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84 per cent of businesses suffering from skills shortage

25 January 2016

Eight in ten businesses are suffering from skills shortages that are seriously affecting productivity, according to a recent survey by by Festo Training and Consulting.

Eight in ten businesses are suffering from skills shortages that are seriously affecting productivity, according to a recent survey by by Festo Training and Consulting.

The People and Productivity Survey 2015 found that 84 per cent of manufacturing companies have a skills shortage, compared to 75 per cent in 2013. 

One in five companies interviewed say they frequently experience downtime and reduced profitability due to skills shortages. 

“A lot of Government and public support for the skills shortage is focussed on apprentices and training the next generation of talent. This is much needed, but equally, employers need help at management and leadership level.

“To handle the skills shortage as it is now, manufacturers need to undergo continuous change so we can adapt quickly. What we cannot do as a sector is stand still. 

“At times we need to take enormous risks such as investing in new technology to improve productivity and keep ahead of world competition. Further support programmes to help alleviate lack of skills and train our people to deliver and cope with change are definitely required.”

Over half of the 95 respondents say their organisations undergo change frequently or constantly. Yet, while the majority feel they are well equipped to effectively manage change projects, over a third of business leaders feel they are ill prepared with little or no formal training.

The survey shows that communication is an essential element to any change project. Over three quarters say that their senior leadership team communicates well or very well, while nearly a quarter say that communication is poor. They also report that over a third of their workforce are not motivated to embrace change.

Managers are the lynchpin when driving and delivering a successful change projects. The research shows that, in general, managers set a good example. However, 19 per cent say that their managers rarely or never lead by example. For managers to effectively communicate change with employees on the organisation's behalf, they need to adapt their management and communication style.

It is difficult for manufacturers to instigate change, as due to the current climate, the initial response for 64 per cent of employees is one of fear and surprise. 

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