Friday 09 September 2022

*UKHotViewsExtra* The case for investing in people is compelling

The UK economy simply doesn't have enough workers.

fig 1 updatedBusinesses across all sectors have struggled to recruit in recent months. Now that we are facing a downturn, we will see vacancies reducing and unemployment rising. But once the economic recovery begins, the workforce shortages experienced recently will return.

I strongly believe the labour shortage represents a significant opportunity for the UK tech sector - because the only way to address it is for companies to invest in the people they do have to work smarter. This means equipping them with technology and training them in how to use it. As I argued in my recent article, the health of the economy depends on digitisation.

However, the tech sector is particularly vulnerable to this labour shortage, with skilled tech practitioners proving particularly hard to recruit. And so, to capitalise on this growth opportunity, tech companies must focus on the resilience of their workforce by investing significantly in training and retention.

hvThe omens are not good. Data shows companies tend to cut back on training in times of economic uncertainty. And the economy is doing a woeful job of hanging onto the most experience segment of its labour force.

My latest HotViewsExtra article explores why tech firms need to be brave and buck the trend, by investing heavily in their people, even in the face of a downturn. Those that do will be rewarded with loyalty, resilience and increased productivity.

HotViewsExtra subscribers can read the full article here. And if you would like to discuss subscription options, please contact Deb Seth.

Posted by Tania Wilson at '11:29' - Tagged: skills   employment   productivity   resilience   macro