Skills shortage continues to put the squeeze on small companies

Smaller businesses are often hardest hit by the UK skills gap, the Federation of Small Businesses (FSB) warned this week.

The organisation was responding to the latest UKCES annual employer skills survey, which has once again highlighted the problems that many firms are facing when it comes to recruiting staff with the relevant skills.

The problem appears to be particularly apparent in sectors such as manufacturing and construction, where there are concerns that not enough people are being encouraged to take apprenticeships.

While businesses of all sizes seem to be struggling to fill certain vacancies, it is often smaller companies who feel the effects most keenly.

This is usually because they are more likely to suffer as a result of the increased workload, higher operating costs and loss of business to rival firms.

Mike Cherry, the FSB’s policy director, said: “The report demonstrates that smaller businesses are playing their part in upskilling the UK’s workforce, with small firms investing three and a half times more money per head on training their staff compared to larger businesses.

“However, in light of major changes to the way business support is delivered in England, we need to make sure these businesses continue to get the support necessary to train the people they need. One important element of this is making sure smaller firms are able to benefit from funds generated by the apprenticeship levy, even if they fall below the size requiring them to contribute.

“Finally, smaller businesses should pay attention to the UKCES recommendation for greater investment in management and leadership skills. This has been an area where the UK has traditionally trailed behind our international competitors.”

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