The UK continues to be
over-reliant, compared to the rest of the world, on business with
countries which can speak English as we continue to sit at the
bottom of the league in terms of competence in other languages. As
a result, a large number of UK companies are losing business
opportunities. At CILT, we believe that languages directly benefit
our economy.
ELAN: Effects on the European economy of shortages of
foreign language skills in enterprise
CILT, along with its
research partner, InterAct International, conducted a research into
the Effects on the European Economy of Shortages of Foreign
Language Skills in Enterprise. The report was launched by the
European Commission on 23 February 2007.
The study is contracted by
the European Commission Directorate General for Education and
Culture (Tender number EAC 89/04). The motivation for the study
arises from the Commission's Lisbon strategy (2000) to stimulate
economic growth and employment and make Europe's economy the most
competitive in the world. Language skills have been identified as a
key factor in achieving this goal.
The study is the first
attempt at European level to estimate the cost to EU business of
not having foreign language skills. The data in the study is based
on a sample of 2000 small and medium-sized enterprises (SMEs)
across Europe, correlated with information from 30 multinational
companies and a group of experts from the countries involved, and
supplemented by a set of case studies.
The research shows that a
significant proportion of European companies are losing export
business through lack of language skills and intercultural skills.
The study suggests that increasing investment to develop language
skills across the EU would produce far-reaching economic benefits,
especially in terms of a positive impact on SME productivity and
export performance.
While the report confirms
the importance of English as the world business language, other
languages are used extensively as intermediary languages. In
particular, the analysis reveals that there is a need for a range
of other languages if business relationships are to be built
successfully. Those cited as being the most important include the
main European languages, such as German, French and Spanish, but
increasingly also other world languages like Mandarin, Arabic and
Russian.
The study formed the basis
for the forthcoming work of the Business
Forum on Multilingualism, Which, in turn, was followed by the
launch of the EU’s new language
strategy in autumn 2008.
Click to read more about the
study:
Related
links:
Languages in the EU
The
European Commission: Multilingualism
Talking World Class
This booklet was produced by CILT, the
National Centre for Languages in response to requests from funding
bodies, government departments and economic development agencies
for evidence of the need for language skills in the UK economy. As
the Government’s recognised centre of expertise in languages, we
draw on data from a variety of sources to present the 'economic
case for languages'. We look at gaps in current skills and the
extent of business lost as a result. But we also look at the
potential gains if we boost our level of language skills in terms
of business competitiveness, enterprise, employability and
relationship-building at home and abroad. The information presented
is intended to inform the work of policy-makers and professionals
in workforce development, education and business, business
organisations and intermediary agencies, and to support national
and regional language strategies across the UK.
Click here to
download the booklet (pdf, 5.3mb)
We are in the process of updating Talking
World Class and hope to bring a comprehensive and updated review of
current studies and research on the benefits of language skills on
economy and business. Please email
us if you have research activities relating to the topic or if
you wish to draw our attention to a piece of study.
Related link:
Regional Language
Network
Talking Sense: a research study of language skills management in
major companies (CILT, December 2005)
This study was commissioned by the Learning and Skills Council
as part of its support for implementation of the Government’s
national strategy for languages for England.
The research comprised two
parallel and interrelated exercises: a telephone survey of major
multinational companies involving approximately 50 respondents in
each of the UK, France and Germany, and a series of interviews with
senior personnel in six UK-based companies identified as examples
of best practice.
The best-practice companies
identified are AstraZeneca, the BMW Group, Deutsche Bank,
Eversheds, Gazeley Properties (a wholly owned subsidiary of
Walmart) and GlaxoSmithKline.
These six case studies were
drawn together, cross-referenced to the findings of the telephone
survey and used as the basis for a series of recommendations that
could improve companies’ access to language skills and support both
the enhancement of business competitiveness in the UK and the
future employability of individuals from the UK.
The study has been
well-received by industry, and its leaders are keen to reinforce
support for the key findings and recommendations stemming from the
exercise.
- "The Talking Sense Report
is a clarion call to both the British educational establishment and
British industry. At a time when relationships have again been
recognised as the key to sustainable success, a complacent attitude
that we will always get by in English will not do. The
understanding of cultures other than our own, the doors to that
understanding opened by speaking another language, the simple
courtesy offered by trying to speak in another person's language do
not only carry competitive advantage in the long term. They are
essential to building the personal relationships which will sustain
and fuel that advantage."
Alan Jenkins, Chairman, Eversheds
- "The LSC is helping equip
businesses with the skills they need to be competitive in the
global economy. The opportunities opening up to UK businesses
around the world are vast. Speaking the languages of these fast
growing economies does not just give UK businesses a competitive
edge, it is an essential requirement for doing business
successfully."
David Way, Director of Skills, National LSC
- "We are a trading nation
and we cannot stress strongly enough the need for languages to
support our export drive and sales of our goods abroad. But we also
need to learn from other nations, to enjoy their cultures and their
insights."
Sir Trevor McDonald, Patron, CILT, the National Centre for
Languages
- "It is because I believe
that languages have an essential part to play in shaping the future
of this partnership by enhancing understanding that I have made
promotion of language learning such a priority in my work."
His Excellency Thomas Matussek, German Ambassador to the
UK
Click to read more about the
study:
Related link:
Learning and Skills Council