By Emma O’Dell, below, Skills and Capability Planning Director, BPP Education Group
Since 2020, employers across the UK have faced a prolonged period of skills shortages – a challenge which successive Governments have failed to overcome. Small and medium sized enterprises (SMEs) continue to bear the brunt of the ongoing skills shortage. There are around 5.5 million SMEs in the UK, accounting for 61% of overall UK employment. But research reveals that seven in ten SME business owners struggle to source and retain staff with adequate skills.
To compound these shortages, the first report by Skills England, a Government body set up to coordinate key stakeholders in the higher education and training space, has shown that there is a notable gap in level 4 and 5 technical skills, referred to as the ‘missing middle’.
It’s vital that SME business owners are armed with the tools they need to plug the skills gap for good, empowering them to take a step towards addressing workforce skills challenges that are standing in the way of productivity.
Ultimately, this will allow SMEs to contribute towards meeting the Government’s plans for economic growth and prosperity throughout the UK.
How can we navigate the ‘missing middle’?
Level 4 and 5 apprenticeships provide learners with the necessary skills and knowledge needed for senior technical or supervisory roles within their chosen industries. For many employers, finding employees with these skills has proven a difficult task.
Skills England’s latest report found that not being able to find the right management and leadership skills accounts for 44% of current skills shortage vacancies, which has a direct impact on our productivity levels.
The report also sets out a series of cultural shifts, referred to as ‘megatrends’. One key megatrend it highlights is our ageing population, which will directly impact workforce needs in years to come, as it creates a mismatch between the current skills of the workforce, and what the evolving business environment requires.
Failing to address this in the short term will therefore not only cause the ‘missing middle’ to increase in the long term but also impact on employers’ skills needs at all levels.
Key to addressing the ‘missing middle’ will be empowering supporting SME employers to identify upskilling opportunities within their current workforce, and empowering ‘older’ workers to reach their full potential through training. Upskilling managers in how to deal with constantly shifting business needs is critical, particularly within SMEs.
A streamlined approach for a stronger line of management
At present, at least 80% of 2030’s workforce is already in work. SME employers should therefore be looking to upskill their existing workforce through schemes such as apprenticeships, if we’re to tackle the managerial skills gap head on.
There are benefits for both parties (employees and their employers) in offering such programs. For the employer, it means having the right skills in the business that boosts productivity and contributes to wider growth.
The financial benefits for SMEs are clear, too. Apprenticeship outputs generally surpass their associated costs to the employers, delivering a net benefit during the training period, with the estimated yearly gain being between £2,500 and £18,000 per apprentice.
At the opposite end of the spectrum, employees being offered the option to upskill and develop from an employer shows a genuine interest in their career development. Crucially, this means creating a more satisfied and productive workforce, which is a key part of fulfilling the Government’s long-term plans for economic growth.
Unlocking the true potential of older employees
The majority of older workers in the UK are employed by SMEs. Half of workers aged 50-64 and two-thirds of those over 65 work for small employers, with figures rising to 86% and 94% within medium-sized organisations.
Unfortunately, assumptions that older workers are less adaptable, have poorer IT skills, or are less physically fit compared to younger workers, continue to persist. These contribute towards the negative stereotypes that exist for older workers and prevent them from reaching their true potential in the workplace.
However, well-designed and effectively delivered training programmes can help reduce these age stereotypes, with age-diverse and inclusive teams helping to foster a greater sense of collaboration within the workforce.
Apprenticeships, for instance, can cultivate leadership qualities and strategic thinking, teaching employees to make informed decisions, manage change, and lead organisations effectively through evolving business landscapes.
Such programmes also emphasise the development of soft skills such as communication, teamwork, adaptability, and emotional intelligence, which are crucial for effective leadership and management.
Providing mid-career opportunities to upskill through apprenticeships can help organisations better understand older workers’ future working patterns and training needs, tapping into their existing knowledge and experience within a given sector. Ultimately, this prepares managers to be versatile leaders in today’s complex and rapidly changing world.
Equipping older workers with the necessary skills to offer the best support and guidance to the employees of the future is a social and cultural shift that leaders of SMEs must make, if we’re ever to plug the managerial skills gap for good.
Final thoughts
Given that SMEs make up such a significant portion of the UK’s business landscape, it’s vital that employers identify the organisational capabilities and skills they require to best inform upskilling opportunities within their existing workforce.
From there, they can implement training programmes which are tailored to learners of all ages’ needs to close the ‘missing middle’ and ensure they are meeting the constantly evolving needs of the business. Otherwise, skills challenges across the nation will continue to threaten UK productivity gains.
Apprenticeships are by no means a complete solution to these challenges, however upskilling opportunities can significantly boost output across key growth sectors – both those identified in the recent Modern Industrial Strategy Green Paper and beyond.
By doing so, we can create a productive and robust workforce, which is central to achieving the Government’s goals for long-term economic growth and prosperity in the UK.
