More than half of British businesses expect to take on new staff in the coming year as the economic environment continues to improve.
Professional services group KPMG’s latest Business Instincts Survey found 58% of the almost 500 UK firms it surveyed were planning to increase their workforce in the 12 months ahead.
However, the report also identified a legacy issue from the recession in terms of a widening skills gap across major sectors.
More than a third of respondents said the issue in the UK economy was so acute that upskilling staff was their number one investment priority in the short to medium term.
“Many businesses are feeling under-investment in staff during the downturn has led to a skills deficitm and the war for talent is most definitely back,” KPMG Scotland senior partner Craig Anderson said.
“The solution is not as simple as going out and rehiring talent. The right people are not always available, and competition is tough for the best hires.”
Around a fifth of businesses surveyed for the report in April and May said bringing forward new investment in technology and plant was also key to their long-term growth strategies.
The survey showed firms were finding it easier to access the cash required to fund growth programmes, with just 4% of respondents saying they were having problems accessing cash.
Overall, the survey found optimism among respondents that they would make progress this year, with 86% reporting they expected to increase turnover and 81% anticipating a profits hike.
“Having survived the recession, profitable growth is the number one priority for UK business,” said Mr Anderson. “Their focus is on technological change and its impact on markets and having the right people in the right roles.
“Forward-thinking companies are the ones that recognise that these two factors are linked. Effective investment in technology infrastructure helps with the optimal use of resources and increased margins.
“It is encouraging news that companies are now ready to seek new opportunities, and have the confidence to be able to invest in the technology and people that they need to achieve their growth ambitions.
“However, as starting salaries and staff costs have started to rise for the first time in years, it could ultimately mean that while profits increase, for many businesses profitability could indeed fall.”