Trade bodies have responded to a claim from a former coach operator that lack of investment in management training within the sector has left a skills deficit that is contributing to challenges in succession planning.
Those associations acknowledge the deficit in training but are split on how best to approach it. Confederation of Passenger Transport (CPT) Coaching Manager Phil Smith argues that while a problem exists, it is often buried beneath more pressing concerns.
“Coach operators are left to fend for themselves when it comes to development of management staff,” he agrees. “But there have been pressures on driver availability. SMEs have always been at a disadvantage there, owing to the small numbers they need to recruit. Drivers have been a much more critical factor since the pandemic, and to a lesser extent, they still are.”
The issue is of management training is largely one of “signposting,” says Mr Smith. He argues that the challenges for smaller operators lie in finding suitable individuals in situations where current owners are seeking to appoint leaders to maintain business continuity, and the cost of employing external managers. Such an operation would need to run “30 or more vehicles” for that to be a realistic option.
“If operators see this as something for the training bodies to pick up, we are happy to look at it,” he adds. “CPT’s Coach Commission would be an obvious way of doing that, depending on where the operator is based.”
SMEs affected
RHA Operations Manager – Coach Sector Andy Warrender believes that the problem of management recruitment is “noticeable in most industries” where the predominant structure comprises SMEs. He notes a lower level of work training here compared to elsewhere in Europe and says addressing that requires a concerted effort from the government and the private sector to invest in workforce development.
RHA data reveals that UK employers have reduced spending on training per employee by 27% in real terms since 2011. Other OECD country investment levels have been stable or even increased. Apprenticeship starts in the UK have meanwhile declined by 45% since 2015.
The proportion of the overall UK workforce receiving training has decreased, with only 52% having participated in the past year (the lowest since 2011). That decline is “more pronounced” among SMEs, which “often lack the resources for extensive training programs.”
Look within
“We won’t speculate on why businesses employ their own particular approach to training and development of staff,” Mr Warrender says. “In general, much more work needs to be done across our sector in terms of training and preparing for the long-term. Regrettably, many businesses don’t yet prioritise training until they are forced into it, one example being when a key employee such as a Transport Manager (TM) leaves.
“There is often a view that vocational training for management is restricted to gaining the TM CPC. While a prerequisite in most cases, it is a starting point and not the only qualification that business managers could aspire to.
“There are numerous opportunities for vocational training for management skills. Skills in health and safety, finance, HR or legal all have a place in running a successful coach operation. But the kind of management courses that are specific to one, or are a combination of these disciplines, don’t presently tend to attract the numbers from our industry that they do from other sectors.”
Mr Warrender suggests operators look “internally” and ask themselves what they must do to bring forth and equip the next generation to fill what may be a current or approaching skills gap.
“Are they identifying potential managers from within the ranks and/or recruiting new prospective administrative and management staff? What is their approach to developing internal candidates, how are they imparting the knowledge of their own business experience, and are they sourcing any of the key skills they will need from outside?”
Quality staff
UK Coach Operators Association Managing Director Peter Bradley highlights recent research into the number of valid O-Licences held by coach operators. It suggests a lower number than previously thought (see p43). That is relevant as the reduction is resulting in a “recycling of managers” at a senior level.
He notes also that much management provision has historically been home-grown, and it can take a long time to find someone of the right calibre where family firms do not have children who have been involved in the business for many years.
“It is quite difficult finding good people who understand coaches well, and it may be something we need to start considering,” he says. “The trouble is that it is niche. Establishing a training scheme would be difficult — it would most likely require a group of operators funding a small number of people to go through training, perhaps facilitated by a trade body. There is a training deficit, but the question is how we could organise the training, and whether we would have adequate buy-in from coach operators.
“We would be very interested to hear from our members what their thoughts are. We will be giving serious consideration to the topic of business succession in 2025.”
