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A s talent pools shrink , small- and medium-sized enterprises ( SMEs ) face greater challenges than larger companies . Research shows 62 % of organisations suffer from a skills shortage , with SMEs disproportionately affected . Despite employing over 60 % of the UK workforce , seven in 10 SME owners struggle to recruit staff with the necessary skills .
This situation represents more than a temporary challenge ; it ’ s a skills crisis affecting the majority of the UK ’ s working population . To compete , SMEs should leverage their advantages , such as agility and close-knit teams , to position themselves as desirable workplaces .
Employee-built community
Smaller businesses excel at creating a sense of community , enabling faster decision-making and more collaborative work environments . Building a supportive space for employees to collaborate and learn – especially from senior team members – raises job satisfaction . Employees who view the company as a place to grow professionally are more likely to stay .
Performance-based benefits
Offering incentives tied to performance helps align employee development with business goals . While not all SMEs can afford extensive benefit programmes , affordable options like flexible working hours can improve work / life balance and increase employee loyalty . Healthcare perks and leisure rewards , where feasible , can also boost team performance and satisfaction .
Investing in career development
Encouraging staff to pursue courses that advance their careers cultivates trust and loyalty . Employees see the company ’ s investment in their growth as a mutual commitment to success . Training initiatives not only improve retention but also build the business ’ s overall skillset . Selecting the right courses that align with company goals and future trends is essential .
Training for future demands
Anticipating in-demand skills is challenging but crucial for SMEs . Staying ahead of trends , such as the rise of Artificial Intelligence ( AI ), can provide a competitive edge . The Office for National Statistics reports that 16 % of businesses are already adopting AI tools . SMEs should encourage staff to undergo AI training , building strong foundations for future innovation .
Addressing the skills gap has long-term implications for the UK ’ s economic stability . According to WordSkills UK , 60 % of businesses expect their reliance on advanced digital skills to grow in the next five years . Proactive SME leaders must act now to bridge this gap .
Closing the skills gap
To attract and retain talent , SMEs must demonstrate their commitment to addressing the skills gap . Reassuring employees that the business is dedicated and invested in their professional development will strengthen loyalty and ensure the company ’ s future success .
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REASSURING EMPLOYEES THAT THE BUSINESS IS DEDICATED AND INVESTED IN THEIR PROFESSIONAL DEVELOPMENT WILL STRENGTHEN LOYALTY AND ENSURE THE COMPANY ’ S FUTURE SUCCESS .
KEVIN VASHI , MANAGING DIRECTOR , NETCOM TRAINING
Intelligent SME . tech
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