Click Fraud Protection

Connecting...

Skills gap ‘costing UK businesses £2 billion a year’

News | Skills gap | Uk businesses | Open University

W1siziisijiwmtcvmdcvmdqvmdcvntyvndkvmty1l0hpcmluzy1taw4ucg5nil0swyjwiiwidgh1bwiilcixmdawedqwmcmixv0

The skills gap is costing UK businesses more than £2 billion a year in higher salaries, temporary staff and recruitment costs, new research from the Open University has shown.

The Open University Business Barometer has revealed that 90 per cent of employers have found it difficult to recruit workers with the required skills in the last 12 months, while some have had to increase salaries above the market rate to attract talent. This costs UK firms at least £527 million.

A study by the Open University has revealed that UK businesses are spending more than £2 billion a year in an attempt to combat the skills gap.

At present, the UK has the lowest unemployment rate since 2005, while workers are reluctant to change jobs due to continued Brexit uncertainty, said the Open University researchers. This is combined with the fact that European nationals are increasingly unwilling to take up roles in the UK due to the lack of clarity about immigration rules once the country leaves the EU.

This has resulted in an extended recruitment process, with 75 per cent of employers reporting that it is taking them longer to find new hires. According to the Open University study, this means many businesses will see extra costs in the form of recruitment fees and hiring temporary staff. This is estimated to be at least £1.7 billion.

Top talent is therefore in very high demand, with the most skilled now able to command a higher salary. In the last 12 months, some 56 per cent of businesses reported having to boost the offered salary for a role well above market rate to obtain the skills they needed. The average increase was £4,150 per hire for SMEs and £5,575 per hire for larger organisations.

Managerial and IT roles are proving the most difficult to fill, according to the Open University, with one in five struggling to hire both senior managers (21 per cent) and mid-level managers (19 per cent), while 47 per cent of employers said they are struggling to attract talent with the right IT skills.

Steve Hill, external engagement director at the Open University, said: “Organisations need an agile workforce that can embrace change and meet new challenges. The cost of the skills gap to the UK economy shows it must become a business and government priority to build the skills and capabilities of each individual through investing in talent at all levels.”


Posted by Jon Aspinell on 4th July 2017

SHARE

RECENT CONTENT
W1siziisijiwmtcvmdqvmjqvmtevmzmvndavnty5l21hcmsxlmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Head of Search (SEO, PPC and CRO) - M...

Middlesbrough, North Yorkshire

£55000 - £75000 per annum

Head of Search (SEO, PPC and CRO) - Middlesbrough, North Yorkshire - up to £75,000 + bonus and benefits A very well-e...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

IT Support Analyst

Virginia Water

£25,000

An established software house specialising in online platforms and back office systems, is enjoying continued growth ...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

GDPR Consultant

Cheltenham

£70,000

A successful IT Consulting business, with offices in Cheltenham, is looking to take on additional, experienced Govern...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

GDPR Consultant

Stirling

£70,000

A successful IT Consulting business, with offices in Stirling, is looking to take on additional, experienced Governan...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

GDPR Consultant

Newcastle upon Tyne

£70,000

A successful IT Consulting business, with offices in Newcastle, is looking to take on additional, experienced Governa...

READ MORE
W1siziisijiwmtcvmdqvmjqvmtevmzmvndavnty5l21hcmsxlmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

MarComms Officer- N. London/ Herts - ...

Enfield, Middlesex

Up to £30000 per annum

Marketing Communications Executive - N. London-Hertfordshire border - up to £30,000 An internationally successful and...

READ MORE
W1siziisijiwmtgvmdevmjqvmdgvntkvmtavndyyl2ltywdlmtqtbwlulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mcnuzsjdxq
Insight

Can HR tech ease workplace conflict?

Workplace conflict is mostly unavoidable - particularly when businesses hire strong-minded talent with big ideas. Ego...

READ STORY

W1siziisijiwmtgvmdevmtyvmdgvntcvmzcvmtk5l1dlbgwxyi1taw4uanbnil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
Insight

What to prioritise in your employee experience

The candidate experience has long been valued by employers looking to attract fresh talent. Now, however, companies a...

READ STORY

W1siziisijiwmtgvmdevmtavmtyvmdavntmvmtyzl0ltywdlntatbwluicgxks5wbmcixsxbinailcj0ahvtyiisijmznxgxnzajbmuixv0
Insight

What can HR expect in 2018?

HR departments are set to face many new challenges in 2018, from the technological to the traditional. Among the most...

READ STORY

W1siziisijiwmtcvmtevmjgvmtcvmdevndqvnzivaw1hz2uyni1taw4ucg5nil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
Advice

From communication to drive: The importance of soft skills

Soft skills are often difficult to quantify, yet they can become an absolute necessity for your business to reach its...

READ STORY

W1siziisijiwmtcvmtevmdgvmtavntqvmzivotuvaw1hz2uxns1taw4uanbnil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
News

Only one in three workers say their employers offer training

Just one-third of workers report that their employer offers regular training opportunities, a new poll by the Trades ...

READ STORY

W1siziisijiwmtcvmtevmdgvmtavmzivntuvndgzl0ryaw5rlw1pbi5qcgcixsxbinailcj0ahvtyiisijmznxgxnzajbmuixv0
Advice

How can you encourage an inclusive work environment?

Inclusivity in the workplace is an ideal most astute businesses strive for. Making employees feel comfortable and val...

READ STORY