Almost two thirds of businesses are missing out on increased productivity by not taking advantage of free and low-cost training, the Learning and Skills Council (LSC) has found.
Another 43 per cent of businesses said that they were not even aware that the subsidised training was available from their local further education (FE) college.
An overwhelming majority (87 per cent) of those whose employees had taken advantage of the FE training said that it had benefited the company.
Almost half said that it increased productivity and helped with employee retention.
"The findings clearly highlight the competitive benefits to employers of using FE training," said Bill Rammell, higher and further education minister.
"The challenge for FE providers is to engage with business so they make best use of this, and be aware of the choice, value, and relevance of training on offer.
"Providers must adapt to meet the needs of employers."
