Efforts to fully realise people’s economic potential in countries at all stages of development are falling short due to ineffective deployment of skills throughout the workforce, development of skills appropriate for the future of work and adequate promotion of ongoing learning for those already in employment. These failures to translate investment in education during the formative years into opportunities for higher-quality work during the working lifetime contributes to income inequality by blocking the two pathways to social inclusion, education and work, according to the World Economic Forum’s Human Capital Report 2017. The report measures 130 countries against four key areas of human capital development; Capacity, largely determined by past investment in formal education; Deployment, the application and accumulation of skills through work; Development, the formal education of the next generation workforce and continued upskilling and reskilling of existing workers; and Know-how, the breadth and depth of specialised skills-use at work. Countries’ performance is also measured across five distinct age groups or generations: 0-14 years; 15-24 years; 25-54 years; 55-64 years; and 65 years and over.

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A shortage of people with the right skills has cost companies more than £2 billion over the past year, despite employment being at a record high, according to the latest findings of The Open University Business Barometer. The study of hundreds of employers found that the majority of businesses have had to pay as much as £527 million above the market rate to recruit skilled workers. At small and medium-sized companies, the average salary increase amounted to £4,150 per recruit. At larger groups, it stood at £5,575. Companies said that they also had faced increased recruitment costs, including paying temporary staff to fill the gap while suitable candidates were found. Nine out of ten said that they had struggled to recruit people with the right skills.

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Four in 10 employees (39 percent) feel they are not well managed at work and are out of their depth in their roles, and 26 percent of employees don’t believe they have the right skills or experience to do their job properly in the first place, a new report claims. The research by recruitment firm, Robert Half UK also found that nearly one in five employees (18 percent) are not clear of what is expected of them at work. The research shows employees want better management and guidance from their bosses, particularly as they progress in their careers. Employees currently feel they have more support and training early on in their careers, with 71 percent of 18-34 year olds, claiming they are well managed. In comparison, just over half (56 percent) of 55+ year olds feel the same. To resolve this, managers need to set out clear expectations, offer regular training and opportunity for assessment, while employees also need to assume responsibility and ask for help.

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As the country gears up for another general election, the CIPD warns today that the UK lags well behind its competitors in Europe and much of the OECD in literacy and numeracy, learning and development, and digital skills. According to the new analysis, this is largely due to the fact that UK employers train less and invest less in skills than most other EU countries. In its report – From ‘inadequate’ to ‘outstanding’: making the UK’s skills system world class’ – the CIPD warns that the UK is sleepwalking into a low-value, low-skills economy which leaves the nation ill-prepared for its post-Brexit future, particularly if the UK is to face restrictions on accessing talent from outside of the UK. The HR body is urging the Government to make funding available to tackle the problem in the workplace. The analysis, which forms part of the CIPD’s formal response to the Government’s Industrial Strategy Green Paper, highlights multiple failings in the UK.

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Two new reports published today reveal a dearth of people management skills among both current and future leaders. Over half of the HR professionals polled for the latest CIPD HR Outlook survey believe too many leaders lack the people management behaviours and skills needed to get the best from their workforce. One of the reasons behind this is suggested in the results of a survey from Robert Half which claims that half (50 percent) of management candidates lack leadership skills, with nearly one in five (18 percent) candidates falling short on planning skills, and 14 percent lacking communication skills. In the CIPD poll, people management was voted the top leadership skill needed by organisations over the next three years. However, out of those who chose performance management, more than half (53 percent) said leaders’ current skills in this area were ineffective. Similarly, 44 percent of HR professionals felt senior leaders’ skills were ineffective.

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UK CEOs are more upbeat about the growth prospects for their own companies than 12 months ago, according to PwC’s 20th annual CEO Survey published today at the World Economic Forum in Davos. Almost nine out of 10 (89 percent) respondents say they are confident of their company’s growth in the year ahead, up from 85 percent in 2016, and above the 85 percent global figure and 77 percent in Germany. Forty one percent of UK CEOs describe themselves as being ‘very confident’. More generally, UK bosses are in hiring mode. Sixty three percent expect to grow their workforce over the coming 12 months, compared to 52 percent of their global counterparts. Just 10 percent expect headcount to decrease, down from 20 percent in 2016. Access to key skills is considered to be the single biggest business threat facing their organisations. More than four in five (83 percent) of UK bosses are concerned about how to get hold of key skills, up sharply from 71 percent last year. The skills most highly prized by UK leaders – adaptability and problem solving, leadership and collaboration, and creativity and innovation – are also proving the hardest to recruit.

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