Aside from staff pay, UK firms are more likely to increase their investment in training, and introduce more flexible working practices, in order to retain staff, according to a survey by the British Chambers of Commerce (BCC) and jobs site Indeed.

The survey of over 1,000 businesses across all sizes and sectors, shows that 42% of businesses would invest in training and developing their staff in order to increase staff retention, while 38% would look to introduce flexible working practices, from flexible hours and remote working to job-sharing.

According to Indeed and the BCC, skills shortages are at near record levels, and the survey reveals that the most likely approach that firms will take to address gaps they have are to use self-employed workers, or contractors (30%), followed by investment in recruitment and training (both 25%). Developing a relationship with the local school comes next, at 22%. B2C (Business to consumer) firms are more likely to build that relationship, while B2B (business to business) businesses are more likely to use contractors and retain older workers.

“Access to people and skills is a top priority for employers and firms are doing everything they can to recruit, retain and upskill their workforce,” Jane Gratton, Head of Business Environment and Skills Policy at the British Chambers of Commerce (BCC), said. "Increasingly, employers are embracing flexible working practices as a sensible way to retain staff who need to balance work with family and other commitments. Amid rising upfront costs for businesses, it is crucial that innovative ways are found to motivate staff.”

Gratton added that flexible access to the Apprenticeship Levy funds would enable more firms to boost productivity by training and developing their teams.

Tara Sinclair, senior fellow and economist at job site Indeed, also commented,  “Attitudes to work are changing and salary is no longer the only way employers compete to attract and retain workers. Workers today seek work-life balance – searches for ‘flexible’ jobs on Indeed are at a three-year high, suggesting a growing number of jobseekers start their application with job satisfaction in mind.”

“A tight labour market – where employer demand for staff is outstripping the supply of workers – places greater emphasis on staff retention, but investing in training should not be viewed as a short-term fix to keep hold of the best talent,” Sinclair said. “Rather, it should be seen as an opportunity for employers of all sizes to unlock the long-term potential in their staff.”