Discord in the Workforce: Companies and the Post-Millennial Generation Misaligned on Essential Skills
In a recent survey involving over 2,000 UK organization leaders and 1,000 Gen Z adults, it has become clear that recruitment, retention, and training are significant challenges for employers. The report, titled 'Business Barometer: Skills for today and tomorrow: how employers can plan for future skills,' reveals a skills gap that is expected to worsen in the next five years, with 32% of employers anticipating this trend.
**Recruitment**
To attract young talent, employers are encouraged to actively engage young people in shaping recruitment strategies. This includes partnering with youth organisations, schools, and colleges to offer work experience, internships, and apprenticeships. By doing so, hiring practices become more relevant and attractive to under-25s, who often cite mental health challenges, lack of tailored careers advice, and limited access to digital tools or transport as barriers.
**Retention**
Retaining young employees is crucial, especially given that 33% cite reduced productivity as a result of the skills shortage. Supporting mental health is essential, as these issues are prominent among young employees. Employers should offer mental health resources, flexible working arrangements, and an inclusive culture that fosters well-being and belonging.
**Training and Skills Development**
With 1.5 million UK jobs at risk of automation and a pressing need for digital, AI, and green skills, employers must prioritize training in these areas. Programs like Green Skills Bootcamps, apprenticeships in low-carbon heating, sustainable construction, and energy management, and T-Levels with green career tracks provide structured routes into these sectors. Employers are also urged to offer short, intensive training and promote a culture of continuous learning to ensure young workers adapt as roles and required skills shift with technological advancements and sustainability mandates.
**Policy and Systemic Support**
Collaboration with government initiatives such as the Youth Guarantee, Local Skills Improvement Plans (LSIPs), and the Strategic Development Fund for FE colleges is essential to build a resilient, future-ready workforce. Employers are also encouraged to leverage government-funded training programs, subsidies, and apprenticeship incentives to reduce the cost and risk of hiring and upskilling young talent.
The report also highlights the importance of inclusion, with 84% of employers saying ED&I is important to their organization. However, 23% of organizations have no initiatives in place for underrepresented or disadvantaged groups. Employers are encouraged to invest in initiatives that support diversity and inclusion, as it is believed that ED&I will become even more important over the next five years.
Phil Kenmore, Director of Corporate Development and Partnerships at The Open University, emphasised the need for clear training pathways, practical support, and employers willing to invest. He encourages employers to build structured skills plans, work with education providers, and open up opportunities to diverse talent.
Baroness Martha Lane Fox CBE, Chancellor at The Open University, commented that employers have an opportunity and responsibility to shape the future workforce. Nearly half of Gen Z (48%) are already working in or interested in AI, and 69% of employees would stay longer with an employer that offers training and development. However, 26% of organizations cite a fear that training staff may lead to their departure as a barrier to training.
In conclusion, UK employers can better recruit, retain, and train under-25s by actively engaging young people in shaping opportunities, addressing systemic barriers like mental health and access, and investing aggressively in digital, AI, and green skills training. Collaboration with education providers and government programs is essential to build a resilient, future-ready workforce that meets both current skills shortages and tomorrow’s economic needs.
- Employers should consider partnering with technology organizations and educational institutions to equip young talent with the necessary skills in artificial intelligence, as nearly half of Gen Z shows interest in this field.
- To win over, Gen Z job seekers, businesses should offer personal growth and career development opportunities that include skills training, as 69% of employees are willing to stay longer with employers who provide such training.
- Technology companies should actively engage in inclusion initiatives, as only 77% of organizations have initiatives for underrepresented or disadvantaged groups, and the importance of ED&I is expected to grow over the next five years.
- To address the skills gap and prepare for future economic needs, employers should prioritize skills training in areas such as finance, business, education and self-development, and job search as these can help with career development and adaptability in an ever-changing job market.
- In order to remain competitive and build a future-ready workforce, employers should leverage government subsidies, apprenticeship incentives, and training programs to reduce the cost and risk of hiring and upskilling young talent while investing in policies that support continuous learning and improvement.
