Filling the skills gap – how Scotland is getting strategic in the war for talent

Scotland stands at a critical juncture where adapting to rapidly evolving job market demands is essential for sustainable growth. With unemployment at its lowest, with fierce competition for skilled workers, the urgency to address the skills gap has never been greater. Insights from Kathryn Hume, Regional Director for Scotland at People Puzzles, emphasise the strategic steps being taken to tackle these challenges and ensure that Scotland remains a leader in talent development and economic resilience.

The reality is that there is a significant skills gap in Scotland, particularly for specialist roles, requiring specific skills, qualifications and experience, across various sectors including engineering, renewable energy and construction. Despite having a strong pool of experienced professionals, companies are struggling with an increasing number of open vacancies that span every single skill set. The talent landscape is further strained by competition among businesses vying for the same skilled individuals.

To attract and retain this great talent, make your company a place people want to work. Create a compelling environment where employees publicly praise the workplace and see clear opportunities for personal growth. This builds a strong employer brand, boosting retention and sets you apart in this competitive market. Without a structured and strategic approach, even large firms risk falling behind.

Six strategies to stay ahead

1. A focus on strategy and leadership alignment

You may feel that you don’t have time to put aside the day job to focus on building a strategy. However, strategy is the bedrock that underpins successful delivery and growth. Scottish firms are increasingly recognising this need, focusing on aligning their leadership teams and ensuring that everyone is on the same page to deliver consistent outcomes.

2. Right people in the right seat

Structuring the organisation in a way that places the right people in the right seats, with a skills focus, develops a culture that goes beyond operational HR. Senior leadership development, roles, responsibilities, and accountabilities are now central to these efforts, ensuring that businesses are ready to adapt and grow.

3. Succession planning

The question of “Where are future leaders coming from?” is central to any strategy aiming to address the skills gap. You need to focus on nurturing talent from within by developing structured training and support programs. This approach ensures a continuous supply of future leaders and specialists who are well-versed in your company culture and strategic goals.

4. Invest in employee development

By investing in your people, they will invest in you. Emphasising ongoing training builds your employer brand and ensures that employees remain equipped with the latest knowledge and skills, both of which will make you stand out in a competitive market.

5. Offer creative compensation & benefits

Ensure your benefits are distinctive and regionally competitive. Consider standout benefits such as salary sacrifice schemes, health insurance and wellness programmes. Differentiate from your competitors whilst being commercially savvy by offsetting costs with smart cost management initiatives, especially in light of the recent Employment Rights Bill changes and increased Employer NI costs

6. Cultural alignment

It is important to ensure that the company purpose and values represent a multicultural, multigenerational modern workforce and are deeply embedded in how your business is conducted every day; it needs to be weaved into all your working processes. This will create a strong, lived company culture that resonates both internally and externally to attract talent and improve retention.

Final thoughts to consider:

Are you set up to succeed from a people perspective? The competitive landscape requires boldness, strategic foresight, and the effective alignment of leadership, culture, and operational goals.

To remain competitive and ensure long-term success, companies must integrate these strategic imperatives into their business models. Only then will Scotland continue to excel in attracting and retaining top talent, meeting the challenges of the modern job market head-on.

For additional information and support, please contact Kathryn Hume on [email protected] or 07799261499