Addressing the Skills Shortage

Jon Hering from Blackbullion, considers alternatives to apprenticeships to funnel new talent into businesses

The divide between employers and young talent is exacerbating the already pressing skills shortage in the UK. While apprenticeships continue to be a sustainable solution for businesses with the resource and capacity to train young people over 2 - 5 years, there is a more immediate need for highly skilled, graduate talent that businesses are struggling to access. The problem is twofold.

Firstly, more students are being forced to leave university without completing their course due to the rising cost of living and limited support options available. However, what seems like an insurmountable cost for students, particularly those from the lowest socio-economic backgrounds (LSEBs), can often be a relatively small cost for a business.

Secondly, for those industries that already struggle to attract young talent, (i.e. construction, utilities, accountancy, etc.), it means losing work-ready talent that could have an immediate impact on the organisation. If businesses cannot find a way to access the students who are already equipped with the specific skills they need, it threatens to intensify the skills shortage and stunt the growth and profitability of several industries.

Simply put, businesses are losing talent and students are losing opportunities.

The problem

The question of how to access, attract, and hire young talent will be a vital component of future strategy for businesses across the UK. Take construction; today, fewer young people are applying for jobs in the industry, because they are unaware of the wealth of progression opportunities that exist there. Businesses that are not visible to Gen Z will see their workforce continue to age and their labour shortage worsen.

As the workforce grows older, businesses face another constraint on a key resource: time. Apprenticeships continue to be a great route for young people into various industries but come with significant time and capital commitments that many businesses are unable to meet. For these businesses, the reality is that skills are needed now and at a price that means they can access high-level talent without affecting their bottom line.

Businesses also need to account for the future. While they need to find a way to invest in the untapped talent pools that already exist, they also need to create strategies and identify partners, to ensure they have work-ready graduates coming through their doors for years to come.

The solution

We believe scholarships are the solution. As well as being a fantastic tool to help students reach the end of their degree, for businesses, scholarships build brand awareness and loyalty while ensuring that skilled talent comes directly to you.

For businesses without the time or money to make the long-term investment in apprenticeships, scholarships also offer a faster option. Targeting students in their second year means you’re giving those students the small bit of extra support they need to finish their degree and arrive at your business work-ready.

Scholarships also offer a low-cost solution for businesses needing help to build the reach and scale of their recruitment efforts. We typically see about 300 applicants per funding opportunity, which means if building a talent pipeline is one of your critical business challenges, then accessing the contact information of hundreds of students for an investment in just one is a bit of a no-brainer.

In addition, you can create scholarships bespoke to the exact type of talent you need. It will also offer you the chance to show the diverse range of opportunities available and, in turn, create a workforce that reflects that diversity. Taking this approach significantly reduces recruitment costs from both a time and outreach perspective. Once a scholarship is created, the talent will come to you. Over time, you’ll develop a pipeline of talent that is diverse, committed, and equipped with the skills your industry needs.

What can you do now?

Scholarships create enormous opportunities for students and have the added benefit of highlighting your brand’s commitment to social value. Even premier brands such as Wise (formerly TransferWise) and FTI Consulting have partnered with us to make an impact on this space. If you are facing recruitment challenges, hoping to diversify your workforce, looking to build brand awareness, or simply want to create real social impact for struggling young people across the UK, please join us. Reach out at: jon@blackbullion.com