Five tips for family businesses as UK skills shortage at record high

How bad is the global talent shortage? New research by ManpowerGroup, a global leader in contingent and permanent recruitment workforce solutions, has found that the global talent shortage is at a 17-year high, with approximately four in five employers around the world reporting "difficulty finding the skilled talent they need in 2023".

In the UK, 80 per cent of employers report "difficulty filling open roles", 3 per cent above the global average of 77 per cent.

Technological innovation is a key factor that will continue to change the skills needed by employers. For example, automation and AI are expected to fuel changes in the future skills of the workplace. Manpower's research shows that the technical skills sought most by employers are in IT and data, followed by engineering and sales and marketing.

According to Andrew Mawson, founder of global consultancy Advanced Workplace Associates (AWA), in order "to be successful in recruiting the best talent", employers need to consider the varying needs of their target employees and create unique employment propositions which generate appeal.

Mawson explains that innovative employers will grasp how technology has "given individuals and organisations new choices about where, when and how people can live and work". Therefore, employers who wish to attract the talent and skills they need must be creative and flexible in what they offer to desirable applicants.

Five points of advice for family businesses

Whilst Manpower's data reveals the extent of the skills shortages faced by businesses in the UK and around the world, the Business Name Generator team has provided the five following tips to help family businesses run more effectively. These tips could prove key for any business which needs to address the problems created by the current skills shortages.

Firstly, the Business Name Generator team emphasises the importance of "regular and clear communication" in addressing issues before they grow into "bigger problems in the future". Effective communication is an essential part of a business dynamic, especially in family businesses where relationships are likely to be close. For example, clear and regular communication could be key for a business to understand where skills shortages lie and what talent is needed.

Secondly, productive businesses need employees who are "passionate about what they do during working hours". In family businesses, doors should remain open to those who wish to follow opportunities outside the business. Moreover, if any kind of business retains employees who would rather work elsewhere, the resentment caused can create toxicity which is detrimental to the working environment experienced by other employees.

Thirdly, planning for the future is essential to ensure that business models don't get left behind as times change. In a business managed by older individuals (family or otherwise), there is a great opportunity to be had from listening to younger employees who are in touch with the latest trends. For example, in the world of technology and culture.

Fourthly, for a business to work successfully, it is important that employees work towards common goals, rather than being divided by "petty rivalries". In family businesses, it is important for siblings to be "on the same page" when it comes to "set roles", "rules", and "responsibilities". The same is true of all businesses where employees work alongside each other day to day with close working relationships.

Finally, for family businesses to remain competitive, as with any business, getting the right skills and talent is essential. Therefore, bringing in non-family employees at different levels of the business can "help to keep things fresh and help your family business grow". Businesses which have access to the skills necessary to meet difficult challenges can reduce stress levels in the workforce too.