Employers risk losing their staff if they do not offer adequate training, according to a new report.
The Train to Retain report from City & Guilds, which focuses particularly on small and medium-sized businesses, found that 25 per cent of employees have left, or would leave a job because of poor training and career prospects.
With a predicted shortfall of 800,000 skilled workers in the vocational sector by 2012, this could have a further negative impact on the UK's productivity, the report claims.
Head of national policy development at City & Guilds, Judith Norrington said: "If you take into account the overall costs of filling a vacancy and ensuring that new staff have sufficient knowledge and understanding of the organisation, it makes good business sense for employers to invest in their existing employees."
Training can help to instil loyalty into staff and is expected by employees in return for their effort, she added.
The report also showed that vocational employers are the least likely to plan employee development, with 30 per cent having no training in place.
In addition, vocational employers spend around 38 per cent less on employee skills than other employers.