A study by the Ulster University Economic Policy Centre has highlighted critical insights into the state of management and leadership (M&L) training among SMEs in Northern Ireland.
Published today, the study reveals a complex picture of training practices, challenges, and opportunities for improvement within the region's business community.
While existing survey data shows that managers in Northern Ireland are less well trained and less likely to adopt good management practices compared to their counterparts in the UK, economists have found that the picture may not be as bleak as first thought.
Through a series of consultation interviews with managers, directors and HR professionals across a range of company sizes, ages and industries in the local public, private and not-for-profit sectors, the study found that those not engaging formally in external management training typically have some method of internal training or upskilling embedded in their business.
The report, which sets out to understand the extent to which managers in Northern Ireland SMEs engage with M&L training, and the associated benefits, produced a number of key findings:
- 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.
With a range of M&L courses available across Northern Ireland, the economists also conducted interviews with several training providers to understand the format of various training programmes on offer, target groups, entry criteria, cost and funding support, and the motivation of participants.
Recognising the link between management skills and enhanced firm performance and productivity, the report makes a number of recommendations for improvement:
- 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.
- Introduction of a Skills Tax Credit: To incentivise investment in both internal and external M&L training, potentially improving adoption rates among SMEs.
- 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.
- Review of Training Communication: Tailoring the language and promotion of training programs to better resonate with SMEs, emphasising relevance and practical benefits.
- Impact Evaluation: Encouraging businesses to internally review and measure the impact of training to ensure it meets expectations and drives business performance.
Gillian Martin, Senior Economist, Ulster University Economic Policy Centre said:
“This report underscores the link between management skills and enhanced firm performance, including increased productivity, and the importance of targeted support to enhance the management capabilities within Northern Ireland's SMEs. The knowledge and skills of managers are thought to significantly influence organisational outcomes, boosting the performance of local businesses and ultimately contributing to economic growth and productivity in Northern Ireland. With this in mind, it is beneficial to have a clearer picture of what type or organisations are engaging with M&L training and the barriers to participation.”
Karen Bonner, Principal Economist, Ulster University Economic Policy Centre said:
“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.”