Low training budgets, high levels of collective redundancy and slow voluntary staff turnover is causing a headache for HR departments in the beleaguered sector, according to new research; while recent findings show that in a strange twist pay has increased.

The survey of 365 UK organisations conducted by online information service, Consult GEE and the independent research organisation, Incomes Data Services (IDS) shows that 30 per cent of organisations in the sector reported collective redundancies, compared to a cross-sector average of 15 per cent.

While in further evidence that a downturn has arrived, the research found that training budgets had been slashed. The average training spend per employee in 2003 was £285 compared to a cross-sector average of £427 with most reporting reduced training budgets for the year.

Lack of job security in the sector is reflected in a voluntary staff turnover figure of just 6.6 per cent, against a cross-sector average of 11.8 per cent.

Absence was also found to be a problem. Just four in 10 organisations admitted to having a formal target for reducing absence. Last year, absence typically cost businesses £727 for each employee, the survey reveals.

Jenny Blackwell of Consult GEE said: “While the downturn in the manufacturing sector has reduced the training budgets of many organisations, employers should take a closer look at how increasing the skills of their employees can improve productivity.

“In addition, employees are taking more stress claims to tribunals than ever before, so it is vital that organisations monitor absence, and analyse the causes.”

Nicola Allison of IDS added: “The figures clearly show that the manufacturing sector is less buoyant than the rest of the economy, with lower staff turnover and lower training budgets.”

The news comes at odds with recent findings by IRS Employment Review that reveals increased pay awards for the last eight months.

The survey analyses of 209 manufacturing settlements show that manufacturing pay awards in the UK show signs of improvement as the median value of pay awards stands at 3%, compared with 2.75% over the same period in 2003.

For the full story see: Manufacturing pay gets lift