The UK workforce is grappling with notable challenges in skills gap confidence, with a quarter (26 per cent) of UK workers citing a lack of career progression as a key factor impacting their job satisfaction, a new study has found.
According to ADP’s People at Work 2024: A Global Workforce View report, this figure is notably higher than the global average of 18 per cent, highlighting a significant issue within the UK labour market.
As these concerns gain prominence, they come at a pivotal moment following the establishment of Skills England, an arms-length government body launched in July to address the skills shortage. Alongside this, recent reforms to England’s apprenticeship system are aimed at providing more opportunities for marginalised young people.
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However, despite these initiatives, UK employers still face considerable recruitment challenges. Jack Kennedy, senior economist at Indeed, told People Management that the UK’s skills confidence gap was unsurprising because of the “underinvestment of time and money in career and skills development programmes for many years”.
He urged companies to “act quickly and prioritise workforce planning” to close this gap both in “the short and long term”, enabling employees to gain the skills necessary for their future careers.
Kennedy added that this effort should go beyond the current workforce, suggesting that employers partner with schools and colleges to influence career choices from an early age and inspire the next generation.
The urgency of addressing these issues is further underscored by the disproportionate impact on women and younger professionals. The report reveals that more than a quarter (29 per cent) of UK women identify career advancement as their main concern, compared to just 17 per cent globally.
Lizzie Crowley, senior skills policy adviser at the CIPD, emphasised the importance of flexible working options for parents and support for career returners, which could help women remain in the workforce and advance their careers.
AI anxiety adding to concerns among younger workers
Younger workers also face mounting challenges, with 31 per cent of those aged 25 to 34 in the UK listing career progression as their top concern, nearly double the 17 per cent of their global peers.
Compounding these concerns, AI integration in the workplace is increasing anxiety among younger UK workers. While only 12 per cent of the overall workforce believes AI will replace most of their job functions within the next two to three years, this figure jumps to 23 per cent among those aged 18 to 24, highlighting growing fears about the future of work.
Sirsha Haldar, general manager for Northern Europe at ADP, said rapid technological advancements would inevitably lead to significant changes in job roles. “Upskilling and reskilling are essential,” he said, pointing to the need for businesses to support employee development to maintain engagement and retention.
UK workers focusing on people skills
In addition to concerns about career progression, UK workers are also shifting their focus to interpersonal skills, with 42 per cent ranking people skills, such as communication and collaboration, as the most important for their roles in the next five years: notably higher than the global average of 33 per cent.
Conversely, only 30 per cent of UK workers view management skills as a priority, compared to 38 per cent globally.
Ian Moore, managing director of HR consultancy Lodge Court, said this finding “underscores a significant shift in workplace dynamics”.
He pointed out that these skills were increasingly crucial in driving organisational success and that HR departments must place a stronger emphasis on developing these competencies through targeted training programmes and workshops to meet current workforce needs and prepare employees for future roles.
Moore added that recruitment strategies should also evolve to “identify candidates who excel in these areas”, ensuring new hires contribute to a work environment that “fosters collaboration and communication”.
The call for long-term investment in skills development
As these workplace dynamics evolve, it is clear that long-term investment in skills development is essential.
Haldar urged employers and policymakers to take action, saying: “Companies must consider long-term structures and additional funding for skills development to remain competitive and survive.”
Tim Kingsbury, associate practitioner at workplace relationships specialist CMP, agreed, stating that HR has to be mindful of the wider implications.
He highlighted the risks of when career progression falters, warning: “If people don’t feel supported in terms of development, then the negative outlook is more likely to lead to negative behaviours: whether that means individuals leaving the organisation or finding grounds to raise grievances and complaints.”
He said managers needed to take an active role: “The key is for managers to be proactive and engaged with their workers, and to lead open discussions about employees’ hopes and expectations.”
According to Kingsbury, this approach allows managers to better understand and address “underlying tensions or sources of resentment or frustration”, while also making employees feel their employer is invested in their future, ultimately boosting engagement. “A warm and empathetic human face is even more important,” he added.
Crowley agreed, saying that “ensuring all employees have access to career and skills development is critical for workplace productivity and retention”.
She added that “more needs to be done to ensure these opportunities are more equally distributed”, suggesting “better access to apprenticeships, alongside wider learning and development activities and enhanced mentoring, could play a role here”.
For further resources on skills development, visit the CIPD’s dedicated topic hub
