Wbg advises SMEs facing skills shortages to consider outsourcing

In response to a Fraser of Allander Institute report highlighting a growing mismatch between the skills available and those demanded by employers, Wbg, one of Scotland’s leading independent specialist full-service accountancy firms, is advising SMEs to consider outsourcing.

The report indicates that one in four Scottish employers are reporting vacancies, with a third of these classified as skill-shortage vacancies—a sharp rise from 2020. Skilled trades and professional roles are the most affected areas, with shortages in technical, analytical, and digital skills being the most prominent.

The Skills for Today and Tomorrow report also focuses on education and training, citing a lack of alignment between the skills taught and those required by rapidly evolving industries such as technology and renewable energy.

Mark Mulholland, partner in Wbg’s Business Advisory department, said:

“While there are many sectors where outsourcing is problematic, such as care homes where recruitment is a major challenge, other sectors, such as IT, can be outsourced easily.

“If there are skills gaps within an SME’s in-house IT department, they might wish to consider outsourcing that function to address the issue.”

Mulholland advises SMEs tackling skills gaps and an ageing workforce to consult with family and friends of existing employees and to contact local schools to attract school leavers, while also emphasizing the importance of training and apprenticeship programs.

“Given the number of tradespeople aged over 55, colleges and apprenticeships have an important role to play in attracting a younger generation to fill the skills gaps in SMEs,” he said.

He also encourages business owners to look for market opportunities by going against the grain, citing a restaurant in Glasgow city centre as an example. The restaurant chose to remain open on what are traditionally considered to be the quietest nights for trade, while many of its competitors opted to close on these evenings.

“Ironically, the restaurant that chose not to close on ‘quiet’ nights enjoyed its busiest nights of the week on Mondays and Tuesdays because most other restaurants had closed on these evenings, yet there were still many would-be diners looking for somewhere to eat,” he said.

“So, there are opportunities out there if you can get the staffing and know your market. There is a skills shortage, and other people may be feeling the pain, but just because other people are suffering doesn’t necessarily mean that your business has to as well if you can think creatively.”

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