Conclusions
This paper is an attempt to provide prima facie evidence of how ‘training grants’ and
‘profitability’ are related, and it was found that there is no clear and straightforward
linear relationship between the two variables. This demonstrates the multiplicity of
influences on profitability, and that a simple claim about the mono-causality of training
and profitability is unhelpful. The interpretation of the relationship between
training and profitability therefore should be treated with caution, and there should
be a clear acknowledgement in skills policy documents to the complex nature of such
a relationship.
Construction companies, however, need to make best use of the opportunity presented
through training grants in order to use it as a vehicle for attaining potential
profitability improvements. Moreover, it might be useful to consider having a training
grant that is specifically focused and targeted at profitability improvements. However,
it should be required from firms to demonstrate the effect of such training on their
performance.
Exploring patterns in company-level data, as discussed in this paper, should only be
regarded as a first step towards unravelling the true effect of training interventions.
Future research therefore should adopt a more qualitative approach, such as case
studies, to examine the potential contribution of training to profitability within the
context of construction companies. This should also consider the means by which a
company addresses its skills and training needs.
If a business adopted a structured approach to training, by developing a training
plan (and by making use of training grants), this can ensure that its training activities
are carefully aligned with its business strategic needs. Indeed, this would provide an
in-depth understanding of the true effect of training grants on profitability and would
make the impact of the training grant scheme more noticeable.