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Skills Shortages Hurting SMEs

Skills shortages could cost UK private businesses £34 billion a year, a new study published today has found, prompting a call for such firms to help safeguard their future.

Employers of the UK have persistently struggled to find the right men for the job. The need for skilled workers has demanded a niche corner of the market and has left many businesses with a limited workforce. Sectors such as construction and engineering were particularly hit by the Brexit referendum back in 2016, and the subsequent departure of EU workers. Since the departure of a large majority of the workforce, as well as the collapse of Carillion earlier this year, many sectors have struggled to stay afloat.

According to Pwc’s European Private Business Survey, 52 per cent of firms said their inability to recruit suitably skilled and qualified employees is having a direct impact on turnover, with an annual loss of £34 billion. This is not just a British concern, however, with the study revealing a total of 31 European countries shared the same concerns, amounting to a possible €324 billion annual total bill.

It remains a real problem for Britain, with laboured sectors struggling to reach prosperity with an incomplete team. Successfully locating these skilled workers is not unattainable, however, and improvements to recruitment procedures and training schemes could make all the difference. At the Credit Protection Association, our debt recovery service frees up cash flow for our Members, giving them the financial power to explore new opportunities.

Suzi Woolfson, the accountancy giant’s UK private business market leader, said: “Private businesses need to invest in equipping current and future employees with skills that keep pace with technological change.

“Collaborating with governments, schools and universities will be crucial to help identify the skills private businesses will need tomorrow.

“Responsive, flexible and nimble education systems will help provide school-leavers and graduates with knowledge and expertise that is relevant to the future world of work. Employers also need to take responsibility for enabling life-long learning and re-skilling existing staff.

The report also found that 23 percent of UK companies are upbeat about Brexit, but this made it the most confident country in Europe about the issue. Furthermore, about 69 percent of UK companies said they were confident of future growth, beating the 65 percent average.

Suzi Woolfson, the accountancy giant’s UK private business market leader, said: “If private businesses want to attract and retain talent in a post-Brexit world, they’ll also need to think about the appeal of their working environments. Modernising their approach and concentrating on their culture and values as well as just revenues will be key.”

The skills shortage has held fast in its grip on British businesses, with record-high employment making life difficult for recruiters. The Brexit referendum spurned migrant workers, whose skills were revered in the construction and manufacturing sectors. The uncertain atmosphere that the referendum left behind inspired many to return to their countries of origin, and even more to avoid the UK altogether. Tough economic conditions, from high inflation to high business rates, put more pressure on business owners and their diminished job pool.

Any kind of shortage can be replenished, however, and employers can do their bit to ensure it is done. Improving both recruitment procedures and the general working atmosphere can ascertain a renewed workforce as well as the perfect first impression for prospective employees. At the Credit Protection Association, our debt recovery services chase down unpaid invoices and residual debt and restore financial power to our Members. They have then gone on to launch training initiatives, recruitment fairs and even renovate and expand offices.