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6 August 2024

Labour shortages and L&D strategies

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a lady on her ipad smiling, happy after introducing new learning and development strategies.

We need to understand the skills shortage crisis and how to approach a learning and development (L&D) solution. Let’s look deeper into the labour shortage that businesses are facing.

What is the current state of the labour market in the UK?

Employment levels have decreased, with around 33 million people employed. The employment rate for those aged 16-64 has dropped to 74.4%, and the unemployment rate has risen to 4.4%, affecting 1.53 million individuals.  

The number of job vacancies has decreased to 889,000, although it remains above pre-pandemic levels. Average wages have seen a real-term increase of 3.0% in the three months leading up to May 2024, with nominal wages rising by 5.7%.  

There is a notable decline in the net employment balance, indicating a cautious approach to hiring. While the labour market shows signs of returning to post-COVID norms, uncertainties remain, particularly in sectors with higher vacancy rates​. 

(statistics from House of Commons Library

The UK is experiencing labour shortages across multiple sectors

Healthcare: There's a persistent shortfall in healthcare professionals, notably doctors, nurses, and other medical staff, due to the COVID-19 pandemic and Brexit-related immigration changes. 

Hospitality: This sector, including restaurants, hotels, and catering, is struggling to fill positions. This is partly due to the loss of EU workers post-Brexit.​  

Logistics and Transportation: These sectors face a severe shortage of drivers, warehouse staff, and other key roles. This is partly due to the aging workforce and a lack of new entrants. 

Construction: There is a shortage of skilled tradespeople like carpenters, electricians, and plumbers. The shortage is affecting the industry's ability to meet demand, particularly in housing and infrastructure projects. 

Agriculture: Seasonal agricultural work, particularly in horticulture, has been heavily reliant on migrant labour. With Brexit and the pandemic, the number of available workers has decreased, causing difficulties in harvesting and production​. 

What can aid the labour and skill shortage in many industries?

The answer is L&D.

These initiatives can play an important role by: 

Upskilling and reskilling employees

Upskilling involves teaching current employees new skills to help them advance in their current positions. For example, training in new software or staying current with industry standards. Reskilling also focuses on training employees to take on entirely new roles within the organisation. 

Customised training programs

L&D programs can be tailored to address specific skills gaps within an organisation. For instance, if a company identifies a lack of digital marketing expertise, it can develop a targeted training program to build this capability among its employees.  

E-learning and digital platforms

The use of e-learning platforms and other digital tools makes it easier to provide training to a dispersed workforce. Online courses, webinars, and interactive learning modules offer flexibility and can be tailored to individual learning styles and paces.  

Mentoring and coaching

Pairing less experienced employees with mentors or coaches within the organisation can accelerate their learning and development. Mentoring helps to bridge skills gaps and prepare employees for future leadership roles. 

Cross-functional training

Encouraging employees to gain experience in different departments or roles can help them develop a broader skill set. This cross-functional training can not only address specific skills gaps but also helps to gain a more versatile and adaptable workforce. 

Investing in L&D can improve employee engagement and retention by providing clear career progression opportunities. 

So how can a business create personalised Learning & Development (L&D) plans?

Creating a personalised Learning and Development (L&D) plan can ensure that the training and development activities match with an individual's career goals and of course the company’s objectives.  

Here are some key steps that organisations can follow to create personalised plans: 

An assessment of current skills and competencies

The employee should evaluate their current skills, strengths, and areas for improvement.  Feedback should be collected from managers and peers to gain a comprehensive view of their abilities and areas for growth. 

Career goals and objectives

The short-term goals should be to define immediate learning objectives and career milestones. Long-term goals are to outline long-term career aspirations and the skills needed to achieve them. 

Gap analysis

Compare the individual's current skills with the skills required to achieve their career goals. This step helps in identifying the specific areas that need development. 

Development of a learning path

Select suitable learning methods, such as online courses, workshops, mentoring, on-the-job training, or formal education. Determine which skills are most urgent and prioritise learning activities accordingly. 

Set SMART Goals

Specific: Clearly define what is to be achieved.  

Measurable: Set criteria for measuring progress. 

Achievable: Ensure the goals are realistic given the individual's current skills and resources. 

Relevant: Align the goals with the individual's career aspirations and organisational needs. 

Time-Bound: Set deadlines for achieving the goals. 

Implementation of the plan

Identify and allocate the necessary resources, such as time, money, and learning materials. Develop a detailed action plan with timelines and specific steps to achieve the learning objectives. 

Monitoring and evaluation

Schedule regular check-ins with managers or mentors to review progress and provide feedback. Make adjustments to the L&D plan as needed, based on progress and changing goals or circumstances. 

Documentation and reflection

Document progress by keeping a record of the skills learned, certifications earned, and milestones achieved. Encourage the employee to reflect on their learning experiences and how they have applied new skills. 

Feedback and improvement

Gather feedback from the individual, their managers, and peers on the effectiveness of the L&D plan. Use the feedback to continuously improve the L&D plan and ensure it remains matched with the individual’s evolving career goals and the organisation's objectives. 

Celebrate success

Ensure to recognise and celebrate the individual’s achievements and progress, which can boost motivation and morale. 

By taking these ideas for L&D strategies, organisations can create effective and personalised plans that encourage employee growth, enhance skills, and contribute to overall organisational success. 

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Alix King, freelance content writer

Alix King

Alix is a freelance journalist and copywriter. With a love for academics, Alix has studied both journalism and law and has a knack for writing for very different audiences. From humorous articles to white papers, she loves a writing challenge.

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