Almost seven in 10 small and medium-sized businesses struggle to find recruits with adequate skills, reveals research. 

The Attitudes to Work study surveyed 525 business professionals at SME companies across various industries. It was commissioned by coworking company The Brew.   

Of the professionals polled who battle to find skilled staff, a third (33.5%) say that inadequate starting salaries are a significant cause, which confirms data suggesting that the UK is lagging behind its European and US counterparts when it comes to paying new and junior employees.   

Younger professionals (aged 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%), possibly because of this age group’s longer history of working in person, meaning they have more experience in 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 employees were more likely (56%) than younger ones to say that their organisation’s skills shortages are down to few opportunities for learning and progression, and just one in 10 across all age groups say it’s because of poor company marketing and outreach. 

‘Productivity problem’

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… 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.”