An examination of the relationship between skills development and productivity in the construction industry

In recent years, the UK government skills policy has emphasised the role of workforceskills development as a key driver of economic success and improving productivityacross all sectors of the economy. The importance of skills (as a vehicle for enhancingproductivity performance) is highlighted within numerous government reports, such asSkills White Papers (2003 and 2005), in addition to the Leitch Review of Skills (2006) which coincided with the outset of this research. Thus, the aim of this research was toexamine the relationship between skills development and productivity in theconstruction industry in order to assess the assumptions of government skills policy inthe context of the sector.A multi-method approach was adopted in this research. This involved the analysis of:official construction statistics, levy/grant and financial accounts data of constructioncompanies, in addition to a telephone survey. The main findings of the research arepublished in five peer reviewed academic papers, demonstrating the tenuous nature ofthe relationship between skills development and productivity performance, particularlywhen considering the heterogeneous nature of the construction industry. Governmentclaims about the mono-causal relationship between skills and productivity should betreated with caution. A simple boost in qualification levels or participation rates oftraining is unlikely to lead to productivity improvements in the construction sector.However, skills development and training activities needs to be targeted and focused ifthe desired outcome of enhancing productivity performance is to be achieved.Construction companies needs to be proactive in addressing the skills and training needsof their business through drawing on the various support available through CITBConstructionSkillstraining grants or participating in appropriate skills/traininginitiatives, such as apprenticeship schemes. The provision of 'productivity-based'training grants should be considered by CITB-CS in order to prompt constructioncompanies to consider training as a plausible means for enhancing their productivityperformance.Finally, the recommendations presented in this thesis and areas for further research setsoutthe potential way forward in terms of advancing knowledge in this area.