We often get asked the question, ‘why is there a skills shortage and what’s happened to all the talent?’. It’s no secret that across the UK, and globally, there are huge skills shortages across industries – with engineering and manufacturing industries being some of the worst affected.
There are many contributing factors as to why there are such severe skills gaps, but the biggest question of all is how we can resolve this issue. There are many quick solutions which involve offering higher salaries and benefits to get ahead of the competition and making sure you are offering hybrid and flexible working opportunities as well as clear progression pathways. However, this is quick fix to a wider issue.
Why is there a skills shortage and what has happened to the talent?
We have worked in recruitment for a number of years and during that time there has always been competition for talent – however businesses have been able to sell their brand, reputation, major project wins and portfolios to attract talent. It’s not quite as simple as that now – with the power lying largely with professionals.
An ageing workforce which has been especially visible in industries such as engineering, manufacturing and construction has also always been an issue as experienced workers retire causing a huge vacuum of knowledge and expertise leaving the business. This has been exacerbated as a result of the pandemic as the numbers of retirees jumped, mixed with lower numbers of fresh talent entering the industry. A recent study by the Government in fact suggested we require 186,000 engineers annually to resolve the skills gap – and 20% of the current engineering workforce is set to retire by 2026.
It is clear that the pandemic has had an impact on schooling and training, as well as on the flow of new applicants choosing a career in the manufacturing and engineering sectors. Industry 4.0 and the increased demand towards automation and robotic systems and software means that future STEM candidates and qualified engineers need to ensure they are ready for the technological advancements and digitalisation to ensure they have the skills required for the future.
As a result, schools, universities, and colleges have had to adapt to these new changes in an industry which can’t be done overnight. It’s crucial that businesses support schools and colleges to highlight the skills we will need in years to come and allow for better planning and preparation of our future talent.
Brexit has also had an effect on the talent pipeline within engineering. It’s estimated that 11% of the manufacturing workforce who have come from the EU and other countries have left the UK – increasing the pressure on skills further. There’s also the added burden on supply chains, costs and additional documentation which is hampering the industry too.
This mixed with the unsustainable energy rises is another hurdle the industry has to face resulting in increased operational costs and reduced productivity levels – yet increased demand for products and shortages of stock. All of this combined with existing skills shortages leaves businesses tackling a number of challenges at once.
Fixing the skills gaps
At CRG, we support our partnership organisations by providing detailed insights, market leading Salary information and benchmarking services. We have access to the latest technologies whilst at the same time training our consultants to specialise in key sectors along with access to the best systems in the world enabling them to locate and attract the best talent. However, our expertise only works when a business is willing to listen and make changes to their existing recruitment processes, benefits and culture so they can attract and retain staff.
The skills gap ‘fix’ requires immediate action and collaboration between Government, educational sectors and engineering and manufacturing organisations to create longstanding STEM talent pipelines whilst at the same time influencing future talent of the benefits of working within this fantastic sector. Standing by and hoping somebody else will do it won’t work, everyone needs to be accountable for their actions and understand the importance STEM talent plays in the future of our sector.
Upskilling and training are both key factors in resolving the skills shortage, however this needs to cover diverse talent pools and the inactive workforce. Continually offering training to your employees to ensure they remain relevant whilst at the same time looking at new skills that will help improve business efficiency and drive continuous improvement is also key.
For example, ex forces and veterans have a wealth of talent. As an organisation we are immensely passionate about supporting our armed forces leavers and veterans on their transition to civilian life - the skillsets, life experiences, drive, and behaviours they possess would have a significant impact on any business irrespective of sector. Over 15,000 armed forces personal leave active service each year to pursue a career in civilian life. However, these individuals require businesses who are approachable and understand the skills they possess, whilst at the same time are willing to offer support, guidance and training to maximise their potential.
Don’t forget about the talent who might leave the workforce – even five or ten years from now. It’s important to pass on expertise to the next generation. In my experience businesses that incentivise mentor programs and training opportunities are not only rewarding for the student but also the teacher. If you don’t invest in this, then you run the risk of these skills being lost forever.
It’s vital we all do our part to continually improve the future of the engineering and manufacturing sectors. Simply by making ourselves accessible and supporting future talent will make a significant difference.