A newly released study shows that 68% of small and medium-sized enterprises (SME) in the UK are facing challenges when trying to hire staff with the appropriate skills. The findings are based on a survey named The Attitudes to Work that was conducted by an independent research firm and commissioned by UK flex workspace operator The Brew. In total, 525 business professionals at SME companies across a wide range of industries were surveyed for the purposes of this study.
The poll highlighted potential causes behind this challenge. For instance, one-third (33.5%) of the professionals surveyed cited inadequate starting salaries as a main reason for struggling to find skilled recruits. This confirms previous data that suggests that the UK is behind other European countries and the U.S. regarding the appropriate pay attributed to new and junior-level employees.
According to the survey results, the likelihood that a younger professional (18 to 34 years old) believes that their company is experiencing a skills shortage is notably high (73.7%). Additionally, this group is more likely (63%) to attribute this to low starting pay, which supports the idea that younger generations experience stagnant wages. However, professionals older than 35 attribute the lack of skills to a limited work-based social scene (56%). This could be linked to the fact that this particular age group has worked in person for a longer period of time and, therefore, has more experience with the efficacy of this method for attracting talent.
Meanwhile, although there has been a rise in flexible work arrangements since the COVID-19 epidemic, this did not account for a major portion of the reasons for the skills deficit (only reported by 21.5%). It was closely followed by ineffective hiring and onboarding procedures (20.8%) — a sign of employees’ growing dissatisfaction with hiring practices at businesses.
While just one in 10 employees of all ages believe that the organization’s skills deficit is the result of inadequate firm marketing and outreach, 56% of older employees were more inclined than younger ones to attribute the problem to the lack of possibilities for learning and advancement. To that end, the UK skill deficit has hit an 80-year high, according to a poll conducted in early 2024, which is supported by the latest data from thebrew.co.uk.
“The UK regularly is singled out as having a ‘productivity problem,’ and it’s clear that one of the major contributors is the country’s widespread, catastrophic skills shortage,” said The Brew Chief Executive, Andrew Clough. “The new government will need to get a grip on the issue as it is hampering SMEs’ productivity and hindering their ability to compete with larger players. This new poll, commissioned by The Brew, reveals that employees don’t have confidence in their employer’s ability to attract talent. The results also suggest that salary and work-based socialising are more important than flexible work to attract skills.
“Improving the skills shortage is difficult for SMEs due to their comparatively small size and resources. At The Brew, feedback from our members is that it’s a combination of factors that attract talent. However, having a workspace that facilitates development seminars, workshops, social events, cross-company collaborations and flexible working patterns is a great help.”
Find more about the survey and the data sources here.
