The productivity of mid-sized businesses (MSB) in the East of England is being dragged down by a lack of key skills, according to new data from leading business and financial adviser Grant Thornton UK LLP.
The firm’s latest Business Outlook Tracker* found that just under three quarters of business leaders (73%) believe that a lack of vital skills is affecting productivity levels. Coaching skills were identified as the most in need (22%), followed closely by complex practical capabilities including technical, digital and marketing skills (tied at 19%).
The survey of mid-sized regional businesses revealed that 78% were planning to invest more or the same in skills development over the next six months. Many have already established their own development programmes to achieve this, with 63% of those noting they were lacking coaching skills having in-house training to boost this. Also, of those that identified digital and marketing skills as areas in need, 71% and 100% have implemented in-house training, respectively.
The survey finds that productivity issues are currently affecting almost every aspect of mid-sized businesses including their ability to grow and export.
Alongside skills shortages, other important factors impacting the productivity levels of East of England businesses include difficulty in attracting and retaining talent (31%), lack of training among staff (22%) and inefficient business processes or operations (20%).
With an election called for 4 July, the majority of East of England businesses (68%) claimed to have confidence that the next UK government (of any party) will focus on prioritising long-term solutions to address the nation’s productivity issues.
Charlotte Anderson, Partner and Practice Leader for Grant Thornton UK LLP in the East of England, said: “It’s clear that there’s a strong demand for further investment in skills development in the East of England, with business leaders recording a need for better coaching, digital, marketing and technical skills to help boost productivity. This lack of necessary skills development, combined with difficulty in attracting and retaining talent, is likely creating a snowball effect, stretching current people resources and ultimately contributing to heavy workloads and inefficiency – further exacerbating the productivity challenges facing the market.
“Ahead of the election, the major parties have outlined that they are focusing on enhancing the skills and training opportunities available to the country’s workforce. It’s crucial then that the parties listen to what mid-sized businesses, the engine of the UK economy, are saying they need and put forward solutions to address the constraints currently hindering the growth and productivity of a core segment of our economy.”
