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Hiring in a skills crisis | How to attract and develop the right talent
Written by Danielle Fargnoli-Read on 26 February 2025
In the UK, businesses are facing a growing challenge – the skills gap. As the economy evolves, employers are struggling to find candidates with the right skills to meet the demands of the fast-changing job market.
With the rapid advancement of technology, shifts in workforce demographics, and the increasing need for expertise, businesses need to rethink their recruitment and training strategies to bridge this growing gap.
The scope of the skills gap
The skills gap in the UK workforce has become a serious issue, particularly in industries like technology, healthcare, engineering, charities and finance. Many sectors are struggling to find skilled candidates to fill job vacancies, with a high percentage of roles remaining unfilled due to a shortage of qualified applicants. This shortage isn’t just about technical skills but also the soft skills necessary for modern work environments, such as communication, critical thinking, and adaptability.
In 2024, reports indicate that industries in sectors such as IT, cyber security, and healthcare are especially feeling the effects of this gap. For example, the demand for tech talent in fields like data science and artificial intelligence is sky-high, yet the supply of skilled professionals is not meeting the demand. Similarly, with an ageing population, the healthcare sector continues to experience shortages in essential roles such as nurses, doctors, and care staff.
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What's contributing to the skills gap?
Several factors are driving the skills gap in the UK:
- Technological advancements: With the rise of artificial intelligence, automation, and data analytics, there’s an increasing need for employees who can navigate new technologies. Unfortunately, many job seekers lack the skills to meet these modern demands.
- Education and training gaps: Despite significant investments in education, there’s still a mismatch between the skills taught in schools, universities, and vocational training programs, and the skills that are needed in the workforce. Companies are reporting that new graduates are often underprepared for the specific roles they’re hired into.
- Changing job market demands: The post-pandemic job market is transforming, with increased demand for remote working capabilities, digital communication skills, and flexibility. Many businesses are seeking individuals who are adaptable and can thrive in a constantly evolving environment.
- Aging workforce: Many experienced workers in industries like manufacturing and healthcare are retiring, and there are not enough younger workers with the necessary skills to replace them.
What can employers do?
To combat the skills gap, organisations need to implement a range of strategies to attract and retain talent:
Invest in training and development
Invest in upskilling and reskilling programs to develop the skills of your existing workforce. These programs not only help close the skills gap but also increase your employees satisfaction and retention.
Widen the talent pool
Look beyond traditional recruitment pools – open up opportunities to non-graduates, career changers, and those seeking flexible or part-time work. This inclusive approach helps tap into a broader, diverse, untapped talent base.
Partner with educational institutions
Form partnerships with universities, colleges, and training institutes to develop tailored programs that equip students with the skills needed for specific industries. This collaboration helps ensure that new graduates are better prepared for the workplace.
Offer competitive salaries and benefits
To attract top talent, businesses should look to improve their overall compensation packages, offering more flexible working arrangements, and creating inclusive workplace cultures. These measures not only help fill vacancies but also improve employee satisfaction and retention.
What's next?
Addressing the skills gap requires collaboration between businesses, educators, and policymakers. The government has already rolled out initiatives like apprenticeship programs and skills training subsidies, which aim to help workers transition into high-demand fields. However, more work is needed to ensure that the skills being taught align with the needs of the current and future workforce.
For organisations, focusing on both short-term and long-term solutions will be key. In the short term, recruitment can focus on attracting candidates with transferable skills, while in the long term, investing in learning and development programs will ensure that businesses are equipping their employees for the future.
The future of recruitment in the UK hinges on adaptability. To survive and thrive in this evolving job market, both employers and employees must be willing to adapt, learn, and embrace the future of work.
The skills gap in the UK workforce presents a significant challenge, but it’s also an opportunity for businesses to grow, evolve, and foster a culture of continuous learning. By investing in training, widening the talent pool, and building partnerships, organisations can bridge the skills gap and ensure they’re equipped with the talent they need to thrive in the future.
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