Solving the skills shortage - local and national strategies

The UK has fallen into a state of crisis regarding skills shortage, notably in the subjects related to science, technology, engineering, and mathematics. According to a report from the Open University in 2024, 62% of organisations are currently facing some form of skills shortages; this shortage costs the UK economy £6.6 billion yearly [1]. But the Nash Squared Digital Leadership Report also showed that 54% of digital leaders think the skills shortage is preventing them from keeping pace with rapid technological change [2]. The report stated, “STEM skills were among the most in demand but hardest to find.” So, how can organisations address the issue of tackling the skills shortage and ensure they will have all the necessary skills for the future?

How can organisations respond to the skills shortage?

Addressing the skills shortage is a strategic and multi-faceted approach. It starts with workforce planning, understanding the skills your organisation needs now and will need in the future. Then it’s about thinking about the different routes available to you to build these skills. Organisations can implement a range of initiatives to address the skills shortage and build a future-ready workforce. Here are some key strategies:

Bootcamps and training programmes: With a short-term, high-intensity training programme, quick upskilling of employees in high-demand areas can be achieved. The critical-skills bootcamps can be customised to major areas like coding, cybersecurity, data analytics, and digital marketing. Through these programmes, many people develop new tech skills. For example, women returning to the workplace after maternity leave. These can cover everything from broad skills and should be run either internally or via external organisations. By considering bootcamps, organisations can make sure they are building their talent pipeline with the skills they need to remain competitive.

Structured development programmes: Establishing formal learning and development programmes is essential for nurturing talent within an organisation. These programmes, ranging from in-house workshops to sponsored online courses, should address specific skill gaps and provide clear growth pathways for employees.

Cross-training initiatives: Encouraging employees to acquire skills beyond their primary roles creates a more adaptable and flexible workforce. Cross-training enhances individual capabilities and fosters collaboration across departments, driving innovation and resilience.

Mentorship and coaching programmes: Establishment of mentorship schemes where experienced professionals guide less experienced employees can be invaluable. Such programmes will not only assist in skill transfer but also help build confidence, nurture leadership potential, and foster a culture of continuous learning.

Investment in learning technologies: Leveraging digital learning tools streamlines the process and access to training. Online platforms allow employees to learn at their own pace, at their convenience, and track their progress while allowing organisations to deliver training in a far more efficient and cost-effective manner.

Making use of the apprenticeship schemes: Apprenticeships provide a structured way of developing skills through a combination of work experience and formal education. Organisations can apply apprenticeships to address their skills gaps and build talent internally by growing a work force that is needed and skilled accordingly.

This is by no means an exhaustive list, but provides an example of the different ways organisations can are effectively addressing the skills shortage to ensure that their workforce is equipped with the necessary skills to succeed in today’s competitive environment.

Labour’s plans and their impact on organisations

The UK government has a number of projects in the pipeline, such as how to better provide for apprenticeship schemes. This can be achieved by funding through the Apprenticeship Levy, a government tax on employers with a pay bill over £3 million, to fund apprenticeships and encourage investment in training. However, the present system, which has been adopted, has recently come in for criticism relating to its complexity, lack of flexibility, and quality of apprenticeships on offer [3].

Labour has outlined proposals to reform the levy by introducing a new “Growth and Skills Levy.” This would allow organisations to spend up to 50% of their levy contributions on non-apprenticeship training while using the remaining 50% on apprenticeships. This would give organisations considerably more flexibility in addressing particular in-demand skills needs [4].

Labour’s wider skills strategy is also set out in measures designed to toughen up STEM education and careers:

Guaranteed training and apprenticeships: The government will guarantee all 18- to 21-year-olds training, an apprenticeship, or work experience that is focused on the most in-demand skills. Equipping young people with the skills most in demand in the workforce supports businesses through the preparedness and capability of their entry-level staff by reducing time and resources spent on new employees’ training.

Investing in education: Labour’s plans to invest in schools and teachers, reduce class sizes, and ensure access to a broad and balanced curriculum, including STEM subjects, have the express aim of improving the quality and equity of STEM education. For organisations, this means a future workforce that is better prepared, more diverse, and with the critical skills they need to excel in their careers. Companies can look forward to greater capability and flexibility from a better-skilled workforce with more solid STEM foundations.

Skills England: Set up the body that brings business, training providers, unions, and government together to drive up the supply of training in the UK to meet the demand for the essential skills. Through the planned initiative organisations More targeted and effective training that responds to skill shortages, thereby helping to develop the STEM sector and ensuring that innovation can take place in all sectors. Through such training, organisations will be better equipped with a competent workforce to drive progress and continuously adjust to evolving challenges.

Labour’s manifesto sets out a series of measures that will provide a solid foundation for learning and careers in science, technology, engineering, and maths. This would address the skills shortage and enhance the attractiveness of STEM, through lifelong learning, prioritising schools and teachers, and driving innovation and sustainability.

Such initiatives, if taken forward by the Labour government, have the potential to make the available talent pool both more skilled and diverse-as with fair access to quality education and improved working conditions, careers in STEM start to become more accessible and appealing. It will help realise a buoyant sector of science, technology, engineering, and mathematics that will be important for driving UK economic growth and improving social conditions. Businesses would also benefit from having a better-prepared workforce to meet the changing demands in industry and to position themselves for long-term success.

Engagement with local communities and grassroots organisations

Apart from internal strategies, organisations can try to rectify the shortfall of skills by engaging with the local communities and grassroots initiatives. Working with schools, colleges, universities, businesses, and charities provides a chance for the organisation to guide and motivate the future generation toward STEM careers. These initiatives offer several advantages:

Demonstrating relevance and impact: Community programmes can showcase the real-world applications of STEM skills, making them more relatable and exciting for students. This approach can inspire young people to pursue STEM careers by highlighting how these skills contribute to solving societal challenges.

Fostering collaboration: By working with local schools and organisations, businesses can create a robust support network for STEM education. This collaboration often leads to better resources, programmes, and opportunities for students and communities.

Enhancing career readiness: Community-based STEM programmes provide students with practical experience and insights into STEM careers, helping them understand the available pathways and acquire the skills needed to succeed in the workforce.

Building a skilled future

This shortage, coupled with STEM knowledge, goes to pose a very serious problem to organisations in the UK. However, businesses can tackle this important issue through internal strategies, engagement with the local community, and readiness for government reforms. By marrying grassroots initiatives such as these with enabling policy, like the Growth and Skills Levy Labour is proposing, organisations can ensure that they are developing the skilled workforce their future success will depend on.

September 17, 2024

Solving the skills shortage – local and national strategies

How can organisations respond to the skills shortage?

Labour’s plans and their impact on organisations

Engagement with local communities and grassroots organisations

Building a skilled future

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