Through the ages, and our ever-evolving society, economy, and the way we work and trade, businesses have relied on skilled employees to keep pace with the demands of the market. Whether working in textiles, tourism or technology, the skills that employers require are constantly evolving as markets shift, technologies move forward and organisational priorities change.
If the last decade was marked by the redefinition of roles and careers due to globalisation, then surely the next decade will be remembered for the way artificial intelligence transformed the employment landscape. According to LinkedIn data, by 2030, the skills needed for jobs in the UK will change by 65 percent due to the acceleration of Generative AI. In order to stay competitive, adapt to evolving roles and leverage the strengths of AI effectively, upskilling is essential.
In the near future, some roles may become obsolete, while others will undergo significant changes, and entirely new positions will emerge to meet needs. Indeed, according to the World Economic Forum, by 2025, 97 million new roles could develop. As we adapt to the division of labour between humans, machines and algorithms, workers must master the high-value skills that complement automation, like problem-solving and creativity.
For employees, upskilling and reskilling is crucial in navigating these transitions and mitigating the risk of job displacement. Not only does it better equip them for industry shifts and upcoming disruptions, skills training positively impacts the way employees feel about their work, increases productivity and results in better services and products.
Organisations of all kinds cannot afford to stand still. A clear strategy for upskilling workers will equip businesses to thrive in an AI-driven future. Already, many employers are playing a significant role in the emerging ecosystem – 71 per cent of UK SMEs plan to invest in upskilling their workforce in 2024, with sectors like technology, finance and construction leading the way. And according to further LinkedIn research, job posts mentioning apprenticeships were up in sectors such as retail (59 per cent), utilities (61 per cent) and technology (16 per cent) – showing that the skills revolution may have already begun. But what do SMEs and workers stand to gain by embracing upskilling?
Boosting company culture
Many organisations find that by offering skills training to new recruits, it generates a halo effect on existing staff. “T Levels students bring a fresh perspective and an eagerness to learn,” says Chiamaka Kennedy, Project Manager at Staffordshire and Stoke on Trent ICS (Integrated Care System), a partnership of NHS, council and community care services.
“Feedback shows that T Level industry placements benefit not just the students themselves, but those mentoring them, boosting team morale” she notes. “Not to mention the positive impacts in terms of supporting staff with patient-centred care.” ICS has hosted 80 T Level students, many of whom have progressed onto apprenticeships, Higher Technical Qualifications and into substantive posts.
Moreover, a working environment that offers ongoing learning opportunities for staff at all levels boosts company culture. It’s not just school leavers who reap the benefits: there’s no upper age limit for apprenticeships, making them accessible to those seeking to enter a career, upskill, or retrain later in life. Combining work and study, they offer practical experience and nationally recognised qualifications, with opportunities to progress to higher education or advanced career roles. As well as fitting flexibly around existing work, costs are government-subsidised, so apprentices don’t pay for their training.
Recent stats support this, with LinkedIn data revealing that seven in 10 people say learning makes them feel more connected to their company, while eight in 10 say learning adds purpose to their work. It’s no wonder then, that it also plays a pivotal role in retaining staff. A recent workplace report found that for almost half of employees, having opportunities to learn new skills is a key consideration when deciding whether to stay with their employer.
Diversifying the talent pool
Quantamatic, a Leicestershire-based manufacturing business, had long been struggling to find the right technical talent. The company, which designs and makes parts for the automotive, maritime, aerospace and jewellery sectors, was contacted by a local college about the possibility of hosting a T Level student.
Amber was half way through her first year of a Design and Development for Engineering and Manufacturing T Level qualification and already had an impressive CV. “We were keen to meet her,” says Francis Wilkinson, Quantamatic’s Quality and Regulatory Manager, who quickly offered Amber a 45-day placement. “To say it’s been a success, is an understatement – she completely exceeded our expectations and has brought a new dimension to the business.”
Amber’s computer-aided design mastery stood out, enabling her to create original drawings for Quantamatic that are being used across the business. “Some of our product designs were in need of a refresh,” says Wilkinson. “Amber applied the skills she’d learned at college and elevated our core drawings to a new level. She made a huge, tangible difference and leaves a real legacy.” Amber is hoping to continue onto a degree apprenticeship on completion of her T Level in 2025.
Her placement also represents a very real opportunity for employers to tackle inequalities in the workplace (as of 2024, there were 1.9 million men employed in the UK manufacturing sector, compared with 795,000 women). Building and maintaining a diverse, engaged, and committed workforce is no mean feat. However, through government-backed training schemes, businesses can develop highly skilled staff and create new pathways for talent that may not typically train in that field.
Paving the way to a more productive future
Despite the current economic headwinds, many employers recognise the value of investing in skills training for staff. Some 66 percent of the employers surveyed by the World Economic Forum expect a return on investment within one year. While research by City & Guilds shows that 74 percent believe upskilling is a key factor in boosting productivity, There are areas of fresh potential too, with 76 per cent of business owners strongly supporting investment in ecological, environmental, sustainability and other green skills as key to short and long-term productivity.
Needless to say, each SME will be starting from a different place with their skills provision journey, and have different gaps to overcome. Per the City & Guilds research, the building and property industry has identified skills deficits in employability, management, and technical skills, while healthcare needs deeper cultural knowledge and language skills, and the charity sector is looking to augment skills in AI tools and techniques.
Whether expanding into more markets, providing better customer service, or simply keeping pace with technological advances, it all begins with skills. And fortunately, there’s never been a better time to set out on this exciting journey. Not only is there a wealth of government-backed opportunities, but a record number of companies are opting to harness them, resulting in a wealth of advice and knowledge. A more productive, skilled and brighter future is closer than you think.
To find out more about how training and employment schemes could transform your business visit Skills for Life
