The average UK SME (small to medium enterprise) faces a skills gap that would impact total revenue by £145,000 in the next year, rising to £318,000 in the next five years, according to new research from Robert Half UK.

The skills gap, defined as the difference in skills required within an organisation and the actual skills possessed by an organisation’s workforce, is one of the most pressing issues facing UK businesses today, according to Robert Half.

Robert Half’s research showed that the skills gap has widened as a result of macro challenges, including a shrinking talent pool due to Brexit, increased digitalisation and economic influences, and it is impacting the nation’s productivity, which is now the lowest among the G7 nations, in addition to stifling innovation and preventing SMEs from entering new markets.

The skills needed to help close the gap include data analysis and digital skills, as well as softer skills such as resilience, adaptability to change and critical thinking.

Robert Half’s research also found that the UK’s business leaders are taking measures to reduce the skills gap in their workforce.

Nearly two thirds (63%) intend to train and upskill existing staff to address it, followed by hiring permanent staff (42%) and hiring temporary staff (27%). Meanwhile, the majority, or 94%, of CFOs believe they need to develop the resilience of their teams to ensure employees continue to thrive during the current geo-political climate.

The combination of constant change and the skills shortage has also led SMEs to explore benefits of a flexible recruitment model. Seven in 10 (70%) business leaders believe that change can be successfully managed using a blend of permanent, interim and temporary employees, while three quarters (74%) intend to use experienced temporary workers to upskill existing teams.

The study also revealed that SMEs are concerned about the potential impact of macroeconomic events on the skills gap in their organisations. 

Three in five, or 59%, said that a recession would negatively impact the skills gap in their business, followed by Brexit (47%). However, 26% of SMEs said Brexit would have no impact on their skills gap at all, while 47% said the same about the potential of  a General Election before 2020.