Closing Skills Gap Employers Top Priority
Main Finding
A new survey conducted by the Recruitment and Employment Confederation (REC) has found that 57% of employers believe that the top priority of Invest 2035, the Government's 10 year plan to boost growth in the economy, should be to upgrade skills within the workplace in order to close the skills gap.
Other Findings
The survey also found that:-
- Outside of the skills gap, other priorities cited by employers include increasing the routes available for employees to obtain vocational training (41%), expanding digital training (40%), developing innovation and entrepreneurship within the workforce and the economy (36%), and enhanced investment in science, technology, engineering and mathematics (30%).
- 60% of the respondents believe that the skills gap poses the biggest challenge when it comes to recruitment.
- Other issues that are making it more difficult to recruit include taxes on business (41%) and a lack of support for small and new businesses (36%)
Comment
Commenting upon the findings and the issue of the skills gap, the Chief Executive of REC, Neil Carberry, stated: "If the new industrial strategy’s focus on people is just a list of skills programmes that government will fund, then it will fail. Skills are part of a complex web of workforce practices that – if we can get things right – have the potential to transform UK productivity. But that requires serious engagement from business and public authorities alike. At a time when our domestic labour force is shrinking and skills needs are changing fast, we could unlock £39bn of growth every year by getting the people stuff right."
Carberry added: "The survey shows that industrial strategies need to consider people and productivity alongside taxation and infrastructure policies. Governments must work together on a more business-responsive approach to skills and deliver on the new Growth and Skills Levy so that employers can use funding more flexibly. There are many vacancies that require shorter learning curves and that can be filled quickly by someone who is ready to learn if they have the right support. A stable, long-term approach will help businesses step up with confidence, ensuring public money crowds in private sector commitment."
New Survey: Charity Donations Aid Employee Retention
New research conducted by the Charities Aid Foundation (CAF) has found that 54% of employees report that where their employer has a charity donation scheme in place, then that improves their levels of job satisfaction, with 51% stating that it increased loyalty towards their employer, and 47% stating that it enhanced their Inclination to go above and beyond for their employer.
Nevertheless, the survey found that at present just 25% of employers have any kind of charity donation arrangement in place.
Commenting upon the findings, the head of corporate clients at the CAF, Philippa Cornish, stated: "Corporate giving significantly enhances employee engagement by aligning a company’s actions with its purpose and values....People want to work for an employer that reflects their values."
Skills Gap In IT And Tech Adversely Impacting Business
Recruitment Problems
A new survey, the IT and Tech Skills Gap Report 2024, conducted by Hyve Managed Hosting has found that 84% of employers have found it difficult to recruit in the IT and tech sector, especially in relation to cloud computing and cybersecurity roles, with 81% of business stating that these difficulties have had an adverse impact upon their business and their ability to grow.
Adverse Impact
In terms of the adverse impact caused by the skills gap and the consequent difficulty in hiring, the main issues cited were the negative impact that it had had upon the business's technological operational effectiveness (30%) and the level of innovation they were able to achieve (28%). Moreover, 26% of the respondents respectively stated that they had fallen behind the competition and that the problems had caused their existing staff "frustration", and that staff turnover had increased as a result of the skills gap.
Increased Investment
In relation to what employers were doing to address the skills gap, 96% of the respondents stated that they were taking steps, with 51% confirming that they were investing in skills development and training.
