday’s proposals represent a welcome cultural shift which could help firms recruit more from local communities, tackle social exclusion, and lift individuals out of a cycle of benefit dependency. Businesses are keen to explore the new recruitment pool and for benefit expenditure to fall, but they must not be burdened – much will depend on Government.

To assist in the delivery of new schemes, CBI members welcome the reaffirmed commitment to use the best providers for welfare-to-work programmes, regardless of whether they are public or private, on a pay-by-results basis. Specialist welfare to work providers in the private and voluntary sector have already proved their worth, and further investment in this approach now could result in significant savings in the future.

But the UK needs this success to be seen on a much larger scale if the massive burden of welfare dependency is to be reduced.

Liz Smith, assistant regional director, CBI North East