Skills shortages in the UK are costing firms more than £2 billion a year in recruitment, temporary staffing and salary costs, according to a survey from Open University.

The survey, which polled 400 firms, found that 90% of businesses faced difficulties recruiting workers with the required skills in the last 12 months. Many of the businesses resorted to offering higher salaries with employers stating they have spent £5.27 million on inflated salaries and £1.7 billion on recruitment fees to find the right talent.

The findings also showed that 53% of employers were unable to find a candidate with the required skills and chose to hire at a lower level as a result. More than half, or 53%, said they were using training to bring those new employees’ skills up to the required level.

“The UK challenge of finding talent with the right skills means that businesses need to look at recruitment, development and retention differently,” Steve Hill, external engagement director at The Open University, said. "Now faced with a shrinking talent pool, exacerbated by the uncertainties of Brexit, it is more important that employers invest in developing their workforce."