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London’s SMEs are Betting on Tech‑Savvy Talent to Beat Inflation
The latest Skills Horizon 2024 Barometer, a joint effort between the Skills for Life campaign and the British Chambers of Commerce, paints a picture of ambition amid austerity. It’s the second year of the survey, and the findings show London’s small and medium‑sized businesses are not back‑pedalling – they’re sharpening their hiring and training strategies.
What’s on the Business Mindset?
- Rising Costs tops the list: 47% of SMEs say the increase in running expenses is the big worry for the coming year.
- Staff Well‑Being is the next concern, with 38% linking employee morale with the cost‑of‑living crunch.
These pressures have nudged more than two thirds of London SMEs to look toward low‑cost, long‑term workforce solutions:
- School Leaver Schemes (think apprenticeships) – 54% see this as a smart pick.
- Work Placements (like T Levels) – 63% are backing this route.
Why they’re a hit?
- Shaping Young Talent – 68% say they can mould the next generation to fit their needs.
- Closing Skills Gaps – 57% view tech education as a direct fix for upcoming shortages.
Investing in the Heart of the Business
Beyond recruiting, 77% of SMEs are turning inward. They’re keen to invest in existing staff – 62% plan to launch internal training and employment schemes that iron out predicted skill gaps.
What Traits Are Hiring Managers After?
Gone is the obsession with a specific qualification. That comes in last place (18%). Instead, employers are opening their doors to varied backgrounds and looking for:
- A Strong Work Ethic – 36% say it’s a must.
- Team Player Mentality – 37% can’t overlook this quality.
- A Quick Learner – 30% value the ability to absorb new knowledge fast.
And let’s not forget the commitment to Diversity, Equity & Inclusion. Over 44% of London employers hope fresh hires will broaden the workforce mix ahead of 2025.
It’s a Bright Outlook Despite the Tight Budgets
Even with cost‑of‑living worries, optimism is high. A whopping 91% of SMEs expect revenue growth in 2024, averaging a 33.02% increase next year. About 80% feel they’ll out‑maneuver larger firms thanks to their agile recruitment and upskilling tactics – a win that’s already helped many firms tap into technical education schemes with positive results.
Why This Matters Now
These insights arrive during National Apprenticeship Week, a celebration of apprenticeships, T Levels, and their ripple effects on communities and the economy. The Skills for Life campaign is on the front lines, guiding SMEs through all technical training and employment options – from Apprenticeships to Skills Bootcamps, HTQs, and Multiply numeracy courses.
Voices From the Field
Minister for Skills, Apprenticeships & Higher Education Robert Halfon commented: “This report showcases the relentless spirit of our SMEs. With generous government backing, the skills landscape is evolving – apprenticeships and T Levels are opening doors for young talent, while businesses gain the essential expertise to thrive.”
Jane Gratton, Deputy Director – Public Policy at the British Chambers of Commerce added: “A skilled, diverse workforce is smart business. By investing in flexible, technical training, SMEs can cultivate an internal talent pipeline that keeps pace with changing demands.”
