According to new data from this year’s Skills Horizon Barometer report from Skills for Life, 90 per cent of businesses are anticipating some kind of skills gap in the year ahead, with the biggest at entry-level (32 per cent). While skills gaps can present businesses with challenges, they also offer exciting opportunities for growth and development for employers looking to plug them.
There are lots of ways to tackle skills gaps across your business – from making the most of the varied training and employment schemes available, and embracing fresh new talent, to investing in upskilling existing staff and ensuring your team receive the training they need to succeed.
Here are five top tips from Skills for Life for SME employers looking to close their skills gaps in 2025.
Identify your business’ strengths and weaknesses
To properly tackle a skills gap it’s important to do some analysis first. We’d recommend embarking on a skills audit. By reviewing your business’ overall performance and growth against the organisation’s goals and ambitions, you will start to understand the organisation’s key strengths and weaknesses. This will help you spot any skills gaps that might be present as well as understanding where they lie within the business.
Review your training options with your staff
Once you’ve identified where your skills gaps are most prominent, it’s time to speak with those directly affected by them: your staff. Combatting skills gaps should be a collaborative process. As an employer, it’s important to listen to your staff and take them on the journey with you. Their feedback, particularly around training and employment opportunities, is invaluable and could open up new avenues for growth within the business.
If you’re not sure where to start when reviewing your training options, the Skills for Life website can help; it maps out all of the training and employments schemes available, with support on how to implement these across your workforce.
Embrace upskilling across the workforce
Training should be seen as a fundamental and ongoing investment for new and existing staff. By investing in their learning and development, you will show them that you care for them as an employee which, in turn, can boost retention rates and overall staff satisfaction in the long term.
The Skills Horizon Barometer report shows that seven in 10 (70 per cent) SMEs are planning to invest in upskilling their workforce in 2025. This has consistently remained an important priority for employers, with a similar number who planned to do so in 2024 (71 per cent).
There are lots of training schemes available that offer an economical way of upskilling your staff. Skills Bootcamps are just one example. These are flexible training courses that provide you with the opportunity to fast-track specialist skill development for existing talent, or recruit a recent graduate.
Apprenticeships are another great example of cost-effective training schemes that could benefit businesses. Traditionally associated with young people and often viewed as a way of welcoming fresh talent into the industry, apprenticeships are actually available to anyone over the age of 16 and can be offered to new and existing staff. There are over 650 types of apprenticeships available in England across 15 sectors, ranging from finance and accounting to construction. To find out more, search ‘Skills for Life’.
Explore opportunities with young talent
With businesses mostly looking to fill skills gaps at entry level (32 per cent), it’s important to really consider the types of candidates you want to recruit, making the most of the employment schemes that are available to you to help you make the right hiring decisions.
In previous years, those fresh out of university might have been the most sought-after candidates for new staff solutions – however, there seems to be a shift in perspective. With more than two in five SME leaders favouring candidates with at least some prior experience (44 per cent), it’s clear practical skills and exposure to the industry are vital when considering your next potential hire.
A great way to access entry-level talent is by hosting an Industry Placement for a T Level student. Introduced in 2020, T Levels help young people aged 16 to 19 develop technical and practical skills to set them up for success in the workplace. As well as providing students with an opportunity to gain real-world skills in their industry of choice, by hosting an Industry Placement employers can build a talent pipeline, ensuring future candidates are trained with the skills their business really needs. Many employers report great success with T Level students, later going on to hire them into full-time positions.
Make the most of the support available
Businesses considering hiring or upskilling employees can access a variety of training and employment schemes. All the schemes have their own unique benefits so understanding the options available to you as an employer is vital.
The Minister for Skills, Apprenticeships and Higher Education, Jacqui Smith, said: “Employers are key partners in our mission, helping address skills needs across sectors like AI, green tech, and construction. Using Skills Bootcamps, apprenticeships, HTQs, and T Levels, we’re supporting businesses and individuals to upskill, and establishing Skills England to find and fill skills gaps and support sustained economic growth.”
To find out more about the training and employment schemes available for your business, as well as support on how to implement these, search ‘Skills for Life’.
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