Skills Shortage Report

In a recent survey carried out by the British Chambers of Commerce 48% of businesses reported a skills or labour shortage over the last 12 months!

These businesses were asked how they were going to address these skills shortages and the statistics are very interesting:

Unemployment is at its lowest rate since 2005 and this coupled with people who are in work becoming more hesitant about moving jobs amid Brexit uncertainty means that employers need to think of new ways to address their skills shortage.

Engineering is being particularly badly hit by the skills shortage with the Institute of Mechanical Engineering, backed by Tata, stating, “the education system is unable to turn out enough people with the correct skills”.

Apprenticeships are beginning to make an impact in many industries but there is still some scepticism about their overall effectiveness, but not necessarily by the organisations; Goldman Sachs has warned that even its prestigious brand is often unable to persuade the university-obsessed parents of school leavers that its apprenticeships are worth having!

So what can organisations do?

Here are 5 points you may wish to consider:

1. Look after your people. Hold on to those individuals that make your business a success. Are you offering competitive compensation and benefits? Are you treating your people well?
2. Invest in training. Ensure your people have the skills and knowledge to take them forward. Capture how things are done in your businesses, the processes, ways of working…if a key person their skills and knowledge can be lost!
3. Have a people plan. Think about what your organisation needs to take it forward. Carry out skills assessments and consider your talent pipeline.
4. Recruit wisely. Think about what talent you require to make your business a success. Can these people be taken on at a lower level earlier and supported and developed in to more senior roles over time? Could graduates or apprentices fill your skills gaps?
5. Think about your employer brand. What is your businesses reputation like? How do you compare to your competitors? Why would I want to work for your business?