By 2030, a fifth of the UK workforce may find themselves seriously under-skilled for their jobs. Whilst it might sound like a sci-fi dystopia, according to the Industrial Skills Strategy Council, this could be our reality if we don't act now. Welcome to the world of the workforce readiness gap – a challenge for many small and medium-sized enterprise (SME) owners.
How To Recognise The Workforce Readiness Gap
The workforce readiness gap as a mismatch between what your employees can do and what your business needs them to do. The gap grows when businesses struggle to spot and nurture essential skills, keep up with their workforce's evolving learning needs, and tap into valuable employee insights.
David Banaghan, Co-Founder and Interim CEO at Occupop, comments: "The workforce readiness gap isn't just about whether your employee can use the latest software. It's about whether they can adapt, learn and bring fresh ideas to the table. For SMEs, where every employee wear multiple hats, this readiness can make or break your business."
Why The Workforce Readiness Gap Is A Cause For Concern
From talent scarcity to lack of training within workplaces, these figures help to highlight why UK businesses need to act now.
The World Economic Forum reports that half of all employees will need reskilling by 2025.
According to ManpowerGroup, a whopping 80% of UK businesses are struggling to fill roles due to a lack of skilled talent. It's a 17-year high, making the talent hunt feel like searching for a needle in a haystack.
The Employer Skills Survey 2022 found that only 60% of employers had provided training for their staff in the last 12 months, down from 66% in 2017. We're going backwards when we should be sprinting forwards.
The 'Big Stay': Job Stability Is The Hot New Trend
Right now, we're entering what the Chartered Institute of Professional Development (CIPD) calls the 'big stay' whereby job stability is the hot new trend and employers are focusing on retention. The CIPD's latest Labour Market Outlook shows that 55% of UK employers are looking to maintain their current staffing levels – the highest since 2016-17.
This 'big stay' might sound like good news, but it comes with its own challenges. If your employees aren't evolving their skills, you could find yourself stuck with a workforce that's not prepared for the tasks your business requires them to take on.
Five Ways Your Business Can Bridge The Gap
There are ways your business can bridge this gap without breaking the bank. Here are five strategies to help you do that.
1 - Regular Skills Check-ups
Think of it as a health check for your business. With plenty of affordable HR tools out there, complete regular skills audits to help you spot where your employee might need a boost in one area or another.
2 - Make Learning Part Of The Working Week
Create an environment where learning is a comfortable and familiar part of the working week. It could be as simple as setting aside an hour a week for online courses or having team members teach each other new skills. The key is to make it regular and fun.
3 - Align Your Training With Your Business Goals
It's important to ensure that your team's learning journey is taking them in the same direction as your business.
4 - Embrace The Gig Economy
Bring in freelancers or contractors to fill skill gaps quickly. You might even find that your employees learn a thing or two in the process.
5 - Team Up With Local Education Providers
Build bridges with local colleges or training providers and offer internships or apprenticeships. This can ensure you have a steady stream of talent that's ready to support your workforce.
The Power Of Continuous Learning
Creating a culture of continuous learning can not only boost skills amongst your employees, but it could also help you focus on their career development.
Reinforcing the value of continuous learning, Banaghan says: "Employees who keep learning can tackle all sorts of challenges as your business grows and develops. This could potentially mean that you experience fewer talent shortages and spend less money on recruiting outside of your business for senior roles. Plus, it keeps your teams engaged and excited about their work, retaining them for longer."
"Allowing your employees the opportunity to choose what they want to learn is important too. According to a report by workplace culture specialists, O.C. Tanner, a staggering 90% of employees say having a say in what skills they learn is crucial to their job satisfaction."
"The workforce readiness gap might seem like a mountain to climb but with a bit of creativity and a lot of determination, it's a challenge that can be turned into an opportunity. By investing in your employee's skills today, you're not just solving a current problem, you're future proofing your business."
