Skills shortage to cost small businesses £145,000 the the next year

Originally written by Anna Jordan on Small Business
The UK’s skills shortage will cost small and medium-sized businesses £145,000 on average in the next year, according to an independent study from Robert Half UK.
That figure is expected to rise to £318,000 in the next five years.
The skills gap – the difference in skills required within a business or organisation and the actual skills the workforce of the organisation has – is part of the reason that the UK has the lowest productivity among the G7.
Macro challenges like a shrinking talent pool due to Brexit, increased digitalisation and economic influences are behind the widening skills gap. They’re also stifling innovation and preventing SMEs from entering new markets.
Essential skills that are needed to help close the gap include data analysis and digital skills as well as softer skills such as resilience, adaptability to change and critical thinking.
The research, commissioned by Robert Half’s 2020 Salary Guide, highlights that SMEs are worried about the potential impact of macroeconomic events on the skills gap in their businesses.

 Negative impactPositive impactNo impact

Recession59pc16pc18pc

Brexit47pc20pc26pc

General Election pre-202015pc26pc47pc

IR3515pc18pc41pc

Digitalisation/Industry 4.012pc44pc32pc

Three in five (59pc) said that a recession would negatively impact their business, followed by Brexit (47pc). A quarter of SMEs (26pc) said that

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