UK SMEs seeking to upskill existing staff in tough labour market

UK small and medium-sized businesses (SMEs) are increasingly seeking to upskill existing staff in an increasingly tough labour market, new research has revealed. The findings come amid mounting concerns among employers about access to talent.

According to new research from Shawbrook, 48 per cent of SME leaders said that they are seeking to upskill their current team this year. This was by far the most common answer in the poll, which questioned SME leaders on their plans for the remainder of 2025.

Just 29 per cent, by comparison, said that they planned on expanding their leadership team, while only a quarter (25 per cent) said that they planned to hire new staff.

The focus on upskilling existing staff reflects deeper concerns about recruitment among SME owners. 59 per cent of respondents said that they were concerned about current access to talent within their sector, while 19 per cent said they were very concerned.

SME respondents who have begun to undertake upskilling efforts say that they are already seeing the benefits, with 27 per cent saying that investing in their current team had been a key growth driver during 2024.

Neil Rudge, Chief Banking Officer, Commercial at Shawbrook, commented “The first half of 2025 has undoubtedly been filled with challenges for UK SMEs, with the current state of the labour market representing a significant barrier to growth in many cases. However, clearly SME leaders know that the core of any flourishing business is the people within it, and it is heartening to see so many make upskilling their team a key priority for the rest of the year.”

“Our research shows that businesses who invest in their teams are the best primed for growth. Whilst the wider economic environment remains uncertain, specialist lenders are primed to help ambitious companies unlock the additional value needed to execute their growth plans, and turn that ambition into action.”

SME leaders were also asked what actions the government could take to facilitate an environment of growth. 34 per cent said that there should be more skills programmes in the UK and 28 per cent said that it should be easier for companies to bring in skilled overseas workers to address resourcing gaps and maintain competitiveness.


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"1"
PATH
"/usr/local/jdk/bin:/usr/kerberos/sbin:/usr/kerberos/bin:/usr/local/sbin:/usr/local/bin:/sbin:/bin:/usr/sbin:/usr/bin:/usr/X11R6/bin:/usr/local/bin:/usr/X11R6/bin:/root/bin:/opt/bin"
SERVER_SIGNATURE
""
SERVER_SOFTWARE
"Apache"
SERVER_NAME
"w.workfromhome.co.uk"
SERVER_ADDR
"172.31.31.57"
SERVER_PORT
"443"
REMOTE_ADDR
"216.73.217.10"
DOCUMENT_ROOT
"/home/bizsale/public_html"
REQUEST_SCHEME
"https"
CONTEXT_PREFIX
"/cgi-sys"
CONTEXT_DOCUMENT_ROOT
"/usr/local/cpanel/cgi-sys/"
SERVER_ADMIN
"[email protected]"
SCRIPT_FILENAME
"/home/bizsale/public_html/index.php"
REMOTE_PORT
"12769"
REDIRECT_URL
"/index.php"
GATEWAY_INTERFACE
"CGI/1.1"
SERVER_PROTOCOL
"HTTP/1.1"
REQUEST_METHOD
"GET"
QUERY_STRING
""
REQUEST_URI
"/Blogs/uk-smes-seeking-to-upskill-existing-staff-in-tough-labour-market-228140"
SCRIPT_NAME
"/index.php"
ORIG_SCRIPT_FILENAME
"/usr/local/cpanel/cgi-sys/ea-php71"
ORIG_PATH_INFO
"/index.php"
ORIG_PATH_TRANSLATED
"/home/bizsale/public_html/index.php"
ORIG_SCRIPT_NAME
"/cgi-sys/ea-php71"
PHP_SELF
"/index.php"
REQUEST_TIME_FLOAT
1782517613.8002
REQUEST_TIME
1782517613
argv
[]
argc
0
APP_NAME
"Laravel"
APP_ENV
"local"
APP_KEY
"base64:6coDXzCRsacXGmkPvjvAXO03DG2dJJdkX6rr1+rpvVg="
APP_DEBUG
"true"
APP_LOG_LEVEL
"debug"
APP_URL
"http://localhost"
DB_CONNECTION
"mysql"
DB_HOST
"127.0.0.1"
DB_PORT
"3306"
DB_DATABASE
"bizsale_db"
DB_USERNAME
"bizsale_admin"
DB_PASSWORD
"+fUTe#g#3."
BROADCAST_DRIVER
"log"
CACHE_DRIVER
"file"
SESSION_DRIVER
"file"
SESSION_LIFETIME
"120"
QUEUE_DRIVER
"sync"
REDIS_HOST
"127.0.0.1"
REDIS_PASSWORD
"null"
REDIS_PORT
"6379"
MAIL_DRIVER
"smtp"
MAIL_HOST
"smtp.mailtrap.io"
MAIL_PORT
"2525"
MAIL_USERNAME
"null"
MAIL_PASSWORD
"null"
MAIL_ENCRYPTION
"null"
PUSHER_APP_ID
""
PUSHER_APP_KEY
""
PUSHER_APP_SECRET
""
EMAIL_TESTING
"true"
COMPANIESHOUSE_KEY
"u82ND42fnkdYxqCH945hvlmaflxDPIyT2sMcWLrj"
Key Value
APP_NAME
"Laravel"
APP_ENV
"local"
APP_KEY
"base64:6coDXzCRsacXGmkPvjvAXO03DG2dJJdkX6rr1+rpvVg="
APP_DEBUG
"true"
APP_LOG_LEVEL
"debug"
APP_URL
"http://localhost"
DB_CONNECTION
"mysql"
DB_HOST
"127.0.0.1"
DB_PORT
"3306"
DB_DATABASE
"bizsale_db"
DB_USERNAME
"bizsale_admin"
DB_PASSWORD
"+fUTe#g#3."
BROADCAST_DRIVER
"log"
CACHE_DRIVER
"file"
SESSION_DRIVER
"file"
SESSION_LIFETIME
"120"
QUEUE_DRIVER
"sync"
REDIS_HOST
"127.0.0.1"
REDIS_PASSWORD
"null"
REDIS_PORT
"6379"
MAIL_DRIVER
"smtp"
MAIL_HOST
"smtp.mailtrap.io"
MAIL_PORT
"2525"
MAIL_USERNAME
"null"
MAIL_PASSWORD
"null"
MAIL_ENCRYPTION
"null"
PUSHER_APP_ID
""
PUSHER_APP_KEY
""
PUSHER_APP_SECRET
""
EMAIL_TESTING
"true"
COMPANIESHOUSE_KEY
"u82ND42fnkdYxqCH945hvlmaflxDPIyT2sMcWLrj"
0. Whoops\Handler\PrettyPageHandler