It goes without saying that the UK skills shortage has significant implications for your business. However, less well reported is the effect it has on those who work within your organisation.
Data from The British Chamber of Commerce and The Open University has shown that the skills shortage has a very real impact on existing employees.
The two organisations polled 1300 employers. They found that 68% reported a skills shortage, with three-quarters saying the issue is impacting their existing workers’ wellbeing.
An increased workload.
It’s fair to assert that amid a recovering economy, many businesses are enjoying an increased workload. However, the skills shortage and candidate scarcity has left many businesses on the back foot.
They just don’t have the volume of staff with the necessary skills to meet demand.
72% of employers said there had been an increased workload for their other staff as a result.
28% of all businesses surveyed said they had to turn down work or were not able to contend with competitors because of staffing shortages. Additionally, almost four in five have seen reduced output, profitability or growth as a result.
The issue for the people within an organisation seems to have worsened. In 2021, the same questions were asked of employers. Last year, 56% of respondents reporting skills shortages said the problem was placing additional pressures on its existing staff.
Does big = better?
You would think that large organisations would have less of a skills problem than their smaller counterparts. However, the research suggests differently.
The poll revealed that 86% of large organisations were facing skills shortages, while 68% of SMEs reported skills gaps.
The business structure within large organisations is often very clearly defined. With that comes clearly defined job roles. This makes replacing individual roles and filling gaps more difficult. There is also less agility within the recruitment process and so filling a gap is a lengthier time to hire.
In smaller organisations, employees tend to move between roles and pick up responsibilities more flexibly. There is also an unsaid culture of wearing “many hats”, and less of a “that’s not my job” mentality. It doesn’t mean that the gap isn’t there. It just means that it’s less apparent and employee expectations are different. Jobs are picked up and completed among a more agile workforce.
What can businesses do to address the skills shortage?
Experts believe that amid this turbulent jobs market where skill shortages are high, it’s never been so vital to have a skills plan.
The advice is that the plan must be a multi-agency effort. It is recommended that organisations, the government, and training providers must come together to ensure the system works for individuals, businesses, and the economy.
One practical step businesses can take is to carry out a skills audit of the current team. This allows them to get a better understanding of their workforce’s current skill set. It is unlikely that an organisation has a team where everyone has identical skills. With an analysis of its team, business leaders can ensure that every employee is placed in a position where they are most effective.
Look internally.
Businesses are looking more critically at their learning and development opportunities.
90% of large organisations have implemented some form of written plan around recruitment, training, addressing skills shortages, environmental, social, and governance, or inclusion and diversity.
This shows, that not only are they addressing learning and development, but they are also highlighting areas where they can change policy to become a more attractive employment proposition for job seekers.
For example, the diversity and inclusion and the sustainability stance of an organisation are critical deciders for candidates choosing between employers.
In addition, 52% of large organisations and 47% of SMEs said they planned to increase investment in staff training over the next year.
Hire for skills and potential.
Employers are being urged to look beyond qualifications when they are hiring new employees. By including a minimum qualification level on job descriptions, organisations could be missing out on talent. This is especially true of GenZ candidates. This demographic often has the passion, aptitude, and skills to succeed but not the relevant qualification or commercial experience.
By investing in emerging talent, organisations will reap the rewards. As well as ensuring employee loyalty and reduced turnover, they will boost internal skillsets, build long-term relationships, and shape young careers.
Are you interested in the wider hiring landscape?
Every month, our blog offers industry insights. Our series The Recruitment Landscape shines a light on the recruitment patterns and trends across the UK.
Read our past articles on recruitment in the Industry News section of our blog.
