Key messages - Skill gaps
Introduction
In our Key Messages series we try to keep things simple and concentrate on the key messages. We’ve used evidence from official sources to back up those messages but have tried not to overburden the reader with information. More information on the issues presented in the series can be found throughout the reports written by Futureskills Scotland and available from their website.
This note presents some key messages from the labour market in relation to skill gaps.
Key messages
- More than nine in ten employees are 'fully proficient' at their jobs - only eight per cent are felt to have a skill gap.
- For many employeers with skill gaps, they have arisen as a result of what could be viewed as positive developments in the workplace such as the introduction of new working practices, new technology or new products or services.
- One third of employers with skill gaps report that these have no impact on their business. Of those who do report a negative impact, the majority perceive the impact as minor.
- The most common response to skill gaps was more investment in training for staff.
What is a skill gap?
Figure 1 Proportion of employees and workplaces with a skill gap
A skill gap occurs where employees are judged by their employer to be less than fully proficient.
Employers generally hold 'full proficiency' to be very high standard.
Most Scottish employees are judged by their employers to hold that high standard of full proficiency.
More than nine in ten employees are fully proficient at their jobs - 92 per cent.
Just eight per cent of employees were felt to be less than fully proficient - that is they had a skill gap - with around one in five employers reporting that they had at least one employee with a skill gap.
What are some of the causes of skill gaps?
Figure 2. Proportion of workplaces with a skill gap caused by changes in the workplace
Many skill gaps are short term and are caused because new employees take time to gain experience on the job or to complete training. These gaps are likely to close in a relatively short space of time.
Skill gaps can also occur because workers have to get used to new ways of working or new products or services.
-
23 per cent of establishments with a skill gap attributed the gap to the introduction of new working practices;
-
20 per cent reported they were caused by the introduction of new technology; and
-
15 per cent reported they were caused by the development of new products or services.
So in some circumstances skill gaps can actually be a sign that workplaces have made positive changes to the way they work which could make the business more successful.
What skills need improvement when employees have skill gaps?
Figure 3. Skills lacking among employees with skill gaps
Employers tell us that where employees have skill gaps they are most commonly caused by lack of 'softer' core skills like:
- Planning and organising
- Customer handling
- Problem solving
- Team working
A lack of technical and practical skills give rise to skill gaps in some cases but taken all togethter it is softer skills which are most commonly the cause of skills gaps.
What problems are caused by skill gaps?
Figure 4. Problems caused by skill gaps
We ask employers with skill gaps the extent to which they had an impact on their business.
-
17 per cent of establishments reported that skill gaps had a major impact on their business;
-
50 per cent reported only minor impacts; and
-
the remaining 33 per cent reported that they caused no particular problems.
For most establishments skill gaps either cause no problems of have only a minor impact on the business.
The most common impacts (whether major of minor) were:
-
difficulties meeting customer service objectives;
-
difficulties meeting quality standards; and
-
increased operating/running costs.
What do employers do when they have skill gaps?
Figure 5. Employer's responses to skill gaps
The most common response was more investment in training for staff by either:
-
providing further training for staff (nine in ten employers who responded did so in this way); or
-
expanding trainee programmes.
Other strategies include:
-
changing working practices;
-
relocating work within the company; and
-
increased recruitment
