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Almost half of employers increased staff upskilling amid slower labour market – CIPD

48% increased staff development amid skills shortages, a slower labour market and new employment legislation.

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Almost half of employers increased staff upskilling amid slower labour market – CIPD
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Almost half of employers increased efforts to develop talent in-house over the past year, research from the CIPD and Omni RMS found.

48% increased staff development amid skills shortages, a slower labour market and new employment legislation.

Of the employers that introduced retention measures, 45% increased learning and development opportunities. 

44% said talent had become harder to retain.

More than half of organisations that recruited during the year had difficulty attracting candidates, particularly for senior and skilled roles.

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58% reported a rise in unsuitable applications.

Overall, 91% were already upskilling staff or considering doing so to address skills gaps.

More organisations reduced permanent recruitment than increased it, at 28% and 22% respectively. 

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27% made redundancies over the previous year.

52% offered apprenticeships and 43% ran graduate programmes. 

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One fifth plan to recruit more workers aged 18 to 24 over the next year.

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Claire McCartney, senior policy adviser at the CIPD, said: “The findings of our report suggest that in order to be future-ready and retain skilled employees, organisations should prioritise strategic workforce planning and in-house development programmes to upskill existing employees in priority areas.

“However, organisations should also not forget about pathways to employment for new and returning workers, making sure to invest in ways for people to access opportunities through apprenticeships, traineeships, industry placements, and post-A-level routes. ​

“The world of work is rapidly changing as a result of new legislation, technological advancements and mounting global pressures.”

McCartney added: “It’s clear that the best way for organisations to weather these storms and stay competitive is by investing in their people.”

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Louise Shaw, chief executive at Omni RMS, said: “The findings highlight a clear challenge for employers. 

“While talent is increasingly recognised as a strategic priority, many organisations are still making workforce decisions reactively. 

“In a more complex labour market, attracting applications is no longer the problem – identifying, assessing and developing the right capability is.”

Shaw added: “The organisations that will succeed are those that take a longer-term view of workforce planning, build critical skills internally and make evidence-based decisions about where capability is best developed, hired or acquired.”

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