Scottish firms ready to invest in young people but more support needed

Scottish businesses are ready to invest in young people but need better access to early careers talent, research today suggests.

Some two thirds (66 per cent) of companies north of the Border have taken on younger people in the past year, according to a new report from Bank of Scotland. Of the firms that hired early careers talent in the past 12 months, 90 per cent expect to recruit more over the next year.

Even among Scottish businesses that did not recruit early careers talent in the past year, three-quarters (75 per cent) say they would have done so if they had felt able to - the highest percentage in the UK.

The research argues that bringing businesses, education and training providers closer together will be key to closing the skills gap.

When asked what factors would most increase their confidence to invest specifically in early careers talent, Scottish employers highlighted better access to suitable candidates and stronger external collaboration.

Nearly two fifths (39 per cent) cited greater certainty over government funding as a primary catalyst. This was followed by better access to suitable candidates (cited by 34 per cent of firms), stronger links with education providers (28 per cent of companies polled) and more relevant local training provision (27 per cent).

Nearly a fifth (17 per cent) pointed to access to finance to manage upfront recruitment and training costs.

On the types of skills firms need, customer service and relationship management was the area most cited by Scottish companies, followed by sales and business development, and specialist sector or technical knowledge.

When it comes to addressing anticipated skills gaps, the bank said Scottish businesses were taking a practical approach with internal training and upskilling of existing staff leading the responses.

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The research comes after Bank of Scotland parent Lloyds recently announced an investment of £100 million in future skills as it expands its support for young people.

Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “Scotland’s businesses clearly have an appetite to grow and invest in the next generation of talent and it’s particularly encouraging that Scottish firms lead the UK in their confidence to secure funding for skills investment, while many more would recruit early careers talent if they felt able to.

“What comes through strongly is that the willingness to invest is there and the bigger challenge is making sure businesses can find the people with the skills they need.

“Bringing businesses, education and training providers closer together will be key to closing that gap, helping more young people into work and giving Scottish firms access to the talent they need to grow,” he added.

Amanda Murphy, chief executive for Lloyds Business and Commercial Banking, said: “Technology will continue to transform how businesses operate, and the findings are a powerful reminder that customer facing skills still matter. The ability to understand customers, build trust and manage relationships will help set the best businesses apart.

“Closing the gap between ambition and action will be a joint effort between businesses, government, communities and education providers. By helping businesses find the right people and develop the skills they need, we can build a stronger pipeline of talent and support growth across the UK.”