UK businesses are losing an estimated £416 million each year due to inefficient staff training, figures show, with millions of working hours spent on programmes that deliver only basic compliance rather than meaningful skills development.
Around 21 million working hours are lost annually on training that enables employees to meet minimum job requirements, equivalent to more than 11,000 full-time roles. Separate government data shows employers already invest more than £50 billion a year in training, yet productivity continues to lag behind other major economies including the US, G7 and EU.
The analysis, from compliance training provider Skillcast, found that a large share of training time is being absorbed by mandatory or low-value activity rather than capability building.
Sectors spending most time on basic training
Business services recorded the highest level of lost training time, with 3.3 million hours spent on mandatory or basic training, costing £65.3 million a year.
Hospitality followed at 2.8 million hours, or £55 million, while wholesale and retail businesses accounted for 2.6 million hours, costing £51.4 million.
At the other end of the scale, the primary sector, which includes farming, forestry and mining, recorded the lowest loss at just over 359,000 hours, equivalent to £7 million. Transport and storage also ranked among the least affected sectors, with just over 500,000 hours lost.
The report said essential training such as health and safety or financial crime prevention cannot be avoided, but could be delivered more efficiently without reducing quality.
Skills development being squeezed
The research suggested that time spent on mandatory training is limiting opportunities for employees to build higher-value skills, such as supervisory, managerial and technical capabilities.
A national skills gap also persists, with around 4 percent of workers not fully proficient in their roles. Hospitality showed the largest shortfall at 6.2 percent, followed by the public sector at just over 6 percent, while information and communications recorded the lowest gap at 2 percent.
Vivek Dodd, chief executive of Skillcast, warned that inefficient training is holding back both businesses and the wider economy, saying the issue extends beyond cost to missed opportunities for development. “Inefficient training comes with a hefty price tag for businesses, and the UK economy.”
He added that traditional approaches to mandatory learning may be counterproductive. “It’s not just the time and money spent on training itself but the missed opportunities to develop employees’ skills in a way that delivers value.”
Dodd said more targeted training could improve both engagement and outcomes while freeing up time. “Essential training doesn’t have to be time-consuming – in fact, it’s often better when it’s not because employees are more likely to engage in it. Targeted sessions, based on an individual’s skills requirements and role, ensure they’re meeting the standard while also giving them back time for building their professional and specialist skills.”
Mandatory training linked to lower proficiency
The study identified a pattern between time spent on compliance training and workforce capability, suggesting that higher levels of mandatory training are associated with lower levels of employee proficiency.
Dodd said sectors such as business services, which include compliance-heavy industries like accountancy and legal, are particularly affected, with much of their training time focused on mandatory requirements rather than development.
“Business services, which includes compliance-heavy sectors like accountancy and legal, appeared top of our list, suggesting that the bulk of training time is taken up with mandatory rather than value-added sessions.”
He added that sectors with high staff turnover, such as hospitality, face additional challenges in moving beyond basic training. “Others, like hospitality, tend to have high staff turnover so there may be less time to go beyond the basics, especially if people are working in potentially risky environments like kitchens. That’s why efficient training is even more important in sectors like these – no business can afford for employees to lose time covering the same ground.
“As the time spent on mandatory training increases, so too does the proportion of staff who are not considered fully proficient in their role.”
Call for more targeted training approaches
The report recommended a more focused approach to compliance training, including the use of pre-course assessments to tailor learning to individual needs.
Dodd said tools such as targeted assessments could help identify which employees require full training and which can complete shorter versions, reducing unnecessary repetition. “We developed FastTrack, a pre-course assessment, to help employers understand specific compliance training needs within their team.”
He said this approach allows organisations to maintain compliance while freeing up time for more valuable development. “Those who pass undertake a shorter, focused version of the course, while those with gaps are directed to the full course. This ensures organisations stay compliant, redistributing training time skill-specific training and avoiding employee fatigue.”
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
