It is said that change is the only constant – and whilst this is true, the approach we take to these changes determines our levels of continued success.
The current climate has its challenges, and we need to think and behave differently to meet these challenges head on.
Uncertainty is driving this behaviour change with increased focus on developing the current workforce as opposed to hiring new ones. Competition is high and consumer behaviour is raising the expectation of product and service delivery. Developing the talent we have is not an optional extra but a bare minimum if we are to navigate this climate and emerge victorious.
One of the best ways to review and navigate well is to ask ourselves “What obstacles are getting in the way of our customers paying our salaries?”
Insights
The recent Skill Fitness Report by Betterworks highlights significant challenges organisations face in developing and managing employee skills. Key findings over the last 12 months include:
- Lowered Hiring Standards: Due to skill shortages, 78% of organisations have adjusted job requirements or lowered hiring standards to attract candidates.
- Infrequent Skill Assessments: While 70% of organisations use performance evaluations to measure skills and competencies, most conduct these assessments only once or twice a year, leading to outdated or incomplete data.
- Need for Enhanced Manager Support: Although 75% believe managers play a crucial role in employee skill development, 44% indicate a need for more coaching and mentoring.
- Technological Solutions and Personalised Plans: A significant 82% believe technology can help alleviate skill shortages, and 96% emphasise the importance of personalised skilling plans to address individual employee skill gaps.
- Time Constraints: The primary barrier to skill-building is a lack of time, underscoring the need for organisations to prioritise and allocate time for employee development.
The report underscores the importance of accurate, up-to-date and verifiable skills data. Organisations are encouraged to implement dynamic, AI-powered systems to align employee development with strategic goals, thereby uncovering hidden talents and enhancing internal mobility.
To read the report in full, go to: skillsreport.betterworks.com
News
UK wages have risen at their fastest rate in over three years, with private sector earnings driving the increase. Between September and November, real wages grew by 3.4% compared to the previous year, according to the Office for National Statistics (ONS). While higher wages could contribute to inflation, the Bank of England is still expected to cut interest rates in February, given the recent drop in inflation to 2.5%. However, some policymakers remain cautious about the resurgence in private sector pay growth. The UK unemployment rate has risen slightly to 4.4% and job vacancies continue to decline, though they remain above pre-pandemic levels.
Despite rising wages, economic uncertainty and higher business costs may impact future pay growth and hiring trends. Employers are increasingly cautious, with some putting hiring on hold due to new tax rises and additional costs from higher minimum wages and reduced business rate relief. While certain sectors, such as IT and engineering, continue to offer high salaries to attract skilled workers, overall job mobility has slowed as workers are reluctant to switch employers. Economists warn that businesses may eventually reduce both staff and wage increases, which could limit further economic expansion. The government has emphasised the need for employment growth, with plans to reform Jobcentres and support young people in entering the workforce.
To read more visit: https://www.bbc.co.uk/news/articles/c4g372w32vjo