A recent Open University report on UK skills shortages has revealed stark realities facing businesses in 2025.
More than half of UK organisations (54%) report a skills shortage — rising to 58% in Wales. Even more concerning, 32% believe the shortage will worsen over the next five years (38% in Wales).
The question is clear: how will businesses address the growing workforce skills gap before it impacts performance, productivity, and profitability?
The Impact of Skills Shortages on Business Performance
Skills shortages can be devastating for organisations — not just in hitting targets, but in maintaining a healthy workplace culture.
When businesses lack critical skills, they risk:
- Falling productivity and missed growth opportunities
- Increased workloads for existing staff (identified as the biggest issue by 40% of employers)
- Burnout, stress, and higher sickness absence rates
- Poor staff retention, as employees seek roles with more support and career progression
In short, the skills gap doesn’t just hold businesses back — it pushes them backwards.
The True Cost of Not Upskilling Your Workforce
For many organisations, the immediate barrier to training is budget. In fact, 29% cite lack of funds as the reason they aren’t investing in skills development.
But here’s the reality: not investing in training costs far more in the long run.
Replacing an HR Manager costs UK businesses an average of £13,079, while upskilling an existing employee costs only £3,107 — 76% cheaper than hiring.
Beyond the financial benefits, training improves staff morale, boosts innovation, and creates a culture of continuous learning — all vital for business growth in a competitive market.
Who Should Fund Workplace Training?
According to the report, 45% of businesses believe employers should be primarily responsible for funding employee training.
And with the economic climate squeezing both businesses and individuals, expecting staff to self-fund is unrealistic. The most cost-effective and sustainable solution is clear — employers must take the lead in closing the skills gap.
How Aspire 2Be Helps Businesses Close Skills Gaps
At Aspire 2Be, we specialise in helping UK businesses identify, address, and close skills shortages — in the most cost-effective way possible.
Whether you need fully funded professional qualifications, flexible bite-sized micro-credentials, or large-scale company-wide learning, we have a solution to match your needs.
Our offering includes:
- Fully funded professional training* in high-demand areas, particularly digital skills
- Micro-credentials in Digital Skills, AI in the Workplace, ILM Leadership & Management, and Digital Product Management — ideal for busy teams who need flexible, accredited learning
- Aspire360 – our scalable learning platform with Microsoft 365 courses, custom pathways, reporting, and analytics — perfect for addressing skills shortages at scale
Take Action on Skills Shortages Today
The UK’s skills shortage isn’t going away — but with the right strategy, you can future-proof your workforce, boost productivity, and retain your best talent.
Don’t wait for the skills gap to cost your business.
Contact Aspire 2Be today to explore the best training and upskilling solutions for your organisation.
