Businesses address skills shortages to meet growth ambitions

Private businesses in the Midlands are addressing skills shortages in order to meet growth targets, new information suggests.

According to the latest Office for National Statistics (ONS) report on education and skills, more than three in five businesses which reported skills gaps reported a direct impact on performance and its ability to meet business objectives.

But despite an overall feeling of cautiousness in respect of business spend as a result of ongoing periods of volatility in the Eurozone and the slow growth in the UK economy, companies are investing in key skills to enhance their growth potential.

Chris Romans, partner and private business expert at PwC in the Midlands, said: “As they stretch to meet growth targets, businesses are realising that they need to become more flexible in their approach and prioritise people management as part of their business strategy.

“Private businesses may be smaller and more flexible but they are not immune to problems caused by skills shortages and they need to adapt.”

One way in which businesses have learnt to adapt is by recruiting employees that are more flexible about how they work – those willing to take job share positions or fixed-term contracts.

“In the current economic climate, investing in talent can be a gamble and the decision to do so must be weighed against the company’s long-term strategy and vision for growth,” added Mr Romans.

“Many businesses are investing in experience to support the business as it grows, which is a positive step, but it is typically more expensive than training people internally.”

In PwC’s 15th annual CEO survey, 24% of bosses planned to recruit more experienced talent from outside the company. Additionally, 29 % highlighted they were unable to pursue market opportunities due to talent-related constraints affecting growth.

Vicky Ansell, talent and reward expert at PwC in the Midlands, said: “Retaining staff and training those within the business are both equally important to driving growth. At a time when businesses are making cautious steps towards recovery, they need to look internally and make sure they are incentivising their strongest performers.”