What are the skills challenges facing businesses?

Employment & Skills | Sponsored | Surveys
What are the skills challenges facing businesses?

A recent survey on recruitment has revealed that over 60% of employees believe that Brexit will not have any impact on their future recruitment plans.

Despite fears amongst some economists and politicians that voting to leave the EU would send the economy into a tailspin, the recent report has shown that employers are positive going forward with the impending March 2019 deadline of Brexit.

The survey, produced by Business Leader in conjunction with Barclays, was sent out to over 70,000 key decision makers nationwide and produced some key findings regarding employers and their mindsets.

It was revealed that 68.4% of employers will be looking to recruit new staff over the next 12 months, with over half of the responses, 55.3%, admitting to looking at hiring apprentices in the future.

The apprenticeship levy is now in full force for companies with a pay bill of over £3m each year to enable businesses to receive levy funds to spend on apprenticeships.

The levy is in response to the Government’s promise of 3 million new apprentices by 2020 and will be a business’ 0.5% of the annual pay bill.

Employers who are not connected to another company or charity will have an Apprenticeship Levy allowance of £15,000 each year.

The allowance reduces the amount of Apprenticeship Levy you have to pay by £15,000 across the year. This means that only employers with an annual pay bill of more than £3m will pay the levy.

In response to this, the survey unveiled that 76.3% were aware of the levy, however there were concerns raised that school and graduate leavers don’t have the necessary skills required to grow their respective business.

When asked the question regarding school and graduate leavers, over 68.4% said that they didn’t believe the required skills were being achieved.

In fact, it was found that 50% of employers believe that their individual business has the necessary skills in order to achieve growth ambitions.

Elsewhere, the survey also found that 52.6% of employers would send staff on an upskilling training course in the next 12 months as employers understand the need train staff from within.

Employee wage expectation was also under scrutiny as 63.2% of employers found that wage expectation impacted on hiring skills.

In regards to the housing market and the recent highlighting of housing shortages, the survey found that over three quarters (84.2%) of the survey responses disagreed that the housing shortage would have an impact on employers hiring skills.

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  1. Performance management tools can be tricky to build. A good platform should provide a range of inputs with 360 view from leaders and even external partners. They must be setup, use and deploy. These days, performance appraisals are done more frequently – quarterly, monthly or even ad-hoc. An intelligent system would be much more broad based. Evaluations must be more objective and easy to communicate.

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