A new poll finds that almost seven in 10 UK small and medium-sized businesses struggle to attract skilled staff. The Attitudes to Work study, conducted by an independent research firm, surveyed 525 business professionals at SME companies across various industries. It was commissioned by leading coworking company, The Brew.
Of the professionals in the survey who struggle to find skilled staff, a third (33.5%) say that inadequate starting salaries are a significant cause. This is confirmed by data suggesting the UK is lagging behind its European and US counterparts when it comes to paying new and junior employees.
Younger generations lack confidence in SMEs ability to attract skilled staff
Younger professionals (18-34) are significantly more likely to say their employer has a skills shortage problem (73.7%). They are also more likely to say that this results from inadequate starting salaries (63%), reflecting the sentiment that younger generations suffer salary stagnation. On the other hand, older professionals (35+) blame skills shortages on limited work-based social scene (56%), likely due to this age group’s longer history of working in person, meaning they have more experience of its effectiveness for recruiting talent.
Despite the increase in more flexible working since the COVID-19 pandemic, this was not a significant factor in reasons for skills shortages (21.5%). It was closely followed by inefficient recruitment and boarding processes (20.8%), which indicates employees’ growing concerns with how companies conduct their recruitment processes.
Older generations blame lack of opportunities for progression for their employers’ struggle to attract skilled staff
Older employees were more likely (56%) than younger ones to say that their organisation’s skills shortages are due to few opportunities for learning and progression—while just 1 in 10 across all age groups say it’s because of poor company marketing and outreach. The new survey results from thebrew.co.uk follow a survey in early 2024 that found that the UK talent shortage had reached an 80-year high2.
Andrew Clough, Chief Executive of The Brew, said: “The UK regularly is singled out as having a ‘productivity problem’, and it’s clear that one of the major contributors is the country’s widespread, catastrophic skills shortage. The new government will need to get a grip on the issue, as it is hampering SMEs’ productivity and hindering their ability to compete with larger players. This new poll, commissioned by The Brew, reveals that employees don’t have confidence in their employer’s ability to attract talent. The results also suggest that salary and work-based socialising are more important than flexible work to attract skills.
“Improving the skills shortage is difficult for SMEs due to their comparatively small size and resources. At The Brew, feedback from our members is that it’s a combination of factors that attract talent. However, having a workspace that facilitates development seminars, workshops, social events, cross-company collaborations and flexible working patterns, is a great help.”
Inclusivity and diversity within a workplace attracts a wider pool of skilled workers.
