Training Shortage of skilled workers costing city firms millions a year

ALACK of skilled workers in Bristol is costing the city’s businesses tens of millions a year.

Some 91 per cent of companies are struggling to find workers with the right experience, according to a new report by Open University, and employers in the region are paying a high price as a result.

The shortfall is costing organisations an extra £87 million a year in recruitment fees, inflated salaries, temporary staff and training for workers hired at a lower level than intended.

With skills in short supply, nearly two-thirds of senior business leaders in Bristol are finding the recruitment process is taking longer by an average of one month and 16 days. And companies are spending more on recruitment to find the right people.

Talented workers with indemand skill-sets are taking advantage of their strong position, driving employers to spend an additional £32 million on salaries.

Nearly half of Bristol’s employers were obliged to increase the salary on offer last year, typically on four occasions by an average of £3,650 each time.

Many organisations have been forced to give up on finding appropriate talent, choosing either to hire at a lower level or to leave the role vacant.

To address the gaps left by doing this, employers in Bristol spent £18million on training to bring workers up to the level required and a further £15 million in temporary staffing last year.

The financial impact is not the only drawback of the skills shortage.

Over a third of organisations say they are not as agile as they need to be due to a lack of skills.

Senior business leaders in the region are expecting the situation to deteriorate over the next 12 months.

❝ Better training and development will result in more agile, loyal, motivated and productive workforces David Willett

David Willett, corporate director at The Open University, said: “Buying skills and not building them is a short-term approach, which ultimately won’t pay dividends.

“It is crucial that organisations [in Bristol] take a more sustainable approach, using training to address their skills gaps from within and reducing their spend in the longterm.

“Investing in work-based training, which allows workers to earn while they learn, will help Bristolbased organisations to bridge the divide between the skills available in the labour market and the skills they need, allowing them to focus on stability and growth in the future.

“Better training and development will result in more agile, loyal, motivated and productive workforces that are fully equipped to rise to new challenges and drive organisations forward.”