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BUSINESS & FINANCE • 63 the cost of rising wages . Nearly a fifth ( 18 %) report they will look to reduce employment or restructure their business model to manage the scheduled increases .
JOSH HARDIE , CBI DEPUTY- DIRECTOR GENERAL , SAID :
“ Companies are committed to raising prosperity and living standards across every corner of the UK - but for wage increases to be sustainable they must go hand-in-hand with productivity growth .
“ The CBI backs a rising minimum wage . But the path the National Living Wage takes over the next four years will require careful , independent monitoring and the Low Pay Commission must continue to ensure it reflects wider economic performance .”
CONFIDENCE IS THE FOUNDATION
Business confidence is the foundation on which future investment , innovation and job generation is built . But companies are concerned about the availability of people with the right skills now and that this will persist for the long-term . Ongoing skills gaps ranked as the most commonly cited threat to competitiveness ( 64 %) and for a second year topped the list of worries for the future ( 58 %).
With apprenticeship levy implementation starting next year , businesses have reaffirmed their long standing commitment to skills and training . A balance of + 26 % of firms plan to expand their apprentice recruitment numbers next year , slightly up on last year ’ s findings (+ 19 %).
While worries continue to grow about future access to skilled migrants as a threat to competitiveness ( 58 %), up from 31 % in 2015 , almost as many of this year ’ s respondents ( 50 %) were concerned about access to non-graduate migrants needed to fill labour shortages in key sectors .
JOSH HARDIE , CBI DEPUTY- DIRECTOR GENERAL , SAID :
“ Businesses need the confidence they can employ the right people at the right time . They will continue to invest heavily in skills and training , working with the Government to grow the skills base needed for a thriving economy . But having an immigration system that provides access to both skills and labour , whilst addressing the public ’ s concerns is essential .
“ As we enter a new phase of UK-EU relations , it is imperative that employers are supported effectively so our labour market continues to perform . There is a clear opportunity for the Government to work in partnership with business to position the UK as an attractive global hub and strong economy .”
AGILE AND INCLUSIVE
Businesses are creating agile and inclusive workplaces that support economic prosperity across the whole of the UK . Over three quarters ( 76 %) of respondents reported that a diverse and inclusive workforce is vital or important to the future success of their organisation . They report a range of benefits of inclusive workplace practices including increased skills ( 73 %), attraction and retention of staff ( 60 %) and engagement levels ( 46 %). The vast majority of companies ( 77 %) have taken steps over the past 5 years to build more inclusive workplace , including action on flexible working opportunities ( 60 %), training for line management ( 57 %) and improving progression opportunities for staff ( 56 %). But challenges remain for many businesses ( 67 %) with obstacles such as workplace culture and the mind-set of management yet to be overcome in introducing more inclusive workplace practices .
NEIL CARBERRY , CBI DIRECTOR FOR PEOPLE AND SKILLS POLICY , SAID :
“ Inclusion is at the heart of boosting productivity because it helps ensure firms hire from a broad talent pool , and then help people give their best every day .
Well-managed , engaged and supported staff are the key to boosting productivity , while boosting diversity often leads to better decision-making . “ Ultimately , companies that place inclusion and staff engagement at their heart are more productive and better able to secure the skills they need and hold on to them . These firms use effective management to tackle the barriers of corporate culture that the survey identifies . “ That ’ s why many firms don ’ t only see it as the right thing to do , they are already leading from the front with their great stories of what action they are doing across the UK .”
OTHER HIGHLIGHTS FROM THE SURVEY INCLUDE :
• 33 % of survey respondents expect to create permanent positions , while 14 % expect lower , giving a balance of + 19 %.
• 14 % of companies expect to create temporary roles , while 12 % expect a reduction in roles , giving a balance of balance , + 2 %
• 30 % of firms expect to create apprenticeship positions , while 4 % expect lower levels of recruitment , giving a balance of + 26 %
• 20 % expect to expand graduate roles , with 4 % plan to see fewer roles , giving a balance of + 16 % – the same balance as 2015
• The majority of firms ( 77 %) report positive employee relations and a similar proportion ( 76 %) anticipate this continuing into 2017
• Businesses are aware of the value of employee engagement , pointing to benefits including improved productivity and performance ( 73 %), increased customer and client satisfaction ( 57 %) and improved employee retention ( 44 %)
• In the coming year , the top workforce priorities for businesses are achieving and maintaining high levels of employee engagement ( 48 %), retaining talent ( 41 %) and improving leadership skills ( 37 %)
• Survey respondents emphasised that the future migration system must be responsive to economic need ( 45 %) and provide access to both labour ( 46 %) and skills ( 40 %).
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