A third of firms feel a shortage of quality staff is the biggest threat to their business, a Lloyds TSB poll has revealed.
The bank’s Corporate Markets Business in Britain survey of more than 2,200 businesses with turnover between £1m and £750m showed 33% cited the skills gap as posing a massive threat to their profit margins over the next six months.
In comparison, just 4% believed avian flu represented their biggest challenge, while the same percentage considered terrorism to be the main threat.
The scarcity of skilled labour is now so acute that 48% of all firms surveyed experienced difficulty recruiting skilled staff this year.
A further 17% have had similar problems recruiting unskilled labour, despite the influx of workers from Eastern Europe.
The problem seems to be particularly acute in Scotland, where 56% of Scottish businesses are struggling to recruit skilled workers, compared with 47% of firms in England and 46% in Wales.
A continued knock-on effect of this skills shortage is on pay pressures.
When asked about their next salary review, 33% of employers said they would be offering pay rises above the rate of inflation. Wage pressures were highest in London and Scotland where, respectively, 42% and 40% of firms were planning to offer inflation-busting salaries.
Manus Fullerton, director of corporate and business banking for Lloyds TSB Scotland, said: “All the signs are that the skills gap is deteriorating, putting additional strains on the management of Scottish businesses as they try and attract talent ahead of overseas competition.
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“It is a sensible time for managers to focus on their people management as well as their financial management.”
The problem was most intense in the transport and construction industries, with 57% of firms in both sectors reporting difficulties attracting skilled workers. Correspondingly, 47% of construction firms and 39% of transportation companies view this shortage as their biggest threat.
