Eighty-five per cent of employers are not spending enough on training, according to a survey of HR managers.
The poll, conducted by business information and support consultancy Croner, found that only 14% believed that businesses had got their training budgets "about right", and just 1% said the amount spent was too high.
According to the Croner research, 52% of organisations cut their training spend last year.
Richard Smith, employment law expert at Croner said that with the current skills shortages, training was an essential tool in the "war for talent".
"Training that encompasses personal and career development of employees is essential to attracting, motivating and retaining staff, and is therefore critical to business success," he said.
Richard said that the trend to recruit staff with the necessary skills instead of training existing staff was short-sighted, expensive and laborious.
"Investing in people can make employees feel valued and therefore increase job satisfaction and security and loyalty to their employer," he added.
Croner is offering a free training pack, worth £75, which looks at leadership, employee development and equal opportunities training.
Copies are available today (22 April) from their stand at the HRD exhibition in Olympia, or by downloading from www.croner.co.uk/hrdpack.