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Investing in employees through skills training can increase morale and productivity, according to the Learning and Skills Council (LSC).

The LSC has also said that employees are less likely to leave a company which has invested money into them in order to give them more skills.

Jaine Clarke, director of Skills for Employers, said: "The employers who have worked with us through Train to Gain are telling us that they often experience immediate business benefits, such as improved morale, improved adoption of health and safety practices, reduced absenteeism, as well as improved productivity and reduced waste."

She added that through skills training there is a "natural building of a connection between the individual and the employer" so it pays off for the employee as well as the company they work for.

Ms Clarke concluded that skills are becoming a bigger issue for employer organisations as well as individuals.

A report from the LSC in 2006 revealed that the effectiveness of skills training increased as the size of the company involved did.

In firms with 500 or more employees 50 per cent claimed that the training had resulted in improves staff retention. In companies of two to four employees, just 30 per cent felt this way.

The LSC is a non-departmental public body and began work in 2001.

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