79% of SMEs have skills gaps but employees are finding development barriers

79% of small to medium sized enterprises (SMEs) have skills gaps according to the Chartered Institute of Management Accountants (CIMA). As part of the institute’s annual ‘Mind the Gap’ survey, 1,000 decision makers and 1,000 employees were surveyed.  

The survey found that skills gaps were present in existing employees and in the job market. 70% of decision makers reported that there was a struggle to find the right people, while 63% felt that new hires didn’t have the right skills of education. A lack of upskilling is reportedly the biggest cause of skills gaps (it is a factor in 41% of organisations). 

Disinterest and a lack of motivation from employees was a common blocker to development according to employers (58%), but staff have a different perspective. 82% of employees say they would like to upskill but less than a third have received any formal training in the last year.  

In addition, employees who receive skills training are largely receiving training in areas such as interpersonal skills and role-specific training rather than in the areas where gaps exist. 

The most common areas for training were in job performance skills (34%). This contrasts with employers’ desires to upskill in technology skills (38%) and AI skills (33%). Evidently, there is a need for employer’s to be more strategic with training. Helping employees expand their skillsets beyond their current role could be strategic if it allows the company to retain and develop staff and retain corporate memory. 

As part of the study, CIMA also found that 26% of employers felt that certain skills were prioritised too much over others. 38% said there was too much of a focus on digital skills like SEO, social media and cybersecurity, while 26% thought that financial skills were too large a priority.  

The survey highlights a disconnect between employers and employees. This is often caused by a lack of understanding of the company's mission, vision and values. 

Taking time away from the day-to-day running of a business can help decision makers get a more accurate picture of where the gaps are in strategy. Critically, it can provide an opportunity to engage employees on the business journey through better communication and personal development plans. These plans help employees understand their role in making the strategy happen. 

Mission, vision and values and employee engagement are both popular modules on our/the Help to Grow: Management Course. Help to Grow: Management alumni and CEO of ACI Group, Karsten Smet found this to be the case.

"The Help to Grow: Management Course gave me time to clarify my business's future and make my organisation one that my employees were invested in. The learnings on mission, vision, and values I managed to apply, and the support of my mentor, made the process of integrating new teams into ACI Group a success." 

Paul Turner, FCMA, CGMA, Vice President – UK and Ireland at AICPA & CIMA, wrote about the report: “SMEs face mounting bureaucratic and economic challenges when it comes to addressing skills gap challenges, putting at risk the UK Government’s “further and faster” vision for economic growth. Investing in relevant training and embracing technological advancements, such as AI, is essential to empower employees and drive productivity.” 

If you're looking to better understand how to engage your employees and increase retention, the Help to Grow: Management Course is for you. Find out more here.