Oxfordshire bosses have been warned to “mind the gap” when it comes to training their staff. One in five employers admit their staff are lacking key skills needed to do their job properly, according to a major new report and this figure has risen by five per cent in the last two years.

Now business leaders are urging private sector employers to invest in staff to grow their businesses to absorb the fall-out of workers from the public sector and to fulfil their potential in a highly innovative area of the UK.

Frank Nigriello, chairman of the Oxfordshire Economic Partnership (OEP), said: “The economy is dependent on businesses helping the country to trade its way out of the financial hole created by overspending in the public sector and exacerbated by the recession. The businesses in our county have a vital role in the nation’s economy, but without skilled people they will find it increasingly difficult to compete. We need to get business and colleges better connected. Against the backdrop of the Government’s spending review, it has become even more important the skills provided by our education establishments are aligned to meet the needs of the local economy.

“But the skills gap doesn’t start with colleges, it begins much earlier when schools fail to provide the critical skills of literacy, numeracy and basic IT. That needs to be addressed urgently.”

The Oxfordshire Employer Skills Survey, compiled by the OEP and Oxford Brookes University, interviewed more than 1200 managers about their employees and staffing issues. Skills gaps were found to be worst in the south of the county and in Oxford itself, with the greatest need being for people with sales and customer service skills.

Manufacturing and science and technology firms are also finding it hard to recruit the right people, particularly among high-level professionals and skilled support staff.

Chris Lewis, managing director of Cowley-based Chris Lewis Fire and Security, runs an apprenticeship scheme for staff, some of whom join the company straight from school at 16.

He said: “Where we have identified skills gaps, we have addressed this through training. It has often required significant investment but actually has had massive pay-back often in a relatively short timeframe.

“People coming from craft apprenticeship backgrounds often become the managers and directors of tomorrow.

“The length of the training means apprentices have to be serious about their career choice but the rewards for them are well worth the commitment.

“The benefit for the business is that it builds a workforce of trusted, well-trained individuals fully engrained in the company culture.”

One of his maintenance engineers, Daniel Boyes, has just finished a three-year apprenticeship after leaving Matthew Arnold School in Cumnor at 16. He said: “I had always felt more comfortable working with my hands than reading a book but leaving school to start working was a big jump for me.

“But now I feel there is a good career path to work my way through the company or I could even be the next Chris Lewis. I feel better equipped than I would have been without the apprenticeship.”

Daniel, 19, has just won £500 in the Apprentice Skills Challenge at the Security Excellence Awards, beating other apprentices from across the UK.

Earlier this week Prime Minister and Witney MP David Cameron revealed the Government was investing £200m in the private sector to create a "new economic dynamism" to help offset cuts in the public sector.

The Oxfordshire survey shows the county is well placed to help with high levels of innovation and many firms expecting growth in the years ahead.

Mr Nigriello, director of corporate affairs at logistics group Unipart, added: “Innovation is absolutely essential in continuing to grow our local economy and in contributing to the national economy. Continuous improvement and added value are the factors that keep us competitive in challenging global markets.”

Unipart training manager Rebecca Roberts is responsible for training new recruits.

She said: “Even graduates have to be trained from scratch. It’s not rocket science, just common sense about working in a structured way. I left school knowing nothing about what it would be like working in a company.”

Ms Roberts, 39, from Banbury, started in the firm’s pricing and marketing department 13 years ago before spending the last four years on a training programme, finally becoming a trainer herself.

She added: “I love my job now — it is much more satisfying and I can take my skills anywhere.”