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Savings to organisations through improved basic skills
 | Getting started guide |  |  | [NAME]
 | Introduction |  |  | Input
 |  |  |  | Summary
 | This sheet contains a brief introduction to the guide and instructions for getting started. For a more detailed introduction see the Savings to Organisations - A Guide document.
 | Background
 | The widely publicised UK skills audit ‘Prosperity for all in the Global Economy: World Class Skills’ was published in 2006. This review - commissioned by the Government and commonly referred to as the Leitch Report – identified that for the UK to remain a competitive force within the global economy, the nation’s adult skills levels should be urgently addressed.   As part of the drive to achieve world class skills, the Leitch Report made a series of recommendations - including the implementation of strategies to target the development of basic literacy, language and numeracy skills in the workplace.   For many employers, strategic decisions regarding training policy are likely to be financially driven - focussed on the development of ‘economically valuable’ skills amongst their workforce. This tool enables employers to explore how poor basic skills can affect commercial operations within their organisation.
 | The tool
 | This tool is a simple spreadsheet designed to help quantify the impact that basic skills development can have on an organisation’s performance and costs. It calculates possible savings that can be made by employers who are committed to the improvement of their workforce’s literacy, numeracy or language skills.  The tool can be used by employers or HR managers who wish to investigate potential cost implications of poor basic skills within their organisation. It can also be used by a range of intermediaries who work in partnership with employers, including Train to Gain brokers, learning providers, Union Learning Reps, sector skills council staff and others.
 | Using the tool
 | The spreadsheet is organised across 3 columns as follows:  Improvements that can be made to operations within the organisation Operational themes, likely to be common across a range of different organisations and sectors, have been identified and listed in this column. Each of these key areas, such as ‘Customer Service’, has been highlighted in bold font. Examples of organisational improvements that might be made have then been described in more detail under each heading.  Potential impact of improved literacy/numeracy/language skills This column contains examples of different ways in which improved levels of literacy, numeracy and language skills can have a positive impact on an organisation.   Estimated savings that might be made This area of the spreadsheet prompts the user to consider different ways in which poor basic skills might contribute to an organisation’s costs: where costs are measured in the form of lost business, mistakes, misunderstandings, absences from work etc.
 | The user is required to input data that is specific and relevant to their organisation. The type of information to be recorded has been highlighted in bold font. This is entered into the white boxes which the spreadsheet converts into potential annual savings.  It is important to note that only sections relevant to the organisation or sector need to be completed.
 | Acknowledgements
 | This document was funded by Learning and Skills Council West Midlands   Developed by Birmingham Core Skills Development Partnership   Produced by Tribal