The skills gap challenge
There have been frequent conversations around skills shortages in recent years, particularly since Brexit and the pandemic. Many industries are grappling with a lack of skilled workers, and commentators propose that solving this issue requires collaboration among government, employers, and individuals.
In our first Business Club session of 2025, we explored how government policies, employer initiatives, and personal strategies can address skills gaps.
How the government can help
In discussing the need for improved government support, Club members’ suggestions grouped into 4 key areas:
1_Improving the apprenticeships approach
There were mixed views on the effectiveness of the current system. Some members called for better incentives; others proposed a simplified levy process to encourage greater employer participation.
2_Aligning education with business needs
Another recommendation raised by Club members was to improve vocational training and foster greater alignment between learning in schools and the skills businesses require.
3_Filling specific skills shortages
Suggestions to fill specific skill shortages included broadening the scope and age range of apprenticeships and using targeted immigration to address immediate gaps. Greater support was also needed to build technological proficiency and upskill people in using AI.
4_Awareness-raising campaigns
Many employers remain unaware of helpful government initiatives that support skill development and training. Examples shared included:
- The Department for Education’s Employer Standards for Careers Education – this initiative connects businesses with schools and colleges.
- Local grants and training schemes in specific locations are also available under the government’s levelling-up agenda.
- The UK government’s grants search tool for SMEs and other businesses Search for find-government-grants
- Also, at a local level, many councils often run courses and skills development as part of their broader support for businesses. For example, the offerings from Surrey County Council and Waverley Borough Council
What employers can do
With ongoing financial pressures (particularly rising National Insurance costs), many businesses will be looking to adopt cost-effective upskilling strategies for their teams in 2025. Club members’ suggestions for ‘affordable’ skills development included:
Assess first and then align efforts
Skills development and organisational/business strategy aren’t always aligned. It’s always sensible to revisit the organisation’s goals and employee needs before committing investment. Regularly evaluate training initiatives to ensure they support the strategic plans and are helping to deliver the desired outcomes.
Prioritising skill development
A major obstacle to skill development is time – particularly a lack of it within the organisation’s daily operations. Businesses that allocate regular training time and foster knowledge-sharing among teams tend to perform more effectively and successfully. Sharing learning and best practices, such as high performers mentoring others, can also be a cost-effective way of upskilling colleagues.
Shift perspectives
Both employers and employees should stop treating skill development as a “tick-box” exercise. Focus on long-term benefits rather than short-term costs to find training and learning approaches that will bring improvements and faster commercial results. Another recommendation was to foster a learning and reflective culture where colleagues are empowered and encouraged to have an ongoing desire to learn and improve.
Leverage external resources
Looking outside the organisation and collaborating with other businesses can be a helpful and cost-effective way to upskill your team. Professional bodies and industry groups also offer free or discounted training opportunities, for example the Federation of Small Businesses’ knowledge hub.
Personal development tips
Individuals play a crucial role in addressing the skills gap. To keep skill-building plans on track, Club members shared many helpful tips. These included:
- Break it down: Divide skill-building goals into manageable steps and set timelines to stay focused. Ringfence time in your personal or professional schedule to do the steps you’ve set.
- Seek feedback: Find a mentor or accountability buddy to review progress and offer constructive advice.
- Be patient: Building skills takes time. Dedicate regular effort and use various learning methods to keep you engaged- online courses, hands-on practice, mentorship, etc. Play to your learning style so you find the experience enjoyable and not a drag.
- Stay flexible: Adapt goals as needed, and don’t hesitate to ask for help. Apps and tools can help, but beware of becoming too seduced by the latest new ‘shiny’ thing. Be sure an app or tool will definitely support, not distract you, from your skills development goals. Also, don’t forget to ask for help along the way – draw on your colleagues, industry professionals or peers who can offer insights and support.
And finally
A growth mindset and willingness to share knowledge can have a transformative effect, both personally and within organisations. In our January discussion, our Business Club members emphasised the value of fostering a culture where learning is continuous and collaborative, and colleagues are keen to help others develop and succeed.
Thank you to all the Club members who supported our first event of 2025 and shared their ideas. If you would like to attend our future Business Club events, please get in touch with the Shipleys’ Godalming team for more information.
Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary.
Copyright © Shipleys LLP 2025
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