According to recent research the skills gap is costing companies £6.6bn p/a on inflated salaries, temp staffing, recruitment and training fees. However are short term fixes necessarily the answer to what could be a longer term problem?
The survey carried out in July and August this year showed that more than 50% of companies were suffering with skills shortages. With the current climate in mind and the fact that many organisations are cutting costs it is surprising that some would continue to spend money on short term solutions to longer term talent issues. Buying in talent with a short term view in mind can prove expensive and unsustainable.
Ultimately, the question we should ask is - will this deliver against a longer term strategic growth plan?
The figures, from the Open University’s Business Barometer, which surveyed 1,000 business leaders across the UK between July and August this year, highlighted the growing cost for UK employers of plugging skills gaps. This cost stood at £2.2bn when the annual survey began in 2017, and has now risen to £6.6bn a year – a 39 per cent rise on 2019.