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Employers are feeling the impact of skills shortage in poor staff wellbeing, increased workload and decreased profitability

According to The Open University’s Business Barometer 2022 report, printed in partnership with the British Chambers of Commerce, UK organisations are experiencing the knock-on impact of ongoing skills shortages and recruitment challenges, as greater than three quarters report seeing decreased output, profitability or development.

The Open University’s annual report which gives a temperature verify on the UK skills panorama, additionally highlighted the impact the skills shortage is having on staff morale and wellbeing, as nearly three-quarters of organisations say the impact will increase workload on different staff. This statistic has crept up dramatically 12 months on 12 months, when solely 56% of respondents from 2021’s report claimed their staff have been experiencing further strain.

To tackle the drawback, greater than half of giant organisations will improve funding in staff coaching over the subsequent 12 months, in comparison with 47% of SMEs. The knock-on impact of these shortages can also be impacting firm development as 28% of companies say they’ve needed to flip down work or are not capable of bid for work resulting from their staff shortage.

The report additionally revealed greater than two-thirds of SMEs are at the moment dealing with skills shortages. This rises to 86% of giant organisations, in stark comparability to final 12 months’s report the place nearly 1 / 4 believed that discovering staff with the proper skillset was the single greatest problem dealing with companies. Organisations reported they have been feeling the full impact of complicated socio-economic points reminiscent of Covid-19, Brexit, the battle in Ukraine and rising enterprise prices – all feeding into the skills shortage.

But whereas 9 in 10 of giant organisations are taking a look at a long-term strategic strategy to skills gaps and have a written plan to deal with this, solely 43% of micro organisations (with fewer than 10 staff) mentioned they’ve some type of plan to deal with workforce points. Similarly, greater than half of giant organisations will improve funding in staff coaching over the subsequent 12 months, in comparison with 39% of micros, exhibiting that giant organisations are at the moment higher geared up to sort out recruitment challenges, regardless of reporting bigger skills gaps.

The Open University companions with the British Chambers of Commerce for the first time for its 2022 Business Barometer report. Based on a survey of 1,300 employers, performed by the British Chambers of Commerce, the report is an annual temperature verify on the UK’s enterprise panorama throughout a mess of totally different UK nations, areas and sectors.

Viren Patel, Director of the Business Development Unit at The Open University commented: “Our Business Barometer report highlights the want for employers to take a long-term strategic strategy to addressing the skills gaps and that it’s extra vital than ever to take a proactive view on staff’ skills.

“The report additionally exhibits that recruitment is harder than ever and that locations a give attention to rising expertise from inside and opening up alternatives for hidden expertise each inside and exterior the organisation. Critically, staff appear to be below extra strain than ever, taking a look at final 12 months’s report, an increased quantity of employers admit that the skills shortage is growing their groups’ workload and wellbeing.

“Through The Open University’s work with employers, we’ve seen how education can make a huge difference to workforce impact and diversity. Education is a huge enabler and has a vital role to easing and solving the skills shortage. If we can harness the ambitions of our people who deliver products and services, then it’s a win-win for all.”

Jane Gratton, Head of People Policy at the British Chamber of Commerce feedback: “Skills shortages are worsening, and the country can ill afford this drag on the economy as we recover from the pandemic and grapple with the impact of geo-political events. We need an agile skills system that can respond quickly to the evolving needs of businesses, supporting the transition to a more digital, automated, and net zero workplace and giving firms the confidence to boost investment in training and development. Planning for skills has never been more important and it’s time for employers, training providers and policy makers to work together to ensure the skills system delivers for individuals, businesses, and the economy.”

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