Skills Crisis to Hit UK Businesses in Next Three Years
More than three quarters of UK businesses are struggling with a skills crisis that is affecting growth, trade and profitability. This is according to a survey of more than 600 business leaders by the Prince’s Trust and HSBC. The results suggest that even with the strongest pay rises in a decade. There are underlying challenges for the UK economy.
Skilled workers
Skilled workers are hard to find, particularly younger people who haven’t yet had the opportunity to develop their career plans. Which can make it difficult for companies to attract and retain talent. Despite the economic recovery, such as hospitality and construction are still suffering from a severe shortage of skilled workers.
One strategy for tackling this challenge is to rethink how companies hire and cultivate their own talent. Employers are now looking at the softer skills. They need to nurture and develop their existing staff, such as complex problem solving, negotiation and emotional intelligence. They are also restructuring their departments to move people in manual or admin-heavy roles into new, more growing areas of the business.
A second approach is to focus on finding people. Who already have the right innate qualities that are relevant for different jobs. In this way, companies can get employees with the right skills for their jobs. That can reduce their need to spend time and money on recruiting new staff from outside.
Industrial Revolution
As the Fourth Industrial Revolution unfolds, we are seeing a profound shift in the skills that companies will need to build their future workforces. Those shifts are a challenge and an opportunity for UK companies.
But they could lead to acute shortages of critical talent if firms don’t respond. McKinsey’s model shows that up to 10 million people — about 30 percent of the total UK workforce. May need to change occupations or skill levels by 2030.
This is a major concern for companies. Which will have to transition at least a third of their current workforces into roles that require new skill sets or new degrees. This could require up to 30 billion pounds of investment over the next decade, not to mention a great deal of time and effort.
In a world where the pace of digital innovation is constantly changing, it’s important to be able to quickly and efficiently adjust and develop new employee talent. This requires a strategic and holistic view of the business that goes beyond ensuring all employees have the necessary technical or practical skills to do their jobs.
It’s also crucial to ensure that a company’s employees have the necessary cultural and social values. That will help them perform at their best. It’s this kind of cultural alignment that will enable employees to thrive in a fast-changing environment. That can ultimately drive long-term success for the entire company.
In a tight labor market, a strategic approach to developing talent will not only benefit the bottom line, but can also improve employee satisfaction and engagement. It can be a great way to win the loyalty and support of an increasingly diverse workforce.
