Skills shortages have persisted during the recession, with more than two-thirds of employers struggling to recruit due to a lack of specialist skills.
The Resourcing and Talent Planning survey by the Chartered Institute of Personnel and Development (CIPD) has found 68% of organisations have experienced recruitment difficulties, with 67% reporting an inability to source specialist talent.
The survey of nearly 500 organisations revealed the recession has had a negative impact on resourcing budgets in 2010 for 53% of firms.
The increase in pressure on budgets has forced more organisations to focus on developing in-house talent rather than recruiting externally, up from 40% in 2009 to 66% this year.
More than half (54%) of organisations are now implementing measures to retain rather than recruit talent, up from 36% last year.
With costs under pressure, more employers are also turning to social media when recruiting (49%), compared with 31% in 2009.
Claire McCartney, resourcing and talent planning adviser at the CIPD, said: “Limited budgets mean organisations and HR departments have to think creatively – doing more for less is not easy. However, by developing internal talent pipelines, employees can benefit from increased opportunities, development and progression and the employer can fulfil the skills requirement for the job.
“All in all, we see great potential within the private sector for talent development, but a rather bleak outlook in the public sector for some time to come.”