According to the latest Skills Horizon Barometer report released by Skills for Life, a staggering 90 percent of businesses predict they will encounter skills gaps in the upcoming year, particularly at the entry-level, where concerns linger for 32 percent of respondents. While these gaps can pose challenges, they simultaneously present significant growth and development opportunities for employers eager to bridge these divides.
Strategies to Address Skills Gaps
To effectively tackle skills gaps within your business, consider leveraging various avenues such as training and employment schemes, bringing in fresh talent, and investing in the upskilling of your current workforce. Ensuring that your team receives the requisite training is key to their success.
Five Key Strategies for SME Employers
1. Assess Business Strengths and Weaknesses
Before tackling skills gaps, conducting a thorough analysis is crucial. We recommend undertaking a skills audit to evaluate your organization’s performance against its goals. This process will enable you to pinpoint your business’s strengths and weaknesses, making it easier to identify and address existing skills gaps.
2. Engage with Your Staff on Training Options
After identifying critical skills gaps, it’s essential to engage directly with your staff. Addressing these gaps should be a collaborative effort. Listening to employee feedback, especially concerning training and employment opportunities, can reveal new growth pathways for your organization.
If you’re uncertain about where to begin, the Skills for Life website offers a detailed map of available training and employment schemes, along with guidance for implementation.
3. Prioritize Upskilling Across the Workforce
Training should be viewed as a vital and continuous investment in both new and existing staff. By prioritizing learning and development, you demonstrate your commitment to employee growth, which can lead to higher retention rates and overall job satisfaction.
The Skills Horizon Barometer report indicates that 70 percent of SMEs plan to invest in workforce upskilling in 2025, reflecting a sustained commitment to this priority. Various economical training schemes, such as Skills Bootcamps, offer flexible options to fast-track skill development for your existing talent or assist in recruiting recent graduates.
Apprenticeships represent another effective and cost-efficient way to enhance your workforce. Traditionally associated with younger individuals, apprenticeships are accessible to anyone over 16 and can benefit both new hires and existing employees. There are over 650 apprenticeships available in England across various sectors, from finance to construction.
4. Explore Opportunities with Young Talent
Given that 32 percent of businesses are prioritizing entry-level candidates to fill skills gaps, it’s crucial to consider the profile of applicants you wish to attract. Leverage employment schemes to ensure you make informed hiring decisions.
Interestingly, a shift is occurring in recruitment preferences. Over 44 percent of SME leaders now favor candidates with prior experience, underscoring the importance of practical skills in hiring decisions.
A great way to tap into entry-level talent is by hosting an Industry Placement for a T Level student. Introduced in 2020, T Levels equip young individuals aged 16 to 19 with the technical and practical skills needed in today’s workforce. Employers who provide Industry Placements not only help students gain essential real-world skills but also create a talent pipeline, ensuring that future candidates possess the skills your business requires.
5. Maximize Available Support
Businesses focused on hiring or upskilling employees can access numerous training and employment schemes. Each scheme offers unique benefits, and understanding what options are available to you as an employer is crucial.
Jacqui Smith, Minister for Skills, Apprenticeships and Higher Education, stated: “Employers are key partners in our mission to address skills needs across sectors like AI, green technology, and construction. By utilizing Skills Bootcamps, apprenticeships, HTQs, and T Levels, we support businesses and individuals in skill enhancement and are establishing Skills England to bridge skills gaps and foster economic growth.”
To discover more about the training and employment schemes available for your business, including support on effective implementation, search ‘Skills for Life.’
Further Reading
Upskilling for Entrepreneurs: Futureproof Yourself with 6 Essential Skills – This article explores what upskilling entails, the vital skills needed, and how to acquire them effectively.
The Connection Between Digital Skills and Fraud Prevention in Small Businesses – In this piece, Rachael Tiffen from Cifas discusses how enhancing digital skills can mitigate fraud risks for small businesses.
