UKCES Employer Skills Survey 2015
Source: data.gov.uk (2018-05-08)

The 2015 Employer Skills Survey (ESS15) is the third in the series of UK-wide skills surveys run by the UK Commission for Employment and Skills (UKCES). 

The survey gives us a unique insight into the skills issues employers face and the actions they are taking to address them, providing a unique skills perspective alongside other labour market information. There is no other business survey on this scale: our researchers conducted over 91,000 interviews across the UK economy.

Topics covered in the survey include training and staff development, vacancies and skills shortages, employee skill gaps, retention of workforce and underutilisation of skills.

The ESS15 results provide a comprehensive source of data for users:

• Employers can identify how they compare to their sector in their provision of training or own experience of skill deficiency and identify key challenges and opportunities for their sector; 

• Individuals and careers advisers can identify sectors and occupations experiencing particular shortages; 

• Providers of training and development can use the results to help shape provision to need in their locality or their specialist areas. 

Data are available for the UK, England, Scotland, Northern Ireland and Wales, as well as Local Enterprise Partnerships (LEP) and Local Education Authority (LEA) areas in England.

Employer Skills 
Survey 2015: UK 
Results 
Evidence Report 97
May 2016
Amended May 2018

The UK Commission’s  
Employer Skills Survey 2015: UK 
Results 
David Vivian, Mark Winterbotham, Jan Shury, Andrew Skone James, 
Jessica Huntley Hewitt, Mark Tweddle and Christabel Downing 
IFF Research 
 
Alex Thornton, Rosie Sutton, Carol Stanfield and Adam Leach 
UK Commission for Employment and Skills 
May 2016 
 
Amended May 2018 

Foreword 
It is my pleasure to introduce the 2015 Employer Skills Survey (ESS), the third in the series 
of UK-wide skills surveys run by the UK Commission for Employment and Skills (UKCES). 
The survey gives us insight into the skills issues employers face and the action they are 
taking to address them, providing a unique skills perspective alongside other labour market 
information. There is no other business survey on this scale: our researchers conducted 
over 91,000 interviews with employers from Caithness to Cornwall, Tyrone to Tyneside. 
The wealth of data this provides allows us not only to track changes over time but also to 
delve down into geographical, industry-sector, and occupational detail. 
This year’s survey points to continued growth in recruitment. This adds to other indicators 
of consumer and business confidence at the end of 2015, including the UK’s relatively 
strong record in employment since 2010. 
But what ESS 2015 also shows is the other side of the coin – the dark side of this increase 
in recruitment is that a growing number of jobs are being left unfilled because companies 
can’t find the right people with the right skills. 
An area of real concern is skill shortages faced by the construction sector, a hugely 
important sector that contributes nearly £90bn to the UK economy, over a million jobs, and 
is strategically important in its contribution to housing, infrastructure and initiatives to 
stimulate UK growth. The ESS findings show employers are struggling to fill one in three 
construction vacancies, up from one in four in 2013, because they can’t find people with 
the right skills. 
This cautionary note is just one from a survey that probes far deeper into the “black box” 
of how employers respond to the skills challenges that they face, and hints at how these 
could contribute to the continuing unsolved puzzle of UK productivity. 
On this note, a fascinating area of the survey reports on the skills left unused by UK 
employers. One in three employers had at least one member of staff whose skills were 
underused. Beneath the headline picture the survey reveals variations, for example, 40 per 
cent of employers in the Hotel and Restaurants sector report having staff with unused skills 
compared to 20 per cent in Agriculture. Knowing that UK productivity has flatlined since 
2008 at the same time as employers know of talent untapped in their workers is not easy 
to take in. ESS looks at the underuse of skills from a business perspective (complementing 
other data from workers) but this is an area where our understanding is developing and 
more work is needed to look at this troubling trend. 

2 
At UKCES we are proud to have had stewardship of ESS since 2009 and of its extensive 
use and value. Having a comprehensive picture of skills requirements and responses 
alongside other business practices is essential to effective skills systems. In this, the survey 
is a source of international envy. We hope this important source of data remains at the 
cornerstone of high quality Labour Market Intelligence. 
For now, it remains for me to thank the research staff at UKCES and their survey partners 
for the hard work that has gone into this report; my sincere gratitude also goes to each and 
every employer who gave their valuable time to answer our survey questions, without 
whom we would have no results to report. 
Douglas McCormick 
UKCES Commissioner and Chief Executive Officer, Sweett Group 
 

3 
Table of Contents 
Glossary ................................................................................................................ 9 
Key findings ....................................................................................................... 11 
Executive Summary ........................................................................................... 12 
1 
Introduction ................................................................................................ 19 
1.1 
The UK-wide employer skills survey ................................................................... 19 
1.2 
Methodological overview ...................................................................................... 20 
1.2.1 
Survey sampling .................................................................................................... 20 
1.2.2 
Survey questionnaire ............................................................................................ 21 
1.2.3 
Survey fieldwork .................................................................................................... 22 
1.2.4 
Data weighting ....................................................................................................... 23 
1.3 
The nature of UK establishments: describing the survey population ............. 23 
1.3.1 
Profile of UK business population ....................................................................... 24 
1.3.2 
Distribution of employers and employment over time ...................................... 26 
1.4 
Structure of this report .......................................................................................... 28 
1.5 
Reporting conventions .......................................................................................... 29 
2 
Recruitment and skill-shortage vacancies .............................................. 31 
2.1 
Chapter Summary .................................................................................................. 31 
2.2 
Introduction ............................................................................................................ 32 
2.3 
Vacancies ............................................................................................................... 33 
2.4 
Skill-shortage vacancies ....................................................................................... 36 
2.5 
The incidence, volume and density of skill-shortage vacancies ...................... 36 
2.6 
Skills lacking in the available labour market ...................................................... 44 
2.7 
The impact of skill-shortage vacancies on employers ...................................... 48 
2.8 
Wider recruitment challenges .............................................................................. 49 
2.9 
Retention difficulties ............................................................................................. 51 
2.9.1 
Incidence of retention difficulties ........................................................................ 51 
2.9.2 
Occupational pattern of retention difficulties ..................................................... 52 
2.9.3 
Reasons for retention difficulties ......................................................................... 53 
2.10 
Conclusions ........................................................................................................... 55 
3 
The Internal Skills Challenge .................................................................... 56 
3.1 
Chapter Summary .................................................................................................. 56 
3.2 
Introduction ............................................................................................................ 57 
3.3 
The incidence, volume and density of skills gaps ............................................. 57 

4 
3.3.1 
The sectoral distribution of skills gaps ............................................................... 59 
3.3.2 
The occupational distribution of skills gaps ...................................................... 61 
3.4 
The causes of skills gaps ..................................................................................... 64 
3.5 
Skills lacking internally ......................................................................................... 66 
3.6 
The impact of skills gaps ...................................................................................... 70 
3.7 
Employer response to skills gaps ........................................................................ 72 
3.8 
Skills deficiencies among existing staff and when recruiting staff .................. 74 
3.8.1 
The relationship between skill-shortage vacancies and skills gaps ................ 74 
3.8.2 
Skills lacking internally and externally ................................................................ 75 
3.9 
Conclusions ........................................................................................................... 77 
4 
Employer perceptions of under-use of skills and qualifications ........... 78 
4.1 
Chapter Summary .................................................................................................. 78 
4.2 
Introduction ............................................................................................................ 79 
4.3 
Prevalence of under-utilisation ............................................................................ 80 
4.4 
Occupations most affected by under-utilisation ................................................ 80 
4.5 
Reasons for under-utilisation ............................................................................... 82 
4.6 
Reasons for under-utilisation ............................................................................... 82 
4.7 
Under-utilisation by country ................................................................................. 86 
4.8 
Under-utilisation by establishment size .............................................................. 87 
4.9 
Under-utilisation by sector ................................................................................... 88 
Under-utilisation and other challenges ............................................................................ 90 
4.10 
Conclusions ........................................................................................................... 91 
5 
Training and workforce development ...................................................... 92 
5.1 
Chapter Summary .................................................................................................. 92 
5.2 
Introduction ............................................................................................................ 94 
5.3 
Incidence of training and workforce development ............................................. 95 
5.4 
Number of staff trained ......................................................................................... 96 
5.5 
Training days .......................................................................................................... 99 
5.6 
Types of training provided .................................................................................. 101 
5.7 
Training to qualifications .................................................................................... 103 
5.8 
Online / e-learning and other self-learning ....................................................... 105 
5.9 
Investment in Training ........................................................................................ 109 
5.10 
Barriers and limits on training ............................................................................ 115 
5.11 
Other development opportunities ...................................................................... 118 
5.12 
Conclusions ......................................................................................................... 119 
6 
High performance working practices and product market 
strategies .......................................................................................................... 120 

5 
6.1 
Chapter Summary ................................................................................................ 120 
6.2 
Introduction .......................................................................................................... 121 
6.3 
High Performance Working ................................................................................ 121 
6.4 
The relationship between HPW and skill shortages ........................................ 125 
6.5 
The relationship between HPW and skills gaps ............................................... 127 
6.6 
The relationship between HPW and training .................................................... 128 
6.7 
Product market strategies .................................................................................. 129 
6.8 
Deriving a composite Product Market Index ..................................................... 131 
6.9 
Profiling higher and lower composite PMS score employers ......................... 131 
6.10 
Relationship between PMS and skill shortages ............................................... 132 
6.11 
The relationship between PMS and skills gaps ................................................ 134 
6.12 
The relationship between PMS and training ..................................................... 136 
6.13 
Conclusion ........................................................................................................... 138 
7 
Conclusions ............................................................................................. 139 
7.1 
Introduction .......................................................................................................... 139 
7.2 
Tracking developments in the UK economy ..................................................... 139 
7.3 
Changing nature of work .................................................................................... 140 
7.4 
Training investment ............................................................................................. 141 
7.5 
Leadership and management ............................................................................. 143 
7.6 
Skills for a productive workforce ....................................................................... 144 
Appendix A: Supplementary Tables ............................................................... 146 
Chapter 1: Introduction .................................................................................................... 146 
Chapter 2: Recruitment and skill-shortage vacancies .................................................. 149 
Chapter 3: The Internal Skills Challenge ........................................................................ 171 
Chapter 4: Employer perceptions of under-use of skills and qualifications .............. 190 
Chapter 5: Training and workforce development .......................................................... 195 
Chapter 6: High Performance Working practices and product market 
strategies ........................................................................................................................... 212 
Appendix B: National Time Series Tables ..................................................... 217 
Appendix C: Industry coding .......................................................................... 222 
Appendix D: Occupational Coding ................................................................. 226 
Appendix E: Sampling Error and Statistical Confidence .............................. 227 
Appendix F:  Weighted base sizes ................................................................. 229 
Appendix G:  Unweighted base sizes ............................................................. 230 

6 
Appendix I: Technical Appendix ..................................................................... 232 
Employer Skills Survey: Wave 1 ...................................................................................... 232 
Employer Skills Survey: Investment in Training follow-up .......................................... 237 
Questionnaire design ....................................................................................................... 239 
Appendix J: Bibliography ................................................................................ 240 
 
 

7 
Table of Graphs and Charts 
Table 1.1 Survey response rates ................................................................................................. 23 
Figure 1.1  Headline information on the profile of UK establishments and employment ...... 25 
Table 1.2 UK business and employment population by sector, 2013-2015 ............................. 27 
Table 1.3 Broad occupational groups ......................................................................................... 29 
Figure 2.1  Incidence and density of vacancies overall and by country ................................. 34 
Table 2.1  Incidence and density of skill-shortage vacancies (SSVs) by country .................. 37 
Figure 2.2  Number and density of skill-shortage vacancies (SSVs), by sector ..................... 38 
Figure 2.3  Density and number of skill-shortage vacancies (SSVs), by occupation ............ 40 
Figure 2.4  Density of skill-shortage vacancies (SSVs) by sector and occupation within 
sector 
 ................................................................................................................................. 43 
Figure 2.5  Skills lacking among applicants to establishments with at least one skill-
shortage vacancy (prompted) ...................................................................................................... 45 
Table 2.2 Most common skills lacking among applicants, by occupation .............................. 47 
Figure 2.6  Impact of skill-shortage vacancies (prompted) ...................................................... 49 
Figure 2.7  Main non-skills-related causes of having hard-to-fill vacancies (unprompted) .. 50 
Figure 2.8 Occupations in which most difficulty retaining staff .............................................. 52 
Figure 2.9 Reasons for retention difficulties .............................................................................. 54 
Figure 3.1  Incidence and density of skills gaps by country .................................................... 58 
Figure 3.2  Density of skills gaps by sector ............................................................................... 60 
Table 3.1 Number and density of skills gaps by occupation .................................................... 61 
Figure 3.3  Density of skills gaps by occupation within sector ................................................ 63 
Table 3.2 Main causes of skills gaps (prompted) ....................................................................... 64 
Figure 3.4  Skills lacking among staff with skills gaps ............................................................. 67 
Table 3.3 Most common skills lacking among staff with skills gaps, by occupation ............ 69 
Figure 3.5  Impacts of skills gaps ................................................................................................ 71 
Figure 3.6  Actions taken to overcome skills gaps (prompted) ................................................ 73 
Figure 3.7 Changes in number of skill-shortage vacancies and skills gaps over time, by 
sector 
 ................................................................................................................................. 74 
Figure 4.1 Occupation most affected by under-utilisation........................................................ 81 
Figure 4.2  Reasons for under-utilisation (unprompted) ........................................................... 83 
Table 4.1  Reasons for under-utilisation by occupation ........................................................... 85 
Table 4.2  Reasons for under-utilisation by sector .................................................................... 89 
Figure 4.3  Relationships between under-utilisation and other challenges ............................ 90 
Figure 5.1 Training provision over the last 12 months .............................................................. 95 
Table 5.1 Number and proportion of staff trained over the last 12 months, by country and 
establishment size ......................................................................................................................... 97 
Figure 5.2 Proportion of staff trained over the last 12 months by occupation (2011 – 2015) ... 
 
 ................................................................................................................................. 98 
Table 5.2 Total training and development days, and days per person trained and per 
employee by country and establishment size (2011 - 2015) ..................................................... 99 
Figure 5.3 Types of training provided over the last 12 months by employers that train 
(prompted) 
 ............................................................................................................................... 101 
Table 5.3 Training to nationally recognised qualifications over the previous 12 months ... 104 

8 
Table 5.4 Provision of online training or e-learning over the past 12 months by country and 
establishment size ....................................................................................................................... 106 
Figure 5.4 Use of online training and e-learning, and changes in use, by sector ................ 107 
Table 5.5 Provision of other self-learning over the previous 12 months by country and 
establishment size ....................................................................................................................... 108 
Table 5.6 Total training expenditure and spend per person trained and per employee (2011 
to 2015) 
 ............................................................................................................................... 110 
Table 5.7 Total training expenditure broken down by individual components (2011 to 2015) .. 
 
 ............................................................................................................................... 112 
Table 5.8: Training expenditure by size and sector, the proportion spent on off-the-job 
elements, and the breakdown of total training expenditure (both on-the-job and off-the-job) 
by key elements ........................................................................................................................... 113 
Figure 5.5   Barriers to providing more training ....................................................................... 115 
Figure 5.6   Reasons for not providing training in the previous 12 months ......................... 116 
Figure 5.7 Employer interest in undertaking more training over the last 12 months than they 
were able to provide .................................................................................................................... 118 
Table 6.1  High Performance Working (HPW) practices according to the five factors ........ 122 
Figure 6.1  Employer adoption of High Performance Working (HPW) practices .................. 122 
Figure 6.2  Summary of employers’ experiences of skill shortages, skills gaps and training 
depending on High Performance Working (HPW) classification ........................................... 124 
Figure 6.3  Incidence and density of vacancies, hard-to-fill vacancies (HtFVs) and skill-
shortage vacancies (SSVs) by HPW classification and size .................................................. 126 
Figure 6.4  Incidence and density of skills gaps by HPW classification and size ................ 127 
Figure 6.5  Product Market Strategy positions ......................................................................... 130 
Table 6.2  Overall composite Product Market Strategy scores .............................................. 131 
Table 6.3  Overall composite Product Market Strategy scores by size ................................. 132 
Figure 6.6  Incidence of vacancies, hard-to-fill vacancies (HtFVs) and skill-shortage 
vacancies (SSVs), as well as density of HtFVs, by Product Market Strategy classification 133 
Table 6.4  Incidence and density of skills gaps by Product Market Strategy ....................... 134 
Table 6.5  Main causes of skills gaps (prompted), by Product Market Strategy .................. 135 
Figure 6.7  Incidence of training and proportions of the workforce trained by Product 
Market Strategy classification .................................................................................................... 136 

9 
Glossary 
This glossary gives a short guide to the key terms used in this report:  
 
Establishment (also 
referred to as 
workplace, business, 
employer or site) 
A single location of an organisation – for this survey 
all have at least two people working at that location.  
Vacancy density 
The number of vacancies as a proportion of all 
employment. 
Hard-to-fill vacancies 
Vacancies which are proving difficult to fill, as 
defined by the establishment (from the question: 
“Are any of these vacancies proving hard to fill?”). 
Hard-to-fill vacancy 
density 
The number of hard-to-fill vacancies as a proportion 
of all vacancies. 
Skill-shortage 
vacancies (SSVs) 
Vacancies which are proving difficult to fill due to 
the establishment not being able to find applicants 
with the appropriate skills, qualifications or 
experience. 
Skill-shortage vacancy 
density 
The number of skill-shortage vacancies as a 
proportion of all vacancies. 
Skills gaps 
A “skills gap” exists where an employee is deemed 
by their employer to be not fully proficient, i.e. is not 
able to do their job to the required level. See Annex 
H. 

10
Skills gap density 
The number of staff reported as not fully proficient 
as a proportion of all employment. 
Under-use of skills 
(skills under-
utilisation) 
An employee’s skills are under-used / underutilised 
if the employer reports a person has both skills and 
qualifications that are more advanced than required 
to perform the job role they are currently in. 
Product Market 
Strategy (PMS)  
An establishment’s PMS score is worked out from 
the combined answers to four questions: 
• 
How customised their output is; 
• 
How price dependent their offering is; 
• 
How innovative the establishment is; 
• 
Whether outputs are premium or basic quality. 
A high PMS score indicates outputs are 
customised, not price-dependent, premium quality 
and the establishment often leads the way in 
product development. 
Level 4 and above 
qualifications 
Qualifications at or above Level 4 on the National 
Qualifications Framework. Includes HNDs, HNCs, 
foundation degrees and degrees, postgraduate 
degrees, and some vocational and professional 
qualifications. 
  
Sector 
For definitions of the different sector groupings used 
in this report please refer to Annex C. 
Occupations 
For definitions of the occupational groups used in 
this report please refer to Annex D. 
  
 
 

11
Key findings 
 
ESS 2011 
ESS 2013 
ESS 2015 
Vacancies and skill-shortage vacancies 
  
  
 
% of establishments with any vacancies 
14% 
15% 
19% 
% of establishments with any hard-to-fill vacancies 
4% 
5% 
8% 
% of establishments with SSVs 
3% 
4% 
6% 
% of all vacancies which are SSVs 
16% 
22% 
23% 
Number of vacancies 
586,500 
655,000 
927,200 
Number of skill-shortage vacancies 
91,400 
146,200 
209,500 
Skills gaps 
 
 
 
% of establishments with any staff not fully proficient 
17% 
15% 
14% 
Number of skills gaps 
1,485,500 
1,409,900 
1,380,200 
Number of staff not fully proficient as a % of employment 
6% 
5% 
5% 
Training 
 
 
 
% of establishments training staff over the last 12 months 
65% 
66% 
66% 
% of establishments providing off-the-job training in the 
last 12 months 
47% 
49% 
49% 
% of workforce trained 
55% 
62% 
63% 
Total days training 
115m 
113m 
118m 
Total training expenditure 
£43.8bn 
£43.0bn 
£45.4bn 
Vacancies, skill-shortage vacancies and skills gaps rounded to the nearest 100. 
2011 data has been reweighted to be comparable to 2013 data. 
 
 
 

12
Executive Summary 
Introduction 
In examining the experiences and practices of over 91,000 employers, the UK 
Commission’s Employer Skills Survey (ESS) is the definitive source of intelligence on the 
skills challenges employers across the UK are facing and their response in terms of 
investment in skills and training. 
The survey was first conducted at UK wide level in 2011, and was developed from a series 
of surveys conducted in each of the countries of the UK during the 1990s and the 2000s. 
The UK survey has been conducted biennially, and the 2015 survey represents the third 
edition in the series. This period of time coincides with the UK economy leaving recession 
and experiencing relatively sustained economic growth. It explores the skills challenges 
that employers face both within their existing workforces and when recruiting, their use of 
the skills of their staff, the levels and nature of investment in training and development, and 
the relationship between skills challenges, training activity and business strategy. 
The study reports on the experiences of employers at the establishment level, rather than 
at the enterprise level. The survey covers establishments with at least two people on the 
payroll. 
Recruitment and skill-shortage vacancies 
There was substantial growth in the number of employers active in the recruitment market 
in 2015 compared to 2013: 19 per cent of establishments had at least one current vacancy 
at the time of ESS 2015 fieldwork, up from 15 per cent in 2013. Moreover, there were 
927,000 reported vacancies, almost 300,000 more than two years previously (an increase 
of 42 per cent). This strong growth in recruitment activity was evident in all the UK 
countries. 
Within this buoyant labour market, skill-shortage vacancies presented a growing challenge 
for employers in filling their vacancies. Six per cent of all employers had at least one skill-
shortage vacancy at the time of the survey – a significant increase from the four per cent 
of employers that reported having such vacancies in 2013. In volume terms, there were 
209,500 reported skill-shortage vacancies which was an increase of 43 per cent from the 
146,000 reported in 2013. The increase in the number of skill-shortage vacancies was 
proportional to the increase in vacancies. Therefore, the density of skill-shortage vacancies 
(i.e. the proportion of vacancies that were hard-to-fill because of skill shortages) was largely 
unchanged at 23 per cent compared with 22 per cent in 2013 at an overall UK level. 

13
There was variation by country, however. The density of skill-shortage vacancies remained 
at a similar level to 2013 in both England and Scotland, had increased in Wales but had 
decreased in Northern Ireland. 
By occupation, there had been a particularly marked increase in the density of skill-
shortage vacancies among Machine Operatives since 2013 (from 25 per cent of all 
vacancies to 32 per cent). Skilled Trades continued to be the occupation with the highest 
density of skill-shortage vacancies (43 per cent). 
Skill-shortage vacancies were caused by a number of people and personal skills and 
technical and practical skills lacking amongst applicants. Skills related to operational 
aspects of the role, as well as complex analytical skills, were the main technical and 
practical skills lacking. The main people and personal skills lacking pertained to time 
management, management and leadership, and sales and customer handling skills. 
Although the number of skill-shortage vacancies is relatively small, the impacts of skill-
shortage vacancies continued to be significant for employers. Over two-thirds of employers 
that had difficulty filling their vacancies solely as a result of skill shortages had experienced 
a direct financial impact through either loss of business to competitors, or increased 
operating costs. 
Skills gaps in the workplace 
The vast majority of employers (86 per cent) reported that they had a fully proficient 
workforce. However, 14 per cent of employers reported skills gaps within their 
establishment, with approximately 1.4 million staff lacking proficiency in their current role 
(five per cent of the UK workforce). 
The proportion of employers with any skills gaps, and the proportion of the workforce 
affected, decreased gradually at UK level between the 2011 and 2015 surveys. This varied 
by nation, however. The picture in England was relatively static, while the levels of skills 
gaps in Scotland and Wales fell between 2013 and 2015, when it aligned with the 
experience among employers in England. Employers in Northern Ireland were the least 
likely to report a lack of proficiency in their staff: just nine per cent of employers cited skills 
gaps within their establishment (down from 14 per cent in 2013) with these affecting 3.3 
per cent of all employees (down from 5.2 per cent in 2013). 
At an occupational level, skills gaps continued to be more prevalent in what are traditionally 
described as unskilled or semi-skilled occupations, with a notable increase from 2013 in 
the proportion of Machine Operatives not being fully proficient in their job role. This was 
also the occupation in which there was the greatest increase in the density of skill-shortage 
vacancies. 

14
The most common skills deemed to be lacking among existing staff were people and 
personal skills relating to workload management and teamwork. Specialist, job-specific 
skills were also widely considered to be lacking, along with complex analytical skills, 
especially among those in high-skill occupations such as Managers and Professionals. 
While the proportion of employers and staff affected by skills gaps decreased compared to 
2013, the impact of skills gaps increased slightly, and appeared to impact on smaller 
businesses in particular. 
Retaining staff 
Eight per cent of establishments reported that there were specific jobs in which they had 
difficulties retaining staff, more commonly in larger establishments and those in the Hotel 
and Restaurants, Public Administration, Education and Health and Social Work sectors. 
When establishments experience retention difficulties, these tend to be for specific job roles 
rather than for all occupations. Establishments experiencing retention difficulties were most 
likely to report them among Skilled Trades and Elementary occupations (21 per cent and 
19 per cent respectively). In contrast, very few establishments reported retention difficulties 
to be mainly among Managers (two per cent). 
Employers’ perceptions of under-use of skills and qualifications in the workplace 
Some employers may experience a skills imbalance where they perceive that staff are 
being “under-utilised”, that is, the skills and qualifications that these staff hold are above 
those required for their current role. Three in ten employers reported that they had at least 
one employee who fits this description within their establishment (30 per cent), with two 
million workers reported to be under-utilised in this way.  
There are a number of different reasons given by employers for the under-use of skills. A 
quarter (26 per cent) of employers that reported under-use of skills said the reason was 
staff not being interested in taking on a higher level role; 15 per cent reported that the 
working hours suited them better. These would seem to indicate a personal choice being 
made by the individual because these job roles better suit their needs and circumstances. 
However, other reasons given by employers related to what could be considered to be a 
shortfall in the volume of jobs available that would use their skills, i.e. a lack of demand for 
their skills in the labour market. For example, 11 per cent of employers reporting under-
utilisation said the reason was a lack of jobs in the desired higher level role and 10 per cent 
reported that they were gaining experience for a higher level role. 
Under-utilisation represents not only a waste of individuals’ talent but also potentially a 
missed opportunity for employers to increase performance and productivity, improve job 
satisfaction and employee well-being, and stimulate investment, enterprise and innovation. 

15
Training and staff development 
There was little change in the headline training measures between 2015 and the 2013 
survey. 
It remained the case that two-thirds of employers (66 per cent) had funded or arranged 
training or development for their staff over the previous 12 months, with around half 
providing any off-the-job training (49 per cent) or on-the-job training (53 per cent). The 
proportion of staff being trained in 2015 was also in line with 2013 (63 per cent compared 
to 62 per cent) as was the average number of days training per trainee over the period (6.8 
days, compared to 6.7 days in 2013). Similarly, the proportion of employers that had 
provided any training intended to lead to nationally recognised qualifications remained 
unchanged at 31 per cent. 
There was, however, an increase in the volume of training, measured in terms of the total 
number of training days provided in the previous 12 months. This rose to 118m days in 
2015, compared to 113m in 2013 and 115m in 2011. 
This increase in the volume of training largely reflected a combination of increased levels 
of employment and increased recruitment activity. 
While the proportion of the workforce receiving training and the average number of training 
days they each received remained unchanged between 2013 and 2015, the size of the 
workforce increased, meaning that there was a four per cent increase in the number of 
employees trained (from 16.8m to 17.4m). 
The evidence also suggests that the increase in training days may be related to increased 
recruitment activity, and a consequent increase in induction training. The proportion of 
training employers that provided any induction training rose considerably (from 58 per cent 
of employers that trained in 2013 to 68 per cent in 2015), as did the proportion of training 
employers for whom induction or health and safety training accounted for at least half their 
training (from 27 per cent to 32 per cent). 
Total employer expenditure on training increased by six per cent between 2013 and 2015, 
from £43.0bn to £45.4bn, more than reversing the decrease recorded between 2013 and 
2011 (when the figure stood at £43.8bn). 
While total expenditure on training was greater, investment per person trained and per 
employee remained similar in 2015 to 2013 and 2011. 

16
Use of online training or e-learning and of other self-learning was common among training 
employers (45 per cent and 38 per cent respectively), and generally increasing, particularly 
for online training and e-learning (39 per cent of those using this method at all in the last 
two years reporting an increase over the last 12 months, compared with 18 per cent using 
it less). 
Variations in training levels appear to be driven largely by employer size. The survey 
showed that the smallest establishments provided twice as many training days per person 
trained and spend, on average, three and a half times more per person trained than the 
largest establishments. Reflecting these patterns, businesses in Construction and 
Agriculture spend more per person trained than sectors dominated by larger 
establishments, such as Public Administration and Health and Social Work. This suggests 
that smaller businesses are less likely to benefit from economies of scale in the planning 
and implementation of training than their larger counterparts. This is particularly true of 
small, single site businesses: small establishments that are part of a larger organisation 
appear able to draw on the larger organisation for support in training functions. 
Close to a half of employers that trained (46 per cent) wanted to provide more training than 
they had been able to do, with the main barriers being a lack of time and a lack of funds for 
further training. These reasons suggest that for some businesses, there is a ‘ceiling’ to the 
value they place on training, beyond which the training does not provide an adequate return 
to their investment, or at least is not perceived to. 
Given the constraints businesses have faced in recent years, a maintenance of broadly 
consistent training levels is positive; but it does also pose a challenge to UK businesses. 
Around 90 per cent of the current labour force have the potential to be active in the labour 
market a decade from now (UKCES 2014b). Therefore, the economy cannot rely on initial 
education alone to ensure people have the continuously changing skills that are needed: 
the workplace is a vital location to develop these skills. Given the importance of skilled 
people as a global currency, the survey poses questions about whether these levels and 
the types of training businesses are investing significant resources in are adequate to 
enable the UK economy to take advantage of opportunities, capitalise on innovation and 
secure growth in performance and productivity. 
 
 

17
High performance working practices and product market strategies 
Skills is a derived demand. Employers do not simply provide training or seek to recruit 
skilled people as an end in itself, the level and nature of the skills they require is derived 
from the business strategy they pursue and from the way they organise their work. As these 
strategies drive employers’ demand for skills, it is likely that they will impact on employers’ 
experiences of skill challenges and the practices they implement to address those 
challenges.  
Businesses that adopt high performance working practices (HPW) and those that pursue 
“very high product market strategies” (PMS, i.e. those who lead the way within their 
industry, offer premium products and services with a high degree of customisation and 
whose competitive success is not at all price dependent) tend to be more active in the 
recruitment market and consequently to have a more frequent experience of skill 
shortages: however, they also find it easier to fill their vacancies in the sense that a smaller 
proportion of their vacancies are hard-to-fill.  
There was a clear relationship between an establishment’s working practices and product 
market strategies and their provision of training. HPW employers and those that pursue 
higher product market strategies were more likely to have trained their staff and to have 
trained a higher proportion of their staff. These employers were also more likely to have 
provided training that led to nationally recognised qualifications and to qualifications that 
are of a higher level. 
Conclusions 
The Employer Skills Survey is a vital source of data on skills and the labour market. It offers 
a unique insight into the micro decisions that employers make about factors such as 
recruitment, training investment and use of skills in the workplace, which underpin the 
macro-level trends that drive UK economic growth and productivity levels. 
ESS 2015 highlights how changes in the economy are impacting on firms differently. 
Overall, vacancies and skill-shortage vacancies have increased significantly over the last 
two years, with some sectors in particular facing heightened difficulties in recruiting staff, 
such as in Construction and Finance. However, in many cases there has been persistence 
over successive waves of the survey in the areas in which difficulties are most commonly 
reported. For example, Manufacturing remains one of the sectors most likely to report that 
their vacancies are hard to fill for skill related reasons, despite declining employment levels 
and this has been persistent over the Employer Skills Survey series throughout the 21st 
century; Skilled Trades is the occupation in which employers are most likely to report skill-
shortage vacancies. 

18
These variations, in addition to geographical variation, raise questions about how local and 
national governments ensure the maximum value of any policy response, which needs to 
be mindful of the variations in experiences reported here and the contextual factors which 
shape these experiences. 
But there are questions for businesses too as the survey raises questions about the levels 
of demand for, and use of, skills by employers and whether these are at the right levels for 
the business. For example, the survey shows us that a minority of businesses operate high 
performance working practices but those that do have a higher demand for skills; that 
Managers are the occupational group least likely to receive training, but will be instrumental 
in decisions about business and people strategies; that 2 million staff have skills not 
currently being used in the workplace and that the impacts of skill shortages reported by 
employers have the potential to be very damaging to business, yet the persistence of many 
skill deficiencies suggests that training decisions, in some businesses at least, may be sub-
optimal. At a micro-level, these factors may be damaging for the business; at a macro-
level, they could be damaging for the UK economy and hamper the sustainability of UK 
economic growth. 
 
 

19
1 
Introduction 
1.1 
The UK-wide employer skills survey 
The UK Commission’s Employer Skills Survey is a biennial study that forms the 
cornerstone of its labour market intelligence. It contributes to, and influences, policy and 
practice in addressing the skills challenge and prompting growth through people. 
This report presents the headline findings from the 2015 survey. It is the third time the study 
has been undertaken on a UK-wide basis, having previously been conducted in 2011 and 
20131.  
This timeframe coincides with the UK economy leaving recession and experiencing a 
sustained period of moderate economic growth. While employment levels have increased 
over this time, there is mounting evidence of stalling productivity growth (ONS, 2014) that 
could hinder the current economic recovery as employers are unable to optimise their 
performance. Analysis conducted by the UK Commission has also highlighted the need to 
address deep-rooted structural skills and employment challenges – particularly in respect 
of youth employment - in order to ensure that conditions are created for a prolonged, 
balanced structural recovery. In common with the broader devolution agenda in the UK 
there has been an increased focus on driving the skills agenda at a local level, with an 
emphasis on encouraging employers, education providers and local government to 
address skill shortages that are holding back employment opportunities and business 
growth. 
Based on over 91,000 interviews with establishments, ESS 2015 enables assessment of 
how skills deficiencies are impacting business and organisational performance at both UK-
wide and a more local level. It measures the prevalence, character and impact of skills 
challenges, and details the nature and extent of employer investment in skills and training. 
It therefore provides a substantial body of evidence that can be used by a wide range of 
organisations and audiences. 
The Employer Skills Survey is designed to complement and supplement the UK 
Commission’s Employer Perspectives Survey series (EPS) which explores the attitudes 
and behaviour of employers across the UK as they make decisions about how to engage 
with training providers, schools, colleges and individuals in the wider skills system, to obtain 
the skills they need. 
 
 
                                                 
1 Prior to this the four nations had each run their own skills surveys; each were similar in style but varied in the employer 
population they covered and the timescales in which they were conducted preventing comparisons across nations.  That 
said, as the population covered by the UK-wide surveys matches that used in England previously it is possible to trace 
valid time series data for employers in England going back to 1999. 

20
This evidence report represents an initial overview of the survey’s findings, in which we: 
• 
Present findings across the UK, including time series analysis comparing the results 
to those seen in 2011 and 2013; 
• 
Compare experiences and behaviours between employers across the countries of 
the UK; 
• 
Analyse differences in the overall picture by such variables as workplace size and 
sector, and where feasible by occupation; 
• 
Examine the interrelationship between the key ESS measures - skills gaps, skill 
shortages and workforce development activity.  
As well as written commentary, the appendices to this report include abridged data 
tabulations detailing key survey measures. 
Full UK data tabulations have also been published alongside this report and are available 
here: 
https://www.gov.uk/government/publications/ukces-employer-skills-survey-2015-
supplementary-documents. 
1.2 
Methodological overview 
Like its predecessors, ESS 2015 was carried out in two parts: a core survey of UK 
establishments and a follow-up survey looking at the investment employers had made in 
providing training to employees in the 12 months previous (the “Investment in Training 
Survey”). Both surveys were conducted by telephone. 
This section briefly summarises the key features of the methodology adopted across both 
surveys. Further detail can be found in the separate Technical Report which accompanies 
this 
report: 
https://www.gov.uk/government/publications/ukces-employer-skills-survey-
2015-uk-results. 
1.2.1 Survey sampling 
The population covered by the survey comprised business establishments (as opposed to 
enterprises) in the UK with at least two staff (including both employees and working 
proprietors). Sole traders and establishments with just one employee (and no working 
proprietors) were excluded.  
The survey encompasses establishments across the whole of the UK, in all sectors of the 
economy (across the commercial, public and charitable spheres). The profile of this 
population was established through the Office for National Statistics (ONS) based on data 
from the Inter-Departmental Business Register (IDBR) March 2014 statistics (the most up 
to date figures available at the time of the survey). 

21
The sample of establishments was primarily sourced from Experian’s National Business 
Database, supplemented by records supplied directly through the IDBR in order to improve 
coverage of establishments in specific sectors and parts of sectors that are 
underrepresented in Experian’s database. 
Quotas for the main survey were set by size within sector for Scotland, Wales, Northern 
Ireland and nine English regions. In addition to geography, sector and size of 
establishments, the Investment in Training follow-up survey also ensured robust coverage 
by the nature of the training provided (whether establishments provide on-the-job training 
only, off-the-job training only, or both). All of the establishments interviewed for the 
Investment in Training Survey had been interviewed as part of the core survey and had 
given their permission to be contacted for this follow-up research. 
1.2.2 Survey questionnaire 
The core survey questionnaire was based largely on that used in the 2013 survey. 
However, additional areas were added examining how effectively skills and qualifications 
are used in the workforce and the provision of online training and self-learning. Questions 
relating to the recruitment of education leavers were removed in 2015. These questions 
have become part of the suite of questions posed in the UK Commission’s Employer 
Perspectives Survey, the most recent findings of which were published in November 2014. 
One key change for the 2015 questionnaire related to the methods used to capture the 
skills that are lacking in applicants and the skills lacking among internal staff with skills 
gaps. A revised framework was adopted for establishing what skills employers find lacking 
in the external labour market and within their existing workforce. This nuanced framework 
captures a more comprehensive set of skills that allows for the formulation of more specific, 
actionable responses to address the skill issues identified. Around half of establishments 
were assigned the new skills framework, with the other half assigned the “old” framework. 
This report presents data against the new skills framework in the main body: the time series 
analysis based on the “old” framework is presented in Tables A.2.12 and A.3.8 in Annex A 
for reference. 
A further development included the introduction of online prompt cards to assist employers 
through the section of the questionnaire that focussed on categorising their employees into 
nine different occupational classifications. This was made available to all establishments 
with 10 or more employees in a bid to reduce the burden on respondents and improve the 
accuracy of categorisation. 

22
As in 2013, a modularised questionnaire design was developed where certain sections 
(such as questions pertaining to retention difficulties, and those capturing high performance 
working practices) were only asked of half of the respondents. The report makes clear 
where questions were split in this way; further details are provided in the Technical Report. 
The average length of interview for the main survey was 23 minutes. 
The questionnaire administered for the previous UK Investment in Training Survey in 2013 
was used again in 2015, with an additional question on the amount spent on online training 
courses. 
Copies of the questionnaires used for both surveys can be found in the Technical Report. 
This also provides details of the cognitive testing and piloting undertaken to test the 
questionnaires, as well as copies of the online prompt card. 
1.2.3 Survey fieldwork 
Fieldwork for the core survey was undertaken between March and July 2015, and involved 
91,210 interviews. 
Fieldwork for the follow-up Investment in Training Survey was undertaken between May 
and August 2015, and involved more than 13,000 interviews with establishments that had 
taken part in the first survey. 
An overall response rate of 42 per cent was achieved for the core survey; this compares 
with 44 per cent in 2013 and 39 per cent in 2011. 
For the Investment in Training follow-up, respondents were already engaged with the 
survey so predictably a much higher response rate was achieved compared to the main 
survey: 66 per cent. 
 
 

23
Table 1.1 Survey response rates 
 
UK 
England 
Northern 
Ireland 
Scotland 
Wales 
Core survey 
 
 
 
 
 
Interviews 
91,210 
75,129 
4,019 
6,035 
6,027 
Response rate 
42% 
42% 
50% 
42% 
44% 
Investment in Training follow up 
Interviews 
13,197 
10,056 
740 
1,111 
1,290 
Response rate 
66% 
66% 
71% 
65% 
66% 
1.2.4 Data weighting 
Findings from the core survey have been weighted and grossed up to accurately represent 
the total population of UK establishments in which at least two people work. This has been 
done on a size, sector and geographic basis. Separate weights have been generated which 
allow findings to be presented (a) based on the number of workplaces reporting a particular 
experience, and (b) based on the number of employees and/or job roles affected by 
different challenges. The weighting approach has retained consistency with previous 
iterations and therefore allows for comparability with 2013 figures. A new weighting 
mechanism was also created for reporting the new skills framework, as described in 1.2.2. 
Findings from the Investment in Training survey have been weighted and grossed up to 
reflect the population of training establishments. These population figures were generated 
from the weighted findings of the core survey. A new weighting strategy was implemented 
in 2015 solely for the Investment in Training data to further increase the accuracy of the 
training spend estimates. This new weighting strategy has also been retrospectively 
applied to both the 2011 and 2013 data files meaning some of the figures reported in 
Section 5.9 for 2011 and 2013 may differ slightly from the previous reports. 
Further detail on data weighting can be found in the separate Technical Report. 
1.3 The nature of UK establishments: describing the survey population 
In order to give some context to the findings that are presented throughout this report, and 
to facilitate understanding of the differences in employers’ experiences and practices, this 
section describes some of the key characteristics of the UK establishment population.  

24
It is important to note that the statistics presented in this section of the report are variously 
based on official counts of establishments provided by the Office of National Statistics 
(ONS) and on weighted survey findings; the footnotes on each table or chart detail the 
source. 
ONS figures show there were around 1.8 million “in-scope” establishments in the UK in 
March 2014, with around 28 million people working in them2. 
1.3.1 Profile of UK business population 
Figure 1.1 summarises key information on the profile of establishments and employment 
across the UK, based on ONS data. This reveals that while half of establishments (51 per 
cent) are small and employ fewer than five staff, these very small employers account for 
just nine per cent of all employment. In contrast, sites with 100 or more staff make up just 
two per cent of the employer population, but account for two-fifths (42 per cent) of total 
employment. Public sector establishments are much larger than average: they account for 
five per cent of all establishments but 18 per cent of all employment (see Table A.1.2 in 
Annex A).  
 
 
                                                 
2 All establishments with two or more people working at them were in-scope for the survey. See Appendix I for further details.  

25
Figure 1.1  Headline information on the profile of UK establishments and employment 
 
 
42%
25%
24%
9%
2%
9%
38%
51%
2-4
5-24
25-99
100+
ESTABLISHMENTS VS EMPLOYMENT
Employer Profile
MULTISITE
SINGLE 
SITE
33%
67%
RETAIL AND WHOLESALE
BUSINESS SERVICES
21%
16%
21%
17%
GREATEST PROPORTION OF ESTABLISHMENTS IN…
PRIVATE 
SECTOR
3RD
SECTOR
PUBLIC
SECTOR
ENGLAND
73%
86%
10%
9%
17%
4%
SCOTLAND
PRIVATE 
SECTOR
3RD
SECTOR
PUBLIC
SECTOR
67%
83%
11%
10%
21%
7%
N. IRELAND
PRIVATE 
SECTOR
3RD
SECTOR
PUBLIC
SECTOR
68%
78%
11%
14%
20%
7%
WALES
PRIVATE 
SECTOR
3RD
SECTOR
PUBLIC
SECTOR
67%
85%
8%
8%
25%
7%
PRIVATE 
SECTOR
3RD
SECTOR
PUBLIC
SECTOR
UK
72%
86%
10%
9%
18%
5%
Source: ONS Inter-Departmental Business Register (IDBR)
Source: UKCESS 2015
Source: UKCESS 2015
Source: UKCESS 2015
Source: UKCESS 2015
Source: UKCESS 2015
Source: UKCESS 2015
Source: ONS Inter-Departmental Business Register (IDBR)
% = proportion of 
UK population

26
1.3.2 Distribution of employers and employment over time 
The UK business population at the time of the survey consisted of 1.8m establishments; 
this represented an increase of 1.3 per cent from the previous survey in 2013. There was 
a larger increase in the employment population, from 27.0m in employment in 2013 to 
27.8m in 2015 (an increase of 3.0 per cent).  
By country, the number of England and Scotland establishments increased by 1.5 and 1.4 
per cent respectively from 2013. The picture in Wales was relatively static while the number 
of establishments in Northern Ireland had reduced by 2.0 per cent. Employment figures 
increased by at least 2.0 per cent across all nations with the exception of Wales, which 
decreased by 0.7 per cent. 
By size of establishment, the number of businesses sized 10-49 and 100-249 increased by 
4.6 and 3.0 per cent respectively from 2013. Changes in other size bands were less 
marked. 
As in previous years, the Wholesale and Retail and Business Services sectors comprised 
the greatest proportion of both establishments and employees. Together they accounted 
for over two-fifths of all establishments. Table 1.2 shows the distribution of the business 
and employment populations and how these figures changed since 2013. Particularly 
noteworthy was the contraction of the Construction, Financial Services and Public 
Administration sectors. 
 
 

27
Table 1.2 UK business and employment population by sector, 2013-2015 
 
Establishment 
Employment 
 
2013 
2015 
% 
change 
2013 
2015 
% 
change 
UK 
1,743,800 1,766,800 
1.3 
26,959,000 27,755,200 
3.0 
 
 
 
 
 
 
 
Agriculture 
93,900 
97,400 
3.7 
381,600 
402,500 
5.5 
Manufacturing 
102,100 
100,300 
-1.8 
2,364,800 
2,371,400 
0.3 
Electricity, Gas and Water 
9,300 
10,200 
8.7 
282,200 
294,200 
4.3 
Construction 
162,800 
158,800 
-2.5 
1,251,400 
1,192,800 
-4.7 
Wholesale and Retail 
372,400 
371,200 
-0.3 
4,424,000 
4,493,600 
1.6 
Hotels and Restaurants 
155,300 
159,900 
3.0 
1,799,600 
1,961,400 
9.0 
Transport and 
Communications 
121,500 
128,800 
6.0 
2,125,800 
2,231,000 
4.9 
Financial Services 
40,000 
38,300 
-4.4 
1,033,900 
1,005,000 
-2.8 
Business Services 
348,700 
363,800 
4.3 
4,468,100 
4,786,300 
7.1 
Public Administration 
21,400 
19,800 
-7.4 
1,432,600 
1,356,400 
-5.3 
Education 
57,500 
58,100 
1.0 
2,570,100 
2,607,900 
1.5 
Health and Social Work 
130,000 
132,500 
1.9 
3,598,000 
3,791,000 
5.4 
Arts and Other Services  
128,700 
127,900 
-0.7 
1,227,100 
1,261,800 
2.8 
 
Note: Figures are rounded to the nearest 100. They represent population figures as used in the 2013 and 2015 
ESS surveys; these were taken from ONS IDBR 2012 and 2014 population figures respectively. 
 
 

28
1.4 
Structure of this report 
This report has been structured into five key sections followed by a conclusions chapter. 
• 
Chapter 2: Recruitment and skill-shortage vacancies 
This chapter looks at employer recruitment activity, measuring the extent, causes 
and impacts of recruitment difficulties, with a particular focus on skill shortages 
within the labour market, the nature of these skill shortages and the impact such 
labour market failure has on establishments. It then explores the difficulties 
employers face in retaining staff, in which occupations these commonly occur, and 
the main reasons for their retention difficulties. 
• 
Chapter 3: The internal skills challenge 
This chapter explores the extent and nature of skills gaps within the workforce, and 
how these affect different occupations, as well as the causes and impact of these 
skills deficiencies. 
• 
Chapter 4: Employer perspectives of under-use of skills and qualifications  
Chapter 4 covers the under-utilisation of skills where establishments report that 
employees have both skills and qualifications beyond those required for their 
current job role. It explores the occupations most affected by under-utilisation, and 
the reasons for this mismatch between skills and job roles. 
• 
Chapter 5: Employer investment in training and skills 
Chapter 5 explores in detail the extent and nature of employer training and 
workforce development, including the investment made in training. It examines the 
number of staff provided with training over the previous 12 months, the type and 
volume of this training, the extent to which employers would have liked to provide 
more training and development than they did, and the barriers that prevented 
increased training activity. 
• 
Chapter 6: Working practices and product market strategies  
Chapter 6 explores the working practices being adopted by employers in regard to 
how they manage, develop, engage with and incentivise their staff, and seeks to 
assess the prevalence of High Performance Working (HPW) practices.  
It also explores the Product Market Strategies (PMS) of employers, and whether 
this relates to their skill needs and training practices. 
• 
Chapter 7 Conclusions  
The final chapter revisits the key stories emerging from the different strands of the 
survey, bringing them together and considering their implications.  

29
1.5 
Reporting conventions 
The survey was carried out at an establishment level. The terms “establishment”, 
“employer”, “workplace” and “business unit” are used for this interchangeably throughout 
this report to avoid excessive repetition. 
Throughout the report unweighted base figures are shown on tables and charts to give an 
indication of the statistical reliability of the figures. These figures are always based on the 
number of establishments answering a question, as this is the information required to 
determine statistical reliability. This means, for example, that where percentages are based 
on “all vacancies” (such as the percentage of all vacancies which are hard to fill) the base 
figure quoted is the unweighted number of establishments with vacancies. 
In a departure from previous surveys, employers in Mining & Quarrying have been 
combined with those in Manufacturing for reporting purposes, owing to the relatively low 
number of establishments they represent in the UK population. 2011 and 2013 figures for 
Manufacturing have thus been adjusted in this report to include Mining & Quarrying to allow 
time series comparisons. Appendix C has more information on sector coding. 
To aid analysis we have sometimes reported on occupations at a broader classification of 
high-skill, middle-skill, service-intensive and labour-intensive roles, as shown in Table 1.3. 
Table 1.3 Broad occupational groups 
Specific occupation 
Broad occupational group 
Managers 
High-skill 
Professionals 
Associate Professionals 
Administrative and Clerical 
Middle-skill 
Skilled Trades 
Caring, Leisure and Other Services 
Service-intensive 
Sales and Customer Service 
Machine Operatives 
Labour-intensive 
Elementary occupations 
In tables, “zero” is denoted as a dash (“-“); and an asterisk is used (“*”) if the figure is larger 
than zero but less than 0.5 per cent. 
Throughout the report, figures with a base size of fewer than 25 establishments are not 
reported (a double asterisk, “**”, is displayed instead), and figures with a base size of 25 to 
49 are italicised and should be treated with caution. 

30
The scale and scope of data collected by the UK Commission’s Employer Skills Survey 
2015 means that it is a valuable research resource supporting detailed and complex 
statistical analysis of the inter-relationships between employer characteristics, and their 
practices and experiences. The findings presented in this report reflect a descriptive 
exploration of the data, however it should be noted that in all cases where differences by 
nation, size and sector are commented on they are statistically significant at the 95 per cent 
level. Further statistical information can be found in Annex E. 
 

31
2 
Recruitment and skill-shortage vacancies 
2.1 
Chapter Summary 
There has been substantial growth in the number of employers active in the 
recruitment market. Almost one in five employers (19 per cent) had at least one current 
vacancy at the time of ESS 2015 fieldwork, an increase of four percentage points compared 
to the 2013 survey. Together, employers in 2015 reported in excess of 900,000 vacancies, 
an increase of almost 300,000 compared to 2013. This strong growth in recruitment activity 
was evident in all the UK countries. 
Skill-shortage vacancies present an increasing challenge. These are vacancies that 
employers find hard-to-fill due to a lack of skills, qualifications or experience among 
applicants. Six per cent of all employers had at least one skill-shortage vacancy at the time 
of the survey – a significant increase from the four per cent of employers that reported 
having such vacancies in 2013. In volume terms, there were almost 210,000 skill-shortage 
vacancies in 2015; a considerable increase from the 150,000 reported in 2013.  
The increase in the number of skill-shortage vacancies was proportional to the increase in 
vacancies. Therefore, the density of skill-shortage vacancies (i.e. the proportion of 
vacancies which employers were struggling to fill because of skill shortages in the available 
labour market) was largely unchanged (23 per cent in 2015 compared with 22 per cent in 
2013). 
By occupation, the highest density of skill-shortage vacancies was recorded in 
respect of Skilled Trades posts (for which more than two in five vacancies were skill-
shortage vacancies). Employers have faced increased challenges in recruiting 
sufficiently skilled Machine Operatives. A third of vacancies for Machine Operatives 
were hard-to-fill for skills reasons, up from a quarter in 2013.  
The skills lacking among applicants spanned both people and personal skills as well 
as technical and practical related skills. Skills relating to operational aspects of the role, 
as well as complex analytical skills, were the main technical and practical skills lacking. 
The main people and personal skills lacking commonly related to time management skills, 
management and leadership skills, and sales and customer handling skills.  
Skill-shortage vacancies continue to have significant impacts for employers. 
Reported impacts included those that would have a direct financial impact on the 
establishment, such as a loss of business to competitors and increased operating costs. 
 
 

32
2.2 
Introduction 
At a macro level, recruitment is an indicator of the health of the labour market and the 
economy in general. Indeed, following the recession of the late 2000s, employer skills 
surveys generally reported depressed levels of recruitment activity. The previous Employer 
Skills Survey in 2013 presented a picture of a UK economy moving towards recovery with 
an increase in recruitment activity from 2011. 
There can be various reasons for individual employers having vacancies. Depending on 
the context, vacancies can be a positive indicator of growth, or present challenges if they 
signify a loss of key personnel or high levels of staff turnover. 
When employers have vacancies, the labour market is either able to meet employer 
requirements (the most common scenario) or it is not. Where employers struggle to fill their 
vacancies, this may be due to a lack of skills, qualifications or experience amongst 
applicants. Collectively these are known as ‘skill-shortage vacancies’. Vacancies can also 
prove ‘hard-to-fill’ for other, non-skills-related reasons. Such reasons principally include a 
lack of applicants for the role, issues with applicants’ attitude, personality or motivation, or 
specific issues related to the job role (e.g. poor terms and conditions or unsociable hours) 
or the recruiting organisation (e.g. remote location or poor transport links). 
ESS 2015 provides a detailed understanding of the level and nature of employer demand 
for new staff and the ability of the labour market to meet such demand. This sets the context 
for then exploring imbalances and mismatches in the labour market that result from a lack 
of skills. The key measures used in this chapter are as follows: 
 
 
 
 
 
 
 
Vacancies 
Hard-to-fill 
vacancies 
Incidence 
Density 
Skill-shortage 
vacancies 
The proportion of 
establishments 
reporting at least 
one vacancy 
Vacancies as a 
proportion of all 
employment 
The proportion of 
establishments 
reporting at least 
one hard-to-fill 
vacancy 
Hard-to-fill vacancies 
as a proportion of all 
vacancies 
The proportion of 
establishments 
reporting at least 
one skill-shortage 
vacancy 
Skill-shortage 
vacancies as a 
proportion of all 
vacancies 

33
Where establishments have skill-shortage vacancies, the survey also provides information 
on the skills lacking among applicants. New for ESS 2015 was a revised list of skill 
descriptors used to better understand the skills lacking3. Further detail on the changes 
made to the skill descriptors is provided in the previous chapter of this report. 
Following a brief analysis of vacancies, this chapter focusses on skill-shortage vacancies. 
The chapter examines the incidence, volume and profile of skill-shortage vacancies, before 
exploring the specific skills that employers found lacking and the impact that skill-shortage 
vacancies have had on the establishment. It then closes with a brief discussion of the extent 
of wider recruitment challenges that establishments face, including a review of retention 
difficulties.  
2.3 
Vacancies 
There was notable growth in the proportion of establishments reporting vacancies between 
the 2013 and 2015 studies, pointing to strong labour market activity and positive changes 
in the UK economy. Specifically, 19 per cent of all establishments had at least one current 
vacancy at the time of ESS 2015 fieldwork. This represents a substantial increase from 
2013 when 15 per cent of all establishments had at least one vacancy at the time of 
fieldwork. 
This increased incidence of recruitment activity was also evident when considering the 
proportion of establishments that had successfully recruited at least one new employee 
over the 12 months prior to the survey. Just over half (51 per cent) of all establishments 
had successfully recruited someone during this period; an increase from the 46 per cent 
reported in the 2014 Employer Perspectives Survey (Shury et al., 2014). 
In volume terms, there were a total of 927,200 reported vacancies across the UK at the 
time of the survey (equivalent to 3.3 per cent of total employment). This represents a 
considerable 42 per cent increase compared to the number of vacancies reported in 2013, 
which stood at 655,000, equivalent to 2.4 per cent of total employment in 20134. 
As shown in Figure 2.1, strong growth in recruitment activity was evident in all the UK 
countries and the proportion of employers with at least one current vacancy represented a 
return to the broad levels of recruitment activity seen prior to the recession5. 
                                                 
3 Half of employers with skill-shortage vacancies were assigned to the ‘new’ skill descriptors, whereas the other half were 
assigned to the ‘old’ skill descriptors used in ESS 2011 and 2013 to facilitate comparisons over time. Time series data on 
the skills lacking among applicants according to the ‘old’ skill descriptors are shown in Tables A.2.12 and A.2.12a in 
Appendix A. Further information on the changes to the skill descriptors used is provided in the ESS 2015 Technical Report 
(https://www.gov.uk/government/publications/ukces-employer-skills-survey-2015-uk-results). 
4 This large increase in recruitment activity has also been reported by the Office for National Statistics (ONS). The ONS 
Labour Force Statistics reported that the number of vacancies for May to July 2015 was an increase of 38% from the same 
period in 2013. 
5 In 2003, 2005 and 2007 the proportion of employers in England with at least one vacancy at the time of the respective 
fieldwork periods was 17 per cent, 17 per cent and 18 per cent respectively (NESS 2003, 2005 and 2007). Due to 
differences in the populations used (establishments with 1+ employment, rather than the 2+ employment used in the ESS 
series) and other methodological differences, accurate time-series comparisons are not possible for the other UK nations 

34
Figure 2.1  Incidence and density of vacancies overall and by country 
  
The proportion of establishments that reported having at least one vacancy increased with 
the size of establishment. Ten per cent of establishments with fewer than five employees 
had at least one vacancy, compared with 71 per cent of establishments with 250 or more 
employees. Conversely, the density of vacancies (i.e. as a proportion of employment) 
decreased with the size of establishment, from 5.8 per cent among those with fewer than 
five employees to 2.3 per cent among those with 250 or more employees. The incidence 
and density of vacancies has increased across all size bands since 2013. 
By sector, the proportion of establishments that reported vacancies ranged from five per 
cent in Agriculture to 33 per cent in Education. In density terms, the highest density of 
vacancies was recorded in a number of the service-based industries. It was highest in the 
Hotels and Restaurants sector (5.3 per cent), Arts, Entertainment, Recreation and Other 
Service Activities (5.1 per cent), and Business Services (4.1 per cent). Conversely, the 
sector with the lowest density of vacancies was Manufacturing (2.0 per cent), closely 
followed by the Electricity, Gas and Water and Education sectors (both 2.1 per cent). 
 
                                                 
using the nation-specific skills surveys (The Northern Ireland Skills Monitoring Survey [NISMS], The Scottish Employer 
Skills Survey [SESS] and Future Skills Wales [FSW]). 
14%
15%
19%
14%
15%
20%
10% 10%
13%
14%
15%
19%
12%
14%
17%
2.2% 2.4% 3.3%
2.2% 2.5%
3.4%
2.4% 2.1% 2.7%
1.9% 2.4%
3.1%
1.9% 2.2%
3.1%
% of establishments with vacancies
Density (vacancies as % of employment)
2013
2011
UK
England
N. Ireland
Scotland
Wales
Base: All establishments (2015: UK: 91,210; England: 75,129; NI: 4,014; Scotland: 6,035; Wales: 6,027)
2015
2013
2011
2015
2013
2011
2015
2013
2011
2015
2013
2011
2015
Note: see Table A.1.3 in Annex A for 2011 and 2013 base sizes

35
The density of vacancies increased by between a quarter to a half in most sectors between 
2013 and 2015. The sector with the biggest increase was Construction where the density 
of vacancies increased by 71 per cent (from a vacancy density of 1.8 per cent in 2013 to 
3.0 per cent in 20156).  
Tables A.2.1 and A.2.2 in Annex A provide a detailed breakdown of recruitment activity by 
country, size of establishment and sector. 
The survey also identifies the occupational groups where vacancies exist7. The occupation 
with the highest density of vacancies was Associate Professionals at 7.9 per cent. This 
occupation also had the highest density of vacancies in 2011 and 2013. There was an 
increase in vacancy density for all occupation groups between 2013 and 2015 (the sole 
exception being Managers which remained unchanged). The increases in vacancy density 
were most evident among Skilled Trades and Elementary occupations. The density of 
vacancies for Skilled Trades increased from 2.7 per cent in 2013 to 4.5 per cent in 2015 
and from 2.1 to 3.5 per cent for Elementary occupations.  
Table A.2.3 in Annex A provides a detailed breakdown of recruitment activity by occupation. 
 
 
 
                                                 
6 This increase in vacancy density is most the result of a large increase in the number of vacancies in this sector but also 
partly due to a decrease in employment in the Construction sector, as detailed earlier in Table 1.2. 
7 See Appendix D for the definitions and types of job roles included under the occupational groupings 

36
2.4 
Skill-shortage vacancies 
Where establishments had vacancies, the labour market was largely able to meet the 
recruitment needs of employers: only a third of vacancies across the UK were considered 
hard-to-fill (33 per cent)8. Where employers had hard-to-fill vacancies, these were mainly 
due to a lack of skills, qualifications or experience among applicants (69 per cent of all 
vacancies that were hard-to-fill)9. This equates to six per cent of establishments having at 
least one skill-shortage vacancy at the time of ESS 2015 fieldwork. 
It is important to understand the prevalence and nature of skill-shortage vacancies as an 
inability to recruit appropriately skilled labour may act as a brake on business growth and 
hinder productivity. The rest of this section explores these skill-shortage vacancies in more 
detail. 
2.5 
The incidence, volume and density of skill-shortage vacancies 
The six per cent of establishments with at least one skill-shortage vacancy at the time of 
ESS 2015 fieldwork represent a significant increase from the four per cent of 
establishments that reported having skill-shortage vacancies in 2013. This indicates that 
skill-shortage vacancies present a growing challenge to employers. 
Moreover, in volume terms, there was a substantial increase in the number of reported 
skill-shortage vacancies compared to 2013: from just under 150,000 to almost 210,000 – 
an increase of 43 per cent in the proportion of vacancies that were proving to be hard-to-
fill because applicants lacked the required skills, qualification or experience required for 
the role. 
This increase in the number of skill-shortage vacancies was broadly in line with the growth 
in volume of vacancies (42 per cent) and, thus, the density of skill-shortage vacancies (i.e. 
the number of skill-shortage vacancies as a proportion of all vacancies) was largely 
unchanged at 23 per cent compared with 22 per cent in 2013.  
England, Scotland and Wales each saw the same increase in the proportion of 
establishments with skill-shortage vacancies: from four per cent in 2013 to six per cent in 
2015. However, the density of skill-shortage vacancies largely remained at a similar level 
to 2013 in England and Scotland but increased in Wales (see Table 2.1). 
 
                                                 
8 Of course very recent vacancies may not be described as hard-to-fill but may become so over time. 
9 During the survey, employers were first asked to give their reasons for not being able to fill vacancies spontaneously (i.e. 
without being presented with a list of possible reasons). Any employers not reporting skills-related issues were then 
prompted as to whether any of their hard-to-fill vacancies were proving hard-to-fill due to a lack of skills, experience or 
qualifications among applicants, and these responses combined to give an overall picture of the incidence and volume of 
skill-shortage vacancies in the market. 

37
The picture in Northern Ireland was notably different. Here the proportion of establishments 
with skill-shortage vacancies remained at three per cent and the number of skill-shortage 
vacancies remained at broadly the same level as in 2013. However, in the context of the 
increased number of vacancies, this meant that the density of skill-shortage vacancies 
continued to fall (from 18 per cent in 2013 to 14 per cent in 2015; see Table 2.1). This 
largely reflects that vacancies in Northern Ireland were ‘easier-to-fill’ compared with 
England, Scotland and Wales (the proportion of all vacancies that were hard-to-fill in 
Northern Ireland was 21 per cent compared to 33 per cent across the rest of the UK). 
Table 2.1  Incidence and density of skill-shortage vacancies (SSVs) by country 
 
 
% of establishments with an 
SSV (incidence) 
% of vacancies that were 
SSVs (density) 
 
Unwtd 
base 
2011 
2013 
2015 
2011 
2013 
2015 
 
 2015 
% 
% 
% 
% 
% 
% 
UK 
91,210 
3 
4 
6 
16 
22 
23 
Country 
 
  
  
 
  
  
 
England 
75,129 
3 
4 
6 
15 
22 
23 
Northern Ireland 
4,014 
2 
3 
3 
21 
18 
14 
Scotland 
6,035 
3 
4 
6 
15 
25 
24 
Wales 
6,027 
3 
4 
6 
18 
20 
24 
Base: Columns 1-3 All establishments (see Table A.1.3 in Annex A for 2011 and 2013 base sizes); 
Columns 4-6 All establishments with vacancies 
Percentages in Columns 4-6 are shown as a proportion of all vacancies. 
The density of skill-shortage vacancies was greater among small establishments than large 
establishments. Approaching a third of all vacancies (29 per cent) in establishments with 
fewer than five employees were proving hard-to-fill due to difficulties in finding applicants 
with appropriate skills, qualifications or experience. This compares with fewer than a fifth 
(18 per cent) among establishments with 250 or more employees. The differences between 
the smallest and largest establishments were less marked than in ESS 2013 when the 
density of skill-shortage vacancies among the smallest establishments was double what it 
was among the largest establishments (see Table A.2.5 in Annex A). 
The experience of skill-shortage vacancies varied greatly by sector. The density of skill-
shortage vacancies ranged from nine per cent in Public Administration to 35 per cent in 
both the Electricity, Gas and Water and Construction sectors (see Figure 2.2). 
 
 
 

38
Figure 2.2  Number and density of skill-shortage vacancies (SSVs), by sector 
 
Although there was relatively little change in the density of skill-shortage vacancies across 
the UK as whole, the sectoral pattern was considerably different to 2013. The Electricity, 
Gas and Water and Construction sectors have the highest densities of skill-shortage 
vacancies (both 35 per cent10). This represents a shift from 2013 when skill-shortage 
vacancy density was highest in Manufacturing, Business Services and Agriculture. 
The number of skill-shortage vacancies in the Construction sector has more than doubled 
since 2013: from 5,000 to 12,000. To some extent this reflects the increased recruitment 
activity in the sector reported earlier. However, the rate of growth in skill-shortage 
vacancies outpaced the growth of vacancies in this sector. This indicates that Construction 
employers have faced significant, and increasing, challenges in recruiting sufficiently 
skilled labour.  
 
                                                 
10 Whilst the results for the Electricity, Gas and Water sector are based on a robust number of establishments with 
vacancies, it should be noted that the number of establishments with skill-shortage vacancies is relatively small (76). When 
base sizes are relatively small the volumetric (and density) measures are particularly volatile to being influenced by a few 
establishments with a large number of vacancies/skill-shortage vacancies. Caution should be taken when interpreting these 
results. 
22%
12%
18%
24%
22%
10%
28%
28%
26%
23%
23%
9%
16%
19%
20%
21%
21%
21%
22%
26%
30%
31%
35%
35%
Public Administration
Education
Hotels & Restaurants
Wholesale & Retail
Arts & Other Services
Health & Social Work
Financial Services
Agriculture
Business Services
Manufacturing
Transport & Comms
Construction
Electricity, Gas & Water
2015 SSV
density
2013 SSV
density
Base: All establishments with vacancies (see Table A.2.4 in Annex A for base sizes) 
Number of 
SSVs (2015)
2,100
12,000
23,700
14,800
50,600
2,100
6,600
25,600
13,400
26,200
19,400
9,100
3,900

39
In the Financial Services sector the number of skill-shortage vacancies has increased from 
2,800 in 2013 to 6,600 in 2015 (the density of skill-shortage vacancies more than doubled 
from 10 per cent to 21 per cent11). The Financial Services sector is a substantial contributor 
to the UK economy (Tyler, 2015) and so an increased challenge for employers in this sector 
to recruit sufficiently skilled labour is of concern. The Financial Services sector has 
undergone extensive upheaval following the financial crisis and subsequent recession and 
the sector may be seen as less attractive to potential recruits; there are indications that the 
proportion of graduates entering this sector has declined gradually since 2006 (HESA, 
2015). 
Conversely, there was a marked decrease in the density of skill-shortage vacancies in the 
Public Administration sector: from 22 per cent in 2013 to nine per cent in 2015. 
Tables A.2.4 and A.2.5 in Annex A provide a detailed breakdown of skill-shortage 
vacancies by country, size of establishment and sector. 
By occupation, it was among Skilled Trades where density of skill-shortage vacancies was 
greatest (43 per cent). This occupation has historically had the greatest density of skill-
shortage vacancies, both in ESS 2011 and 2013 but also the legacy surveys conducted in 
each of the countries of the UK. The specific job roles that accounted for the largest 
proportion of all Skilled Trades skill-shortage vacancies included: Chefs (17 per cent of all 
Skilled Trades skill-shortage vacancies), Metal Working Production and Maintenance 
Fitters (13 per cent) and Vehicle Technicians, Mechanics and Electricians (13 per cent). 
As illustrated in Figure 2.3, the density of skill-shortage vacancies has increased among 
Professionals, Skilled Trades, Sales and Customer Service occupations, and Machine 
Operatives since 2013. 
 
 
 
                                                 
11 Whilst the results for the Financial Services sector and the Public Administration sector are based on a robust number of 
establishments with vacancies, it should be noted that the number of establishments with skill-shortage vacancies is 
relatively small (106 and 44, respectively). When base sizes a relatively small the volumetric (and density) measures are 
particularly volatile to being influenced by a few establishments with a large number of vacancies/skill-shortage vacancies. 
Caution should be taken when interpreting these results. 

40
Figure 2.3  Density and number of skill-shortage vacancies (SSVs), by occupation 
 
The increase in skill-shortage vacancy density among Machine Operatives was especially 
marked. In 2015 there were 60,700 vacancies for Machine Operatives, of which 19,600 
were skill-shortage vacancies (a density of 32 per cent), whereas in 2013 there were 
30,100 vacancies for Machine Operatives, of which 7,400 were skill-shortage vacancies (a 
density of 25 per cent). Overall, this heightened challenge in recruiting Machine Operatives 
was a continuation of the trend observed between 2011 and 2013 when the density of skill-
shortage vacancies in this occupation doubled. Employers in each of the UK countries were 
experiencing increased difficulties in recruiting sufficiently skilled Machine Operatives but 
this was particularly the case in Wales.  
Within the broad Machine Operatives grouping, there was a notable increase in the number 
of skill-shortage vacancies for the role of Road Transport Drivers (these accounted for 59 
per cent of all Machine Operatives skill-shortage vacancies compared with 42 per cent in 
2013). More specifically within this Road Transport Drivers grouping, there was a notable 
increase in the number of skill-shortage vacancies for Large Goods Vehicle (LGV) drivers 
(these accounted for 18 per cent of all skill-shortage vacancies among Machine Operatives 
compared with 10 per cent in 2013) 12. 
                                                 
12 This increasing shortage of LGV drivers has been documented elsewhere and has been reported to be exacerbated by 
the requirements of the Driver Certificate of Professional Competence (Driver CPC) legislation which meant that all 
professional LGV drivers were required to hold a Driver Qualification Card (DQC) by September 2014 (Winters, 2013). 
19%
18%
10%
33%
15%
9%
14%
10%
20%
30%
26%
13%
39%
27%
13%
25%
17%
32%
22%
11%
43%
20%
16%
32%
14%
2011 SSV density
2013 SSV density
2015 SSV density
Number 
of SSVs
(2015)
Base for boxes: All establishments (91,210)
Base for bars: All establishments with vacancies in each occupation (as shown)
Note: see Table A.2.2 in Annex A for 2011 and 2013 base sizes
4,300
41,500
29,300
9,800
37,800
26,800
15,800
19,600
18,100
(1,335)
(4,047)
(4,010)
(3,231)
(3,814)
(4,309)
(2,971)
(1,780)
(4,491)
2015 
base:

41
Occupations that saw a decrease in skill-shortage vacancy density since 2013 included: 
Managers, Associate Professionals, Administrative and Clerical staff and, in particular, 
Caring, Leisure and Other Services staff (see Figure 2.3). With the exception of Managers, 
skill-shortage vacancy density for these occupations was still higher than in 2011. 
Although care should be taken to not over-extrapolate because of the small base sizes in 
places, exploring occupations within specific sectors where the density of skill-shortage 
vacancies was high (30 per cent or more) provides a more detailed and nuanced picture of 
employers’ demand for skills and the ability of the labour market to meet these needs. 
Figure 2.4 shows the pattern of skill-shortage vacancy density by occupation and 
occupation within sector. 
A number of these pockets of skill shortages have proved to be persistent over time. The 
much higher than average density of skill-shortage vacancies for Skilled Trades has been 
evident across a number of sectors for a number of years. Skill-shortage vacancies have 
persistently hampered recruitment to Machine Operative roles in Construction and 
Professional 
roles 
in 
the 
Manufacturing, 
Business 
Services, 
Transport 
and 
Communications, and Health and Social Work sectors.  
There were also a number of emerging pockets of skill-shortage vacancies, including: 
• 
Associate Professionals in Construction (such as Product, Clothing and Related 
Designers and Estimators, Valuers and Assessors) and Financial Services (such 
as Insurance Underwriters and Business Sales Executives). 
• 
Skilled Trades in Construction (such as Carpenters and Joiners, Plumbers and 
Heating and Ventilating Engineers) and Arts, Entertainment, Recreation and Other 
Service activities (such as Gardeners and Landscape Gardeners and Chefs). 
• 
Sales and Customer Service occupations in Transport and Communications (such 
as Telephonists and Telephone Salespersons). 
• 
Elementary staff in Construction (such as Foremen and Labourers, Cleaners and 
Domestics, and Elementary Storage Occupations). 
Conversely, there were some specific occupations within sectors where skill-shortage 
vacancy density has fallen. These include: 
• 
Managers in Construction (a decrease in skill-shortage vacancy density from 31 per 
cent in 2013 to 23 per cent in 2015). 
• 
Professionals in Public Administration (30 per cent to 10 per cent). 
• 
Associate Professionals in Business Services (34 per cent to 23 per cent). 

42
• 
Caring, Leisure and Other Services in Public Administration (34 per cent to 14 per 
cent) and in Arts, Entertainment, Recreation and Other Service activities (31 per 
cent to 24 per cent). 
• 
Machine Operatives in Business Services (46 per cent to 26 per cent). 
Tables A.2.6 and A.2.6a in Annex A provide a full and detailed breakdown of skill-shortage 
vacancy density by occupation within sector. 
 
 

43
Figure 2.4  Density of skill-shortage vacancies (SSVs) by sector and occupation within 
sector 
 
= SSV density 30% or above
= SSV density between 15% and 29%
= SSV density between 1% and 14%
Figures only shown where base size is greater than 50.
See Table A.2.6a in Annex A for base sizes.
37%
Hotels & Restaurants
Skilled Trades 
occupations
9%
16%
19%
20%
21%
21%
21%
22%
26%
30%
31%
35%
35%
Public 
Admin
Education
Hotels & 
Restaurants
Wholesale & 
Retail
Financial 
Services
Arts & Other 
Services
Health & 
Social Work
Agriculture
Business 
Services
Manufacturing
Transport, Storage 
& Comms
Construction
Electricity, Gas & 
Water

44
2.6 
Skills lacking in the available labour market  
Where establishments struggle to find the skilled recruits that they need from the available 
labour supply, there is a clear imperative to understand which skills in particular are in poor 
supply.  
The skills perceived to be lacking in the labour market can be broadly categorised into two 
categories: people and personal skills, and technical and practical skills13.  
As illustrated in Figure 2.5, the stand out skill shortage was a lack of specialist skills or 
knowledge needed to perform the job role. This was mentioned as being, at least in part, 
the cause of almost two-thirds of skill-shortage vacancies (64 per cent).  
Among the other technical and practical skills lacking, skills that can be categorised as 
‘complex analytical skills’ accounted for a significant proportion of skill-shortage vacancies. 
A lack of skills for solving complex problems accounted for 39 per cent of all skill-shortage 
vacancies and 29 per cent of all skill-shortage vacancies were attributed to a lack of 
complex numerical/statistical skills. These skills are of particular interest given that they are 
examples of ‘higher level’ skills that tend to underpin an ability to innovate and adapt.  
A considerable proportion of skill-shortage vacancies were attributed to skills related to 
operational aspects of the role, namely: knowledge of the products and services offered 
(37 per cent) and knowledge of how the organisation works (31 per cent). 
People and personal skills can often be less tangible than technical and practical skills, but 
they can nevertheless have a big impact on the ability of a potential employee to adapt to 
the workplace and be an effective member of staff. The most common people and personal 
skill cited as lacking in the labour market was time management skills. This skill was lacking 
in almost half of all skill-shortage vacancies (47 per cent). 
Among the other people and personal skills lacking, skills related to ‘management and 
leadership’ were commonly reported to be lacking, including: persuading and influencing 
others (31 per cent), managing or motivating other staff (30 per cent) and setting objectives 
and/or planning resources (21 per cent). 
Another grouping of skills that were commonly lacking were ‘sales and customer skills’, 
including: customer handling skills (39 per cent) and sales skills (25 per cent). 
 
 
                                                 
13 As noted in the introduction to this chapter, a new list of skill descriptors was developed for ESS 2015. Half of employers 
with skill-shortage vacancies were assigned to the ‘new’ skill descriptors, whereas the other half were assigned to the ‘old’ 
skill descriptors used in ESS 2011 and ESS 2013 to facilitate comparisons over time. Time series data on the skills lacking 
among applicants according to the ‘old’ skill descriptors are shown in Tables A.2.12 and A.2.12a in Appendix A. Further 
information on the changes to the skill descriptors used is provided in the ESS 2015 Technical Report 
(https://www.gov.uk/government/publications/ukces-employer-skills-survey-2015-uk-results). 

45
Figure 2.5  Skills lacking among applicants to establishments with at least one skill-
shortage vacancy (prompted)14 
 
As discussed earlier in this chapter, there were particular occupations in which there was 
a notable challenge for employers to recruit sufficiently skilled labour (Skilled Trades, 
Machine Operatives and Professionals). The skills characteristics lacking among 
applicants for these occupations and sectors are detailed below.  
                                                 
14 Figure 2.5 illustrates the skills lacking among applicants based on the total number of skill-shortage vacancies (as opposed 
to establishments with skill-shortage vacancies). It should be noted that employers could cite more than one skill lacking 
among applicants for each of their skill-shortage vacancies, thus the percentages displayed sum to greater than 100 per 
cent. 
7%
15%
15%
20%
22%
22%
24%
25%
26%
29%
31%
37%
39%
64%
25%
16%
21%
22%
25%
30%
31%
32%
33%
39%
47%
None of the above
Communicating in a foreign language
Manual dexterity
Adapting to new equipment or materials
Advanced or specialist IT skills
Computer literacy / basic IT skills
Basic numerical skills
Writing instructions, reports etc.
Reading/understanding instructions, reports etc.
Complex numerical/statistical skills
Knowledge of how the organisation works
Knowledge of products and services offered
Solving complex problems
Specialist skills or knowledge
None of the above
Making speeches or presentations
Setting objectives for others / planning resources
Instructing, teaching or training people
Sales skills
Managing or motivating other staff
Persuading or influencing others
Managing own feelings / handling those of others
Team working
Customer handling skills
Ability to manage own time and prioritise tasks
People and personal skills lacking among applicants:
Technical and practical skills lacking among applicants:
Base: All establishments with skill-shortage vacancies – up to 2 occupations followed up 
with the new lists of skill descriptors (3,244)
45% 
Sales and 
customer  
skills
44% 
Complex 
analytical
49% 
Operational
46% Management and 
leadership

46
The occupation with the highest skill-shortage vacancy density was Skilled Trades. In line 
with the general trend, the main skills that candidates for Skilled Trades roles were lacking 
were: 
• 
Specialist skills or knowledge needed to perform the role (66 per cent). 
• 
Time management skills (48 per cent). 
• 
Solving complex problems (43 per cent). 
• 
Knowledge of products and services (36 per cent). 
In comparison to other occupations there was particular difficulty in finding applicants for 
Skilled Trades roles with the appropriate levels of manual dexterity (33 per cent compared 
with 15 per cent overall), as well as the ability to adapt to new equipment or materials 
(29 per cent compared with 20 per cent overall), and the skills for reading and 
understanding instructions, guidelines, manuals or reports (32 per cent compared with 
26 per cent overall).  
There has been a marked increase in the number and density of skill-shortage vacancies 
for Machine Operative roles. The main skills found lacking in the labour market for these 
roles included: 
• 
Specialist skills or knowledge to perform the role (57 per cent). 
• 
Time management skills (40 per cent). 
• 
Solving complex problems (35 per cent). 
Skill-shortage vacancies accounted for just under a third of all vacancies among 
Professional occupations. The skills lacking among applicants for Professional roles 
tended to be more focussed on technical and practical skills (34 per cent of all skill-shortage 
vacancies for Professional occupations were not ascribed to any of the people or personal 
skills, compared with 25 per cent on average across all occupations). Establishments with 
skill-shortage vacancies for Professional occupations were more likely to report a shortage 
of advanced or specialist IT skills than for other occupations (34 per cent compared with 
22 per cent overall).  
Table 2.2 shows the three most common skills lacking from applicants by occupation, as 
well as the skill areas particularly likely to be in short supply among applicants when 
compared to the overall average. 
 
 
 

47
Table 2.2 Most common skills lacking among applicants, by occupation 
Occupation 
SSV 
Density 
Skills most commonly 
lacking 
Three skills in short supply 
compared with average 
Managers 
17% 
Specialist skills or knowledge 
Knowledge of products and 
services  
Knowledge of how the 
organisation works 
Setting objectives / planning 
resources 
Managing or motivating other 
staff 
Knowledge of how the 
organisation works 
Professionals 
32% 
Specialist skills or knowledge 
Advanced or specialist IT skills 
Solving complex problems 
Advanced or specialist IT skills 
Specialist skills or knowledge 
Associate 
Professionals 
22% 
Specialist skills or knowledge 
Solving complex problems 
Persuading or influencing others  
Advanced or specialist IT skills 
Persuading or influencing others 
Making speeches or 
presentations 
Administrative / 
Clerical staff 
11% 
Specialist skills or knowledge 
Time management and task 
prioritisation 
Knowledge of products and 
services  
Reading and understanding 
instructions, reports etc. 
Advanced or specialist IT skills 
Knowledge of products and 
services  
Skilled Trades 
occupations 
43% 
Specialist skills or knowledge 
Time management and task 
prioritisation 
Solving complex problems 
Manual dexterity 
Adapting to new equipment or 
materials 
Reading/understanding 
instructions, reports etc. 
Caring, Leisure 
and Other 
Services 
20% 
Specialist skills or knowledge 
Time management and task 
prioritisation 
Team working 
Team working 
Managing own or others’ feelings  
Writing instructions, guidelines, 
reports etc. 
Sales and 
Customer 
Services 
16% 
Customer handling skills 
Sales skills 
Time management and task 
prioritisation 
Sales skills 
Customer handling skills 
Persuading or influencing others 
Machine 
Operatives 
32% 
Specialist skills or knowledge 
Time management and task 
prioritisation 
Solving complex problems 
Managing own or others’ feelings  
Sales skills 
Elementary staff  
14% 
Time management and task 
prioritisation 
Specialist skills or knowledge 
Team working 
 
Team working 
Managing own or others’ feelings  
Time management and task 
prioritisation 
Base: All establishments with skill-shortage vacancies in each occupation – up to two occupations 
followed up (3,244). 
Tables A.2.7 to A.2.11 in Annex A provide a full breakdown of the skills lacking in the 
available labour market in each of the UK nations and by occupation and sector. 
 
 

48
2.7 
The impact of skill-shortage vacancies on employers 
Although only a small minority of all employers had at least one skill-shortage vacancy at 
the time of ESS 2015 fieldwork (six per cent), for establishments that had them, the impact 
could be significant. In total, 94 per cent of establishments that had hard-to-fill vacancies 
solely as a result of skill shortages reported that these were having an impact on the 
establishment15. 
The vast majority of employers that had skill-shortage vacancies (84 per cent) reported that 
these led to an increased workload for other staff but only a minority (10 per cent) cited this 
as the only impact of skill-shortage vacancies. More commonly, an increased workload for 
other staff was paired with other impacts. 
Other impacts of skill-shortage vacancies are shown in Figure 2.6. These included impacts 
relating to a direct financial impact on the establishment, such as a loss of business or 
orders to competitors and increased operating costs (42 per cent each). Impacts that would 
likely affect an establishment’s ability to innovate were also reported by employers, 
including: delays to developing new products or services (40 per cent), difficulties 
introducing new working practices (35 per cent) and difficulties introducing technological 
change (23 per cent). 
There were notable differences in the impacts experienced depending on the size of 
establishment. A greater proportion of small establishments with fewer than five employees 
reported that skill-shortage vacancies have impacted them financially by causing a loss of 
business or orders to competitors compared with large establishments with 100 or more 
employees (54 per cent and 22 per cent, respectively). Conversely, large establishments 
with 100+ employees were more likely than small establishments with fewer than five 
employees to have experienced increased operating costs (58 per cent and 38 per cent, 
respectively). In relation to impacts on the ability to innovate, small establishments with 
fewer than five employees were more likely than large establishments with 100+ 
employees to have delayed the development of new products or services as a result of 
skill-shortage vacancies (46 per cent and 31 per cent, respectively). 
 
 
 
 
                                                 
15 The survey did not measure the impact of skill-shortage vacancies on employers specifically (i.e. it did not ask employers 
with skill-shortage vacancies what the impacts of these were on the establishment, only the impact of hard-to-fill vacancies 
as a whole). However, it was possible to isolate the effect of skill deficiencies by exploring the impact of hard-to-fill vacancies 
in establishments where all the hard-to-fill vacancies were caused by skills-related issues. Given the majority of 
establishments with hard-to-fill vacancies fell into this group (71 per cent) – in part reflecting that the majority had just a single 
vacancy that was proving hard-to-fill ‒ this was a suitable sample from which it was possible to gain a robust measurement. 
 

49
Figure 2.6  Impact of skill-shortage vacancies (prompted) 
 
Impacts also varied by sector. Construction employers were more likely to have 
experienced financial impacts through losing business or orders to competitors (56 per cent 
compared with the overall average of 43 per cent). Whilst base sizes are small, when 
looking by size band within Construction, this impact tended to be more keenly felt by 
smaller Construction employers with fewer than five employees (see Table A.2.13 in Annex 
A).  
Table A.2.14 in Annex A provides a breakdown of the impacts by nation, size of 
establishment and sector. The impacts of skill-shortage vacancies and the relative 
prevalence of each of the impacts has changed very little since 2013 (and 2011). 
2.8 
Wider recruitment challenges 
As discussed earlier, the majority of hard-to-fill vacancies experienced by establishments 
were caused, at least in part, by a shortage of skills among applicants. However, 
establishments may also face other recruitment challenges and have hard-to-fill vacancies 
for non-skills-related reasons (see Figure 2.7 for a list of these ‘other’ reasons). 
5%
23%
24%
30%
35%
35%
40%
42%
43%
49%
84%
None
Difficulties introducing technological change
Withdraw from offering certain products / services
Outsource work
Have difficulties meeting quality standards
Have difficulties introducing new working practices
Delay developing new products or services
Experience increased operating costs
Lose business or orders to competitors
Difficulties meeting customer services objectives
Increased workload for other staff
Base: All establishments where all hard-to-fill vacancies are caused by skills related issues (6,469)

50
Overall, 10 per cent of all vacancies ‒ 93,800 vacancies in total ‒ were reported to be hard-
to-fill exclusively for reasons not related to skills. This represents a significant increase from 
2013 when seven per cent of all vacancies (43,100 vacancies in total) were reported to be 
hard-to-fill for non-skills-related reasons; an increase of 118 per cent in the number of 
vacancies. 
The increase in these types of hard-to-fill vacancies was most notable among employers 
in England (an increase of 134 per cent compared to 2013), whereas the increases in the 
other UK countries ranged from 31 per cent in Northern Ireland to 58 per cent in Wales (the 
increase in Scotland was 43 per cent). 
Figure 2.7  Main non-skills-related causes of having hard-to-fill vacancies (unprompted) 
 
The density of vacancies that were hard-to-fill for non-skills-related reasons was greater 
among small establishments than larger establishments. Specifically, 15 per cent of all 
vacancies in establishments with fewer than five employees were proving hard-to-fill for 
non-skills-related reasons, compared with only five per cent among establishments with 
250 or more employees. 
Table A.2.17 in Annex A details the density of vacancies that were hard-to-fill for non-skills-
related reasons by country, size of establishment and sector. 
9%
10%
11%
13%
13%
18%
20%
Job entails shift work/unsociable hours
Too much competition from other employers
Remote location/poor transport links
Low number of applicants with the required
attitude, motivation or personality
Poor terms and conditions offered
Low number of applicants generally
Not enough people interested in the type of job
Base: All establishments with hard-to-fill vacancies (23,359)
Note: Other reasons cited by ≤2% of employers with hard-to-fill vacancies are not shown.

51
The density of non-skills-related hard-to-fill vacancies increased across all occupations 
compared with 2013, with the exception of Machine Operatives where it remained constant. 
The density was greatest among Caring, Leisure and Other Services occupations (where 
it doubled from nine per cent in 2013 to 19 per cent in 2015). Table A.2.18 in Annex A 
details the density of vacancies that were hard-to-fill for non-skills-related reasons by 
occupation. 
2.9 
Retention difficulties 
The issue of retaining existing staff is closely linked to employers’ experiences in the 
recruitment market. The impact of hard-to-fill vacancies will be exacerbated if there are 
then difficulties holding on to the staff that have been recruited. Similarly, if an employer 
has difficulty in retaining staff, this may cause persistent staff shortages if the employer 
also has difficulty filling their vacancies. This next section looks at the characteristics of 
employers that experienced retention difficulties, the occupations which are most affected, 
and the factors underlying retention difficulties. It also explores the extent to which 
recruitment difficulties interlink with retention difficulties. 
2.9.1 Incidence of retention difficulties 
Eight per cent of establishments reported that there were specific jobs in which they had 
difficulties retaining staff16.  
Proportions differed slightly by country, with establishments in Northern Ireland least likely 
to have reported retention difficulties (seven per cent) and establishments in Scotland most 
likely to have reported them (10 per cent). In England and Wales the proportion of 
establishments with retention difficulties was eight and nine per cent respectively. 
Collectively across England, Northern Ireland and Wales the proportion of establishments 
with retention difficulties has risen from five per cent in 2011 to eight per cent in 2015. It 
should be noted that retention difficulties were last covered by the Employer Skills Survey 
in 2011. For that survey, due to differing policy priorities and constraints on the length of 
the questionnaire, employers in Scotland were not asked to describe their experience of 
retention difficulties. As such, no Scottish or UK-wide data is available for time series 
comparisons. 
Employers’ experience of retention difficulties rose by size of employer, from five per cent 
among establishments with fewer than five employees, to almost three in ten (30 per cent) 
among those with 250+ employees. 
                                                 
16 Employers were asked: Are there any particular jobs in which you have difficulties retaining staff? (Add if necessary: 
retention difficulties are when a high number of staff leave, but not as a result of downsizing or redundancy). 

52
By sector, employers within the Hotels and Restaurants sector were most likely to 
experience retention difficulties (14 per cent), followed closely by those in Public 
Administration (13 per cent), Education and Health and Social Work (both 11 per cent). 
Employers in the Financial Services, Wholesale and Retail and Construction sectors were 
least likely (each six per cent). 
Table A.2.19 in Annex A provides detailed figures of the incidence of establishments with 
retention difficulties by size and sector. 
Establishments with current vacancies were far more likely to have retention difficulties (25 
per cent, compared to four per cent of those without vacancies). This reflects the inter-
relationship between retention difficulties and labour market activity. Establishments that 
were struggling to fill their vacancies were particularly likely to experience retention 
difficulties (43 per cent of those with hard-to-fill vacancies). 
2.9.2 Occupational pattern of retention difficulties 
When establishments experience retention difficulties, these tend to be for specific job roles 
rather than for all occupations. Establishments experiencing retention difficulties were most 
likely to report them among Skilled Trades and Elementary occupations (21 and 19 per 
cent respectively; see Figure 2.8). In contrast, very few establishments reported retention 
difficulties to be mainly among Managers (two per cent).  
Figure 2.8 Occupations in which most difficulty retaining staff  
 
19% Elementary staff
8% Machine 
Operatives
2% Managers
11% Professionals
10% Associate 
Professionals
4% Admin. / 
Clerical staff
21% Skilled Trades 
occupations
13% Caring, Leisure and 
Other
9% Sales and Customer 
Services
Base: All establishments with difficulties retaining staff (4,924)

53
As described earlier in this Chapter, vacancies increased most markedly among Skilled 
Trades and Elementary occupations causing more movement of staff between 
organisations. Employers were also most likely to have difficulties filling vacancies for 
Skilled Trades occupations (53 per cent of all Skilled Trades vacancies were reported to 
be hard-to-fill). This suggests the impact of these retention difficulties is likely to be more 
acute as these staff are harder to replace. Conversely, vacancies in Elementary 
occupations were less likely to be hard-to-fill (26 per cent of Elementary vacancies were 
classified by employers as hard-to-fill), suggesting the impact of the retention difficulties 
here may be lessened as staff are easier to replace. 
The low proportion of employers that reported retention difficulties for Managers (two per 
cent) was in line with the relatively low number of vacancies for these roles (just three per 
cent of all vacancies were for Managers). 
2.9.3 Reasons for retention difficulties 
The reasons establishments had difficulties retaining staff are shown in Figure 2.9. Some 
of the most common reasons given related to retention difficulties rising from conditions 
within the job market, including: a lack of people interested in the type of work (56 per cent), 
too much competition from other employers (38 per cent) and lower wages being offered 
relative to other organisations (34 per cent). Reasons for retention difficulties also 
commonly related to unappealing characteristics of the role, including: long hours (33 per 
cent), lack of career progressions (30 per cent), geographic location of the site (26 per cent) 
and unattractive conditions of employment (20 per cent). 
 
 

54
Figure 2.9 Reasons for retention difficulties 
 
As we saw in the previous section, the occupational groups most affected by retention 
difficulties were Skilled Trades and Elementary occupations. The data here allow us to 
better understand the reasons these roles prove problematic.  
• 
In the case of Skilled Trades occupations, the reasons for retention difficulties most 
commonly related to job market conditions, and in particular that there were not 
enough people interested in doing the type of work (63 per cent) and that there was 
too much competition from other employers (40 per cent). 
• 
Retention difficulties with Elementary staff were also attributed to job market issues, 
particularly not enough people being interested in this type of work (67 per cent). 
However, reasons for retention difficulties in Elementary roles also centred on 
unappealing characteristics of the role: the most common of which was the job 
involving long or antisocial hours (43 per cent). 
 
 
 
3%
1%
2%
4%
9%
20%
23%
26%
30%
30%
33%
34%
38%
56%
Other
Students come and go
Cost to employer
Nature of work is too difficult/mentally and physically tiring
Difficult to find experienced/skilled staff
Unattractive conditions of employment
Impact of the benefits trap
Geographic location of the site
Staff don't want long term commitment
Lack of career progression
Long/unsocial hours
Wages offered are lower than those offered by other organisations
Too much competition from other employers
Not enough people interested in doing this type of work
Base: All establishments experiencing retention difficulties (Module 2; 4,924)

55
2.10 
Conclusions 
In line with the picture of a growing UK economy, ESS 2015 provides evidence of strong 
labour market activity. There were, however, signs of increasing challenges for 
establishments in being able to recruit individuals with the required level of skills, 
qualifications or experience. Notably there were increased recruitment challenges related 
to skill shortages for employers in Construction and Financial Services; two sectors that 
are critical to the UK economy. 
The marked increase in skill-shortage vacancies since 2013 may act as a threat to business 
growth and hinder productivity if employers are unable to recruit sufficiently skilled labour. 
Indeed, the reported impacts of skill-shortage vacancies for employers were numerous, 
with many reporting that a shortage of skills has had a direct financial impact on the 
establishment, or has impacted their ability to innovate through the introduction of new 
products, working practices or technologies. 
The types of skills lacking in the labour market included management and leadership skills, 
as well as complex analytical skills. These types of skills are important when considering 
the productivity of the workforce and the ability of establishments to innovate through the 
introduction of new technologies and working practices. 
Having considered the external skills challenges that employers face when recruiting, the 
next chapter will consider the skills challenges that employers face within their existing 
workforce. 
 
 

56
3 
The Internal Skills Challenge 
3.1 
Chapter Summary 
The majority of establishments reported that they had a fully proficient workforce: 
86 per cent felt that all their staff were fully proficient at their job. However, around one in 
seven employers (14 per cent) experienced skills gaps within their establishment. This 
equates to approximately 1.4 million staff who were not fully proficient (five per cent of the 
UK workforce). 
The proportion of employers with any skills gaps, and the proportion of the workforce 
affected, decreased gradually at UK level between the 2011 and 2015 surveys. This varied 
by nation, however. The picture in England was relatively static, while the levels of skills 
gaps in Scotland and Wales fell between 2013 and 2015, when it aligned with the 
experience among employers in England. Northern Ireland employers reported the 
greatest levels of proficiency in their staff: the level of skills gaps here dropped considerably 
from 2013 such that only one in 11 employers experienced skills gaps within their 
establishment, representing 3.3 per cent of all employees.  
At an occupational level, skills gaps were more likely to be found in what are 
traditionally described as unskilled or semi-skilled occupations, with a notable 
increase since 2013 in the proportion of Machine Operatives not being fully proficient in 
their job role.  
Three in five of all skills gaps were deemed to be caused, at least in part, by the fact that 
staff were new to the role, while a similar proportion were attributed to employees’ training 
being only partially complete. These factors are both predominantly transient: that is to say 
one would expect skills gaps resulting from these causes to be eliminated once staff have 
settled into their new roles and/or existing training has been completed. 
People and personal skills, such as time management and the ability to prioritise 
tasks, as well as team working, were commonly lacking across a range of occupations 
where skills gaps were present. Specialist skills or knowledge needed to perform the role 
were also widely considered to be lacking, along with complex analytical skills, especially 
among those in high-skilled occupations such as Managers and Professionals. 
While the proportion of establishments experiencing skills gaps decreased since 2013, the 
impact of skills gaps where they did occur increased slightly, and appeared to harm 
smaller businesses in particular. An increased workload for other staff was the most 
common impact, affecting around half of all establishments with skills gaps. 
 
 
 

57
3.2 
Introduction 
Chapter 2 examined the extent to which establishments encountered difficulties recruiting 
and holding on to staff with the skills they need: a challenge that has increased over time. 
This chapter explores the related issue of skills gaps within the existing workforce. This 
internal challenge arises when employees lack proficiency to fulfil their role. Such skills 
gaps can hinder an establishment’s ability to function efficiently, thereby harming its 
productivity and profitability.  
The chapter covers the incidence, volume, profile and causes of skills gaps, both at an 
overall UK and sector level, and by occupation. It then considers the specific skills that 
establishments reported their staff to be lacking, the impact that skills gaps had on their 
business, and their response to address these issues. It finishes by exploring the 
relationship between internal and external skills challenges. 
New for ESS 2015 was a revised list of skill descriptors used to better understand the skills 
lacking in the workforce (the same approach has been taken for skill-shortage vacancies). 
In the 2011 and 2013 surveys a large number of establishments reported that skills gaps 
were due, at least in part, to deficiencies in ‘technical, practical or job-specific skills’, without 
any further information collected on the nature of the skills that were lacking.  
To address this lack of detail ‒ alongside a desire for improved coverage of ‘higher level’ 
skills that underpin innovative business practices and to harmonise the skill descriptors 
used with those of other international skills surveys ‒ the skill descriptors used were revised 
for ESS 2015.17 These skill descriptors can be broadly categorised into two: ‘technical and 
practical’ skills, which define the content of a job role; and ‘people and personal’ skills, 
which define the way in which job roles are delivered. 
3.3 
The incidence, volume and density of skills gaps 
The vast majority of employers (86 per cent) reported that all of their staff were fully 
proficient at their job. However, one in seven establishments (14 per cent) considered that 
at least some of their staff were not fully proficient (i.e. they reported skills gaps). In total, 
1.4m employees across the UK were perceived to be lacking proficiency, equating to 5.0 
per cent of the total workforce. 
                                                 
17 Half of employers with skills gaps were assigned to the ‘new’ skill descriptors, whereas the other half were assigned to 
the ‘old’ skill descriptors used in ESS 2011 and 2013 to facilitate comparisons over time. Time series data on the skills 
lacking among applicants according to the ‘old’ skill descriptors are shown in Tables A.3.8 and A.3.8a in Appendix A. 
Further information on the changes to the skill descriptors used is provided in the ESS 2015 Technical Report 
(https://www.gov.uk/government/publications/ukces-employer-skills-survey-2015-uk-results). 

58
The proportion of staff not fully proficient in their job (i.e. the skills gap density) fell from 5.5 
per cent in 2011, to 5.2 per cent in 2013 and 5.0 per cent in 2015. This fall occurred 
predominantly in the devolved administrations. It was most notable in Northern Ireland 
where the density of skills gaps decreased from 5.2 per cent in 2013 to 3.3 per cent in 
2015. In England, the skills gap density remained stable between 2013 and 2015, at 5.1 
per cent. 
Figure 3.1  Incidence and density of skills gaps by country 
 
Larger employers were more likely than smaller employers to experience skills gaps, 
reflecting in part that with a larger workforce, it was more probable that at least one 
employee would lack full proficiency. Six per cent of establishments with 2-4 employees 
experienced skills gaps, rising to 43 per cent of those with 250 or more employees. These 
larger employers also experienced a higher skills gap density: 2.6 per cent of the workforce 
employed by establishments with fewer than five staff were described as not fully proficient, 
rising to 6.7 per cent among those with 250+ staff. While this pattern of increased density 
by size of establishment existed in 2013 and 2011, it was more pronounced in 2015. 
 
 
17%
15%
14%
17%
15%
14%
13%
14%
9%
21%
19%
14%
16% 16%
14%
5.5%
5.2% 5.0%
5.6%
5.1% 5.1%
4.4%
5.2%
3.3%
5.2%
5.9%
5.0%
4.6%
5.8%
4.5%
% of establishments with skills gap
Density (% of all staff with skills gap)
UK
England
N. Ireland
Scotland
Wales
Base: All establishments (2015: UK: 91,210; England: 75,129; NI: 4,019; Scotland: 6,035; Wales: 6,027)
Note: See Table A.1.3 in Annex A for 2011 and 2013 base sizes
2013
2011
2015
2013
2011
2015
2013
2011
2015
2013
2011
2015
2013
2011
2015

59
3.3.1 The sectoral distribution of skills gaps 
While the overall UK trend reflected both a lower incidence and a lower density of skills 
gaps compared to 2013, this was not reflected across all sectors of the economy. 
In a handful of sectors, the skills gap density was actually higher than in 2013. As Figure 
3.2 shows, the Manufacturing sector in particular demonstrated this trend: here the skills 
gap density rose from 5.9 per cent in 2013 to 7.2 per cent in 2015 (from 138,800 to 173,400 
staff respectively). 
Conversely, the sector that traditionally experiences the highest density of skills gaps, 
Hotels and Restaurants, saw this density decrease from 8.9 per cent in 2013 to 7.2 per 
cent in 2015 (from 159,400 to 140,100 staff respectively), equalling the density in the 
Manufacturing sector.  
The biggest decrease in skills gap density occurred in Financial Services, where the 2015 
figure of 3.7 per cent represented a return to 2011 levels, following a spike in skills gaps in 
2013. 
While skills gap density was highest in the Hotels and Restaurants, and Manufacturing 
sectors, the highest number of skills gaps existed among establishments in the Wholesale 
and Retail sector (242,200 skills gaps) and the Business Services sector (249,300). This 
is to be expected given these sectors accounted for higher proportions of the workforce 
than any other. 
 
 
 

60
Figure 3.2  Density of skills gaps by sector 
 
There were also distinct sectoral patterns between the nations: 
• 
In England, the skills gap density in some of the largest sectors of the workforce 
(such as Wholesale and Retail, and Health and Social Work) were consistent over 
time. In contrast, establishments in these sectors in Northern Ireland, Scotland and 
Wales experienced a considerable decrease in skills gap densities. 
• 
The drop in the skills gap density among staff in the Financial Services sector was 
driven by establishments in England. 
The drop in the skills gap density among Hotels and Restaurants staff occurred across all 
nations, however. 
Tables A.3.1 and A.3.2 in Annex A provide a detailed breakdown of the incidence, number 
and density of skills gaps by size of establishment and sector, as well as the skills gap 
density by sector within nation. 
 
 
 
4.4%
4.0%
8.1%
4.4%
4.7%
3.8%
5.1%
4.4%
5.0%
5.8%
4.8%
5.9%
8.9%
2.9%
3.2%
3.7%
3.8%
3.8%
4.0%
4.9%
4.9%
5.2%
5.4%
6.4%
7.2%
7.2%
Agriculture
Health & Social Work
Financial Services
Arts & Other Services
Construction
Education
Electricity, Gas & Water
Transport & Comms
Business Services
Wholesale & Retail
Public Administration
Manufacturing
Hotels & Restaurants
2015 Skills gap
density
2013 Skills gap
density
Number of Skills 
gaps (2015)
Base: All establishments
Note: See Table A.1.3 in Annex A for 2013 and 2015 base sizes by sector
140,100
173,400
86,000
242,200
249,300
108,900
13,900
103,700
44,500
47,400
36,400
122,700
11,800

61
3.3.2 The occupational distribution of skills gaps 
At an occupational level, skills gaps were more likely to be found in what are traditionally 
described as unskilled or semi-skilled occupations. As Table 3.1 shows, around seven per 
cent of Sales and Customer Service staff, Machine Operatives18 and those in Elementary 
occupations were reported to be lacking full proficiency (compared with five per cent 
overall). Collectively these occupations accounted for around a third (34 per cent) of all 
employees, but approaching half (47 per cent) of all skills gaps. This was broadly consistent 
with the occupational pattern of previous years. 
Table 3.1 Number and density of skills gaps by occupation 
 
 
Number of 
skills gaps 
% of staff reported as having 
skills gaps (Skills Gap density)  
 
 
2015 
2011 
2013 
2015 
Row percentages 
Unwtd 
base  
2015 
n 
% 
% 
% 
UK 
91,210 
1,380,200 
5.5 
5.2 
5.0 
Occupation 
 
 
 
 
 
Managers 
87,590 
129,400 
3.2 
3.0 
2.7 
Professionals 
17,483 
102,100 
4.2 
3.8 
3.0 
Associate Professionals 
13,309 
88,300 
4.9 
5.3 
5.3 
Administrative and 
Clerical  
53,622 
187,000 
4.9 
4.9 
5.4 
Skilled Trades  
24,025 
108,100 
5.4 
5.5 
5.5 
Caring, Leisure and 
Other Services  
15,310 
119,400 
5.4 
4.8 
4.1 
Sales and Customer 
Service 
25,940 
228,400 
8.3 
7.8 
6.5 
Machine Operatives 
14,105 
161,700 
6.0 
5.4 
7.0 
Elementary occupations 
31,970 
255,800 
7.6 
7.3 
6.9 
Base: All establishments with staff in each occupation. 
Percentages are based on all employment, rather than all establishments; figures therefore show the number 
of skills gaps as a proportion of all employment in each occupation. 
Note: The number of employees not fully proficient has been rounded to the nearest 100. 
There was a higher skills gap density among Machine Operatives in 2015 (7.0 per cent) 
than in 2013 (5.4 per cent). As noted in Chapter 2, it was also this occupation which 
experienced the greatest increase in the density of skill-shortage vacancies. There were 
clear signs therefore that businesses were suffering from both internal and external skills 
challenges with Machine Operatives. 
 
                                                 
18 These include drivers, food and drink process operatives, and scaffolders, among other occupations. 

62
 
Administrative and Clerical staff were the only other occupation where the skills gap density 
increased (from 4.9 per cent in 2013 to 5.4 per cent in 2015). Generally speaking those in 
the most highly skilled occupations (Managers and Professionals) were most likely to be 
fully proficient in their job (with skills gap densities of 2.7 and 3.0 per cent respectively). 
Figure 3.3 illustrates skills gap density by occupation, and pinpoints particularly marked 
occupational patterns within sectors. Highlighted in dark red are occupations within a sector 
where skills gap density was at least nine per cent (at least four percentage points higher 
than the average across all staff).  
This highlights that within the Manufacturing and Hotels and Restaurants sectors, where 
the skills gap density was highest, a lack of proficiency was particularly acute in the more 
labour-intensive occupations. In the Manufacturing sector this would include vehicle or 
machine operatives and assemblers, while in the Hotels and Restaurants sector it might 
include cleaners, waiters and kitchen assistants. 
 
 
 

63
Figure 3.3  Density of skills gaps by occupation within sector 
 
Tables A.3.3 and A.3.4 in Annex A provide detailed breakdowns of skills gap density by 
occupation within country and sector respectively. 
 
 
= Skills Gap density 9% or above
= Skills Gap density between 5% and 8%
= Skills Gap density between 1% and 4%
Figures only shown where base size is greater than 50.
See Table A.3.3a in Annex A for base sizes.
Skilled Trades 
occupations
2.9%
3.2%
3.7%
3.7%
3.8%
4.0%
4.9%
4.9%
5.2%
5.4%
6.4%
7.2%
7.2%
Agriculture
Health & 
Social Work
Financial 
Services
Arts & Other 
Services
Construction
Education
Electricity, Gas 
& Water
Transport & 
Comms
Business Services
Wholesale & Retail
Public Administration
Manufacturing
Hotels & Restaurants

64
3.4 
The causes of skills gaps 
Employers identified a variety of factors that led to skills gaps in their establishment. The 
main causes of staff not being fully proficient overall are presented in Table 3.2. The figures 
show what proportions of skills gaps were caused by the various factors reported by 
establishments. Respondents were able to give more than one cause for skills gaps within 
each occupation. 
As in 2013, transient causes dominated, i.e. one would expect the skills gaps to be resolved 
relatively quickly, but the majority of establishments also suggested additional factors that 
had led to skills gaps. Three in five skills gaps (60 per cent) were deemed to be caused, at 
least in part, by the fact that staff were new to the role, while a similar proportion (56 per 
cent) were attributed to employees’ training being only partially complete. Combined, these 
transient factors contributed, at least to some extent, to 73 per cent of all skills gaps. 
Table 3.2 Main causes of skills gaps (prompted) 
 
 
2011 
2013 
2015 
Unweighted base 
20,820 
20,228 
18,265 
 
% 
% 
% 
Staff are new to the role 
56 
62 
60 
Their training is currently only partially 
completed 
55 
57 
56 
Staff lack motivation 
38 
42 
34 
They have been on training but their 
performance has not improved sufficiently 
35 
39 
29 
The introduction of new working practices 
28 
32 
28 
Staff have not received the appropriate 
training 
27 
29 
26 
Unable to recruit staff with the required 
skills 
22 
26 
26 
The introduction of new technology 
20 
20 
20 
The development of new products and 
services 
19 
21 
19 
Problems retaining staff 
12 
18 
18 
Summary: New to role and/or training 
incomplete 
72 
75 
73 
Base: All establishments with skills gaps; up to two skills gaps followed up. 
Percentages shown as a proportion of all skills gaps followed up rather than all establishments with skills gaps. 
Figures therefore show the proportion of skills gaps in each nation caused by each stated reason. 

65
While the hierarchy of causes of skills gaps stayed consistent with 2013, there were some 
notable differences. In particular there was a decrease in the proportion of skills gaps 
caused by staff lacking motivation (from 42 per cent to 34 per cent in 2015) and those 
caused by training not improving performance sufficiently (from 39 per cent to 29 per cent 
in 2015). 
In sectors with higher skills gap densities – Manufacturing and Hotels and Restaurants – 
causes of skills gaps were more likely to be transient than in most other sectors (79 and 82 
per cent respectively). Skills gaps in the Hotels and Restaurants sector were also more 
likely to be caused by performance not improving following training (38 per cent compared 
with 29 per cent overall), and problems retaining staff (29 per cent compared with 18 per 
cent overall). 
Employers in the Public Administration and Agriculture sectors were least likely to report 
that skills gaps were caused by transient factors. Instead key causes of skills gaps in the 
Public Administration sector centred around development and innovation in the workplace: 
• 
57 per cent of skills gaps in this sector were attributed to the introduction of new 
working practices. 
• 
49 per cent of skills gaps were attributed to the introduction of new technology. 
• 
38 per cent of skills gaps were attributed to the development of new products and 
services. 
In the Agriculture sector, patterns of causes were less clear cut. 
Table A.3.5 in Annex A contains a breakdown of the most common causes of skills gaps 
by sector. 
The two most common causes of skills gaps (staff being new to the role and training not 
being complete) remain the most common causes of skills gaps across all occupations. 
Among more labour-intensive occupations, where skills gaps tended to be more prevalent, 
a lack of motivation was also perceived to be a key cause of these skills gaps. This was 
particularly the case for those in Elementary occupations (50 per cent compared with 19 to 
38 per cent across all other occupations). Training not improving staff performance was 
also a more common cause of skills gaps among Sales and Customer Service and 
Elementary occupations (both 36 per cent) compared with other occupations (21 to 32 per 
cent). Table A.3.6 in Annex A provides a breakdown of the factors that caused skills gaps 
by occupation. 
 
 

66
3.5 
Skills lacking internally 
The skills that employers perceive their staff to be lacking can broadly be categorised into 
two: on the one side are the technical and practical skills that define the content of a job 
role, and on the other side are the softer ‘people and personal’ skills which can define the 
way in which job roles are delivered. These people and personal skills are often less 
tangible but can have as great an impact on the efficiency of a workforce19. 
Five of the six skills most commonly found to be lacking among existing staff related to 
people and personal skills, as Figure 3.4 illustrates. In particular, employers raised issues 
around poor time management and prioritisation of tasks (cited in relation to 59 per cent of 
skills gaps), demonstrating that staff struggled to cope with the various demands placed on 
them. Team working was also widely cited as lacking among existing staff (56 per cent). 
Establishments also faced challenges with management and leadership within their 
organisation. Combining various specific skills that pertained to these issues (‘managing 
or motivating staff’, ‘persuading others’ and ‘setting objectives’), a lack of management and 
leadership skills was cited in relation to nearly three-fifths of all skills gaps. A slightly lower 
proportion of skills gaps could be attributed to sales and customer skills20. 
Specialist or knowledge-based skills that are required for the particular job role of the 
employee were mentioned in relation to half of all skills gaps (48 per cent), rendering this 
the most common technical and practical skill lacking among existing staff. A similar 
proportion of skills gaps related to a lack of operational knowledge: 37 per cent of skills 
gaps were attributed to a lack of knowledge of the products and services the establishment 
offers and 36 per cent to a lack of knowledge in how the organisation worked. There were 
also deficiencies in complex analytical skills: 39 per cent of skills gaps were attributed to a 
lack of proficiency in solving complex problems, and 24 per cent were attributed to a lack 
of complex numerical or statistical skills. 
Improving technologies in the workplace is perceived to be a critical area of change for 
businesses over the next few years (UKCES, 2014a). However, a third of all skills gaps (32 
per cent) related to a lack of proficiency in adapting to new equipment or materials. A lack 
of basic IT skills was cited for a similar proportion of skills gaps (30 per cent), while 
advanced IT skills were also commonly lacking (27 per cent), particularly among those in 
high-skill or middle-skill roles (such as Professionals and Administrative and Clerical staff). 
 
                                                 
19 As noted in the introduction to this chapter, a new list of skill descriptors were developed for ESS 2015 in order to better 
understand the skills lacking among staff. Half of employers with skills gaps were assigned to the ‘new’ skill descriptors, 
whereas the other half were assigned to the ‘old’ skill descriptors used in ESS 2011 and 2013 to facilitate comparisons 
over time. Time series data on the skills lacking among applicants according to the ‘old’ skill descriptors are shown in 
Tables A.3.8 and A.3.8a in Appendix A. Further information on the changes to the skill descriptors used is provided in the 
ESS 2015 Technical Report (https://www.gov.uk/government/publications/ukces-employer-skills-survey-2015-uk-results). 
20 This includes ‘sales skills’ and ‘customer handling skills’. 

67
Figure 3.4  Skills lacking among staff with skills gaps 
 
 
 
9%
13%
14%
20%
22%
24%
27%
29%
30%
32%
36%
37%
39%
48%
12%
17%
23%
28%
30%
39%
41%
46%
46%
56%
59%
None of the above
Communicating in a foreign language
Manual dexterity
Basic numerical skills
Writing instructions, reports etc.
Complex numerical/statistical skills
Advanced or specialist IT skills
Reading/understanding instructions, reports etc.
Computer literacy / basic IT skills
Adapting to new equipment or materials
Knowledge of how the organisation works
Knowledge of products and services offered
Solving complex problems
Specialist skills or knowledge
None of the above
Making speeches or presentations
Sales skills
Instructing, teaching or training people
Setting objectives for others / planning resources
Persuading or influencing others
Managing or motivating other staff
Managing own feelings / handling those of others
Customer handling skills
Team working
Ability to manage own time and prioritise tasks
46% 
Complex 
analytical
50% Operational
50% 
Sales and 
customer  
skills
58% Management 
and leadership
People and personal skills that need improving:
Technical and practical skills that need improving:
Base: All establishments with skills gaps – up to 2 occupations followed up with the new 
lists of skill descriptors (9,119)

68
The remainder of this section focusses on the occupational dimension of skills, especially 
those occupations where skills gaps were more prevalent. Across all occupations where 
skills gaps existed however, the ability to manage time and prioritise tasks was a recurring 
issue. It should also be noted that some skills gaps particularly affected specific 
occupations in predictable ways (management and leadership skills lacking among 
Managers, sales and customer skills lacking among Sales and Customer Services staff). 
While Managers were most likely to be fully proficient in their job role, still nine per cent of 
all skills gaps were found in this occupation, with managing or motivating other staff the 
most common skill that was lacking (68 per cent). Managers were also widely perceived to 
be lacking in complex analytical skills (55 per cent for example were deemed to lack 
proficiency in solving complex problems). This theme ran through all high-skill 
occupations21, as well as among Administrative and Clerical staff. A lack of complex 
analytical skills could have serious implications on the ability of staff to respond to 
increasingly dynamic workplaces and developments in technology and thus restrict 
establishments’ potential for innovation and long-term growth. 
Time management and task prioritisation skills were most commonly lacking among 
Professional staff22 with skills gaps, and those in Administrative and Clerical roles (68 and 
67 per cent respectively), suggesting that these staff in particular struggle with the various 
demands of their job role. Professional staff also appeared to be held back by a lack of 
specialist or knowledge-based skills required for a specific job role (70 per cent). 
There was a relatively high level of skills gaps among Sales and Customer Services staff. 
Alongside a lack of customer handling skills (64 per cent) and sales skills (53 per cent), 
staff with skills gaps in this occupation were often lacking knowledge on the operational 
side of the business. Over half of skills gaps in this occupation were attributed to a lack of 
knowledge of products and services their company offered (53 per cent), which could be 
of particular concern to employers, given that staff in these occupations tend to be outward 
facing representatives. 
Staff in labour-intensive roles (i.e. Machine Operatives23 and Elementary staff) were most 
likely to be lacking proficiency in their job role. For both occupations, team working was the 
predominant skill lacking: 62 per cent of Machine Operatives and 69 per cent of Elementary 
staff with skills gaps lacked these skills. For Machine Operatives, reading and 
understanding instructions (44 per cent) and adapting to new equipment or materials 
(41 per cent) were skills lacking more commonly than in other occupations. 
 
                                                 
21 This term includes Managers, Professionals and Associate Professionals. 
22 This would include teachers, consultants and programmers. 
23 This would include drivers, food and drink process operatives, and scaffolders, among other occupations. 

69
Table 3.3 shows the three most common skills lacking by occupation and then the three 
skills in particular short supply when compared with the UK average. 
Table 3.3 Most common skills lacking among staff with skills gaps, by occupation 
Occupation 
Skills 
Gap 
Density 
Skills most commonly 
lacking 
Three skills in short supply 
compared with average 
Managers 
2.7% 
Managing or motivating other 
staff  
Setting objectives / planning 
resources  
Time management and task 
prioritisation  
Setting objectives / planning 
resources  
Managing or motivating other 
staff 
Persuading or influencing others 
Professionals 
3.0% 
Specialist skills or knowledge 
Time management and task 
prioritisation 
Team working 
Specialist skills or knowledge 
Advanced or specialist IT skills 
Instructing, teaching or training 
people 
Associate 
Professionals 
5.3% 
Specialist skills or knowledge 
Time management and task 
prioritisation 
Solving complex problems 
Advanced or specialist IT skills 
Setting objectives / planning 
resources  
Making speeches or 
presentations 
Administrative / 
Clerical staff 
5.4% 
Time management and task 
prioritisation 
Customer handling skills 
Team working 
Advanced or specialist IT skills 
Customer handling skills 
Complex numerical/statistical 
skills 
Skilled Trades 
occupations 
5.5% 
Specialist skills or knowledge 
Time management and task 
prioritisation 
Team working 
Specialist skills or knowledge 
Manual dexterity 
Adapting to new equipment or 
materials 
Caring, Leisure 
and Other 
Services 
4.1% 
Time management and task 
prioritisation 
Specialist skills or knowledge 
Team working 
Writing instructions, reports etc. 
Specialist skills or knowledge 
Reading/understanding 
instructions, reports etc. 
Sales and 
Customer 
Services 
6.5% 
Customer handling skills 
Time management and task 
prioritisation 
Knowledge of products and 
services 
Sales skills 
Customer handling skills 
Knowledge of products and 
services 
Machine 
Operatives 
7.0% 
Team working 
Time management and task 
prioritisation 
Managing own or others' feelings 
Reading/understanding 
instructions, reports etc. 
Basic numerical skills 
Adapting to new equipment or 
materials 
Elementary staff  
6.9% 
Team working 
Time management and task 
prioritisation 
Customer handling skills 
Team working 
Communicating in a foreign 
language 
Manual dexterity 
Base: All establishments with skills gaps in each occupation – up to two occupations followed up 
(9,119). 
Tables A.3.7a-e in Annex A present the skills lacking in the workforce by occupation, nation 
and sector. 
 
 

70
3.6 
The impact of skills gaps 
Although fewer establishments in 2015 than in 2011 or 2013 reported skills gaps, a higher 
proportion said these had had a negative impact on their organisation’s performance. This 
was evident in that: 
• 
In 2015, 66 per cent of employers with skills gaps reported these as having an 
impact on their organisation’s performance, up from 63 per cent in 2013 and 61 per 
cent in 2011. 
• 
17 per cent reported that their skills gaps were having a major impact on their 
business’ performance, slightly but significantly up from 16 per cent in 2013 and 15 
per cent in 2011. 
There was little difference between countries in terms of major impacts. However, 
establishments in Northern Ireland and Scotland were more likely to cite any impact from 
skills gaps (69 and 70 per cent respectively, compared with 65 per cent in England and 64 
per cent in Wales). 
Establishments more likely to suffer major impacts from skills gaps included: 
• 
Small businesses: 23 per cent of employers with 2-4 staff reported experiencing 
major impacts. 
• 
Employers in the Hotels and Restaurants sector of which 21 per cent reported major 
impacts on their establishment (n.b. it was this sector which experienced the highest 
skills gap density). 
Figure 3.5 shows the extent of impact of skills gaps in 2015 and the implications for the 
business. Table A.3.9 in Annex A provides a breakdown of extent of impact by size, sector 
and country. 
 
 
 

71
Figure 3.5  Impacts of skills gaps 
 
As seen in previous years, the most common impact of skills gaps was an increased 
workload for other staff: this affected over half of establishments with skills gaps (52 per 
cent, rising to 60 per cent among establishments in Public Administration).  
Establishments also suffered financial impacts as a result of their internal skills challenge. 
The fact that not all of their staff were fully proficient drove up the operating costs of over a 
quarter of employers with skills gaps (27 per cent), an issue that was more common in 
Agriculture (38 per cent) and Manufacturing (37 per cent). Additionally, 21 per cent lost 
business or orders to competitors, a scenario that affected small establishments most of 
all (26 per cent among employers with 2-4 staff). 
Skills gaps also impacted on establishments’ ability to innovate, signalling more long-term 
business implications. These impacts varied according to the size of the establishment. 
While a quarter of establishments with skills gaps (24 per cent) had difficulty introducing 
new working practices, this was much higher among those with 250+ staff (34 per cent). 
Conversely, small establishments were more likely to experience delays in developing new 
products or services (23 per cent among those with 2-4 staff compared with 17 per cent 
overall). 
Table A.3.10 in Annex A provides a breakdown of impacts of skills gaps by size, sector and 
country. 
52%
27%
25%
24%
21%
17%
11%
34%
Increase workload for other staff
Higher operating costs
Difficulties meeting quality standards
Difficulties introducing new working
practices
Lose business or orders to competitors
Delay developing new products or
services
Outsource work
No impact
Base: All establishments with skills gaps (18,265)
17%
48%
Whether skills gaps 
have any impact
Impacts of skills gaps (prompted)
ANY 
IMPACT
Major 
impact
Minor 
impact
66%

72
3.7 
Employer response to skills gaps 
The vast majority of employers with skills gaps (85 per cent) had taken steps to tackle 
them. In addition five per cent reported that they had not taken steps at the time but planned 
to do so in future. Just short of one in ten (nine per cent) of establishments had taken no 
action and had no plans in place to tackle these issues. 
Smaller establishments in particular might need more help responding to their internal skills 
challenges. Establishments with 2-4 staff were less likely to experience skills gaps than 
larger employers and were also less likely to have responded to them: 75 per cent of small 
establishments with skills gaps had taken steps to tackle them compared with 85 per cent 
overall. Indeed, there was evidence to suggest that the scale of the skills gaps challenge 
proved too much for some of these small businesses: those small businesses that cited 
major impacts as a result of skills gaps were even less likely to have taken steps to address 
them (68 per cent). 
Table A.3.11 in Annex A provides a breakdown of actions taken to tackle skills gaps by 
country, size and sector.  
As Figure 3.6 illustrates, additional training remained at the forefront of establishments’ 
approaches to tackling internal skills gaps: nearly seven in ten establishments (68 per cent) 
increased their training activity or spend in order to improve the skills levels of their 
employees. This was consistent with the findings from 2013. 
 
 
 

73
Figure 3.6  Actions taken to overcome skills gaps (prompted) 
 
Another common method that establishments employed to respond to skills gaps was 
harnessing the experience of existing staff to improve the performance of others (56 per 
cent for example introduced more supervision of staff). Such actions were particularly 
common among employers in the Education sector. 
Changing structural approaches to work in response to skills gaps was less common: 33 
per cent of establishments with skills gaps reallocated work and 27 per cent changed their 
working practices. 
Finally, only one in five establishments with skills gaps (19 per cent) responded by 
increasing recruitment spend and activity. From a time series perspective, this represented 
a steady increase over time (11 per cent in 2011; 16 per cent in 2013). This ties in with the 
considerable increase in the number of vacancies noted in Chapter 2 and with it a large 
rise in the total number of skill-shortage vacancies. 
 
 
 
25%
7%
11%
24%
26%
38%
42%
47%
62%
15%
10%
16%
31%
37%
47%
51%
60%
68%
16%
10%
19%
27%
33%
45%
46%
56%
68%
Nothing
Recruiting workers who are non-UK nationals
Increase recruitment activity / spend
Changing work practices
Reallocating work
Implementation of mentoring / buddying
scheme
More staff appraisals / performance reviews
More supervision of staff
Increase training activity / spend or increase /
expand trainee programmes
2015
2013
2011
Base (2015 / 2013 / 2011): All establishments with skills gaps (18,265 / 20,228 / 20,820)

74
3.8 
Skills deficiencies among existing staff and when recruiting staff 
We have now explored skills lacking both among potential recruits and within the existing 
workforce. It may be the case that establishments experienced substitution between these 
two measures of labour market deficiency. Some employers when faced with inadequate 
applicants will leave the vacancy unfilled, in which case the issue reveals itself as a skill-
shortage vacancy; other employers may feel it is better to recruit someone who is not 
appropriately skilled, in which case the deficiency will reveal itself as a skills gap, albeit 
potentially a transient one. 
3.8.1 The relationship between skill-shortage vacancies and skills gaps 
There appeared to be no sign that the scale of the skills challenge at this collective level 
had changed since 2013. Approaching one in five establishments (18 per cent) were 
suffering from either form of skills deficiency in 2015, in line with 2013, as Table A.3.12 in 
Annex A shows. However, by 2015 these skills challenges had become more external, due 
to the density of skill-shortage vacancies increasing, and the density of skills gaps 
decreasing (albeit slightly). Figure 3.7 illustrates how the skills challenge evolved over time, 
by sector.  
Figure 3.7 Changes in number of skill-shortage vacancies and skills gaps over time, by 
sector 
 
141%
139%
84%
70%
59%
58%
56%
37%
33%
29%
26%
24%
-47%
-25%
-57%
15%
-5%
6%
-3%
-12%
-30%
-15%
25%
11%
-13%
25%
% Change in number of SSVs since 2013
% Change in number of Skills Gaps since 2013
Base: All establishments 
See Table A.1.3 in Annex A for base sizes by sector

75
This serves to illustrate the complex trends occurring across various sectors at this 
collective level. For the majority of sectors, and in line with the overall UK story, skills 
challenges became more external, with a decrease in the density of skills gaps and an 
increase in the density of skill-shortage vacancies. 
This was most acute for employers in Financial Services and Construction, where the 
number of skill-shortage vacancies more than doubled and the number of skills gaps 
decreased by around half and a quarter respectively. However, there were certain sectors 
that experienced a different pattern, most notably: 
• 
Manufacturing, where the skill-shortage vacancy density and skills gap density 
increased by similar proportions. 
• 
Public Administration, which exhibited the only reversal of the trend towards 
external challenges, i.e. fewer skill-shortage vacancies and more skills gaps. 
• 
Transport and Communications, Manufacturing, and Business Services, where the 
skill-shortage vacancy density increased, along with an increase of between an 
eighth and a quarter of skills gaps. 
3.8.2 Skills lacking internally and externally 
We can also explore the dynamic between the skills that were perceived to be lacking 
among existing staff and potential recruits, although such comparisons are not perfect 
owing to the difficulty in observing skills lacking among people external to the business.  
In general the issues faced externally and internally followed a similar hierarchy. Looking 
at specific people and personal skills, the greatest imbalance between internal and external 
challenges related to team working. This contributed to over half of all skills gaps (56 per 
cent), compared with only a third of skill-shortage vacancies (33 per cent). This suggests 
that employers could do more to assess the collaborative characteristics of candidates prior 
to offering employment, as team working was clearly a common issue among existing staff. 
Broad management and leadership skills challenges were also much more common among 
existing staff (58 per cent of all skills gaps) than potential recruits (46 per cent of skill-
shortage vacancies). Table A.2.11 and A.3.7d contain people and personal skills lacking 
externally and internally, split by sector. 
Turning to practical and technical skills, the demand for specialist skills or knowledge 
seemed greater for those establishments with skill-shortage vacancies: 64 per cent of skill-
shortage vacancies related to these specific job-related skills compared with 48 per cent of 
skills gaps. This may be a result of existing staff having had a chance to ‘bed in’ and 
develop the specific skills required for their job role, and/or that employers are generally 
less likely to hire staff whose skills are not relevant for the available job roles. 

76
While basic IT skills and being able to adapt to new equipment were not regarded by many 
as skills lacking in potential recruits (22 and 20 per cent respectively), such skills revealed 
themselves to be a greater issue among existing staff (30 and 32 per cent). One could posit 
a variety of theories to explain these differences, but they do at least illustrate that – in the 
context of a rapidly changing technological landscape – employers could do more to ensure 
their existing staff are able to adapt and harness new technologies. 
There was also plenty of divergence within sector. Manufacturing has been identified as a 
sector that struggled with skills challenges, especially internally. Here, existing staff were 
much more likely to lack skills in basic IT, reading and understanding instructions or reports 
and adapting to new equipment, compared with potential recruits. 
Tables A.2.10 and A.3.7c contain the technical skills lacking externally and internally, split 
by sector. 
Similar patterns, across both sets of skills frameworks, prevailed at the occupational level, 
and we have focussed below on key areas of interest identified earlier in this report: 
• 
In Skilled Trades roles, a lack of skills relating to manual dexterity and adapting to 
new equipment persisted as common internal and external challenges. 
• 
Among Machine Operatives, there was a clear story of internal skills issues around 
an inability to read instructions, adapt to new equipment and basic numeracy, which 
were not as apparent among the skills lacking in applicants. 
• 
For Professionals, time management skills were commonly lacking among existing 
staff but less frequently identified as skills lacking among applicants. Both internally 
and externally however, the specialist skills or knowledge of Professionals was 
deemed to be most commonly lacking. 
Tables A.2.8, A.2.9, A.3.7a and A.3.7b in Annex A contain people and personal skills 
lacking, as well as technical or practical skills lacking, split by occupation. 
 
 

77
3.9 
Conclusions 
There are increasing proportions of staff within organisations fully proficient in their job role. 
However, to an extent this merely reflects a shift in the balance of the skills landscape, 
whereby the challenge is weighted more towards potential recruits who lack the requisite 
skills for the job role, than towards internal staff. 
Nevertheless, the survey points to particular areas of skills gaps among existing staff which, 
unless resolved, may prevent establishments from maximising their potential. Within 
people and personal skills, a lack of time management and task prioritisation skills – the 
two most common people and personal skills – point to a growing demand on staff to juggle 
multiple responsibilities. Such issues could hamper productivity in the workplace. 
A lack of complex analytical skills was also apparent in existing staff. Such skills are of 
increasing importance as employers make use of more elaborate technologies. Limitations 
in this area could prevent companies from engaging in innovative practices that are often 
the pre-cursor to growth. 
So far this report has focussed on the skills deficiencies that exist both externally and within 
an organisation, and how these issues affect business performance. In the next chapter 
we explore the skills imbalance that can occur when establishments do not make the most 
effective use of the skills and qualifications their employees possess. 
 
 

78
4 
Employer perceptions of under-use of skills 
and qualifications 
4.1 
Chapter Summary 
Some employers may experience a skills imbalance where they perceive that staff are 
being “under-utilised”, that is, the skills and qualifications that these staff hold are above 
those required for their current role. Three in ten employers reported that they had at 
least one employee who fits this description within their establishment (30 per cent), 
with two million workers reported to be under-utilised in this way.  
There are a number of different reasons given by employers for the under-use of skills. A 
quarter (26 per cent) of employers that reported under-use of skills said the reason 
was staff not being interested in taking on a higher level role; 15 per cent reported that 
the working hours suited them better. These would seem to indicate a personal choice 
being made by the individual because these job roles better suit their needs and 
circumstances. However, other reasons given by employers related to what could be 
considered to be a shortfall in the volume of jobs available that would use their skills, i.e. a 
lack of demand for their skills in the labour market. For example, 11 per cent of employers 
reporting under-utilisation said the reason was a lack of jobs in the desired higher level role 
and 10 per cent reported that they were gaining experience for a higher level role. 
Under-utilisation represents not only a waste of individuals’ talent but also potentially a 
missed opportunity for employers to increase performance and productivity, improve job 
satisfaction and employee well-being, and stimulate investment, enterprise and innovation.  
 
 

79
4.2 
Introduction  
As well as shortages of skills in the available labour market and/or among the existing 
workforce, skills imbalance can occur within establishments when the skills and 
qualifications held by individuals are not fully deployed in the workplace. We refer to this in 
this report as ‘under-utilisation’ (though the phenomenon is sometimes referred to 
elsewhere as ‘under-use of skills’, ‘over-skilling’, ‘over-qualification’ and/or ‘under-
employment’).  
Within ESS, under-utilisation is said to occur where a member of staff is perceived by their 
employer to have both qualifications and skills that are more advanced than required for 
their current job role. In 2011 and 2013, incidence was drawn from a single question24, and 
under-utilisation was consistently reported by just under half of employers (48 per cent) in 
both years. 
ESS 2015 has sought to fine-tune how the incidence of ‘under-utilisation’ is measured, 
identifying under-utilisation through a sequential two question approach25, with a view to 
minimising suspected over-reporting (i.e. cases where staff have either skills or 
qualifications but not both). Due to this adjusted measure of under-utilisation, no time 
series comparisons are presented in this chapter26.  
The 2015 survey also added questions to explore the occupational roles in which, 
according to employers’ perception, under-utilisation most frequently occurs within an 
organisation, and the reasons why employers perceive that it occurs. Examining the 
perceived reasons for under-utilisation allows us to identify where there may be inefficiency 
within the market as individuals achieve qualifications and develop skills which they (and 
the economy) are then unable to exploit (and, therefore, the return on investment of skills 
development is constrained). 
Supplementing the questions in this way facilitates the identification of potential 
opportunities for (some) employers to restructure the jobs that they have on offer, or to 
rethink their organisational practices, in order to better utilise the skills that could be 
available to them.  
 
 
                                                 
24 You said that you have [NUMBER] staff who are fully proficient at their job. Of these, how many would you say have both 
qualifications and skills that are more advanced than required for their current job role? 
25 “How many [of your staff at this establishment] would you say have qualifications that are more advanced than required 
for their current job role?” followed by “And how many of [them] also have skills that are more advanced than required for 
their current job role?” 
26 The impact of this re-definition on levels of incidence of all under-utilisation can be reviewed in Table A.4.1 in Annex A, 
which provides a detailed breakdown of incidence of under-utilisation for 2011, 2013 and 2015, by country, size of 
establishment and sector. 

80
4.3 
Prevalence of under-utilisation 
Across the UK, nearly two in five establishments (39 per cent) reported having employees 
with qualifications more advanced than required for their current job role. This reduced to 
three in ten (30 per cent) when establishments considered whether these individuals also 
had skills more advanced than needed. In volume terms, 2.0 million workers or seven per 
cent of the workforce had both under-utilised skills and under-utilised qualifications. There 
were some notable patterns of under-utilisation in different parts of the economy: 
• Employers in Northern Ireland and England were marginally less likely than those in 
Wales and Scotland to report under-utilisation (28 and 30 per cent compared to 34 
and 32 per cent, respectively). This presented a similar pattern to that reported in 
respect of internal and external skills deficiencies, where the proportions reported 
were consistently lowest in Northern Ireland. 
• The likelihood of employers reporting under-utilisation among staff increased steadily 
through the size bands, from 29 per cent (2-4 employees) to 35 per cent (250+ 
employees). This was a pattern which reflected that seen with other key skills and 
training measures, albeit with a more restricted range of responses. 
• Under-utilisation is most common within the Hotels and Restaurants sector (40 per 
cent), closely followed by Education (37 per cent), Public Administration (36 per cent), 
and Health and Social Work (36 per cent). These sectors also tended to have higher 
than average levels of skills deficiencies. The incidence of under-utilisation was 
notably lower for Agriculture (20 per cent). 
It is possible that this is an underestimate: eight per cent of employers did not know whether 
their staff have skills or qualifications more advanced than required for their role, with this 
proportion rising to nearly half (46 per cent) among establishments employing 250+ 
workers. This is perhaps unsurprising, in particular within a larger workforce where it can 
be hard for employers to have full knowledge of all of the skills and qualifications that all 
individuals possess. This is all the more true if individuals have made a choice to restrict 
which skills and qualifications they want to bring to their choice of employment.  
4.4 
Occupations most affected by under-utilisation 
Where employers reported that they had any staff whose qualifications and skills were 
under-utilised in their current job role, the survey asked them to identify the role in which 
this most commonly occurred. Figure 4.1 illustrates the roles in which employers most 
commonly reported under-utilisation.  
 
 
 

81
Figure 4.1 Occupation most affected by under-utilisation 
 
The stand-out finding is that nearly two in five employers (37 per cent) who reported under-
utilisation said that it was most likely to occur among those occupying managerial roles. 
This is somewhat surprising as a finding, in the sense that managers sit at the top of the 
occupational hierarchy so one might surmise that there is not a higher level at which people 
could put their surplus skills and qualifications to use. 
This can be explained to some extent by the fact that this is the most prevalent occupation 
across establishments, and there is a natural narrowing of the ladder as it reaches the top, 
meaning that the number of people who can continue to climb is limited. Furthermore, as 
individuals assume positions of management, they can commonly cease to need to utilise 
some of the more technical skills and qualifications that they have previously acquired (e.g. 
skills and qualifications that relate to the core service that their organisation provides). If 
they, or their employer, perceives these technical or service-related skills and qualifications 
to be “more advanced” than needed for their managerial role, then they may report this rise 
up the job ladder as reflecting under-utilisation of the full repertoire of their skills. It is also 
worth noting that, particularly within smaller establishments, the respondent is likely to be 
at management level, and individuals may be more likely to identify their own skills and 
qualifications as beyond those needed for their role. 
Base: All establishments with under-utilised staff (28,159)
9% Elementary staff
2% Machine Operatives
37% Managers
7% Professionals
8% Associate Professionals
14% Admin. / Clerical staff
6% Skilled Trades 
occupations
7% Caring, Leisure 
and Other
9% Sales and Customer 
Services

82
Employers were asked to select the single occupation in which under-utilisation is most 
common: this means the survey does not establish a full analysis of the occupations in 
which under-utilisation occurs and that it is difficult to establish a profile of under-utilisation 
which stands up against the survey’s other occupational metrics.  
4.5 
Reasons for under-utilisation 
After employers had identified the occupations in which under-utilisation most commonly 
occurred in their establishment, they were then asked why they felt that it occurred among 
these staff. As shown in Figure 4.2, the most common cause of under-utilisation, as 
perceived by the employer, was a lack of interest among staff to take on a higher level role 
with more responsibility; more than a quarter of establishments where under-utilisation 
occurred cited this reason (26 per cent) 27. 
4.6 
Reasons for under-utilisation 
After employers had identified the occupations in which under-utilisation most commonly 
occurred in their establishment, they were then asked why they felt that it occurred among 
these staff. As shown in Figure 4.2, the most common cause of under-utilisation, as 
perceived by the employer, was a lack of interest among staff to take on a higher level role 
with more responsibility; more than a quarter of establishments where under-utilisation 
occurred cited this reason (26 per cent) 28. 
 
 
                                                 
27 It is important to bear in mind throughout this section that all reasons provided are from the perspective of the employer. 
28 It is important to bear in mind throughout this section that all reasons provided are from the perspective of the employer. 

83
Figure 4.2  Reasons for under-utilisation (unprompted) 
 
In similar vein, this was followed by the rationale that working hours were better suited to 
the individual in question in the roles that the under-utilised staff were currently occupying 
(15 per cent). This opens up the question as to whether – if employers redesigned job roles, 
and/or adapted the conditions of employment in other ways – there could be opportunities 
for them to better utilise the skills and qualifications that are already available to them within 
their organisation. 
Similar proportions of employers – around one in ten – felt under-utilisation occurred due 
to either a lack of jobs in desired higher level roles or staff needing to gain experience in 
their desired industry before progressing to such roles (11 per cent and 10 per cent, 
respectively). These factors are arguably closely related, driven (or at least enhanced) by 
a demand deficiency for the skills and/or qualifications held by these staff. This may be a 
structural issue reflecting an over-supply of suitably skilled people looking for a particular 
type of role; or it may be more transient in nature, reflecting a lag between people acquiring 
skills and being able to utilise them, or receiving recognition for them (for example, through 
promotion).  
Key findings of how different types of under-utilisation relate to the different occupations 
are shown in Table 4.1 (for full breakdown see Table A.4.2 in Annex A). 
5%
10%
1%
3%
4%
4%
4%
7%
7%
8%
10%
11%
15%
26%
Don't know
Not particular reason / it just happened
They have more than one job
Qualifications / skills not relevant to job role
Family-run business
Actively seek staff with quals / skills beyond needs
Competition for higher level roles / struggling to get higher level
job
Attractive conditions of employment
Temporary role / stop gap
They own the business / are a partner in the business
To gain experience / current role is lower level in same industry
as desired higher level role
Lack of jobs in desired higher level role
Working hours suit them better
They are not interested in taking on higher level role
Base: All establishments with under-utilised staff (28,159)

84
Employers perceived a lack of interest from staff in taking on higher roles to be the main 
reason for under-utilisation across the majority of occupations, and most prominently in 
relation to Caring, Leisure and Other Services staff (33 per cent). Bucking this trend were 
Administrative and Clerical staff, and Elementary staff; the former were most commonly 
deemed to be occupying roles in which they are under-utilised due to more suitable working 
hours (26 per cent), the latter because the role is temporary or a stop gap position (21 per 
cent). Sales and Customer Services staff were also more likely to be reported as under-
utilised due to the temporary nature of their current role (20 per cent).  
 
 
 

85
Table 4.1  Reasons for under-utilisation by occupation 
Occupation 
Main reasons for under-utilisation 
(Other) Variations from the 
average 
Managers 
1. Not interested in taking on higher level role (27%) 
2. They own the business / are a partner (16%) 
3. The working hours suit them better (11%) 
 
Professionals 
1. Not interested in taking on higher level role (27%) 
2. To gain experience / current role is lower level in 
same industry as desired higher level role (14%) 
3. The working hours suit them better (11%) 
They own the business / are a 
partner (8%): significantly higher 
proportion than all other 
occupations bar Managers 
Associate 
Professionals 
1. Not interested in taking on higher level role (28%) 
2. To gain experience / current role is lower level in 
same industry as desired higher level role (13%) 
3. Lack of jobs in desired higher level role (11%) 
  
Administrative 
/ Clerical staff 
1. The working hours suit them better (26%) 
2. Not interested in taking on higher level role (23%) 
3. Lack of jobs in desired higher level role (12%) 
Family run business most 
commonly reported for this 
occupation (6%) 
Skilled Trades 
occupations 
1. Not interested in taking on higher level role (28%) 
2. The working hours suit them better (10%) 
 
Family run business most 
commonly reported for this 
occupation (6%) 
Caring, 
Leisure and 
Other 
Services 
1. Not interested in taking on higher level role (33%) 
2. The working hours suit them better (18%) 
3. To gain experience / current role is lower level in 
same industry as desired higher level role (18%) 
 
Sales and 
Customer 
Services 
1. Current role is temporary / stop gap (20%) 
2. Not interested in taking on higher level role (20%) 
3. Lack of jobs in desired higher level role (19%) 
4. The working hours suit them better (19%) 
Competition for higher levels 
roles most commonly reported 
for this occupation (7%) 
Machine 
Operatives 
1. 
Not interested in taking on higher level role (30%) 
2. Lack of jobs in the desired higher level role (15%) 
3. The working hours suit them better (14%) 
Actively seeking staff with 
qualifications above those 
needed for role most commonly 
reported for this occupation (7%) 
Elementary 
staff 
1. 
Current role is temporary / stop gap (21%) 
2. The working hours suit them better (19%) 
3. Lack of jobs in desired higher level role (17%) 
4. Not interested in taking on higher level role (17%) 
They have more than one job 
most commonly reported for this 
occupation (3%)  
 
 
 
 

86
4.7 
Under-utilisation by country 
Staff not being interested in taking on a higher level role with more responsibility was 
considered the main reason for under-utilisation across all countries. The likelihood of citing 
this rationale was significantly higher in Scotland, however (28 per cent compared to 26 
per cent average). Under-utilisation due to the temporary nature of current job roles held 
was also more common within Scotland compared to other countries (eight per cent 
compared to seven, six and four per cent in England, Wales and Northern Ireland, 
respectively). 
Employers in Wales were the least likely to state that there was a lack of interest for higher 
level roles (22 per cent compared to 26 per cent average), and were comparatively more 
likely than all other countries to report under-utilisation due to competition for higher level 
roles (five per cent compared to four per cent in other countries). Employers in Wales were 
also more likely to comment on the more attractive conditions of employment (nine per 
cent) and the family-run nature of businesses (seven per cent). 
A lack of jobs in the desired higher level roles was considered a far greater issue and driver 
of under-utilisation in Northern Ireland compared to other countries (21 per cent compared 
to an average of 11 per cent). If we consider this to represent a demand deficiency (or over-
supply) for more advanced skills and qualifications, this may complement previously 
outlined patterns found for key challenges such as skill-shortage vacancies and skills gaps, 
where the proportions reported are consistently lowest in Northern Ireland. This is likely to 
reflect the more limited employment market in Northern Ireland compared to the rest of the 
UK, which restricts the opportunities available to people as they achieve the skills and 
qualifications that might elsewhere lead them to move into new job roles. 
At the other end of the spectrum, employers in England were significantly less likely than 
all others to feel that under-utilisation was driven by a lack of availability among desired 
higher level roles (10 per cent).  
A full breakdown of perceived reasons for under-utilisation by country can be found in Table 
A.4.3 in Annex A. 
 
 
 

87
4.8 
Under-utilisation by establishment size 
In terms of establishment size, a lack of interest in higher level roles was considered to be 
the main reason for under-utilisation by all except the largest employers (250+ employees; 
18 per cent compared to 26 per cent on average).  
These larger establishments were much more likely to see the challenge from the opposite 
perspective, that there was a shortage of jobs in desired higher level roles; around a quarter 
of employers with 100 or more employees attributed under-use of staff to this. The 
likelihood of citing this as a reason for under-use of staff skills and qualifications decreased 
steadily through the lower size bands, to just eight per cent for those with 2 to 4 employees.  
Relatedly, larger establishments were also more likely to report competition for higher level 
roles as a reason for under-utilisation (eight per cent for 100+ establishments compared to 
four per cent average).  
Taken together, this could indicate that some larger establishments are either unable or 
unwilling to move employees up the chain, or to create an environment which allows for 
progression for those who warrant it. From an individual perspective, therefore, the solution 
is likely to lie in movements between organisations / employers, as opposed to within. 
Smaller establishments, particularly those with 2 to 4 employees, were more likely than 
others to report under-utilisation as being due to staff being the owners / partners in a 
business (13 per cent), and the business being family run (six per cent). This is somewhat 
unsurprising, given that micro-organisations are more likely to hold these organisational 
characteristics.  
A full breakdown of perceived reasons for under-utilisation by establishment size can be 
found in Table A.4.4 in Annex A. 
 
 
 

88
4.9 
Under-utilisation by sector 
A lack of interest in higher level roles was the most commonly perceived reason for under-
utilisation across all sectors, although it was most prominent in relation to staff in the Health 
and Social Work (35 per cent), Arts, Entertainment, Recreation and Other Services (33 per 
cent), Education (30 per cent), and Public Administration sectors (29 per cent). These are 
all sectors in which the workforce tends to be more dominated by women29, adding 
credence to the notion that it is predominantly women who make a decision to remain into 
under-utilised roles due to gender imbalances in the management of family and childcare.  
Key reasons and other variations by sector shown in Table 4.2 (a full breakdown is provided 
in Table A.4.5 in Annex A).  
 
 
                                                 
29 ONS Annual Population Survey (from Nomis 2015) - Females account for 70 per cent of employment within the Public 
Administration, Education and Health sectors (SIC O-P) and 53 per cent of employment within Other Services (SIC R-U). 

89
Table 4.2  Reasons for under-utilisation by sector 
Occupation 
Main reasons for under-utilisation 
(Other) Variations from the 
average 
Agriculture 
1. 
Not interested in taking on higher level role (26%) 
2. 
Family run business (21%) 
3. 
The working hours suit them better (11%) 
Least likely to have a lack of 
jobs in desired higher level roles 
(4%) 
Manufacturing 
1. 
Not interested in taking on higher level role (22%) 
2. 
The working hours suit them better (13%) 
3. 
Lack of jobs in desired higher level role (12%) 
4. 
They own the business / are a partner (12%) 
 
Electricity, 
Gas and 
Water 
1. 
Not interested in taking on higher level role (22%) 
2. 
Lack of jobs in the desired higher level roles 
(14%) 
3. 
They own the business / are a partner (12%) 
 Actively seeking over-qualified 
and –skilled staff is most 
common in this sector (10%) 
Construction 
1. 
Not interested in taking on higher level role (22%) 
2. 
They own the business / are a partner (17%) 
3. 
The working hours suit them better (12%) 
Family run business more 
commonly reported than 
average in this sector (7%) 
Wholesale 
and Retail 
1. 
Not interested in taking on higher level role (24%) 
2. 
The working hours suit them better (16%) 
3. 
Lack of jobs in desired higher level role (14%) 
Current role is temporary / stop 
gap more commonly reported 
than average in this occupation 
(10%) 
Hotels and 
Restaurants 
1. 
Not interested in taking on higher level role (22%) 
2. 
The working hours suit them better (17%) 
3. 
Current role is temporary / stop gap (17%) 
Lack of jobs in desired higher 
level role more commonly 
reported than average (14%) 
Transport, 
Storage and 
Comms 
1. 
Not interested in taking on higher level role (24%) 
2. 
The working hours suit them better (12%) 
3. 
They own the business / are a partner (12%) 
 
Financial 
Services 
1. 
Not interested in taking on higher level role (21%) 
2. 
The working hours suit them better (14%) 
3. 
To gain experience / current role is lower level in 
same industry as desired higher level role (13%) 
Business 
Services 
1. 
Not interested in taking on higher level role (24%) 
2. 
The working hours suit them better (13%) 
3. 
They own the business / are a partner (11%) 
 
Public 
Administration 
1. 
Not interested in taking on higher level role (29%) 
2. 
The working hours suit them better (20%) 
3. 
Lack of jobs in desired higher level role (20%) 
 
Education 
1. 
Not interested in taking on higher level role (30%) 
2. 
The working hours suit them better (24%) 
3. 
To gain experience / current role is lower level in 
same industry as desired higher level role (18%) 
Health and 
Social Work 
1. 
Not interested in taking on higher level role (35%) 
2. 
The working hours suit them better (16%) 
3. 
To gain experience / current role is lower level in 
same industry as desired higher level role (13%) 
Arts and Other 
services 
1. 
Not interested in taking on higher level role (33%) 
2. 
The working hours suit them better (17%) 
3. 
To gain experience / current role is lower level in 
same industry as desired higher level role (11%) 
 

90
Under-utilisation and other challenges 
As shown in Figure 4.3, establishments with under-utilised staff are more likely than those 
without to have skills gaps and to experience retention difficulties; they are also slightly 
more likely to experience skill-shortage vacancies.  
Figure 4.3  Relationships between under-utilisation and other challenges 
 
For skills gaps, the difference is most marked where the perceived reason for under-
utilisation is a lack of jobs in desired higher level roles: employers that cite this reason are 
far more likely to have skills gaps (16 per cent compared to 10 per cent who do not have 
skills gaps). This highlights a possible inefficiency in the job market; employers that are 
experiencing skills gaps could consider re-structuring to create positions were all staff and 
skills are fully deployed. 
The higher levels of retention difficulties among establishments with under-utilisation could 
indicate that staff are leaving organisations where they feel they are not able to fully deploy 
their skills.  
 
 
7%
17%
11%
5%
13%
7%
SSVs
Skills gaps
Retention difficulties
Establishments with under-utilised staff
Establishments without under-utilised staff
Base SSVs and Skills gaps: All establishments (91,210)
Base retention difficulties: All establishments in Module 2 (45,818)

91
4.10 
Conclusions 
This chapter has analysed a set of questions which are new to the Employer Skills Survey 
series and which describe a different order of skills challenge: that where employers report 
that their employees have skills and qualifications that are in excess of those that they need 
to perform in their job role. 
Where this sort of misalignment occurs, it may speak to a need for employers to reorganise 
how they offer work to their employees, particularly where they are more likely to also 
experience skills gaps or staff retention problems.  
In the next chapter we look at skills development, and employers’ practices in terms of 
funding and arranging training to develop the skills of their workforce. 
 
 
 

92
5 
Training and workforce development 
5.1 
Chapter Summary 
There was little change in the headline training measures between 2015 and the 2013 
survey.  
It remained the case that two-thirds of employers (66 per cent) had funded or arranged 
training or development for their staff over the previous 12 months, with around half 
providing any off-the-job training (49 per cent) or on-the-job training (53 per cent). The 
proportion of staff being trained in 2015 was also in line with 2013 (63 per cent compared 
to 62 per cent) as was the average number of days training per trainee over the period (6.8 
days, compared to 6.7 days in 2013). Similarly, the proportion of employers that had 
provided any training intended to lead to nationally recognised qualifications remained 
unchanged at 31 per cent. 
There was, however, an increase in the volume of training, measured in terms of the 
total number of training days provided in the previous 12 months. This rose to 118m 
days in 2015, compared to 113m in 2013 and 115m in 2011. 
This increase in the volume of training largely reflected a combination of increased levels 
of employment and increased recruitment activity. 
While the proportion of the workforce receiving training and the average number of training 
days they each received remained unchanged between 2013 and 2015, the size of the 
workforce increased, meaning that there was a four per cent increase in the number of 
employees trained (from 16.8m to 17.4m). 
The increase in training days may be related to increased recruitment activity, and a 
consequent increase in induction training. The proportion of training employers that 
provided any induction training rose considerably (from 58 per cent of employers that 
trained in 2013 to 68 per cent in 2015), as did the proportion of training employers for whom 
induction or health and safety training accounted for at least half their training (from 27 per 
cent to 32 per cent).  
Total employer expenditure on training increased by six per cent between 2013 and 
2015, from £43.0bn to £45.4bn, more than reversing the decrease recorded between 
2013 and 2011 (when the figure stood at £43.8bn). While total expenditure in 2015 was 
greater, investment per person trained and per employee remained similar in 2015 to 2013 
and 2011. 

93
Use of online training or e-learning and of other self-learning was common among 
training employers (45 per cent and 38 per cent respectively). These types of training were 
also generally increasing, particularly online training and e-learning (39 per cent of those 
using this method at all in the last two years reporting an increase over the last 12 months, 
compared with 18 per cent using it less). 
Close to a half of employers that trained (46 per cent) wanted to provide more training than 
they had been able to do, with the main barriers being a lack of time and a lack of funds for 
further training. These reasons suggest that for some businesses, there is a ‘ceiling’ to the 
value they place on training, beyond which the training does not provide an adequate return 
to their investment, or at least is not perceived to. 
 
 

94
5.2 
Introduction 
Training staff in the workplace is widely recognised as a key means to improving skills and 
productivity thereby maintaining and improving competitiveness and stimulating economic 
growth30. In Chapter 3, we saw that increasing training activity was the most common 
employer response to attempt to tackle skills gaps among their workforce. This chapter 
examines trends in employer training activity since 2011, looking at: 
• Which employers funded or arranged training and development for their employees. 
• How many and which employees they provided training for. 
• The types and amount of training provided. 
• Employer expenditure on training31. 
• Reasons for not providing training and barriers to providing more training. 
Throughout the chapter the training or development provided by employers is discussed in 
terms of: 
• 
Off-the-job training or development: training undertaken away from the individual’s 
immediate work position, whether on the employer’s premises or elsewhere. 
• 
On-the-job training and development: activities that would be recognised as training 
by staff, and not the sort of learning by experience which could take place all the time. 
 
 
 
                                                 
30 For example, the first line of the Government’s The Future of Apprenticeships in England: Implementation Plan (HM 
Treasury, 2013a) describes Apprenticeship training as ‘central to raising our nation’s skills and delivering strong returns for 
the economy’. 
31 Results for this aspect of the research are derived from the Investment in Training follow-up study with a proportion of the 
ESS 2015 sample (see the accompanying Technical Report for details of the methodology). 

95
5.3 
Incidence of training and workforce development 
Two-thirds of employers (66 per cent) had arranged or funded any type of training (whether 
off- or on-the-job) for any of their staff in the previous 12 months. Similar proportions had 
provided off-the-job (49 per cent) as on-the-job training (53 per cent). Just over a third had 
provided both (35 per cent of all employers), as Figure 5.1 shows. 
Around one in six employers (17 per cent) had provided only on-the-job training in the last 
12 months. This was the same level as in 2013, though lower than in 2011 (19 per cent). 
Generally, however, the incidence of training changed very little in the 2011 to 2015 period. 
Figure 5.1 Training provision over the last 12 months  
 
Employers in Scotland were the most likely to have provided any training in the previous 
12 months (71 per cent, compared with a range of 62 to 66 per cent in the other nations). 
While they were more likely to have provided either form of training than elsewhere in the 
UK, the difference was particularly marked in the delivery of on-the-job training.  
Although the pattern of incidence of training by nation had changed little from 2013 and 
2011, the proportion of employers in Wales providing any off-the-job training in 2015 
increased to half (49 per cent), compared to 47 per cent in 2013 and 2011. 
53%
52%
49%
58%
49%
49%
48%
47%
52%
49%
66%
66%
62%
71%
63%
UK
2015
England
2015
Northern
Ireland
2015
Scotland
2015
Wales
Train on-the-job
Train off-the-job
Train
Base : All 
establishments 
(unweighted)
(75,129)
(4,019)
(6,035)
(6,027)
(91,210)
17%
17%
15%
20%
14%
Train on-the-job only

96
The likelihood of providing training increased with employer size. Among the smallest sites 
employing 2-4 staff, half had provided any training (51 per cent). This increased to over 
three-quarters (78 per cent) among those with 5 to 24 staff. Provision of any training was 
almost universal in larger establishments (93 per cent among those with 25-99 staff and 96 
per cent among those with 100 or more employees).  
Just over half of employers that trained (54 per cent) arranged a combination of both off- 
and on-the-job training in the last 12 months. Small establishments that trained were less 
likely to offer both forms of training than larger employers, with around two-fifths among 
those with 2-4 staff (42 per cent) doing so, rising to over four-fifths (83 per cent) among 
those with 100 or more employees. 
As in 2013 and 2011, employers in Education, Public Administration, and Health and Social 
Work were the most likely to provide any training (93, 90 and 88 per cent respectively), and 
those in Agriculture the least likely (50 per cent). Employers providing training in Wholesale 
and Retail and in Hotels and Restaurants were more likely to provide only on-the-job 
training (each 36 per cent, compared against 26 per cent among all training employers). 
More data on the incidence of training, and how this varied by country, size and sector, and 
between 2011 and 2015, can be found in Tables A.5.1 and A.5.2 in Annex A.  
5.4 
Number of staff trained 
Employers had trained around 17.4m staff in the previous 12 months, a four per cent 
increase from 2013 (16.8m). This figure was equivalent to nearly two-thirds of the 
workforce32 (63 per cent), a similar level to 2013 (62 per cent) but higher than 2011 (55 per 
cent).  
Table 5.1 shows the number and proportion of staff trained by country and size for 2011, 
2013 and 2015. 
 
 
                                                 
32 The figure involves an element of over counting in that employers are asked about the number of staff they trained over 
the last 12 months whether or not they still work at the site. Hence someone who was trained at a site in the last 12 months 
but who left to join another employer who provided that person with training would be counted twice (if both employers 
were interviewed for the survey). 

97
Table 5.1 Number and proportion of staff trained over the last 12 months, by country and 
establishment size  
 
2011 
2013 
2015 
 
Number 
trained 
% of staff 
trained 
Number 
trained 
% of staff 
trained 
Number 
trained 
% of staff 
trained 
UK 
14.7m 
55 
16.8m 
62 
17.4m 
63 
Country 
 
 
 
 
 
 
England 
12.3m 
54 
14.1m 
62 
14.7m 
63 
Northern Ireland 
0.4m 
56 
0.4m 
59 
0.5m 
64 
Scotland 
1.4m 
58 
1.5m 
65 
1.5m 
62 
Wales 
0.7m 
56 
0.7m 
62 
0.8m 
64 
Size 
 
 
 
 
 
 
2-4 
1.0m 
40 
1.0m 
41 
1.0m 
43 
5 to 24 
3.4m 
53 
3.5m 
54 
3.7m 
56 
25-49 
2.0m 
59 
2.1m 
63 
2.3m 
65 
50-99 
2.0m 
59 
2.3m 
66 
2.3m 
66 
100-249 
2.4m 
60 
2.7m 
68 
2.9m 
67 
250+ 
4.0m 
54 
5.2m 
71 
5.2m 
70 
Base: All establishments. Base sizes are shown in Table A.5.3 in Annex A. 
Percentages are based on all employment rather than all establishments, figures therefore show the proportion 
of all staff within each subgroup trained over the last 12 months. 
By country, the proportion of the workforce trained over the previous 12 months varied from 
62 per cent in Scotland to 64 per cent in Wales and Northern Ireland. The figure in Scotland 
represented a fall compared to the 65 per cent recorded in 2013. By contrast there were 
increases in the proportion of the workforce trained in Wales (56 per cent in 2011, 62 per 
cent in 2013 and 64 per cent in 2015) and Northern Ireland (56 per cent in 2011, 59 per 
cent in 2013 and 64 per cent in 2015).  
Large employers trained the highest proportion of their staff: 70 per cent of the workforce 
in establishments with 250 or more employees had received training in the previous 12 
months, compared with 66 per cent of the workforce in establishments with 25–249 staff, 
and 43 per cent within establishments with fewer than five employees.  
Compared with 2013 the proportion of staff trained by employers with less than 50 staff 
increased by two percentage points (with the same level of increase seen across those 
with 2-4, 5-24 and 25-49 staff). In contrast, the proportion of staff trained among those with 
50 or more staff was largely unchanged. 
There were wide differences in the proportion of staff trained by sector. Employers in Health 
and Social Work, Education, and Public Administration trained the highest proportion of 
staff (78 per cent, 75 per cent and 74 per cent respectively), while employers in Agriculture 
trained the lowest (40 per cent). 

98
The proportion of staff trained within each sector was broadly similar to 2013. The main 
differences were a fall in the proportion trained within the Electricity, Gas and Water sector 
(from 68 per cent in 2013 to 58 per cent in 2015), and increases in the proportion of the 
workforce trained over the previous 12 months in Public Administration (from 67 per cent 
to 74 per cent), Construction (from 48 per cent to 53 per cent) and Hotel and Restaurants 
(from 59 per cent to 64 per cent).  
Results for the number and proportion of staff trained by sector, in 2015, 2013 and 2011, 
are provided in Table A.5.4 in Annex A.  
By occupation, staff in Caring, Leisure and Other Services roles were the most likely to 
have received training (80 per cent), followed by Professionals and Sales and Customer 
Services staff (69 and 66 per cent respectively). Managers were least likely to have 
received training in the previous 12 months (48 per cent).  
Figure 5.2 Proportion of staff trained over the last 12 months by occupation (2011 – 2015) 
 
Percentages are based on all employment rather than all establishments, figures therefore show the proportion 
of all staff trained in each subgroup.  
Note: the figures for the proportion of staff trained have been calculated excluding those respondents unsure 
of the exact number of people trained and who did not know the number trained by occupation. 
 
 
47%
65%
59%
47%
56%
73%
57%
48%
49%
50%
70%
65%
52%
60%
81%
63%
57%
55%
48%
69%
62%
52%
58%
80%
66%
54%
56%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Managers
Professionals
Assoc.
Professionals
Admin /
clerical
Skilled
Trades
Caring,
Leisure,
Other
services
Sales &
Customer
service
Machine
operatives
Elementary
2011
2013
2015
Base : All establishments with staff in each occupation (excluding establishments where the numbers of staff trained is unknown)
Note: See Table A.5.5 in Annex A for 2011 and 2013 base sizes
(87,167)
(17,182)
(13,161)
(53,314)
(23,798)
(15,074)
(25,674)
(13,954)
(31,695)

99
5.5 
Training days 
The number of days training provided per employee over the previous 12 months varied 
widely between employers. One in nine (11 per cent) funded or arranged an average of 
one day or less per member of staff trained, while eight per cent provided an average of 20 
days or more per member of staff trained. 
Overall, across the UK as a whole, each person trained over the previous 12 months 
received on average 6.8 days of training, very similar to 2013 (6.7 days) but lower than in 
2011 (7.8 days), when a lower number and proportion of staff were trained. The number of 
training days per person trained was lowest in Northern Ireland (5.6 days per annum) and 
highest in Wales (7.2 days), with England and Scotland close to the UK average (6.8 days 
and 6.7 days respectively). 
It continued to be the case that larger establishments offered fewer days training per person 
trained. The average number of training days per person trained falls from 10.1 amongst 
those with fewer than five employees and 8.5 days among those with 5-24 staff, to less 
than 5 days amongst those with 250 or more employees. 
Table 5.2 summarises results in 2011, 2013 and 2015 on training days by country and size. 
Table 5.2 Total training and development days, and days per person trained and per 
employee by country and establishment size (2011 - 2015) 
 
2011 
2013 
2015 
 
Total 
training 
days 
Days 
per 
person 
trained 
Days per 
employee 
Total 
training 
days 
Days 
per 
person 
trained 
Days per 
employee 
Total 
training 
days 
Days 
per 
person 
trained 
Days per 
employee 
UK 
115m 
7.8 
4.2 
113m 
6.7 
4.2 
118m 
6.8 
4.2 
Country 
 
 
 
 
 
 
 
 
 
England 
97m 
7.9 
4.3 
95m 
6.7 
4.2 
100m 
6.8 
4.3 
Northern 
Ireland 
3m 
6.3 
3.5 
3m 
6.3 
3.7 
3m 
5.6 
3.6 
Scotland 
10m 
7.3 
4.2 
10m 
6.7 
4.3 
10m 
6.7 
4.2 
Wales 
5m 
7.5 
4.2 
6m 
7.7 
4.8 
5m 
7.2 
4.6 
Size 
 
 
 
 
 
 
 
 
 
2-4 
10m 
10.5 
4.2 
11m 
10.7 
4.4 
10m 
10.1 
4.3 
5-24 
30m 
9.0 
4.7 
29m 
8.3 
4.5 
32m 
8.5 
4.7 
25-49 
17m 
8.4 
4.9 
15m 
7.3 
4.6 
17m 
7.7 
5.0 
50-99 
16m 
8.1 
4.8 
15m 
6.7 
4.4 
17m 
7.5 
5.0 
100-249 
16m 
6.6 
4.0 
17m 
6.3 
4.3 
16m 
5.6 
3.8 
250+ 
25m 
6.4 
3.4 
26m 
5.0 
3.5 
25m 
4.8 
3.4 
Base: All establishments that train (though ‘days per employee’ is based upon employment across 
all establishments). Base sizes are shown in Table A.5.6 in Annex A. 

100 
In 2015 there was an increase in the total number of training days provided in the UK over 
the previous 12 months (118m, up from 113m in 2013). This was largely driven by an 
increase in the number of training days reported by employers in England. Table A.5.7 in 
Annex A provides detailed findings on the training days provided by country, size and 
sector of employer. 
Across the whole workforce, the total number of days training provided in the previous 12 
months was equivalent to 4.2 days training per employee, the same figure as in 2013 and 
2011. The figure was highest for employees in establishments with 25-99 staff (5.0 days 
per employee) and lowest for those in establishments with 100 or more employees (3.5 
days). Mid-size employers with 25-99 staff appeared to be particularly important for 
developing the skills of the UK’s workforce: although they employed 25 per cent of the 
workforce, mid-sized employers accounted for 29 per cent of the total training days 
provided by employers to staff. 
Some of the sector level trends seen in 2013 continued in 2015. The number of days 
training provided to each person trained continued to be highest in the Hotels and 
Restaurants sector (an average of 10.5 days). This, alongside the aforementioned increase 
in the proportion of staff trained in the sector, led to an increase in total training days 
provided by the sector from 10 million to 13 million. 
In Public Administration, while the proportion of the workforce trained increased (from 61 
per cent in 2011 and 67 per cent in 2013 to 74 per cent in 2015), the average number of 
days training provided per person trained continued to fall sharply (from 9.9 days in 2011 
to 7.7 days in 2013 to 5.2 days in 2015). Coupled with falling employment in the sector this 
meant the total number of training days provided in this sector also continued to fall (from 
9m in 2011 and 7m in 2013 to 5m in 2015). Conversely, in Health and Social Work the total 
number of training days provided continued to increase (18m in 2011, 19m in 2013 and 
21m in 2015).  
Results by sector for the total number of training and development days, and days per 
person trained and per employee for 2015, 2013 and 2011 can be found in Table A.5.8 in 
Annex A. 
 
 
 

101 
5.6 
Types of training provided 
The most common type of training provided was job-specific, aimed at developing the skills 
of a particular occupation or job role (provided by 85 per cent of employers that trained). A 
majority of training employers had also funded or arranged health and safety / first aid 
training (75 per cent) and basic induction training for new staff (66 per cent). Results are 
shown in Figure 5.3.  
Figure 5.3 Types of training provided over the last 12 months by employers that train 
(prompted)  
 
The proportion of training employers delivering each type of training was similar to 2013, 
though there were small increases (of two percentage points in each case) in the 
proportions providing management training (37 per cent) and supervisory training (36 per 
cent).  
While asked as a single item in 2013, in 2015 ‘induction training’ was split into ‘basic 
induction training’ and ‘more extensive induction training’; therefore, caution should be 
used when comparing the results with previous years. However, there was an increase in 
any induction training (68 per cent, up from 58 per cent in 2013). Many more employers 
had provided basic than more extensive induction training (66 and 37 per cent of training 
employers respectively).  
36%
37%
37%
49%
66%
75%
85%
Supervisory training
Management training
More extensive induction
Training in new technology
Basic induction
Health and safety / first aid training
Job specific training
Base : All establishments that train (2015: 69,541)
Any induction 
training:
68%

102 
The increase in induction training is likely to reflect the substantial increase in recruitment 
activity reported in Chapter 2. Among employers that provided training and had recruited 
within the last 12 months, the majority (88 per cent) had provided some form of induction 
training, compared with a third (34 per cent) of training employers that had not recruited33. 
Induction training and health and safety / first aid training is often undertaken because it is 
a legislative requirement (rather than to develop the skills of the workforce). The UK 
Employer Skills Survey series has therefore asked employers what proportion of their 
training over the previous 12 months involved these types of training. 
For a third of employers that trained (32 per cent), induction or health and safety training 
accounted for at least half of their training. This was an increase on 2013 (27 per cent) and 
2011 (29 per cent). Similarly, the proportion of employers saying all their training in the last 
12 months was induction or health and safety training increased (from seven per cent in 
2011, to nine per cent in 2013 to 11 per cent in 2015). 
Employers in Northern Ireland were more likely than elsewhere in the UK to say induction 
or health and safety training accounted for all their training (18 per cent) or at least half of 
their training (39 per cent).  
By sector, training employers in Hotels and Restaurants and in Construction were the most 
likely to say all their training in the last 12 months had been induction or health and safety 
training (each 17 per cent).  
A detailed breakdown of the proportion of training that was health and safety or induction 
in 2015 by country, and at UK level for 2011 and 2013, is provided in Table A.5.9 in Annex 
A. 
Among employers that trained, larger employers (with 25 or more employees) were more 
likely to have provided each of the types of training listed in Figure 5.3 in the previous 12 
months, with this particularly the case for basic induction, management and supervisory 
training (92, 66 and 62 per cent respectively; among those with fewer than five staff the 
comparative figures were 46, 24 and 24 per cent).  
Management training was most common among Education employers that trained (58 per 
cent), while supervisory training was particularly common among training employers in 
Hotels and Restaurants (51 per cent); Agriculture employers that provided training were 
the least likely to offer each of these types of training (14 per cent and 16 per cent 
respectively).  
                                                 
33 Induction training provided by employers that had not recruited in the previous 12 months may cover induction training 
for those recruited more than 12 months ago, or for internal transfers or promotions. 

103 
Over three-fifths of training employers within Transport and Communications (65 per cent) 
and Public Administration (61 per cent) had provided training in new technology. Those in 
the Hotels and Restaurants sector were least likely to have provided this type of training 
(34 per cent). 
More details of types of training provided by sector, as well as by country and establishment 
size, are provided in Table A.5.10 in Annex A. 
5.7 
Training to qualifications 
In addition to measuring the quantity and specific type of training provided, the survey also 
sought to provide other means of assessing its quality, namely by examining the extent to 
which training was designed to lead to nationally recognised qualifications. 
Just under half of employers that trained over the last 12 months had funded or arranged 
any training that was intended to lead to a nationally recognised qualification (47 per cent, 
equivalent to 31 per cent of all employers). More than half (57 per cent) of those training to 
nationally recognised qualifications had done so to level 3 or above (equivalent to 27 per 
cent of establishments that had trained, and 18 per cent of all employers). This mirrors 
findings from 2013, as shown in Table 5.3. 
Employers reported that 3.5m staff were trained towards a nationally recognised 
qualification over the previous 12 months. Again this was broadly similar to the numbers in 
2013 (3.6m) and 2011 (3.3m). This means that a fifth (20 per cent) of staff who were trained 
in the previous 12 months had received training that was intended to lead to a nationally 
recognised qualification, slightly lower than in 2011 (22 per cent) and 2013 (21 per cent). 
This was equivalent to 12 per cent of all employees being trained to a nationally recognised 
qualification over the previous 12 months. 
 
 

104 
Table 5.3 Training to nationally recognised qualifications over the previous 12 months  
 
2011 
2013 
2015 
 
 
2015 
 
 
 
All employers: 
Employers that train: 
 
UK 
UK 
UK 
UK 
England Northern 
Ireland 
Scotland Wales 
 
% 
% 
% 
% 
% 
% 
% 
% 
Trained any staff to 
a qualification 
30 
31 
31 
47 
47 
43 
44 
54 
 
Trained any to: 
Level 1 
6 
6 
6 
9 
8 
6 
10 
12 
Level 2 
10 
11 
11 
17 
18 
12 
11 
20 
Level 3 
11 
12 
12 
18 
18 
14 
13 
20 
Level 4 or above 
8 
10 
9 
14 
14 
16 
13 
18 
 
 
 
 
 
 
 
 
 
Number trained to a 
qualification 
3.3m 
3.6m 
3.5m 
3.5m 
3.0m 
0.1m 
0.3m 
0.2m 
 
 
 
 
 
 
 
 
 
Of staff trained, the 
% trained to a 
qualification over 
the last 12 months 
22 
21 
20 
20 
20 
15 
18 
21 
 
 
 
 
 
 
 
 
 
Of all employees, % 
trained to a 
qualification over 
the last 12 months 
12 
13 
12 
12 
13 
10 
11 
13 
Base: Columns 1-3 ‘All establishments’, columns 4 to 8 ‘Establishments that train’; Base sizes are shown in 
Tables A.5.3 and A.5.6 in Annex A. 
Note: the row ‘number trained to a qualification’ shows how many individuals were undertaking training leading 
to nationally recognised qualifications in the 12 months prior to interview, not how many staff had achieved 
these qualifications. 
Note also in the final row the base for the number of employees is all employers not just employers that train. 
In line with 2013 and 2011, the proportion of employers training to nationally recognised 
qualifications was below the UK average in Northern Ireland and Scotland, and above 
average in Wales. 
In the previous 12 months, 13 per cent of all employees in Wales and 10 per cent of all 
employees in Northern Ireland had been trained to a nationally recognised qualification (the 
lowest of the four nations). While this proportion was unchanged in Northern Ireland since 
2013, the proportion trained to a nationally recognised qualification in Wales in the last 12 
months was five percentage points lower. 
Table A.5.11 in Annex A details the incidence and extent of provision of training leading to 
qualifications by size and sector. This shows that the proportion of employees trained to a 
qualification was highest in mid-size establishments with between five and 99 employees, 
with a peak in the 25-49 group. While employers with 5-99 staff employed just under half 
(49 per cent) of the total UK workforce, they employed more than half (56 per cent) of all 
UK workers who were trained to a qualification in the previous 12 months. 

105 
Employers in sectors that trained the most were also the most likely to have offered training 
leading to a qualification: Health and Social Work (65 per cent), Education (65 per cent) 
and Public Administration (62 per cent). Health and Social Work employers also offered 
training leading to a qualification to a higher proportion of their workforce than in any other 
sector (23 per cent). Education employers on the other hand were below the UK average 
in terms of the proportion of their workforce offered training leading to a qualification (10 
per cent, compared to the UK average of 12 per cent). 
5.8 
Online / e-learning and other self-learning 
The 2013 study reported reduced employer expenditure on training compared with 2011. 
This and other findings supported theories, suggested for example in ‘Training in 
Recession: The impact of the 2008-2009 recession on training at work’ (Felstead et al., 
2013), that the recession had led to employers ‘training smarter’ with increased emphasis 
on in-house training, training employees to train others, reduced use of external providers 
and enhanced use of e-learning.  
To explore this issue, new questions were added in 2015 asking employers if they had 
arranged or funded any training in the last 12 months using either online training or e-
learning, or any other self-learning where the employee does the learning at a time of their 
own choosing. They were also asked if their use of these training approaches over the last 
12 months had increased or decreased compared with the 12 months before that.  
Just under half (45 per cent) of employers that provided training had used online training 
or e-learning in the previous 12 months34. Use of this type of training was less common in 
Wales (43 per cent) and particularly low in Northern Ireland (34 per cent), as Table 5.4 
shows. 
Likelihood of providing online training or e-learning increased with size, rising from a third 
of training establishments with 2 to 4 employees (35 per cent) to over three-quarters of 
establishments with 250 or more employees (78 per cent). 
 
 
                                                 
34 This might include training that is completely online, or that had a significant online element 

106 
Table 5.4 Provision of online training or e-learning over the past 12 months by country and 
establishment size 
 
Unwtd 
Base 
Used online training in 
last 12 months 
Unwtd 
Base 
Online training 
increased 
Online training 
decreased 
 
 
% 
 
% 
% 
UK 
69,541 
45 
39,695 
39 
18 
Country 
 
 
 
 
 
England 
57,422 
45 
33,257 
39 
18 
Northern Ireland 
2,869 
34 
1,268 
38 
22 
Scotland 
4,894 
44 
2,805 
40 
17 
Wales 
4,356 
43 
2,365 
40 
19 
Size 
 
 
 
 
 
2-4 
10,317 
35 
4,212 
35 
22 
5 to 24 
39,461 
47 
21,708 
40 
17 
25-49 
10,742 
61 
7,195 
43 
13 
50-99 
5,547 
62 
3,892 
41 
14 
100-249 
2,584 
70 
1,965 
42 
12 
250+ 
890 
78 
723 
44 
9 
Base: All establishments that provided training / all establishments that have provided any online 
training or e-learning in the last two years 
On balance, the use of online training or e-learning appears to have been increasing over 
the last two years. Two-fifths (39 per cent) indicated its use had increased in the previous 
12 months compared with the 12 months before that, compared with just under one-fifth 
(18 per cent) that reported using less online training or e-learning. 
The smallest establishments with 2 to 4 employees that had offered online training were 
the most likely to say its use had decreased (22 per cent, exactly twice the level found 
among those with 100 or more employees). 
Use of online or e-learning varied widely by sector, and was particularly high in Financial 
Services, Public Administration, Education and Health and Social Work. Employers that 
had offered online training within the last two years were most likely to say its recent use 
had increased if they worked in Public Administration (44 per cent), Wholesale and Retail 
(43 per cent), Manufacturing (42 per cent) and Health and Social Work (42 per cent). Figure 
5.4 shows results by sector. 
 
 

107 
Figure 5.4 Use of online training and e-learning, and changes in use, by sector 
 
Nearly two-fifths (38 per cent) of employers that trained in the previous 12 months said they 
had provided other self-learning (i.e. besides online or e-learning) where the employee did 
the training at a time of their own choosing35. 
Provision of self-learning varied little by country as shown in Table 5.5 overleaf. 
Larger training employers were more likely to have offered other self-learning: nearly two-
thirds (62 per cent) of those with 100 or more employees had done so, compared with just 
under a third (32 per cent) of those with 2 to 4 employees. 
 
 
 
                                                 
35 The questionnaire did not specify whether this time was within or outside of the employee’s contracted work hours 
18%
12%
16%
15%
24%
15%
22%
17%
19%
24%
23%
11%
19%
37%
39%
44%
43%
42%
42%
40%
41%
38%
37%
37%
37%
36%
36%
28%
All
Public Admin.
Wholesale and Retail
Health and Social Work
Manufacturing
Hotels and Restaurants
Arts and Other Services
Education
Business Services
Electricity, Gas and Water
Construction
Financial Services
Transport, Storage and Comms
Agriculture
Decrease
Increase
Base : All establishments that delivered training in last 12 months; all establishments that delivered online training within the last two years
Note: See Table A.5.12 in Annex A for base sizes by sector. Chart is ordered by level of increase in descending order.
67%
41%
62%
71%
49%
65%
29%
35%
48%
43%
35%
30%
14%
45%
% offering online training 
in last 12 months

108 
Table 5.5 Provision of other self-learning over the previous 12 months by country and 
establishment size 
 
Unwtd 
Base 
Used other self-
learning in last 12 
months 
Unwtd 
Base 
Other self-
learning 
increased 
Other self-
learning 
decreased 
 
 
% 
 
% 
% 
UK 
69,541 
38 
35,783 
29 
23 
Country 
 
 
 
 
 
England 
57,422 
39 
29,864 
30 
23 
Northern Ireland 
2,869 
35 
1,324 
24 
27 
Scotland 
4,894 
36 
2,449 
29 
25 
Wales 
4,356 
37 
2,146 
30 
24 
Size 
 
 
 
 
 
2-4 
10,317 
32 
4,127 
28 
26 
5 to 24 
39,461 
39 
19,022 
29 
23 
25-49 
10,742 
51 
6,458 
34 
20 
50-99 
5,547 
56 
3,660 
32 
19 
100-249 
2,584 
60 
1,836 
31 
19 
250+ 
890 
65 
680 
29 
18 
Base: All establishments that provided training / all establishments that have provided any other 
(non-online training or e-learning) self-learning in the last two years 
Following a similar pattern to online training, training employers in Public Administration, 
Education, Health and Social Work (each 55 per cent) and Financial Services (54 per cent) 
were the most likely to have provided other self-learning for their employees. Employers in 
Agriculture were the least likely to have provided other self-learning (20 per cent), and self-
learning was less common among employers that trained in the Manufacturing, Electricity, 
Gas and Water, and Construction sectors (24, 27, and 25 per cent respectively). 
Among employers that had offered any other self-learning in the past two years, slightly 
more (29 per cent) said its use had increased in the last 12 months than said its use had 
decreased (23 per cent). Use of other self-learning was most likely to have increased 
among employers with 25 staff or more (33 per cent, though still 19 per cent of employers 
of this size said its use had decreased). 
More than half (57 per cent) of all employers that trained had provided either online training 
/ e-learning or other self-learning where the employee did the learning at a time of their 
own choosing. Patterns by nation, size and sector mirrored those seen among employers 
providing each of the individual training types. 
Table A.5.12 in Annex A provides a detailed breakdown of figures on provision of online 
training or e-learning and other self-learning by country, size and sector. 
 
 
 

109 
5.9 
Investment in Training  
Employer expenditure on training and development over the previous 12 months was 
£45.4bn. As well as such elements as fees to external providers and expenditure on 
equipment or materials (which comprised a relatively small proportion of overall employer 
investment in training), a substantial proportion of this expenditure covered the wages of 
staff while being trained, and of staff delivering training. (How total training expenditure 
breaks down into the constituent parts is examined in Table 5.7 later in this chapter.)  
The 2015 spend of £45.4bn was a six per cent increase on the £43.0bn spend in 2013, and 
a four per cent increase on the 2011 figure of £43.8bn36.  
Employers’ total investment in training was equivalent to around £2,610 per person trained 
and £1,640 per employee. Although a slight increase on 2013, these figures were in line 
with 2011 (see Table 5.6). This is due to the fact that, although overall spend in 2015 was 
higher than in 2011, the numbers in employment and the number trained also both 
increased, as discussed earlier.  
 
 
                                                 
36 It is worth noting that here, and throughout this chapter, training expenditure figures for 2011 and 2013 have not been 
adjusted for inflation. Additionally, In 2015 a new weighting strategy was implemented to further increase the accuracy of 
the training spend estimates; this new weighting strategy has also been retrospectively applied to both the 2011 and 2013 
data files, meaning some of the figures reported here for 2011 and 2013 may differ slightly from the original reports. A full 
explanation of the new weighting strategy, the rationale behind it, as well as revised figures for training spend by country, 
are presented in a separate publication. 

110 
Table 5.6 Total training expenditure and spend per person trained and per employee (2011 
to 2015) 
 
2011 
2013 
2015 
 
Total 
Spend per 
person trained 
Spend per 
employee 
Total 
Spend per 
person trained 
Spend per 
employee 
Total 
Spend per 
person trained 
Spend per 
employee 
 
£ 
£ 
£ 
£ 
£ 
£ 
£ 
£ 
£ 
UK 
43.8bn 
3.0k 
1.6k 
43.0bn 
2.6k 
1.6k 
45.4bn 
2.6k 
1.6 
Size 
 
 
 
 
 
 
 
 
 
2-4 
5.5bn 
5.7k 
2.3k 
5.6bn 
5.7k 
2.3k 
5.9bn 
5.8k 
2.5k 
5-24 
12.0bn 
3.6k 
1.9k 
12.7bn 
3.6k 
2.0k 
14.1bn 
3.8k 
2.1k 
25-49 
6.1bn 
3.1k 
1.8k 
6.4bn 
3.0k 
1.9k 
6.3bn 
2.8k 
1.8k 
50-99 
5.5bn 
2.7k 
1.6k 
5.5bn 
2.5k 
1.6k 
6.5bn 
2.8k 
1.9k 
100+ 
14.7bn 
2.3k 
1.3k 
12.7bn 
1.6k 
1.1k 
12.7bn 
1.6k 
1.1k 
Sector 
 
 
 
 
 
 
 
 
 
Agriculture 
1.1bn 
7.8k 
3.0k 
0.4bn 
2.7k 
1.1k 
0.6bn 
3.6k 
1.4k 
Manufacturing 
3.4bn 
3.0k 
1.4k 
2.6bn 
2.2k 
1.1k 
3.2bn 
2.6k 
1.3k 
Electricity, Gas & 
Water 
0.3bn 
1.9k 
1.0k 
0.3bn 
1.5k 
1.0k 
0.7bn 
4.0k 
2.3k 
Construction 
2.5bn 
3.6k 
1.8k 
2.4bn 
4.1k 
2.0k 
2.5bn 
4.1k 
2.2k 
Wholesale & 
Retail 
5.1bn 
2.2k 
1.2k 
6.5bn 
2.6k 
1.5k 
5.1bn 
2.1k 
1.1k 
Hotels & 
Restaurants 
3.0bn 
3.2k 
1.7k 
2.7bn 
2.5k 
1.5k 
3.3bn 
2.7k 
1.7k 
Transport and 
Comms 
3.1bn 
3.3k 
1.5k 
3.3bn 
2.8k 
1.5k 
3.4bn 
2.7k 
1.5k 
Financial Services 1.5bn 
2.4k 
1.4k 
1.3bn 
1.9k 
1.3k 
1.6bn 
2.3k 
1.7k 
Business Services 8.3bn 
3.7k 
1.9k 
8.5bn 
3.2k 
1.9k 
9.8bn 
3.4k 
2.1k 
Public Admin. 
3.1bn 
3.3k 
2.0k 
2.1bn 
2.2k 
1.5k 
1.9bn 
2.0k 
1.4k 
Education 
4.9bn 
3.0k 
1.9k 
5.4bn 
2.8k 
2.1k 
4.6bn 
2.3k 
1.7k 
Health & Social 
Work 
5.2bn 
2.3k 
1.5k 
5.1bn 
1.8k 
1.4k 
6.1bn 
2.1k 
1.6k 
Arts and other 
services 
2.3bn 
3.4k 
1.9k 
2.3bn 
3.0k 
1.9k 
2.6bn 
3.4k 
2.1k 
Base: Establishments completing the Investment in Training study (UK 2011: 11,027; 2013: 12,522; 2015: 
12,614). Base sizes for size and sector can be found in Table A.5.13 in Annex A. 
As in 2011 and 2013, training spend per person trained and per employee decreased with 
employer size, with smaller employers reporting higher spends. While the smallest 
employers with 2 to 4 staff provided approximately twice as many training days per person 
trained as those with 100 or more employees (10.1 days per annum compared with 5.1 
days), they spent more than three and a half times as much per person trained per annum 
(£5,810 per person trained, compared with £1,570 among employers with 100 or more 
staff). This pattern is likely to reflect economies of scale for larger employers. 

111 
As shown in Table 5.6 the increase in total employer training expenditure from 2013 to 
2015 was mainly a result of increases in expenditure among those with 5 to 24 staff, and 
those with 50-99 staff. In both cases expenditure was also higher than in 2011. Among the 
largest employers with 100 or more staff, overall training spend as well as spend per trainee 
and per employee remained at 2013 levels, below the levels reported in 2011. 
Although overall training expenditure changed little from 2013 to 2015, there were quite 
considerable changes within certain sectors. As shown in Table 5.6 there have been quite 
large increases in total training expenditure within: 
• Electricity, Gas and Water sector (expenditure in 2015 was more than double the 
2013 level). 
• Agriculture (an increase of 35 per cent). 
• Hotels and Restaurants (a 25 per cent increase since 2013). 
• Financial Services (a 24 per cent increase). 
• Health and Social Work (a 19 per cent increase). 
• Business Services (a 15 per cent increase).  
Decreases in total training expenditure from 2013 to 2015 occurred within the following 
sectors: 
• Wholesale and Retail (21 per cent fall, in contrast to the increase between 2011 and 
2013). 
• Education (16 per cent fall, continuing the trend from 2013). 
• Public Administration (nine per cent fall, continuing the trend from 2013). 
As shown in Table 5.7, the overall composition of training expenditure remained similar to 
2013, with an even split between spend on off-the-job training versus on-the-job training.  
The increase in total training expenditure was predominantly the result of higher 
expenditure on off-the-job training (from £21.3bn in 2013 to £22.9bn in 2015), and 
particularly spend on training management37 (from £6.5bn in 2013 to £7.7bn in 2015). Fees 
to external providers for off-the-job training were slightly down, from £2.4bn in 2013 to 
£2.2bn. 
                                                 
37 This involves the internal cost of providing, administering or making policy decisions about training off-the-job training.   

112 
There was also an increase in spend on on-the-job training (from £21.7bn in 2013 to 
£22.6bn in 2015), driven entirely by an increase in labour costs of those providing the 
training (from £7.7bn in 2013 to £8.7bn in 2015). 
Table 5.7 Total training expenditure broken down by individual components (2011 to 2015) 
 
2011 
2013 
2015 
Unweighted Base: 
11,027 
 
12,522 
 
12,614 
 
 
£bn 
% 
£bn 
% 
£bn 
% 
Total training expenditure 
£43.8bn 
100 
£43.0bn 
100 
£45.4bn 
100 
Off-the-job training: total 
£21.1bn 
48 
£21.3bn 
50 
£22.9bn 
50 
 
 
 
 
 
 
 
Off-the-job training: Course-
related: total 
£17.6bn 
40 
£17.9bn 
42 
£19.7bn 
43 
Trainee labour costs 
£4.7bn 
11 
£5.2bn 
12 
£5.4bn 
12 
Fees to external providers 
£2.7bn 
6 
£2.4bn 
6 
£2.2bn 
5 
On-site training centre 
£2.9bn 
7 
£2.7bn 
6 
£3.0bn 
7 
Off-site training centre (in the 
same company) 
£0.6bn 
1 
£0.5bn 
1 
£0.7bn 
2 
Training management 
£6.1bn 
14 
£6.5bn 
15 
£7.7bn 
17 
Non-training centre 
equipment and materials 
£0.4bn 
1 
£0.4bn 
1 
£0.4bn 
1 
Travel and subsistence 
£0.4bn 
1 
£0.4bn 
1 
£0.4bn 
1 
Levies minus grants 
-£0.3bn 
-1 
-£0.2bn 
-* 
£-0.2bn 
-* 
Off-the-job training: other 
(seminars, workshops etc.): 
total 
£3.5bn 
8 
£3.4bn 
8 
£3.2bn 
7 
Trainee labour costs 
£2.5bn 
6 
£2.5bn 
6 
£2.3bn 
5 
Fees to external providers 
£1.0bn 
2 
£0.9bn 
2 
£0.8bn 
2 
On-the-job training: Total 
£22.7bn 
52 
£21.7bn 
50 
£22.6bn 
50 
Trainee labour costs 
£14.2bn 
32 
£14.0bn 
33 
£13.9bn 
31 
Trainers' labour costs 
£8.6bn 
20 
£7.7bn 
18 
£8.7bn 
19 
Base: Establishments completing the Investment in Training study 
The wages of staff being trained (trainee labour costs) accounted for half (48 per cent) of 
all training expenditure (similar to the 50 per cent in 2013 and 49 per cent in 2011). The 
wages / salaries of those providing on-the-job training also accounted for around a fifth (19 
per cent) of total training expenditure, in line with 2013 (18 per cent). In comparison 
relatively little was spent on payments to external training providers (seven per cent of total 
investment in training, similar to the eight per cent in both 2013 and 2011).  
Table 5.8 summarises results on the breakdown of training expenditure by size and sector 
of establishment. 
 
 

113 
Table 5.8: Training expenditure by size and sector, the proportion spent on off-the-job 
elements, and the breakdown of total training expenditure (both on-the-job and off-the-job) 
by key elements 
Row percentages 
Unwtd 
Base 
Expenditure 
on training 
% spent on 
off-the-job 
training 
 
Wages of 
trainees 
Wages 
of 
trainers 
Fees to 
external 
providers 
Other 
UK 
12,614 
£45.4bn 
50 
% 
48 
19 
7 
27 
Size 
 
 
 
 
 
 
 
 
2-4 
1,963 
£5.9bn 
60 
% 
35 
19 
9 
38 
5-24 
7,661 
£14.1bn 
52 
% 
44 
19 
7 
29 
25-49 
1,779 
£6.3bn 
50 
% 
48 
19 
7 
25 
50-99 
782 
£6.5bn 
46 
% 
54 
19 
5 
21 
100+ 
429 
£12.7bn 
47 
% 
54 
19 
6 
22 
Sector 
 
 
 
 
 
 
 
 
Agriculture 
260 
£0.6bn 
65 
% 
46 
17 
10 
27 
Manufacturing 
972 
£3.2bn 
48 
% 
54 
18 
7 
21 
Electricity, Gas 
& Water 
168 
£0.7bn 
64 
% 
50 
8 
6 
36 
Construction 
826 
£2.5bn 
54 
% 
40 
23 
10 
27 
Wholesale & 
Retail 
1,813 
£5.1bn 
45 
% 
45 
23 
7 
26 
Hotels & 
Restaurants 
1,273 
£3.3bn 
36 
% 
55 
21 
3 
20 
Transport and 
Comms 
1,135 
£3.4bn 
47 
% 
45 
23 
6 
26 
Financial 
Services 
344 
£1.6bn 
40 
% 
48 
27 
4 
21 
Business 
Services 
2,073 
£9.8bn 
51 
% 
46 
20 
10 
24 
Public Admin 
176 
£1.9bn 
49 
% 
52 
17 
6 
25 
Education 
678 
£4.6bn 
58 
% 
44 
15 
5 
36 
Health & Social 
Work 
1,790 
£6.1bn 
53 
% 
54 
14 
5 
27 
Arts and Other 
Services 
1,106 
£2.6bn 
60 
% 
43 
16 
5 
36 
Base: Establishments completing the Investment in Training study. 
The column ‘other’ includes such items as expenditure on training centres and on training management. 
As the size of establishment increased the proportion of total training expenditure spent on 
off-the-job training decreased, while the proportion of spend on the wages/salaries of 
people being trained increased. 
The proportion of training expenditure spent on off-the-job training also varied widely by 
sector, as follows:  
• 
It was higher than average in Agriculture (65 per cent), Electricity, Gas and Water (64 
per cent), Arts, Entertainment, Recreation and Other Service activities (60 per cent), 
Education (58 per cent), Construction (54 per cent), and Health and Social Work (53 
per cent). 

114 
• 
It was much lower than average in Hotels and Restaurants (36 per cent), Financial 
Services (40 per cent) and Wholesale and Retail (45 per cent). 
There was also wide variation by sector in the proportion of total training expenditure 
accounted for by the wages/salaries of people being trained. This was highest in Hotels 
and Restaurants (55 per cent), Health and Social Work (54 per cent) and Manufacturing 
(54 per cent), and lowest in Construction (40 per cent) and Arts, Entertainment, Recreation 
and Other Service activities (43 per cent). 
The proportion of total training expenditure spent on fees to external training providers 
varied relatively little by establishment size and sector, although it accounted for a slightly 
larger proportion among smaller employers (see Table 5.8).  
Around £0.5bn was spent by employers in the previous 12 months on fees to FE colleges 
and HEIs, equivalent to 15 per cent of total fees to external providers. This represents a 
slight increase from 2013 in terms of both total expenditure and the proportion of fees to 
external providers this accounts for (in 2013 employers spent £0.4bn with FE colleges and 
HEIs, equivalent to 13 per cent of total fees to external providers). As in 2013, results 
differed relatively little by size. By sector, a higher than average proportion of fees to 
external providers was spent on FE colleges and HEIs by employers in Education (19 per 
cent), Health and Social Work (19 per cent), Agriculture (18 per cent), and Business 
Services (17 per cent). 
Details of fees paid to FE colleges or to Universities or other Higher Education institutions 
for training is shown in Table A.5.14 in Annex A. 
 
 

115 
5.10 
Barriers and limits on training 
Approaching half of employers that had trained over the last 12 months would have liked 
to provide more training than they did (46 per cent, similar to the 47 per cent in 2013). This 
was higher among employers in Scotland and Wales (50 and 49 per cent respectively). 
Larger training employers were more likely to have wanted to provide more training than 
they were able (58 per cent of those with 100 or more staff, compared with 43 per cent of 
those with fewer than five staff). This was the same pattern as in 2013.  
As shown in Figure 5.5, the two most common reasons given by training employers for 
being unable to deliver their desired amount of training were: 
• Not having the funds to do so (52 per cent, higher at 60 per cent among those in 
Northern Ireland). This was also the main reason in 2013 though more mentioned it 
then (60 per cent). 
• Not being able to spare the time for staff to spend more time training (49 per cent, 
rising to 54 per cent among those in Scotland).  
Figure 5.5   Barriers to providing more training  
 
More data on the proportion of training employers that would have liked to provide more 
training over the previous 12 months, and the main barriers preventing them doing so, can 
be found in Table A.5.15 in Annex A. 
1%
1%
1%
1%
2%
2%
2%
2%
4%
4%
5%
14%
49%
52%
Other
Training not a management priority
Staff turnover
Decisions taken at head office
Lack of knowledge about training opportunities
Lack of provision (e.g. courses full)
Lack of good local training providers
Staff now fully proficient
Staff not keen
Difficulty finding flexible training providers
A lack of appropriate training / qualifications
Hard to find time to organise training
Unable to spare more staff time
Lack of funds for training
Base : All establishments who would have provided more training in the past 12 months if they could UK (2015: 33,281)

116 
Some employers chose not to provide any training or development for their staff in the 
previous 12 months. Figure 5.6 presents the reasons given by employers for not training 
over the previous 12 months. 
Figure 5.6   Reasons for not providing training in the previous 12 months 
 
By far the most common reason for employers not providing any training was feeling that 
they did not need to because all their staff were fully proficient (68 per cent). This reason 
was particularly common amongst small non-training employers (71 per cent of 
establishments with fewer than five staff) and employers in the Construction, Agriculture, 
Manufacturing, and Electricity, Gas and Water sectors (around three-quarters in each). 
Other reasons indicative of low demand (to the extent that training was clearly treated as 
a lower priority than more pressing day-to-day issues) included training not being a priority 
for the organisation (seven per cent), managers being too busy to organise training (two 
per cent), and employees being too busy to attend training (two per cent) or to deliver 
training (two per cent).  
Financial reasons appeared to be slightly less of a concern in 2015 than in 2013: seven 
per cent of non-training employers in 2015 said lack of funds for training was their reason 
for not training, down from 10 per cent in 2013. Lack of funds for training was more likely 
to be a barrier among non-training employers in the charity and voluntary sector (17 per 
cent) and among those in Health and Social Work (16 per cent). 
 
4%
1%
1%
1%
1%
1%
2%
2%
2%
3%
4%
5%
7%
7%
68%
Other
Courses interested in are not available locally
Business not operating long enough
Trained staff will be poached by other employers
External courses are too expensive
Training not needed due to size of establishment
Employees too busy to give training
Employees too busy to undertake training
Managers lack time to organise training
Learn by experience/Learn as you go
Any staff training arranged AND funded elsewhere
No training available in relevant subject area
No money available for training
Training not considered a priority
All staff are fully proficient / no need for training
Base : All establishments that do not provide training UK (2015: 20,719)

117 
As in 2013 perceived poor supply of training was infrequently given as the reason for not 
training: 
• 
Five per cent of non-training employers said training was not available in the subject 
area they wanted. 
• 
One per cent of non-training employers said the courses they were interested in were 
not available locally. 
There appeared to be a strong link between the skills gaps reported by employers, their 
training activity and the reasons for not training. On the one hand, employers that did not 
report any skills gaps were less likely to train than those that did (63 per cent compared 
with 85 per cent). Moreover, among non-training employers, those with no perceived skills 
gaps at the time of the interview were much more likely to say the reason for not training 
over the previous 12 months was there being no need as all their staff were fully proficient 
(70 per cent compared with 32 per cent of those with skills gaps) and less likely to give a 
number of other reasons, in particular a lack of funds for training (seven per cent compared 
with 17 per cent among non-training employers that reported having skills gaps). 
More data on the reasons for not providing training can be found in Table A.5.16 in 
Annex A. 
Figure 5.7 summarises the proportion of all employers that would have liked to have 
undertaken more training or, in the case of non-training employers, any training, over the 
previous 12 months38. It also shows the proportion that were in ‘training equilibrium’, in 
other words had no wish to have undertaken more training. Only results from 2015 are 
shown – these were all within one percentage point of those found in 2013. 
 
 
 
                                                 
38 Results for non-trainers have been determined from their reasons for not training, rather than a direct question. Those 
answering that they had not provided any training because training was not considered to be a priority for their 
establishment, because all their staff were fully proficient or they had no need for training were regarded as being in skills 
equilibrium and having no perceived need to undertake training. Those not giving any of these reasons were classified as 
wanting to have undertaken training. Additionally, training employers that answered ‘don’t know’ when asked if they would 
have liked to train more were classified as not being in training equilibrium. 

118 
Figure 5.7 Employer interest in undertaking more training over the last 12 months than they 
were able to provide 
 
Overall just over two-fifths of all employers (42 per cent) would have liked to have 
undertaken more training over the previous 12 months than they were able, exactly the 
same proportion as in 2013. 
The likelihood of not being in ‘training equilibrium’ (i.e. wanting to have undertaken more 
training over the previous 12 months) increased with establishment size (from over a third 
(36 per cent) among those with 2-4 staff, to around half for those with 5-99 staff, to three-
fifths (62 per cent) among those with 100 or more staff). 
5.11 
Other development opportunities 
It is worth noting that although this chapter has discussed the provision of formal on and 
off-the-job training, it is the case that among employers where no formal training had been 
provided in the last 12 months, most (68 per cent, equivalent to 23 per cent of all employers) 
had provided other development opportunities for their staff covering: supervision to guide 
employees through their job role, providing staff with opportunities to spend time learning 
through watching others perform their role, or allowing staff to perform tasks that go beyond 
their strict job role and providing feedback on how well they had done. 
The vast majority (93 per cent) of training employers also provided these wider 
development activities alongside formal training. 
66%
34%
46%
51%
2%
30%
70%
42%
58%
Train
Don’t train
Wanted to train
more
Do sufficient 
training
In training equilibrium
Wanted to undertake
more training
(No desire for more training)
Of non-training employers….
Of training employers….
Wanted to 
train
No training need reported
Among all 
employers….
(Base: 91,210)
(Base: 69,541)
(Base: 21,669)
(Base: All 
establishments, 
91,210)
Don’t 
know*
* Note training employers responding ‘Don’t know’ have been included in the group ‘Wanted to undertake more training’ in the final measure

119 
Data on how provision of wider development activities differed by country, sector and size 
of employer both in 2015, 2013 and 2011, and the nature of the development activity, is 
provided in Table A.5.17 in Annex A.  
5.12 
Conclusions 
Although there were quite significant changes from 2011 to 2013 in how employers 
delivered training, between 2013 and 2015 there were very few changes in key training 
measures such as the proportion of business providing training, the proportion of 
employees trained, and the average number of days training provided. This could represent 
a period of consolidation; however, given the more buoyant state of the economy in 2015 
than in earlier surveys, and the persistence of skill deficiencies among the workforce, it is 
perhaps surprising that employer training had not really increased. 
Increased employment has likely meant that the total number of staff receiving training and 
the total number of days training provided both increased by four per cent compared with 
2013. Similarly, total expenditure on training increased by six per cent compared with 2013 
(not adjusted for inflation) and returned to the level seen in 2011. However, spend per 
employee remained in line with previous years. 
There have been changes in employers’ approaches to training, with responses showing 
a high and increasing level of online training and e-learning. This suggests employers are 
moving towards training methods that offer increased flexibility and customization, 
particularly in light of the fact that job specific training continues to be the most common 
type of training offered. 
Almost half of training employers would have liked to deliver more training over the last 12 
months than they did. The most common barriers to this were ‘internal’ to the establishment 
(that is, lack of funds or time, lack of staff need or desire for training, and lack of knowledge 
about opportunities) as opposed to ‘external’ barriers (such as a lack of local training 
providers or appropriate training). 
Policy interventions seek to stimulate employer training activity not as end in itself but 
because of its impact on skills, productivity and economic prosperity. How training is 
delivered and assessed is one element which contributes to high performance within 
workplaces, and in the next chapter we explore High Performance Working, as well as the 
product market strategies that employers adopt. 
 
 
 

120 
6 
High performance working practices and 
product market strategies 
6.1 
Chapter Summary 
High Performance Working (HPW) is defined by UKCES as a general approach to 
managing organisations that aims to stimulate more effective employee involvement and 
commitment in order to achieve high levels of performance. A minority of employers 
(12 per cent) adopted 14 or more HPW practices and were thus classified as HPW 
employers. 
Product Market Strategies (PMS) are defined within the survey according to private sector 
employers’ responses to a series of questions exploring pricing strategies, approaches to 
innovation, and the nature of the product markets that establishments operate in. 
Aggregating these responses classified just under half of all private sector 
establishments as having ‘high’ or ‘very high’ product market strategies. 
Businesses that adopt HPW practices and those that pursued “very high product market 
strategies” (i.e. those who lead the way within their industry, offer premium products and 
services with a high degree of customisation and whose competitive success is not at all 
price dependent) tended to be more active in the labour market and had a more 
frequent experience of skill shortages: however, they also found it easier to fill their 
vacancies in the sense that a smaller proportion of their vacancies were hard-to-fill. 
HPW employers were also more likely to identify skills gaps in their workforce. This 
was both in terms of the proportion of establishments with at least one skills gap and the 
proportion of the workforce deemed not fully proficient in their job. These differences were 
likely a reflection of HPW employers adopting practices (such as training needs 
assessments) that would assist in identifying skills gaps in their workforce. 
The experience of skills gaps was similar across establishments, irrespective of 
their product market strategies. However, skills gaps were more likely to have been 
caused by ‘transient’ reasons (such as staff being new to the role and/or their training not 
being completed) in establishments with higher product market strategies. 
There was a clear relationship between an establishment’s PMS score and their 
provision of training – those operating at the higher end of the PMS index were more 
likely to have trained their staff and to have trained a higher proportion of their staff. 
Employers with higher product market strategies were also more likely to have provided 
training that led to nationally recognised qualifications and to qualifications that are of a 
higher level than those at the lower end. 

121 
6.2 
Introduction 
In previous chapters this report has looked at employers’ experiences of skill shortages 
and skills gaps, as well as their practices in funding and arranging training. The analysis in 
these chapters has largely focussed on how these challenges have affected employers in 
different parts of the UK, of different sizes and in different industry sectors. 
There are other ways of grouping employers to understand commonalities and differences 
between them. In this chapter we use two alternative categorisations derived from a set of 
survey questions relating to the planning, organising and performance strategies used by 
employers. These categorisations will help us to better understand what might influence 
employers’ experiences of skill shortages and skills gaps and what drives them to fund and 
arrange training for their employees. These two categorisations are: 
• 
Whether or not the employers are High Performance Working (HPW) employers. 
• 
The Product Market Strategies (PMS) that employers adopt. 
6.3 
High Performance Working 
It is not only important to consider the skills challenges faced by employers and the extent 
to which they develop workplace skills, but also to understand the ways in which employers 
ensure that skills are harnessed and nurtured in the workplace. If skilled workers are not 
managed and organised effectively in the workplace then it is likely that their productivity 
and contribution to economic growth will be limited (UKCES, 201539). One way of assessing 
the workplace environment is through the measurement of so-called High Performance 
Working (HPW) practices. High Performance Working is defined by UKCES as ‘a general 
approach to managing organisations that aims to stimulate more effective employee 
involvement and commitment in order to achieve high levels of performance’ (Belt and 
Giles, 2010). 
Consistent with the 2013 survey, ESS 2015 included a series of questions relating to a set 
of 21 recognised HPW practices. In line with other analysis of HPW practices undertaken 
by UKCES40, it is possible to group the HPW practices into five factors: planning; 
organisation; skills; rewards; and autonomy. Table 6.1 details these five factors and the 
individual HPW practices that form each group. 
 
 
 
                                                 
39 UKCES (2015). Growth Through People: Evidence and Analysis. UK Commission for Employment and Skills. 
40 Brown, D. (2014). High Performance Working: a new segmentation of smaller workplaces. UK Commission for 
Employment and Skills. 

122 
Table 6.1  High Performance Working (HPW) practices according to the five factors 
Factor name 
HPW practices 
Planning 
Training plan, annual performance review, training 
budget, work shadowing, business plan, equal 
opportunities policy, training needs assessment 
Organisation 
Investors in People (IIP), ISO 9000, trade union 
consultation, employee consultation, working in 
teams, process to identify talented individuals 
Skills 
On or off the job training, formal performance review 
after training 
Rewards 
Bonus scheme, performance related pay, flexible 
benefits 
Autonomy 
Task variety, task discretion, flexible working.  
Figure 6.1 shows the proportion of employers that adopted each individual HPW practice 
and the proportion that adopted at least one of the practices according to the five factor 
groupings. 
Figure 6.1  Employer adoption of High Performance Working (HPW) practices 
 
11%
11%
14%
14%
16%
16%
31%
31%
31%
37%
39%
42%
43%
47%
51%
52%
61%
63%
67%
83%
84%
Creates teams to work on projects
Trade union consultation (non pay related)
Holds ISO9000
Processes to identify talented individuals
Employee consultation
IIP
Flexible benefits
Training budget
Individual performance related pay
Awards performance related bonuses
Flexible working
Training plan
Formally assess performance after training
Task discretion
Training needs assessments
Task variety
Business plan
Annual performance review
On or off job training
Equal opportunity policy
Work shadowing/stretching/supervision
Base: All establishments (Module 1; 45,392)
67%
Skills
96%
Planning
73%
Autonomy
42% Organisation
56%
Rewards

123 
Overall, 12 per cent of employers adopted 14 out of the 21 HPW practices which – in line 
with the approach taken in ESS 2013 – classified these establishments as being High 
Performance Working employers (HPW employers). The proportion of employers classified 
as being HPW employers was consistent with ESS 2013. The remainder of this section 
focusses on this select group of HPW employers. 
Previous analysis of HPW employers has shown that small-to-medium sized 
establishments (those with 5-99 employees) are of particular interest when considering the 
influences of HPW practices (Brown, 2014). When introducing working practices it is 
inevitable that employers weigh-up the costs of implementing the practice(s) and the 
benefit(s) gained. For the very smallest employers with fewer than five employees, the 
formal adoption of HPW practices is more likely to fail the cost-benefit test. In contrast, the 
greater human resources management in the largest establishments with 100 or more 
employees likely lowers these costs and makes the adoption of HPW practices more of a 
cultural norm rather than a conscious decision to adopt them. For employers in the small-
to-medium size band (with 5-99 employees), the implementation of HPW practices is more 
likely to be a considered choice. Whilst this chapter looks at differences by each of the 
different size bands within HPW and non-HPW employers, where it is of interest it will also 
look at differences within the 5-99 size band. 
When considering HPW employers it is worth noting that: 
• There was a strong link between HPW status and the size of establishment. Only 
four per cent of establishments with fewer than five employees adopted 14 or more 
of the HPW practices, increasing to 66 per cent of all establishments with 250 or more 
employees. The proportion of the workforce employed by HPW establishments, 
therefore, was disproportionately large at approximately two-fifths of the workforce. 
• HPW employers were disproportionately likely to be part of a wider organisation and, 
thus, had access to the associated resources and management structures that this 
often provides (70 per cent of all HPW employers were multi-site establishments, 
whereas only a third of all employers overall were multi-site). 

124 
• The sector profile of HPW employers varied considerably. As many as two in five 
employers in the Public Administration sector were HPW employers (40 per cent), 
and more than a quarter of employers in the Education sector were (28 per cent). 
Highlighting the link between HPW employer and size, it should be noted that both 
of these sectors were characterised by a higher proportion of large employers than 
other sectors. The Health and Social Work and Financial Services sectors also had 
a large proportion of employers that were HPW employers (22 and 17 per cent 
respectively). Conversely, only two per cent of employers in Agriculture and four per 
cent in Construction were HPW employers (two sectors that tended to comprise 
small, single-site establishments). 
The following subsections of this chapter discuss the differing experiences of HPW and 
non-HPW employers in terms of skill shortages, training and skills gaps: Figure 6.2 
summarises these findings. Unless otherwise stated, the findings reported in this section 
are consistent with findings reported in 2013. 
Figure 6.2  Summary of employers’ experiences of skill shortages, skills gaps and training 
depending on High Performance Working (HPW) classification 
 
 
 
HPW employers were more active in 
the labour market and generally 
found it easier to fill their vacancies. 
Where HPW employers had hard-to-
fill vacancies, this was more likely to 
be caused by skill shortages among 
applicants than for non-HPW 
employers.
40%
16%
27%
34%
72%
67%
HPW
non-HPW
Incidence of vacancies
HtFVs as % of vacancies
SSVs as % of HtFVs
Recruitment and skill 
shortages
HPW employers were more likely to 
have arranged or funded training for 
their staff; and to have trained a 
larger proportion of their staff. This 
likely reflected their increased 
recruitment activity as well as their 
increased likelihood to identify skills 
gaps in their workforce. 
98%
62%
77%
54%
HPW
non-HPW
Incidence of
training employers
% of workforce
trained
Training
HPW employers were more likely to 
have skills gaps in a greater 
proportion of their workforce. This 
was likely a reflection of HPW 
employers being more likely to have 
systems and practices in place to 
better allow them to identify skills 
gaps.
Skills Gaps
25%
12%
5.9%
4.5%
HPW
non-HPW
Incidence of skills gaps
% of workforce with skills gaps
Base : All establishments in Module 1by HPW classification (HPW: 8,792; non-HPW: 36,600)

125 
6.4 
The relationship between HPW and skill shortages 
HPW employers were considerably more active in the recruitment market than non-HPW 
employers and were (consequently) more likely to have experienced at least one hard-to-
fill vacancy and at least one skill-shortage vacancy (see the furthest left chart of Figure 6.2). 
However, in density terms, a smaller proportion of HPW employers’ vacancies were hard-
to-fill (27 per cent compared with 34 per cent in non-HPW employers). 
Where HPW employers encountered hard-to-fill vacancies, a greater proportion of these 
were caused by skill shortages (72 per cent of hard-to-fill vacancies were caused by skill 
shortages in HPW employers compared with 67 per cent in non-HPW employers). This 
suggests that HPW employers had a greater demand for skills, qualifications and 
experience when recruiting than non-HPW employers. 
It is important to consider the effect of size when understanding these differences. As 
illustrated in Figure 6.3, the incidence of establishments that had at least one vacancy, at 
least one hard-to-fill vacancy and at least one skill-shortage vacancy was generally greater 
in HPW employers for each size band compared with their non-HPW counterparts (with a 
few isolated exceptions). This was particularly evident in the smallest size band (employers 
with fewer than five employees), but also in the group of employers with 5-99 employees 
which, as discussed earlier, is a group of employers that are of particular interest when 
considering the effects of HPW adoption. 
 

126 
 
Figure 6.3  Incidence and density of vacancies, hard-to-fill vacancies (HtFVs) and skill-
shortage vacancies (SSVs) by HPW classification and size 
 
That said, when considering the density of hard-to-fill and skill-shortage vacancies among 
HPW and non-HPW employers of different sizes the picture is less clear. The density of 
hard-to-fill and of skill-shortage vacancies was higher among HPW employers in the 
smallest size band (those with fewer than five employees) than in non-HPW employers of 
the same size. That is, HPW employers of this size found it harder to fill their vacancies 
than their non-HPW counterparts and were more likely to encounter skill shortages in the 
labour market. 
This picture did not hold true in other size bands where the densities of hard-to-fill and skill-
shortage vacancies were similar irrespective of HPW status. 
Table A.6.1 in Annex A provides a full breakdown of the differences in recruitment activity 
between HPW and non-HPW employers, including differences by size. 
 
46%
33%
29%
31%
22%
22%
39%
39%
31%
30%
28%
19%
73%
66%
68%
66%
68%
85%
65%
66%
68%
66%
71%
79%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Incidence of vacancies
Incidence of HtFVs
Incidence of SSVs
HtFVs as % of vacancies
SSVs as % of HtFVs
HPW employers
Non-HPW employers
Base: All establishments by HPW classification and size (Module 1)
Base:
(4,213)
(322)
(721)
(1,222)
(2,004)
(310)
(20,536)
(9,866)
(636)
(1,664)
(3,746)
(152)

127 
6.5 
The relationship between HPW and skills gaps 
A greater proportion of HPW employers had skills gaps in their workforce than non-HPW 
employers (Figure 6.2). This was both in terms of the proportion of establishments with at 
least one skills gap (25 per cent of HPW employers had a skills gap compared with 12 per 
cent of non-HPW employers), and the proportion of the workforce deemed not fully 
proficient in their job (5.9 per cent among HPW employers, a small but significant difference 
to the 4.5 per cent among their non-HPW counterparts).  
This difference in the experience of skills gaps was only evident among smaller 
establishments (see Figure 6.4). In particular, it was only among employers with fewer than 
25 employees where the incidence of skills gaps was greater among HPW employers than 
non-HPW employers. Also, it was only among the very smallest establishments with fewer 
than five employees where the proportion of the workforce with skills gaps was significantly 
higher among HPW employers than among their non-HPW counterparts. 
This was different to 2013 when the proportion of the workforce with skills gaps was the 
same across both HPW and non-HPW employers (even though a greater proportion of 
HPW employers had at least one skills gap in their workforce). 
Figure 6.4  Incidence and density of skills gaps by HPW classification and size 
 
11%
22%
30%
32%
40%
46%
6%
19%
31%
34%
41%
46%
4.5%
4.5%
4.4%
4.6%
5.0%
7.4%
2.4%
4.3%
4.7%
4.8%
5.2%
6.4%
0%
10%
20%
30%
40%
50%
60%
Incidence of skills gaps
% of workforce with skills gaps
HPW employers
Non-HPW employers
Base: All establishments by HPW classification and size (Module 1)
(4,213)
(322)
(721)
(1,222)
(2,004)
(310)
(20,536)
(9,866)
(636)
(1,664)
(3,746)
(152)

128 
The greater incidence and density of skills gaps in HPW employers, relative to non-HPW 
employers, was not necessarily a negative thing. It should be noted that a number of the 
HPW practices (such as the conducting of training needs assessments, annual 
performance reviews and formally assessing performance after training) were likely to have 
assisted HPW employers in identifying skills gaps in their workforce and, through identifying 
such gaps, allowed them to be addressed.  
6.6 
The relationship between HPW and training 
HPW employers were much more likely than non-HPW employers to have arranged or 
funded training for their employees over the 12 months prior to the survey (98 per cent had 
done so, compared with 62 per cent of non-HPW employers, see Figure 6.2). HPW 
employers had also trained a much greater proportion of their workforce over this period 
than non-HPW establishments (77 per cent compared with 54 per cent, respectively). This 
suggested that HPW employers took a more active role in developing the skills of their 
workforce. 
Arranging or funding training for staff was one of the 21 HPW practices recognised in the 
survey (along with other training related practices, such as having a training plan); it is 
therefore not surprising that HPW employers were more likely to have arranged or funded 
training for their employees. However, it should also be noted from earlier that HPW 
employers were more active in the recruitment market and thus likely had greater need to 
train new recruits. Similarly, the previous section on skills gaps suggested that HPW 
employers were more likely to identify skills gaps in their workforce and thus identify a need 
for training and developing the skills of their workforce. 
These training differences between HPW and non-HPW employers were evident across all 
size bands. That is to say within each size band the proportion of training employers and 
the proportion of staff trained was greater among HPW employers than non-HPW 
employers. It was also the case that the tendency to train was greater among HPW 
employers in every sector. These training-related data by size and sector in HPW and non-
HPW employers are provided in Table A.6.2 in Annex A. 

129 
The ESS data not only allow us to assess whether (and how much) training was arranged 
or funded by employers, but also provide some insight into the level and quality of training 
undertaken (i.e. whether the training was towards nationally recognised qualifications and 
the level of qualifications trained to). HPW employers were more likely to have funded or 
arranged training towards nationally recognised qualifications and to qualifications that are 
of a higher level. Specifically, 63 per cent of HPW employers that had trained their staff 
had arranged or funded training towards a nationally recognised qualification over the 12 
months prior to the survey (compared with 43 per cent of non-HPW employers). 
Furthermore, a greater proportion of HPW employers (25 per cent) had trained their staff 
to qualifications at Level 4 and above compared with non-HPW employers (12 per cent). 
6.7 
Product market strategies 
Product market strategies (PMS) describe the ways in which private sector establishments 
choose to differentiate and position the products and services they provide within the 
markets in which they operate. Employers operating ‘higher’ product market strategies offer 
greater opportunity for sustainable business growth and productivity which should, in turn, 
place a greater demand on skills. The inter-relationship between PMS and workforce skills 
is a theme of policy interest for government as the availability of workforce skills may have 
a bearing on the strategies that firms are able to pursue (and on their medium and long-
term success).  
Within the survey, private sector employers were asked to rate their establishments on 
a five-point scale, compared to other establishments in the same industries, in terms of: 
• 
the extent to which their competitive success depended on price. 
• 
the extent to which the establishment tended to lead the way in their industry in 
terms of the development of new products, materials or techniques. 
• 
the extent to which the establishment competed in a ‘premium quality’ product 
market as opposed to a ‘standard or basic quality’ product market. 
• 
the extent to which they offered goods or services with a substantial amount of 
customisation according to customer requirements. 
Figure 6.5 illustrates the overall responses to each of these individual product market 
‘position statements’, including the score attributed to each response. 

130 
The responses to the position statements were very similar to 2013 and 2011. This lack of 
change over time was expected given that the ‘position statements’ asked in the survey 
were standardised in the sense that employers were asked to compare their products and 
services against those provided by others in their industry (i.e. if there had been industry-
wide advancements in product market strategies the individual employers’ positioning 
within the industry against their competitors would not necessarily have changed). 
That said, there was a small but significant move towards employers having a substantial 
level of customisation in their offering and the competitive success of employers’ products 
or services being ‘not at all price dependent’ (a two percentage point increase in the 
proportion of employers that provided a ‘score’ of five for these two statements). 
Figure 6.5  Product Market Strategy positions 
 
10%
6%
20%
14%
6%
5%
13%
12%
23%
24%
25%
38%
22%
26%
17%
16%
31%
34%
19%
15%
1
2
3
4
5
Wholly price 
dependent
Rarely leads the 
way
Standard or 
basic quality
No difference in 
product/service 
offering
Not at all price 
dependent
Often leads the 
way
Premium 
quality
Substantial 
customisation
Base: All establishments in the private sector (75,639)

131 
6.8 
Deriving a composite Product Market Index 
In order to discern the overall product market strategies of each establishment, the 
responses to the four product market ‘position statements’ were aggregated to derive a 
composite PMS score. These composite scores were then converted to a fivefold 
classification ranging from ‘very low’ to ‘very high’ (see Table 6.2). A ‘very high’ composite 
score indicated that the employer tended to lead the way and innovate in its sector, tended 
not to compete on price and/or tended to offer a premium and/or highly customised product 
or service. Conversely, a ‘very low’ composite score indicated that the employer tended 
not to do any of these things. 
Table 6.2  Overall composite Product Market Strategy scores 
Aggregate PMS score 
% of private sector 
UK establishments 
% of private sector 
UK employment 
1 to 7 
Very low 
4 
2 
8 to 10 
Low 
13 
9 
11 to 13 
Medium 
25 
22 
14 to 16 
High 
29 
31 
17 to 20 
Very high 
16 
22 
Base: All establishments in the private sector (75,639). 
Note: Figures do not sum to 100 per cent as ‘Don’t know’ responses have been excluded. 
6.9 
Profiling higher and lower composite PMS score employers 
Employers at the ‘very high’ end of the PMS scale tended to be larger on average than 
those at the ‘very low’ end. However, as in 2013, it was the case that all of the PMS 
classifications (from very low to very high) were dominated by small establishments with 
fewer than 25 employees (see Table 6.3). It should therefore be noted that the analyses 
presented in the remainder of this chapter, looking at differences by PMS grouping, are – 
in effect − predominantly a discussion about smaller establishments regardless of which 
PMS grouping they fell into. This means that differences recorded between PMS groupings 
are not likely to be driven (solely) by size. 
 
 

132 
Table 6.3  Overall composite Product Market Strategy scores by size 
 
All private 
sector 
Very 
Low 
Low 
Medium 
High 
Very 
High 
Unwtd Base: 
75,639 
2,673 
8,771 
18,544 
22,832 
13,385 
 
% 
% 
% 
% 
% 
% 
Size 
 
 
 
 
 
 
2-4 
53 
67 
61 
54 
50 
47 
5-24 
38 
29 
34 
38 
40 
40 
25-49 
5 
2 
3 
5 
6 
7 
50-99 
2 
1 
1 
2 
3 
3 
100-249 
1 
* 
* 
1 
1 
2 
250+ 
1 
* 
* 
* 
1 
1 
Base: All establishments in the private sector, by PMS classification. 
‘*’ denotes a figure larger than zero but smaller than 0.5. 
At the ‘very high’ end of the PMS scale the sectoral distribution was largely in line with the 
overall sector profile of private sector establishments (i.e. no single sector was 
disproportionately represented in the ‘very high’ PMS grouping). At the lower end of the 
PMS groupings, however, employers with a ‘very low’ PMS score were disproportionately 
likely to be operating in the Agriculture and Construction sectors (these sectors accounted 
for 35 per cent of all ‘very low’ PMS establishments but only 17 per cent of all private sector 
establishments). 
Table A.6.3 in Annex A provides further detail on the characteristics of employers in each 
PMS category in terms of country and sector. 
The following subsections of this chapter discuss the experiences of employers according 
to their differing positions on the PMS scale. Unless otherwise stated, the findings reported 
in this section are consistent with findings reported in 2013.  
6.10 
Relationship between PMS and skill shortages 
As illustrated in Figure 6.6, establishments with a higher PMS score were more active in 
the recruitment market. The incidence of establishments with vacancies increased from 
11 per cent among those with a ‘very low’ PMS score to 23 per cent among those with a 
‘very high’ PMS score. In line with this increase in recruitment activity, employers at the 
higher end of the of the PMS index were also more likely to have at least one hard-to-fill 
vacancy and at least one skill-shortage vacancy (see Figure 6.6). 
 
 
 

133 
Figure 6.6  Incidence of vacancies, hard-to-fill vacancies (HtFVs) and skill-shortage 
vacancies (SSVs), as well as density of HtFVs, by Product Market Strategy classification 
 
It is worth noting, however, that as a proportion of recruiting employers, the likelihood of 
encountering a hard-to-fill vacancy and skill-shortage vacancy was actually lower among 
employers at the higher end of the PMS index. Of the 11 per cent of ‘very low’ PMS 
employers that had at least one vacancy, over half had at least one hard-to-fill vacancy (55 
per cent, which equated to six per cent of all ‘very low’ PMS employers). This decreases 
the higher the PMS score. Of the 23 per cent of ‘very high’ PMS employers that had at least 
one vacancy, around four in ten had at least one hard-to-fill vacancy (39 per cent, which 
equated to nine per cent of all ‘very high’ PMS employers). In contrast, this indicates that 
employers at the higher end of the PMS index were able to compete more strongly in the 
labour market when recruiting. That is, by virtue of their approach and positioning, higher 
PMS employers were able to appear more attractive to potential recruits and, thus, found 
it easier to successfully fill their vacancies. 
However, when considering the density of hard-to-fill vacancies (i.e. the number of hard-
to-fill vacancies as a proportion of all vacancies) there was not a linear trend across the 
PMS groupings. Rather, the density of hard-to-fill vacancies remained similar for 
establishments with a ‘medium’, ‘high’ and ‘very high’ PMS score (see Figure 6.6). 
Nevertheless, the density of hard-to-fill vacancies was significantly higher among 
establishments at the lower ends of the PMS index.  
11%
14%
18%
21%
23%
6%
7%
8%
9%
9%
4%
5%
6%
7%
7%
47%
42%
35%
37%
34%
0%
10%
20%
30%
40%
50%
60%
Very low PMS
Low PMS
Medium PMS
High PMS
Very high PMS
Incidence of vacancies
Incidence of HtFVs
Incidence of SSVs
HtFVs as % of vacs
Base:
Base: All establishments in the private sector, in each PMS group
(2,673)
(8,771)
(18,544)
(22,832)
(13,385)

134 
There was no linear trend between PMS and the density of skill-shortage vacancies (i.e. 
the number of skill-shortage vacancies as a proportion of all hard-to-fill vacancies). 
Table A.6.4 in Annex A provides a full breakdown of the differences in recruitment activity 
by PMS classification. 
6.11 
The relationship between PMS and skills gaps  
As detailed in Table 6.4, there was no clear relationship between an establishment’s 
product market strategy and the incidence or density of skills gaps.  
Table 6.4  Incidence and density of skills gaps by Product Market Strategy 
 
 
Very low 
Low 
Medium 
High 
Very 
high 
Unweighted Base 
455 
1,815 
4,164 
5,045 
2,643 
 
% 
% 
% 
% 
% 
% of establishments with a 
skills gap 
12 
13 
15 
15 
14 
% of workforce with skills 
gaps 
5 
6 
6 
6 
5 
There were some differences in the main causes that employers attributed their skills gaps 
to between the various PMS groupings. The main causes of staff not being fully proficient 
are presented in Table 6.5. 
There was a broad trend of an increased proportion of skills gaps that were ascribed to 
transient causes (i.e. staff were new to the role and/or their training was not complete) in 
establishments with higher product market strategies. Specifically, 19 per cent of skills 
gaps in both ‘low’ and ‘very low’ PMS establishments were due to transient causes, rising 
to 25 per cent in ‘very high’ PMS establishments. It can take time for new staff to reach full 
proficiency and, given these transient causes, one would expect a greater proportion of 
skills gaps to be resolved given time in establishments with higher product market 
strategies. Indeed, employers with higher product market strategies were less likely to have 
attributed skills gaps to staff having not received the appropriate training.  
 
 

135 
Table 6.5  Main causes of skills gaps (prompted), by Product Market Strategy 
 
 
Very low 
Low 
Medium 
High 
Very 
high 
Unweighted Base 
455 
1,815 
4,164 
5,045 
2,643 
 
% 
% 
% 
% 
% 
Transient causes 
 
 
 
 
 
Staff are new to the role 
53 
65 
59 
62 
66 
Their training is currently 
only partially completed 
51 
61 
57 
60 
56 
Summary: Skills gaps due 
to transient causes 
19 
19 
20 
22 
25 
Other causes 
 
 
 
 
 
Staff lack motivation 
32 
40 
37 
35 
29 
They have been on 
training but their 
performance has not 
improved sufficiently 
24 
34 
34 
27 
28 
Introduction of new 
working practices 
21 
22 
28 
25 
25 
Staff have not received the 
appropriate training 
37 
31 
28 
25 
22 
Unable to recruit staff with 
the required skills 
28 
27 
28 
28 
22 
Introduction of new 
technology 
14 
16 
15 
17 
20 
Development of new 
products and services 
10 
16 
17 
16 
23 
Problems retaining staff 
19 
23 
20 
15 
17 
Base: All establishments in the private sector with skills gaps; up to two skills gaps followed up. 
Percentages shown as a proportion of all skills gaps followed up. 
 
 
 

136 
6.12 
The relationship between PMS and training 
As illustrated in Figure 6.7, there was a linear relationship between an establishment’s 
product market strategies and their level of training activity over the 12 months prior to the 
survey. As the PMS composite score increases, both the incidence of establishments that 
had provided training for their staff and the proportion of the workforce trained also 
increases.  
Figure 6.7  Incidence of training and proportions of the workforce trained by Product 
Market Strategy classification 
 
As reported in Chapter 5, a strong relationship existed between employer size and training 
activity, with the likelihood of training increasing with employer size. We have also seen in 
this chapter that employers with higher PMS scores tend to be larger employers. However, 
it is not merely size that drives the finding that high PMS employers train more. Indeed, it 
was invariably the case that for each size band the employers with a higher PMS score 
were more likely to have trained their employees and to have trained a greater proportion 
of their staff (see Table A.6.5 in Annex A). Therefore, like for like, employers that operated 
with higher product market strategies were more likely to have identified the need for, and 
to have invested in, skills development. 
46%
57%
63%
68%
71%
47%
49%
54%
61%
64%
Very low PMS
Low PMS
Medium PMS
High PMS
Very high PMS
Incidence of training
Proportion of staff trained
Base: All private sector establishments in each PMS group
Base:
(2,673)
(8,771)
(18,544)
(22,832)
(13,385)

137 
Looking at the types of training provided, there was a relationship between an employers’ 
PMS score and the provision of induction training. Around half (52 per cent) of all training 
employers with a ‘very low’ PMS score had provided either basic or advanced induction 
training, increasing to around three-quarters (72 per cent) of all training employers with a 
‘very high’ PMS score. Given the greater level of activity in the recruitment market among 
establishments with a higher PMS score, this increased provision of induction training is 
perhaps unsurprising and is one reason why employers with higher product market 
strategies provide more training overall.  
A greater proportion of employers that had trained their staff and operated at the lower end 
of the PMS index only provided induction and/or health and safety for their staff (16 per 
cent of training employers with a ‘very low’ PMS score and 12 per cent of those with a ‘low’ 
PMS score). The proportion of training employers that only provided these types of training 
was consistent across the ‘medium’, ‘high’ and ‘very high’ PMS groupings at 10 per cent. 
Induction training and health and safety training can often be relatively basic and a 
legislative requirement, rather than being something that is focussed on the development 
of workforce skills. This finding further suggests, therefore, that the training undertaken by 
employers with higher product market strategies was more focussed on developing the 
skills of their workforce. 
Employers with higher PMS scores were also more likely to have funded or arranged 
training towards nationally recognised qualifications and to qualifications that are of a 
higher level than employers at the lower end of the PMS index. Nearly half (47 per cent) of 
all training employers with a ‘very high’ PMS score had arranged or funded training for their 
staff to a nationally recognised qualification compared with 43 per cent of employers with 
a ‘very low’ PMS score. When considering the level of qualifications trained to, the 
proportion of training employers that had trained their staff to qualifications at Level 4 or 
above increased with PMS (from seven per cent among establishments with a ‘very low’ 
PMS score to 16 per cent among those with a ‘very high’ PMS score). 
 
 
 
 

138 
6.13 
Conclusion 
In this final chapter of the report we have considered how the strategies that employers 
adopt impact on their experiences of skills challenges. 
We have seen that employers that pursue High Performance Working (HPW) practices, 
and those who pursue higher product market strategies, were more active in the labour 
market and were consequently more likely to experience skill shortages, were more likely 
to identify skills gaps and were more likely to be responding to these factors through the 
provision of training. 
This reflects and confirms that the existence of skill deficiencies is not always a negative 
indicator for individual employers or for the economy. The pursuit of ambitious strategies, 
which help in driving the UK economy forward in its pursuit of higher productivity levels, 
can both point to skills deficiencies (because better practices are in place to identify them) 
and create them (because skills development can lag behind innovation in workplace 
practice and service delivery). The challenge becomes how to deal with such deficiencies. 
Here, it was clear that High Performance employers and those with more advanced 
strategies were markedly more likely to fund and arrange training to develop the skills of 
their workforce. 
 
 
 

139 
7 
Conclusions 
7.1 
Introduction 
This chapter draws out some important themes and questions raised by the survey overall. 
Beginning with an exploration of what the survey tells us about the changes in the economy 
and the impact on skill, it goes on to explore what the survey tells us about training 
investment, management and leadership skills and the risks of sub-optimal skills for a 
productive workforce. 
7.2 
Tracking developments in the UK economy 
The Employer Skills Survey is a vital source of data on skills and the labour market. It offers 
a unique insight into the micro decisions that employers make about factors such as 
recruitment, training investment and use of skills in the workplace, which underpin the 
macro-level trends that drive UK economic growth and productivity levels.  
The UK has witnessed job creation at a faster rate than in any other EU country over the 
last two years (Eurostat, 2015). Reflecting this growth, successive waves of the UK 
Employer Skills Survey have recorded a steep rise in vacancy levels among employers - 
from 655,000 vacancies at the time of the survey in 2013 to 927,000 in 2015 – reflecting 
high demand for labour. 
However, this growth in the economy has been accompanied by stalling productivity levels, 
which remain some distance behind our main EU counterparts (UKCES, 2015). Numerous 
studies have shown that improving skills and education serves to increase productivity 
(Garrett and Campbell, 2010); the deployment of skills in the labour market is therefore of 
critical importance to the country’s future prospects and prosperity. Ensuring the right 
people with the relevant skills are being employed in the right job roles should help 
employers to take advantage of the platform that the current buoyant economy affords. 
However, the survey findings indicate that as vacancies have risen, so too has the number 
of vacancies that are hard to fill because applicants lack the requisite skills. There are now 
nearly a million of these skill-shortage vacancies across the UK.  
This survey shows that the overall UK picture hides much interesting variation between the 
skills challenges faced by employers in different sectors and the survey allows these 
changes to be tracked over time.  

140 
For example, whilst Manufacturing, Electricity, Gas and Water, Transport and 
Communications, Construction and Business Services all report higher than average 
density of skill-shortage vacancies, it is the Financial Services and Construction sectors 
which have seen a substantial increase in the density of skill-shortage vacancies since 
2013, in contrast to most other sectors. What might lie behind this growth and what are the 
potential consequences?  
The Financial Services sector has undergone extensive upheaval, following the financial 
crisis and subsequent recession. Regulatory change in the sector is ongoing and wide 
reaching; the demands of the roles in the sector are changing and these are possibly acting 
as a deterrent to people entering the sector. There are indications for example that the 
proportion of graduates entering this sector has declined gradually since 2006 (HESA, 
2015). Skill-shortage vacancies are hampering the ability of businesses in this sector to 
innovate, with nearly half stating that an inability to recruit appropriately skilled candidates 
has led to difficulties introducing new working practices. 
The Construction sector is commonly regarded as underpinning the economy, with its 
responsibilities for creating the infrastructure that allows businesses to grow (HM 
Government, 2013b). A doubling in the number of skill-shortage vacancies since 2013 
therefore presents some cause for concern, especially considering that employment in the 
Construction sector has decreased since 2013, from 1.3m to 1.2m staff, and hence one 
would expect a ready supply of skilled labour. Skill-shortage vacancies are affecting the 
bottom line. Construction sector employers were the most likely to cite a loss of business 
or orders to competitors resulting from skill-shortage vacancies, this in turn has implications 
for growth potential in the wider economy. 
This more granular data at UK, national, local, sectoral and occupation level provides 
employers, governments, education institutions and many other bodies with the information 
they need to plan, to prioritise and to invest. 
7.3 
Changing nature of work 
UKCES’ wider research has highlighted that the nature of work is evolving at a rapid rate, 
with new technology and digitisation rapidly changing the skill requirements of the 
workforce. Increasingly, the digitisation of work is placing demands on staff to operate 
flexibly and adapt to new technologies. Job roles are becoming more complex and 
employers are expecting more from their employees (Störmer et al., 2014).  

141 
ESS 2015 identifies a number of clear challenges for employers in this respect. It highlights 
a lack of complex analytical skills among both applicants and existing staff. These are of 
vital importance as technologies become more elaborate, and innovation and adaptation 
is increasingly key to organisational growth. In a similar vein, across all job roles, a lack of 
basic IT skills characterises between one in five and two in five employees who are not 
fully proficient in their job role. A lack of advanced IT skills is similarly associated with skills 
gaps for high-skill and middle-skill occupations, such as Managers and Administrative and 
Clerical staff, in particular.  
Beyond the challenges of technology, the survey also highlights the ongoing challenge of 
soft, people and personal skills, in particular time management and task prioritisation skills. 
Crucially, the demand for time management and task prioritisation skills is evident across 
all occupations, both higher and lower skilled, and implies a link to the growing complexity 
of job roles, requiring individuals to juggle multiple strands of work and responsibility. Poor 
time management can lead to inefficiencies within organisations, potentially resulting in 
increased, poorer quality outputs and loss of work.  
7.4 
Training investment 
We know that around 90 per cent of the current labour force have the potential to be active 
in the labour market a decade from now (UKCES, 2014b). Therefore, the economy cannot 
rely on initial education alone to ensure people have the continuously changing skills that 
are needed: the workplace is a vital location to develop these skills. ESS 2015 provides a 
comprehensive view of employer investment in staff training and allows some assessment 
of whether that training is sufficient to meet employer’s own needs, or whether there are 
‘market failures’ in the supply of and demand for training.  
Around two-thirds of businesses provide training for their staff, a similar proportion of 
employees are trained and on average those trained receive 6.8 days training per year. 
These numbers have changed little since 2013, though the overall number of training days 
has increased. As businesses have been recruiting, there is some evidence of an increase 
in the proportion of employers that are providing induction training, which may be driving 
the increase in the number of days, and an increase in the proportion who have provided 
only Health and Safety or induction training (11 per cent, up from nine per cent in 2013). 
Arguably, it is probably not this type of training that will best equip individuals with the 
technical skills, complex analytical skills or people skills staff need.  

142 
The survey explores other indicators of the quality of training including whether the training 
leads to a qualification. Just under a half of training employers provided training which led 
to a qualification, equivalent to three in ten (31 per cent) of all employers. Again, these 
figures have changed little since 2013. The survey raises questions about whether these 
static levels are sufficient and whether one would hope and expect to see change in this 
investment given the opportunities presented by a buoyant economy and the persistence 
of skill deficiencies reported by the ESS over time.  
These national figures mask significant variations which could impact on the appropriate 
response. For example, the proportion of businesses providing any training ranged from 
50 per cent in the Agriculture sector to 93 per cent in Education, from 51 per cent in the 
smallest establishments to 97 per cent in the largest; by occupation, Caring, Leisure and 
Other Services were most likely to receive training (80 per cent of people in those posts) 
compared to 48 per cent of Managers. The average spend per person trained varied from 
£1,130 in Wholesale and Retail to £2,320 in Electricity Gas and Water. And the proportion 
of establishments that trained to a qualification ranged from 43 per cent in Manufacturing 
to 65 per cent in Health & Social Work and in Education. 
Interestingly, there have been recent developments in the approaches undertaken by 
employers to develop their staff. The survey points to high and increasing use of e-learning 
and online training; this is now used by approaching half of employers that train, with recent 
users more than twice as likely to say its use had increased than to say its use had 
decreased. This suggests that employers are increasingly turning to innovative and flexible 
methods of training and developing their staff. This confirms wider research which points 
to an increase in online or distance learning in the UK. It is often promoted as a way for 
employers to deliver in house training to their staff, much of which can be done in work 
time, within the work environment and at the employees own pace, allowing them to gain 
accreditation and complete modules without having to travel away to training days. The 
literature also suggests a strong drive towards blended learning, a combination of online 
and face to face contact (The Economist, 2014).  
Additionally, the survey is an important source of information on the operation of the training 
market and provides data on a number of measures of potential market failure. In particular, 
it establishes that half of training employers would like to provide more training than they 
currently do. The main barriers that prevented them doing so were a lack of funds and time 
for training. Other UKCES research (UKCES, 2009) suggests employers may not be fully 
recognising the value of training and view it more as a cost than an investment, which might 
be indicated by the reporting of these barriers. Very few reported barriers associated with 
the supply of skills, though there was some sectoral variation in these figures, most barriers 
were perhaps related to employers own demand for skills. 

143 
This demand for skills is derived from the firm’s own business strategy. ESS 2015 illustrates 
that businesses with higher product market strategies and who operate with more High 
Performance Working practices are more likely to report skill-shortage vacancies, 
marginally more likely to identify skills gaps and more likely to be responding to these 
factors through the provision of training. These businesses are vital to the well-being of the 
economy and if more businesses pursue these strategies, this will increase the demand for 
skills. So the survey raises important questions about whether the demand for skills is 
adequate to fuel the continuing recovery. 
7.5 
Leadership and management 
A potential determinant of the demand for skills is the knowledge managers have about 
training, and potential value to their business (UKCES, 2009). Recent international studies 
have revealed large variation in management quality across firms within all countries. What 
accounts for the difference between countries is the absence (e.g. US) or presence (e.g. 
India; UK) of a long tail of poorly managed firms. Even though the UK’s best firms are often 
world leading, the presence of a large number of poorly managed firms means the UK does 
not measure up to the likes of the US on management capability (Bloom et al., 2012). 
ESS 2015 includes a number of indicators pertinent to understanding leadership and 
management skills. Survey findings indicate that just over a third of employers (37 per cent) 
were investing in the skills of their Managers through the provision of management training. 
The density of skill-shortage vacancies and skills gaps within the Manager occupational 
grouping is, and has consistently been shown to be, lower than average, with 
commentators (Campbell, 2013) previously suggesting this pointed to a lack of demand for 
management skills or the difficulty of ‘self-reporting’ a skills gap by managers of small firms 
– the survey respondents. The 2015 survey also shows that businesses do not face 
particular difficulties in retaining management talent but it is the occupational grouping 
whose skills are most likely to be under-used. This finding raises important questions about 
whether these are the right skills for the role and what type of skills are being under-used. 
Are they, necessarily, management skills? The survey provides a number of further 
indications that improving management practice should be a priority for UK business. For 
example, management and leadership type skills (managing and motivating other staff, 
setting objectives/planning resources) accounted for over half of all skills gaps (58 per cent) 
identified. Indeed, the overall proportion of businesses defined as High Performance 
working businesses is low at 12 per cent, suggesting that there is scope for improving the 
business practices of a good many UK firms.  

144 
Good leadership could in particular serve to support growth among small businesses, 
where the presence of poor managerial practices is more common. The survey identified 
that among businesses with fewer than five staff, only one in eight had arranged 
management training in the last 12 months, while these businesses (along with those with 
5 to 24 employees) were also less likely to acknowledge skills gaps among Managers. 
There is clearly more work to be done to ensure that small businesses have the support 
they need improve their managerial practices. 
7.6 
Skills for a productive workforce 
The impacts of skills challenges (both internal and external) are numerous and varied. 
While some companies’ short-term financial performance may be impeded, there are also 
potential longer-term implications for companies’ productivity levels, and their ability to 
grow. 
The government’s Productivity Plan identifies innovation as a key step to encourage 
productivity (HM Treasury, 2015). But ESS 2015 reports that skill deficiencies impact on a 
business’s ability to innovate. Four in ten establishments with skill-shortage vacancies 
reported a delay in developing new products or services and 35 per cent reported 
difficulties in innovating working practices. These impacts were reported less frequently for 
skills gaps (though were still cited by 17 per cent and 24 per cent respectively of 
establishments with skills gaps), perhaps reflecting the occupations in which skill-shortage 
vacancies and skills gaps are most likely to arise. This is further suggested by the finding 
that, the skills that are required to drive forward innovation within businesses often appear 
to be lacking: two in five of all skill-shortage vacancies and skills gaps were attributed to 
individuals lacking the ability to solve complex problems. Within existing staff, this was 
particularly apparent for those in high-skill occupations, such as Managers and 
Professionals. Similarly, complex numerical or statistical skills and understanding were 
often deemed to be lacking.  
To further address the productivity challenge, it is also important for employers to fully 
understand and utilise the skills of their workforce. Currently the survey shows that by far 
the majority of staff were working in roles that were making use of their skills and 
qualifications. However, seven per cent of the workforce were reported as being under-
utilised and this equates to two million people with excess skills and qualifications. Under-
utilisation represents not only a waste of individuals’ talent but also a missed opportunity 
for employers to increase performance and productivity, improve job satisfaction and 
employee well-being, and stimulate investment, enterprise and innovation (Wright and 
Sissons, 2012). Employers should consider whether their businesses are making the very 
best use of their workforce and whether there are gains to be made through redeploying 
people and/or restructuring jobs. 

145 
One way that employers can ensure that they nurture and leverage their talent is through 
‘high performance working’ (HPW). This survey found that just over one in ten employers 
(12 per cent) were operating HPW practices and identified a clear benefit associated with 
the adoption of HPW, in that these employers were better able to fill their vacancies. 
However, the proportion of employers that implement HPW has not increased since 2013 
and there is clearly scope for far more employers to engage with high performance working. 
This requires employers to better design jobs that match skills to work, to give employees 
the autonomy to manage their own performance and to input into decision-making, as well 
as a number of other practices that demonstrate a genuine commitment to unlocking staff 
talent. 
The survey provides a wealth of data of value to: individuals considering career options; 
education institutions to plan provision with employers; employers in understanding their 
market, competition and their own potential; government at all levels in understanding 
their skills and labour markets. But it also raises important questions about the supply of 
skills and perhaps more importantly the demand for skills in the UK. Skills are an important 
currency in the global economy. At a micro, firm level, skill deficiencies, the loss of talent, 
the under-use of skills and reported barriers to skill development all present important 
challenges to businesses and to government. Failure to address these issues might be 
damaging to the firm and ultimately to the UK economy. 
 
 
 

146 
Appendix A: Supplementary Tables 
Chapter 1: Introduction 
Table A.1.1  Profile of UK establishments and employment, by country, size and sector 
 
Number of 
establishments 
% of 
establishments 
Number of 
staff  
% of employment 
UK 
1,766,838 
100 
27,755,204 
100 
Country  
 
 
 
 
England 
1,488,171 
84 
23,480,832 
85 
Northern Ireland 
54,518 
3 
720,932 
3 
Scotland  
142,947 
8 
2,359,794 
9 
Wales 
81,202 
5 
1,193,646 
4 
Size 
 
 
 
 
2-4 
907,944 
51 
2,383,318 
9 
5-24 
668,618 
38 
6,681,330 
24 
25-49 
101,082 
6 
3,466,793 
12 
50-99 
50,432 
3 
3,462,806 
12 
100-249 
26,900 
2 
4,084,666 
15 
250+ 
11,812 
1 
7,676,291 
28 
Sector 
 
 
 
 
Agriculture 
97,359 
6 
402,468 
1 
Manufacturing 
100,262 
6 
2,371,431 
9 
Electricity, Gas and Water 
10,151 
1 
294,247 
1 
Construction 
158,790 
9 
1,192,840 
4 
Wholesale and Retail 
371,231 
21 
4,493,603 
16 
Hotels and Restaurants 
159,893 
9 
1,961,417 
7 
Transport and 
Communications 
128,789 
7 
2,230,968 
8 
Financial Services 
38,259 
2 
1,004,926 
4 
Business Services 
363,790 
21 
4,786,345 
17 
Public Administration 
19,814 
1 
1,356,355 
5 
Education 
58,124 
3 
2,607,853 
9 
Health and Social Work 
132,505 
7 
3,790,957 
14 
Arts and Other Services 
127,871 
7 
1,261,794 
5 
Source: ONS Inter-Departmental Business Register (IDBR) 
 
 

147 
Table A.1.2  Classification of UK establishments, by country, size and sector 
 Row percentages 
 
Unwtd 
Base: 
 
Private Sector  
Third Sector 
Public Sector 
Single site 
Multi-site 
UK 
91,210 
% 
86 
9 
5 
67 
33 
Country  
 
 
 
 
 
 
 
England 
75,129 
% 
86 
9 
4 
67 
33 
Northern Ireland 
4,019 
% 
78 
14 
7 
72 
28 
Scotland  
6,035 
% 
83 
10 
7 
62 
38 
Wales 
6,027 
% 
84 
8 
7 
67 
33 
Size 
 
 
 
 
 
 
 
2-4 
20,527 
% 
89 
9 
2 
79 
21 
5-24 
49,584 
% 
85 
9 
5 
59 
41 
25-49 
11,657 
% 
76 
10 
14 
43 
57 
50-99 
5,836 
% 
70 
10 
20 
37 
63 
100-249 
2,689 
% 
67 
12 
20 
33 
67 
250+ 
917 
% 
67 
9 
24 
23 
77 
Sector  
 
 
 
 
 
 
 
Agriculture 
3,632 
% 
98 
1 
* 
92 
8 
Manufacturing 
6,998 
% 
99 
* 
* 
74 
26 
Electricity, Gas and 
Water 
1,041 
% 
94 
3 
3 
67 
33 
Construction 
7,474 
% 
100 
* 
* 
89 
11 
Wholesale and Retail 
16,126 
% 
92 
7 
* 
50 
50 
Hotels and 
Restaurants 
8,920 
% 
92 
6 
1 
62 
38 
Transport and 
Communications 
8,936 
% 
95 
3 
1 
79 
21 
Financial Services 
2,549 
% 
94 
4 
1 
56 
44 
Business Services 
13,143 
% 
94 
5 
2 
72 
28 
Public Administration 
947 
% 
20 
10 
68 
43 
57 
Education 
5,515 
% 
34 
22 
43 
64 
36 
Health and Social 
Work 
8,556 
% 
46 
40 
14 
52 
48 
Arts and Other 
Services 
7,373 
% 
62 
28 
9 
69 
31 
‘*’ denotes a figure larger than zero but smaller than 0.5 
 
 
 

148 
Table A.1.3  Unweighted base sizes for all establishments, by country, size and sector 
(2011 – 2015) 
 
2011 
2013 
2015 
UK 
86,522 
91,279 
91,210 
Country 
 
 
 
England 
74,156 
75,255 
75,129 
Northern Ireland 
3,921 
4,014 
4,019 
Scotland 
2,487 
6,014 
6,035 
Wales 
5,958 
5,996 
6,027 
Size 
 
 
 
2-4 
17,905 
19,058 
20,527 
5-24 
47,770 
51,565 
49,584 
25-49 
10,239 
10,947 
11,657 
50-99 
5,712 
5,584 
5,836 
100-249 
3,270 
2,938 
2,689 
250 + 
1,626 
1,187 
917 
Sector 
 
 
 
Agriculture 
921 
3,407 
3,632 
Manufacturing 
7,838 
7,560 
6,998 
Electricity, Gas and Water 
1,406 
1,148 
1,041 
Construction 
6,576 
7,202 
7,474 
Wholesale and Retail 
15,163 
17,287 
16,126 
Hotels and Restaurants 
8,421 
8,888 
8,920 
Transport and Communications 
7,810 
6,890 
8,936 
Financial Services 
1,853 
2,330 
2,549 
Business Services 
14,297 
14,011 
13,143 
Public Administration 
1,584 
942 
947 
Education 
5,422 
5,796 
5,515 
Health and Social Work 
8,067 
8,460 
8,556 
Arts and Other Services 
7,164 
7,358 
7,373 
 
 
 

149 
Chapter 2: Recruitment and skill-shortage vacancies 
Table A.2.1  Incidence, number and density of vacancies by size and sector 
 
 
% of 
establishments 
with a vacancy 
(incidence) 
Number 
of 
vacancies 
Vacancies 
as a % of 
employment 
(density)  
Average 
(mean) 
vacancies per 
establishment 
with vacancies 
 
Unwtd 
Base 
% 
Rounded to 
nearest 100 
% 
 
UK 
91,210 
19 
927,200 
3.3 
2.6 
Country 
 
 
 
 
 
England 
75,129 
20 
797,400 
3.4 
2.6 
Northern Ireland 
4,019 
13 
19,700 
2.7 
2.5 
Scotland 
6,035 
19 
73,600 
3.1 
2.7 
Wales 
6,027 
17 
36,500 
3.1 
2.6 
Size 
 
 
 
 
 
2-4 
20,527 
10 
137,100 
5.8 
1.7 
5-24 
49,584 
23 
268,500 
4.0 
1.8 
25-49 
11,657 
42 
119,300 
3.4 
2.7 
50-99 
5,836 
54 
112,000 
3.2 
3.9 
100-249 
2,689 
64 
122,600 
2.9 
6.3 
250+ 
917 
71 
167,700 
2.3 
17.3 
Sector 
 
 
 
 
 
Agriculture 
3,632 
5 
9,900 
2.5 
2.0 
Manufacturing 
6,998 
19 
49,400 
2.0 
2.4 
Electricity, Gas and Water 
1,041 
21 
6,000 
2.1 
2.6 
Construction 
7,474 
12 
34,800 
3.0 
1.9 
Wholesale and Retail 
16,126 
17 
129,300 
2.9 
2.1 
Hotels and Restaurants 
8,920 
26 
104,300 
5.3 
2.5 
Transport and 
Communications 
8,936 
19 
76,800 
3.4 
2.9 
Financial Services 
2,549 
18 
32,100 
3.2 
3.7 
Business Services 
13,143 
19 
197,500 
4.1 
2.8 
Public Administration 
947 
31 
45,800 
3.4 
6.7 
Education 
5,515 
33 
55,600 
2.1 
2.9 
Health and Social Work 
8,556 
30 
121,200 
3.2 
3.0 
Arts and Other Services 
7,373 
22 
64,600 
5.1 
2.4 
Base: All establishments 
Percentages in Column 3 are shown as a proportion of all employment. 
Number of vacancies rounded to the nearest 100. 
 
 

150 
 
Table A.2.2  Density of vacancies by size and sector (2013 and 2015)  
Base: All establishments 
Percentages are shown as a proportion of all employment. 
 
 
 
Vacancies as % of employment 
 
2013 
2015 
 
Unwtd Base: 
% 
Unwtd 
Base 
% 
UK 
91,279 
2.4 
91,210 
3.3 
Size 
 
 
 
 
2-4 
19,058 
4.4 
20,527 
5.8 
5-24 
51,565 
2.8 
49,584 
4.0 
25-49 
10,947 
2.4 
11,657 
3.4 
50-99 
5,584 
2.3 
5,836 
3.2 
100-249 
2,938 
2.3 
2,689 
2.9 
250+ 
1,187 
1.6 
917 
2.3 
Sector 
 
 
 
 
Agriculture 
3,407 
1.4 
3,632 
2.5 
Manufacturing 
7,560 
1.6 
6,998 
2.0 
Electricity, Gas and Water 
1,148 
2.1 
1,041 
2.1 
Construction 
7,202 
1.8 
7,474 
3.0 
Wholesale and Retail 
17,287 
1.9 
16,126 
2.9 
Hotels and Restaurants 
8,888 
3.7 
8,920 
5.3 
Transport and 
Communications 
6,890 
2.3 
8,936 
3.4 
Financial Services 
2,330 
2.6 
2,549 
3.2 
Business Services 
14,011 
3.2 
13,143 
4.1 
Public Administration 
942 
2.4 
947 
3.4 
Education 
5,796 
1.8 
5,515 
2.1 
Health and Social Work 
8,460 
2.4 
8,556 
3.2 
Arts and Other Services 
7,358 
3.7 
7,373 
5.1 

151 
Table A.2.3  Incidence, number and density of vacancies by occupation (2011 - 2015)  
 
% of 
establishments 
with vacancies 
who have a 
vacancy in 
occupation 
Number of 
vacancies 
Vacancies as a 
% of 
employment 
(density) 
 
Unwtd Base:  
Rounded to 
nearest 100 
Unwtd
Base 
% 
2011 
17,093 
 
 
 
Managers 
6 
19,300 
987 
0.4 
Professionals 
14 
81,900 
3,025 
2.6 
Associate Professionals 
19 
96,500 
3,179 
5.3 
Administrative and Clerical 
16 
57,300 
2,648 
1.6 
Skilled Trades 
14 
51,900 
2,219 
2.8 
Caring, Leisure and Other Services 
13 
70,000 
2,556 
3.0 
Sales and Customer Services 
14 
79,300 
2,275 
2.3 
Machine Operatives 
6 
35,600 
1,129 
1.8 
Elementary occupations 
15 
80,500 
2,844 
2.0 
TOTAL 
 
586,500 
 
2.2 
2013 
18,959 
 
 
 
Managers 
6 
24,000 
1,168 
0.5 
Professionals 
16 
97,400 
3,594 
3.1 
Associate Professionals 
19 
98,500 
3,406 
6.3 
Administrative and Clerical 
15 
67,100 
2,760 
2.0 
Skilled Trades 
13 
50,800 
2,600 
2.7 
Caring, Leisure and Other Services 
15 
100,500 
3,232 
3.6 
Sales and Customer Services 
14 
76,200 
2,578 
2.1 
Machine Operatives 
6 
30,100 
1,197 
1.6 
Elementary occupations 
15 
79,400 
3,171 
2.1 
TOTAL 
 
655,000 
 
2.4 
2015 
24,306 
 
 
 
Managers 
5 
25,300 
1,335 
0.5 
Professionals 
14 
130,100 
4,047 
3.8 
Associate Professionals 
18 
131,100 
4,010 
7.9 
Administrative and Clerical 
13 
89,400 
3,231 
2.6 
Skilled Trades 
16 
87,100 
3,814 
4.5 
Caring, Leisure and Other Services 
15 
135,600 
4,309 
4.6 
Sales and Customer Services 
13 
97,700 
2,971 
2.8 
Machine Operatives 
6 
60,700 
1,780 
2.6 
Elementary occupations 
17 
130,800 
4,491 
3.5 
TOTAL 
 
927,200 
 
3.3 
Base: Column 1: all establishments with vacancies; Column 2: all establishments; Column 3: all establishments 
with vacancies in each occupation. 
Column 4 percentages are based on all employment, rather than all establishments; figures therefore show the 
number of vacancies as a proportion of all employment in each occupation 
Note: Vacancies are rounded to the nearest 100. Vacancy total is higher than the sum of vacancies by 
occupation as only six occupations per establishment were followed up. 

152 
Table A.2.4  Incidence, number and density of skill-shortage vacancies (SSVs), by country, 
size and sector 
 
 
% of 
establishments 
with a skill-
shortage 
vacancy 
Number of 
skill-shortage 
vacancies 
% of vacancies 
which are SSVs 
 
Unwtd 
Base: 
% 
Rounded to 
nearest 100 
Unwtd 
Base: 
% 
UK 
91,210 
6 
209,400 
24,306 
23 
Country 
 
 
 
 
 
England 
75,129 
6 
180,200 
20,697 
23 
Northern Ireland 
4,019 
3 
2,800 
713 
14 
Scotland 
6,035 
6 
17,700 
1,619 
24 
Wales 
6,027 
6 
8,800 
1,277 
24 
Size 
 
 
 
 
 
2-4 
20,527 
3 
39,400 
1,869 
29 
5-24 
49,584 
7 
68,600 
11,864 
26 
25-49 
11,657 
11 
25,100 
4,992 
21 
50-99 
5,836 
13 
22,400 
3,159 
20 
100-249 
2,689 
17 
23,900 
1,759 
20 
250+ 
917 
20 
30,000 
663 
18 
Sector 
 
 
 
 
 
Agriculture 
3,632 
2 
2,100 
207 
22 
Manufacturing 
6,998 
8 
14,800 
1,605 
30 
Electricity, Gas and Water 
1,041 
8 
2,100 
221 
35 
Construction 
7,474 
5 
12,000 
1,173 
35 
Wholesale and Retail 
16,126 
4 
26,200 
3,753 
20 
Hotels and Restaurants 
8,920 
7 
19,400 
3,420 
19 
Transport and 
Communications 
8,936 
7 
23,700 
1,993 
31 
Financial Services 
2,549 
4 
6,600 
472 
21 
Business Services 
13,143 
6 
50,600 
3,859 
26 
Public Administration 
947 
5 
3,900 
276 
9 
Education 
5,515 
8 
9,100 
2,073 
16 
Health and Social Work 
8,556 
7 
25,600 
3,152 
21 
Arts and Other Services 
7,373 
6 
13,400 
2,102 
21 
Base: Column 1 and 2: all establishments; Column 3: all establishments with vacancies 
Percentages in Column 3 are based on all vacancies, rather than all establishments with vacancies; figures 
therefore show the proportion of vacancies caused by skill shortages  
Notes: The number of skill-shortage vacancies has been rounded to the nearest 100 
 
 
 

153 
Table A.2.5  Density of skill-shortage vacancies, by country, size and sector (2011 - 2015) 
Base: all establishments with vacancies 
Percentages are based on all vacancies, rather than all establishments with vacancies; figures therefore show 
the proportion of vacancies caused by skill shortages  
Notes: The number of skill-shortage vacancies has been rounded to the nearest 100 
 
 
 
% of vacancies which are SSVs 
 
2011 
2013 
2015 
 
Unwtd 
Base: 
% 
Unwtd 
Base: 
% 
Unwtd 
Base: 
% 
UK 
17,093 
16 
18,959 
22 
24,306 
23 
Country 
 
 
 
 
 
 
England 
14,749 
15 
15,894 
22 
20,697 
23 
Northern Ireland 
520 
21 
550 
19 
713 
14 
Scotland 
729 
15 
1,499 
25 
1,619 
24 
Wales 
1,095 
18 
1,016 
20 
1,277 
24 
Size 
 
 
 
 
 
 
2-4 
1,389 
21 
1,403 
30 
1,869 
29 
5-24 
7,869 
17 
8,969 
26 
11,864 
26 
25-49 
2,972 
18 
3,653 
21 
4,992 
21 
50-99 
2,241 
11 
2,435 
19 
3,159 
20 
100-249 
1,698 
14 
1,737 
19 
1,759 
20 
250+ 
924 
8 
762 
15 
663 
18 
Sector 
 
 
 
 
 
 
Agriculture 
87 
26 
167 
28 
207 
22 
Manufacturing 
1,460 
24 
1,369 
30 
1,605 
30 
Electricity, Gas and Water 
205 
13 
185 
23 
221 
35 
Construction 
575 
18 
706 
23 
1,173 
35 
Wholesale and Retail 
2,549 
14 
2,983 
18 
3,753 
20 
Hotels and Restaurants 
2,078 
15 
2,447 
19 
3,420 
19 
Transport and 
Communications 
1,404 
14 
1,232 
26 
1,993 
31 
Financial Services 
331 
17 
398 
10 
472 
21 
Business Services 
2,945 
17 
3,147 
28 
3,859 
26 
Public Administration 
402 
10 
283 
22 
276 
9 
Education 
1,487 
10 
2,062 
12 
2,073 
16 
Health and Social Work 
1,992 
10 
2,375 
22 
3,152 
21 
Arts and Other Services 
1,578 
21 
1,605 
24 
2,102 
21 

154 
Table A.2.6 Density of skill-shortage vacancies by occupation and sector 
 
Managers 
Professionals 
Associate 
Professionals 
Administrative / 
Clerical staff 
Skilled Trades 
occupations 
Caring, Leisure 
and Other 
Services 
Sales and 
Customer 
Services 
Machine 
Operatives 
Elementary staff 
UK 
17 
32 
22 
11 
43 
20 
16 
32 
14 
 
 
 
 
 
 
 
 
 
 
Agriculture 
** 
** 
** 
** 
32 
** 
** 
32 
14 
Manufacturing 
28 
39 
25 
12 
52 
** 
14 
23 
13 
Electricity, Gas and 
Water 
** 
67 
42 
20 
46 
** 
** 
35 
11 
Construction 
23 
36 
37 
11 
38 
** 
25 
47 
32 
Wholesale and Retail 
18 
19 
32 
20 
51 
** 
14 
23 
12 
Hotels and 
Restaurants 
24 
** 
10 
14 
37 
15 
6 
14 
15 
Transport and 
Communications 
15 
37 
24 
9 
44 
6 
41 
50 
7 
Financial Services 
6 
15 
41 
9 
** 
** 
14 
** 
** 
Business Services 
14 
37 
23 
13 
53 
19 
21 
26 
9 
Public Administration 
** 
10 
3 
5 
** 
14 
** 
** 
7 
Education 
6 
18 
14 
4 
14 
21 
** 
** 
12 
Health and Social 
Work 
14 
38 
17 
8 
11 
19 
12 
29 
10 
Arts and Other 
Services 
14 
20 
11 
14 
42 
24 
6 
52 
18 
Base: All establishments with vacancies within each occupation by sector 
Densities are based on skill-shortage vacancies as a proportion of all vacancies within each occupation by 
sector, rather than the number of establishments with vacancies. 
‘**’ Figure not shown because of a low base (fewer than 25 establishments with vacancies) 
Where base between 25 and 49 establishments with vacancies, figures are shown in italics 
 = density 30% or above 
 
 = density between 15% and 29% 
 
 = density between 1% and 14% 
 
X 
X 
X 

155 
Table A.2.6a  Unweighted base sizes for previous table (Table A.2.6) 
 
Managers 
Professionals 
Associate 
Professionals 
Administrative / 
Clerical staff 
Skilled Trades 
occupations 
Caring, Leisure and 
Other Services 
Sales and 
Customer Services 
Machine 
Operatives 
Elementary staff 
UK 
1,335 
4,047 
4,010 
3,231 3,814 4,309 
2,971 
1,780 
4,491 
 
 
 
 
 
 
 
 
 
 
Agriculture 
** 
** 
** 
** 
40 
** 
** 
34 
102 
Manufacturing 
114 
175 
336 
206 
573 
** 
134 
407 
147 
Electricity, Gas and Water 
** 
27 
36 
47 
41 
** 
** 
63 
42 
Construction 
73 
139 
178 
145 
563 
** 
41 
125 
135 
Wholesale and Retail 
251 
101 
362 
299 
562 
** 
2,048 
305 
441 
Hotels and Restaurants 
233 
** 
73 
212 
1,044 
210 
84 
119 
2,446 
Transport and 
Communications 
65 
457 
490 
298 
267 
30 
195 
434 
135 
Financial Services 
35 
42 
153 
247 
** 
** 
78 
** 
** 
Business Services 
176 
1,066 
1,310 
812 
440 
154 
218 
211 
359 
Public Administration 
** 
68 
105 
92 
** 
57 
** 
** 
32 
Education 
36 
1,031 
227 
202 
46 
857 
** 
** 
196 
Health and Social Work 
177 
793 
352 
300 
118 
1,912 
40 
36 
198 
Arts and Other Services  
134 
138 
379 
363 
108 
1,048 
99 
29 
254 
‘**’ Corresponds with the double asterisks shown in Table A.2.6 (base is fewer than 25 establishments with 
vacancies) 
 
 
 

156 
Table A.2.7 Skills lacking among applicants, overall and by country (prompted) 
 
UK 
England 
Northern 
Ireland 
Scotland 
Wales 
Unweighted Base 
3,244 
2,750 
78 
200 
216 
 
% 
% 
% 
% 
% 
Technical or practical skills 
 
 
 
 
 
Specialist skills or knowledge 
64 
63 
41 
72 
68 
Solving complex problems 
39 
39 
34 
31 
43 
Knowledge of products and services offered 
37 
37 
35 
37 
40 
Knowledge of how the organisation works 
31 
30 
40 
35 
41 
Complex numerical/statistical skills 
29 
29 
33 
31 
27 
Reading/understanding instructions, reports etc. 
26 
27 
20 
23 
31 
Writing instructions, reports etc. 
25 
25 
14 
18 
35 
Basic numerical skills 
24 
25 
31 
16 
32 
Computer literacy / basic IT skills 
22 
23 
21 
17 
18 
Advanced or specialist IT skills 
22 
23 
9 
16 
15 
Adapting to new equipment or materials 
20 
19 
25 
19 
31 
Manual dexterity 
15 
15 
13 
16 
24 
Communicating in a foreign language 
15 
15 
12 
16 
14 
Oral Welsh language skills (Wales only base) 
1 
n/a 
n/a 
n/a 
13 
Written Welsh language skills (Wales only base) 
* 
n/a 
n/a 
n/a 
12 
None of the above 
7 
7 
9 
6 
8 
People and personal skills 
 
 
 
 
 
Ability to manage own time and prioritise tasks 
47 
46 
46 
47 
57 
Customer handling skills 
39 
38 
41 
41 
47 
Team working 
33 
33 
36 
36 
45 
Managing own feelings / handling those of others 
32 
31 
32 
39 
41 
Persuading or influencing others 
31 
30 
33 
38 
32 
Managing or motivating other staff 
30 
29 
40 
35 
40 
Sales skills 
25 
24 
38 
28 
32 
Instructing, teaching or training people 
22 
21 
13 
25 
27 
Setting objectives for others / planning resources 
21 
21 
24 
24 
27 
Making speeches or presentations 
16 
17 
13 
15 
18 
None of the above 
25 
26 
17 
15 
15 
Base: All establishments with skill-shortage vacancies in each occupation – up to two occupations followed up 
Percentages are based on all skill-shortage vacancies, rather than all establishments with skill-shortage 
vacancies; proportions therefore show the percentage of skill-shortage vacancies within each occupation 
caused by lack of each skill. 
 
 

157 
Table A.2.8  Technical and practical skills lacking among applicants, overall and by 
occupation (prompted) 
 
Overall 
Managers 
Professionals 
Associate 
Professionals 
Administrative / 
Clerical staff 
Skilled Trades 
occupations 
Caring, Leisure and 
Other Services 
Sales and Customer 
Services 
Machine Operatives 
Elementary staff 
Unweighted Base 
3,244 
131 
619 
474 
209 
777 
459 
226 
280 
315 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
Specialist skills or 
knowledge 
64 
77 
72 
73 
59 
66 
63 
54 
57 
58 
Solving complex 
problems 
39 
52 
33 
48 
42 
43 
32 
45 
35 
36 
Knowledge of products 
and services offered 
37 
58 
30 
41 
50 
36 
33 
48 
26 
45 
Knowledge of how the 
organisation works 
31 
56 
19 
33 
38 
28 
36 
47 
25 
44 
Complex 
numerical/statistical 
skills 
29 
24 
23 
36 
39 
30 
24 
28 
21 
30 
Reading/understandin
g instructions, reports 
etc. 
26 
23 
13 
18 
40 
32 
35 
31 
31 
37 
Writing instructions, 
reports etc. 
25 
16 
22 
20 
33 
27 
36 
26 
19 
22 
Basic numerical skills 
24 
16 
12 
17 
27 
25 
31 
38 
25 
38 
Computer literacy / 
basic IT skills 
22 
23 
16 
24 
31 
16 
23 
27 
21 
19 
Advanced or specialist 
IT skills 
22 
21 
34 
42 
36 
16 
12 
12 
8 
9 
Adapting to new 
equipment or materials 
20 
19 
16 
14 
19 
29 
13 
24 
21 
27 
Manual dexterity 
15 
12 
6 
5 
8 
33 
9 
13 
19 
27 
Communicating in a 
foreign language 
15 
17 
11 
14 
8 
12 
21 
17 
14 
23 
Oral Welsh language 
skills (Wales only 
base) 
1 
1 
* 
* 
2 
* 
1 
* 
1 
1 
Written Welsh 
language skills (Wales 
only base) 
* 
1 
* 
* 
2 
* 
1 
* 
1 
1 
None of the above 
7 
2 
7 
6 
4 
6 
10 
4 
6 
10 
Base: All establishments with skill-shortage vacancies in each occupation – up to two occupations followed up 
Percentages are based on all skill-shortage vacancies, rather than all establishments with skill-shortage 
vacancies; proportions therefore show the percentage of skill-shortage vacancies within each occupation 
caused by lack of each skill. 
Note: Column percentages exceed 100 per cent because of multiple responses; skill-shortage vacancies 
unable to be coded to an occupational group have been included in the “Overall” figures, though have not been 
included in the more detailed breakdown. 
 
 

158 
Table A.2.9  People and personal skills lacking among applicants, overall and by 
occupation (prompted) 
 
Overall 
Managers 
Professionals 
Associate 
Professionals 
Administrative / 
Clerical staff 
Skilled Trades 
occupations 
Caring, Leisure and 
Other Services 
Sales and Customer 
Services 
Machine Operatives 
Elementary staff 
Unweighted Base 
3,244 
131 
619 
474 
209 
777 
459 
226 
280 
315 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
Ability to manage own 
time and prioritise 
tasks 
47 
52 
31 
43 
53 
48 
53 
54 
40 
64 
Customer handling 
skills 
39 
50 
29 
35 
49 
27 
44 
72 
35 
54 
Team working 
33 
38 
14 
25 
38 
35 
46 
37 
33 
51 
Managing own 
feelings / handling 
those of others 
32 
39 
16 
26 
35 
31 
42 
42 
28 
48 
Persuading or 
influencing others 
31 
48 
21 
46 
30 
24 
30 
52 
18 
39 
Managing or 
motivating other staff 
30 
56 
27 
23 
29 
30 
37 
36 
21 
40 
Sales skills 
25 
30 
16 
34 
30 
13 
16 
60 
16 
30 
Instructing, teaching 
or training people 
22 
43 
19 
22 
19 
24 
25 
19 
16 
27 
Setting objectives for 
others / planning 
resources 
21 
50 
20 
22 
19 
23 
25 
22 
10 
25 
Making speeches or 
presentations 
16 
25 
15 
27 
16 
11 
19 
17 
9 
17 
None of the above 
25 
18 
34 
26 
18 
28 
21 
8 
35 
13 
Base: All establishments with skill-shortage vacancies in each occupation – up to two occupations followed up 
Percentages are based on all skill-shortage vacancies, rather than all establishments with skill-shortage 
vacancies; proportions therefore show the percentage of skill-shortage vacancies within each occupation 
caused by lack of each skill. 
Note: Column percentages exceed 100 per cent because of multiple responses; skill-shortage vacancies 
unable to be coded to an occupational group have been included in the “Overall” figures, though have not been 
included in the more detailed breakdown. 

159 
Table A.2.10  Technical or practical skills lacking among applicants, by sector (prompted) 
 
Overall 
Agriculture 
Manufacturing 
Electricity, 
Gas & Water 
Construction 
Wholesale & 
Retail 
Hotels & 
Restaurants 
Transport & 
Comms 
Financial 
Services 
Business 
Services 
Public Admin. 
Education 
Health & 
Social Work 
Arts & Other 
Services 
Unweighted Base 
3,224 
30 
282 
44 
233 
413 
398 
339 
43 
608 
24 
230 
375 
225 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
Specialist skills or knowledge 
64 
76 
67 
43 
64 
59 
61 
67 
93 
63 
** 
61 
69 
54 
Solving complex problems 
39 
60 
43 
66 
48 
41 
32 
51 
14 
46 
** 
17 
29 
30 
Knowledge of products and services 
37 
51 
40 
52 
42 
48 
41 
40 
60 
33 
** 
24 
26 
29 
Knowledge of how your organisation works 
31 
58 
28 
14 
32 
39 
39 
29 
54 
24 
** 
24 
28 
32 
More complex numerical or statistical skills 
29 
43 
31 
27 
31 
25 
32 
30 
42 
39 
** 
13 
26 
16 
Reading and understanding instructions etc.  
26 
33 
27 
53 
36 
22 
38 
32 
16 
22 
** 
15 
27 
21 
Writing instructions, guidelines etc. 
25 
31 
24 
45 
35 
20 
28 
32 
13 
20 
** 
17 
33 
18 
Basic numerical skills and understanding 
24 
51 
24 
49 
33 
21 
31 
29 
8 
20 
** 
12 
27 
23 
Computer literacy / basic IT skills 
22 
17 
15 
17 
17 
23 
18 
24 
29 
26 
** 
18 
25 
16 
Advanced or specialist IT skills 
22 
9 
22 
10 
16 
18 
10 
36 
60 
28 
** 
21 
16 
9 
Adapting to new equipment or materials 
20 
60 
25 
36 
21 
24 
23 
18 
11 
20 
** 
6 
15 
14 
Manual dexterity 
15 
45 
30 
14 
29 
22 
19 
13 
4 
11 
** 
11 
5 
11 
Communicating in a foreign language 
15 
16 
11 
13 
15 
16 
28 
12 
18 
8 
** 
9 
21 
11 
Oral Welsh language skills (Wales only base) 
1 
- 
* 
- 
* 
1 
1 
* 
* 
1 
** 
1 
* 
1 
Written Welsh language skills (Wales only base) 
* 
- 
* 
- 
* 
* 
1 
* 
* 
* 
** 
1 
* 
2 
None of the above 
7 
9 
8 
5 
10 
5 
10 
4 
2 
5 
** 
10 
7 
9 
Base: All establishments with skill-shortage vacancies – up to two occupations followed up. ‘**’ Figure not shown because of a low base (fewer than 25 establishments with vacancies). Where 
base between 25 and 49 establishments with vacancies, figures are shown in italics. Percentages are based on all skill-shortage vacancies, rather than all establishments with skill-shortage 
vacancies; proportions therefore show the percentage of skill-shortage vacancies within each sector caused by lack of each skill. 

160 
Table A.2.11  People and personal skills lacking among applicants, by sector (prompted) 
 
Overall 
Agriculture 
Manufacturing 
Electricity, Gas 
& Water 
Construction 
Wholesale & 
Retail 
Hotels & 
Restaurants 
Transport & 
Comms 
Financial 
Services 
Business 
Services 
Public Admin. 
Education 
Health & Social 
Work 
Arts & Other 
Services 
Unweighted Base 
3,224 
30 
282 
44 
233 
413 
398 
339 
43 
608 
24 
230 
375 
225 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
Ability to manage own time and prioritise own 
tasks 
47 
74 
42 
54 
51 
50 
58 
45 
35 
46 
** 
33 
50 
42 
Customer handling skills 
39 
17 
29 
47 
36 
49 
44 
50 
23 
37 
** 
21 
29 
54 
Team working 
33 
36 
34 
44 
33 
31 
47 
34 
14 
32 
** 
29 
31 
32 
Managing their own feelings, or handling the 
feelings of others 
32 
21 
40 
14 
32 
30 
52 
29 
19 
30 
** 
28 
33 
26 
Persuading or influencing others 
31 
19 
33 
25 
31 
30 
38 
37 
50 
31 
** 
21 
23 
27 
Managing or motivating other staff 
30 
27 
31 
8 
29 
29 
43 
30 
9 
28 
** 
30 
35 
24 
Sales skills 
25 
20 
22 
11 
18 
42 
25 
26 
24 
31 
** 
7 
13 
20 
Instructing, teaching or training people 
22 
11 
20 
12 
26 
18 
31 
22 
10 
20 
** 
27 
24 
18 
Setting objectives for others 
21 
16 
19 
20 
26 
20 
32 
21 
2 
20 
** 
21 
29 
13 
Making speeches or presentations 
16 
3 
15 
19 
11 
13 
14 
17 
42 
19 
** 
15 
18 
12 
None of the above 
25 
11 
30 
25 
23 
22 
18 
20 
25 
28 
** 
39 
25 
21 
Base: All establishments with skill-shortage vacancies – up to two occupations followed up. ‘**’ Figure not shown because of a low base (fewer than 25 establishments with vacancies). Where 
base between 25 and 49 establishments with vacancies, figures are shown in italics. Percentages are based on all skill-shortage vacancies, rather than all establishments with skill-shortage 
vacancies; proportions therefore show the percentage of skill-shortage vacancies within each sector caused by lack of each skill. 

161 
 
Table A.2.12  Skills lacking among applicants, ‘old’ skills descriptor time series 
comparisons 
 
2011 
2013 
2015 
Unweighted Base 
3,955 
4,869 
3,587 
 
% 
% 
% 
Technical, practical or job-specific 
46 
63 
66 
Planning and organisation 
40 
41 
36 
Team working 
31 
33 
30 
Customer handling 
39 
40 
36 
Problem solving 
36 
37 
33 
Oral communication 
37 
41 
34 
Written communication 
33 
38 
32 
Basic computer literacy / using IT 
15 
16 
18 
Strategic Management 
28 
30 
28 
Literacy 
28 
34 
28 
Advanced IT or software 
20 
22 
22 
Numeracy 
24 
26 
24 
Foreign language 
16 
17 
15 
Oral Welsh language skills (Wales only base) 
2 
* 
1 
Written Welsh language skills (Wales only base) 
2 
1 
1 
None of the above 
8 
4 
7 
Base: All establishments with skill-shortage vacancies in each occupation – up to two occupations 
followed up. Percentages are based on all skill-shortage vacancies, rather than all establishments 
with skill-shortage vacancies; proportions therefore show the percentage of skill-shortage vacancies 
within each sector caused by lack of each skill. ‘*’ denotes a figure greater than zero but smaller 
than 0.5. 
 
 
 
 

162 
Table A.2.12a  Skills lacking among applicants, ‘old’ skills descriptor nation comparisons 
 
UK 
England Northern 
Ireland 
Scotland 
Wales 
Unweighted Base 
3,587 
3,051 
94 
253 
189 
 
% 
% 
% 
% 
% 
Technical, practical or job-
specific 
66 
68 
57 
57 
61 
Planning and organisation 
36 
36 
42 
29 
50 
Team working 
30 
30 
44 
29 
35 
Customer handling 
36 
37 
43 
30 
43 
Problem solving 
33 
32 
54 
28 
40 
Oral communication 
34 
34 
34 
31 
38 
Written communication 
32 
32 
34 
29 
31 
Basic computer literacy / using 
IT 
18 
18 
24 
10 
29 
Strategic Management 
28 
28 
46 
21 
31 
Literacy 
28 
28 
31 
28 
25 
Advanced IT or software 
22 
23 
30 
12 
22 
Numeracy 
24 
25 
29 
17 
24 
Foreign language 
15 
15 
14 
15 
16 
Oral Welsh language skills 
(Wales base only) 
1 
n/a 
n/a 
n/a 
16 
Written Welsh language skills 
(Wales base only) 
1 
n/a 
n/a 
n/a 
15 
None of the above 
7 
6 
7 
12 
9 
Base: All establishments with skill-shortage vacancies in each occupation – up to two occupations 
followed up 
 
Percentages are based on all skills gaps, rather than all establishments with skills gaps; 
proportions therefore show the percentage of skills gaps attributed to each skill. 
 
 

163 
Table A.2.13 Proportion of Construction employers that reported a loss of business to 
competitors as an impact of skill-shortage vacancies, by size 
Row percentages 
Unwtd 
Base 
 
Lose business or orders to 
competitors 
Size 
 
 
 
2-4 
87 
% 
61 
5-24 
267 
% 
51 
25-49 
52 
% 
46 
50-99 
31 
% 
59 
100-249 
7 
% 
** 
250+ 
2 
% 
** 
Base: All Construction establishments where hard-to-fill vacancies were caused by skill shortages 
“**” denotes figure not shown because of a low base (fewer than 25 respondents); Figures in italics show 
base is below 50 and figures should be treated with caution. 
 
 

164 
Table A.2.14  Most common impacts of skill-shortage vacancies (prompted), by country, 
size and sector 
 
 
 
 
Prompted impacts 
Row percentages 
Unwtd 
Base 
 
Any impact 
Increase workload for 
other staff 
Have difficulties meeting 
customer services 
objectives 
Lose business or orders to 
competitors 
Experience increased 
operating costs 
Delay developing new 
products or services 
Have difficulties meeting 
quality standards 
Have difficulties 
introducing new working 
practices 
UK 
6,469 
% 
94 
84 
49 
43 
42 
40 
35 
35 
Country 
 
 
 
 
 
 
 
 
 
 
England 
5,495 
% 
94 
84 
49 
42 
42 
40 
35 
34 
Northern Ireland 
162 
% 
92 
83 
43 
38 
47 
34 
40 
42 
Scotland 
432 
% 
95 
84 
48 
45 
43 
40 
37 
36 
Wales 
380 
% 
97 
84 
57 
49 
46 
44 
36 
40 
Size 
 
 
 
 
 
 
 
 
 
 
2-4 
619 
% 
95 
81 
51 
54 
38 
46 
35 
38 
5-24 
3,363 
% 
94 
84 
49 
42 
41 
40 
34 
34 
25-49 
1,202 
% 
95 
88 
48 
33 
46 
35 
36 
31 
50-99 
707 
% 
95 
86 
47 
32 
53 
31 
37 
33 
100-249 
413 
% 
95 
85 
45 
21 
56 
33 
41 
32 
250+ 
165 
% 
94 
89 
43 
25 
60 
28 
33 
43 
Sector 
 
 
 
 
 
 
 
 
 
 
Agriculture 
65 
% 
98 
92 
18 
25 
51 
28 
33 
42 
Manufacturing 
594 
% 
95 
87 
56 
44 
48 
45 
30 
36 
Electricity, Gas & 
Water 
75 
% 
97 
86 
53 
39 
45 
32 
18 
24 
Construction 
446 
% 
96 
83 
52 
56 
50 
44 
35 
38 
Wholesale & 
Retail 
811 
% 
94 
83 
53 
46 
37 
34 
34 
30 
Hotels & 
Restaurants 
753 
% 
93 
85 
52 
41 
41 
37 
45 
40 
Transport & 
Comms. 
690 
% 
95 
86 
53 
46 
48 
52 
34 
33 
Financial Services 106 
% 
96 
88 
43 
37 
30 
42 
36 
47 
Business Services 1,232 
% 
95 
83 
51 
49 
39 
43 
32 
32 
Public 
Administration  
40 
% 
94 
85 
36 
24 
41 
34 
35 
37 
Education 
456 
% 
95 
88 
37 
24 
51 
39 
45 
34 
Health & Social 
Work 
752 
% 
93 
83 
37 
22 
49 
33 
33 
43 
Arts and Other 
Services 
449 
% 
93 
79 
49 
48 
35 
43 
41 
32 
Base: All establishments with hard-to-fill vacancies that were all as a result of skill shortages 
 
 

165 
Table A.2.15   Profile of hard-to-fill vacancies, by country, size and sector 
 
 
Total number 
of hard-to-fill 
vacancies 
% of 
vacancies 
hard-to-fill 
Average 
number of 
hard-to-fill 
vacancies for 
those with 
hard-to-fill 
vacancies 
Average 
number of 
hard-to-fill 
vacancies for 
those with 
vacancies 
 
Unwtd 
base 
 
% 
 
 
UK 
24,306 
303,200 
33 
2.2 
0.9 
Country 
 
 
 
 
 
England 
20,697 
262,300 
33 
2.3 
0.9 
Northern Ireland 
713 
4,200 
21 
1.7 
0.6 
Scotland 
1,619 
24,600 
34 
2.2 
0.9 
Wales 
1,277 
12,100 
33 
2.1 
0.9 
Size 
 
 
 
 
 
2-4 
1,869 
59,700 
44 
1.6 
0.7 
5-24 
11,864 
101,500 
38 
1.7 
0.7 
25-49 
4,992 
36,200 
30 
2.3 
0.8 
50-99 
3,159 
33,500 
30 
3.5 
1.2 
100-249 
1,759 
33,700 
28 
5.3 
1.8 
250+ 
663 
38,600 
23 
12.2 
4.1 
Sector 
 
 
 
 
 
Agriculture 
207 
3,000 
30 
1.3 
0.6 
Manufacturing 
1,605 
17,500 
36 
1.9 
0.9 
Electricity, Gas and Water 
221 
2,300 
39 
2.6 
1.1 
Construction 
1,173 
15,000 
43 
1.8 
0.8 
Wholesale and Retail 
3,753 
38,200 
30 
1.8 
0.6 
Hotels and Restaurants 
3,420 
34,000 
33 
2.1 
0.8 
Transport and 
Communications 
1,993 
28,200 
37 
2.5 
1.1 
Financial Services 
472 
7,400 
23 
3.7 
1.0 
Business Services 
3,859 
65,300 
33 
2.3 
1.0 
Public Administration 
276 
12,300 
27 
5.7 
1.8 
Education 
2,073 
12,700 
23 
2.0 
0.7 
Health and Social Work 
3,152 
42,900 
35 
2.8 
1.1 
Arts and Other Services 
2,102 
25,400 
39 
2.4 
0.9 
Base: All establishments with vacancies 
Notes: The number of hard-to-fill vacancies has been rounded to the nearest 100 
 
 

166 
Table A.2.16  Main causes of hard-to-fill vacancies  
 
 
Country 
Size Band 
 
UK 
England 
Northern 
Ireland 
Scotland 
Wales 
2-4 
5-24 
25-49 
50-99 
100-249 
250+ 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
Unweighted Base 
9,223 
7,857 
228 612 526 869 4,733 1,735 1,xx-xxxx-xxxx 
Low number of applicants with 
the required skills 
37 
37 
40 
38 
40 
38 
36 
36 
33 
42 
41 
Not enough people interested in 
doing this type of job 
20 
20 
19 
18 
24 
22 
21 
20 
25 
16 
15 
Low number of applicants 
generally 
18 
19 
10 
13 
19 
20 
18 
19 
23 
16 
13 
Lack of work experience the 
company demands 
16 
16 
9 
14 
19 
18 
15 
14 
14 
14 
16 
Poor terms and conditions (e.g. 
pay) offered for post 
13 
13 
16 
15 
10 
8 
12 
15 
16 
19 
16 
Low number of applicants with 
the required attitude, motivation 
or personality 
13 
13 
8 
12 
16 
15 
14 
14 
11 
8 
10 
Lack of qualifications the 
company demands 
12 
12 
11 
15 
16 
13 
11 
13 
13 
10 
15 
Remote location/poor public 
transport 
11 
10 
4 
19 
8 
9 
10 
12 
12 
10 
14 
Too much competition from other 
employers 
10 
10 
14 
12 
6 
10 
7 
10 
14 
10 
15 
Job entails shift work/unsociable 
hours 
9 
9 
3 
10 
9 
10 
11 
11 
8 
9 
5 
Base: All establishments with hard-to-fill vacancies 
Percentages are based on all hard-to-fill vacancies. 
Reasons mentioned in more than one per cent of cases shown. 
 

167 
Table A.2.17  Number and density of ‘other’ non-skills-related hard-to-fill vacancies by 
country, size and sector 
 
 
Number of ‘other’ 
hard-to-fill vacancies 
% of vacancies that 
are hard-to-fill for 
‘other’ non-skills 
related reasons  
Row percentages 
Unwtd 
Base 
Rounded to nearest 100 
% 
UK 
9,223 
93,800 
10 
Country 
 
  
  
England 
7,857 
82,200 
10 
Northern Ireland 
228 
1,400 
7 
Scotland 
612 
6,900 
9 
Wales 
526 
3,300 
9 
Size 
 
  
 
2-4 
869 
20,300 
15 
5-24 
4,733 
32,900 
12 
25-49 
1,735 
11,100 
9 
50-99 
1,085 
11,100 
10 
100-249 
585 
9,800 
8 
250+ 
216 
8,500 
5 
Sector 
 
  
 
Agriculture 
98 
900 
9 
Manufacturing 
742 
2,700 
6 
Electricity, Gas and Water 
86 
200 
4 
Construction 
552 
3,000 
9 
Wholesale and Retail 
1,154 
12,000 
9 
Hotels and Restaurants 
1,288 
14,600 
14 
Transport and Communications 
887 
4,500 
6 
Financial Services 
133 
700 
2 
Business Services 
1,534 
14,700 
7 
Public Administration 
78 
8,400 
18 
Education 
666 
3,600 
6 
Health and Social Work 
1,242 
16,300 
13 
Arts and Other Services 
763 
12,000 
19 
Base: Establishments with vacancies. 
Percentages are based on all vacancies, rather than all establishments with vacancies; proportions therefore 
show the percentage of vacancies that are hard-to-fill for non-skills related reasons 
‘**’ denotes figure not shown because of a low base (fewer than 25 respondents) 
 
 
 

168 
Table A.2.18  Density of ‘other’ non-skills-related hard-to-fill vacancies by occupation (2013 
and 2015) 
 
% of vacancies in each occupations that are 
hard-to-fill for ‘other’ non-skills related reasons 
 
2013 
2015 
 
Unwtd 
Base: 
% 
Unwtd 
Base: 
% 
Managers 
1,168 
5 
1,335 
6 
Professionals 
3,594 
5 
4,047 
8 
Associate Professionals 
3,406 
5 
4,010 
8 
Administrative and Clerical 
2,760 
3 
3,231 
5 
Skilled Trades 
2,600 
8 
3,814 
10 
Caring, Leisure and Other Services 
3,232 
9 
4,309 
19 
Sales and Customer Services 
2,578 
6 
2,971 
7 
Machine Operatives 
1,197 
11 
1,780 
10 
Elementary occupations 
3,171 
10 
4,717 
12 
Base: All establishments 
Percentages are shown as a proportion of all employment. 
 
 
 

169 
Table A.2.19  Incidence of retention difficulties by size and sector (2011 and 2015)* 
 
% of establishments reporting retention issues 
Row percentages 
2011 
(excluding 
Scotland) 
2015 
(excluding 
Scotland) 
2015 
 
Unwtd Base 
% 
Unwtd Base 
% 
Unwtd Base 
% 
Overall 
85,069 
5 
42,787 
8 
45,818 
8 
Size 
 
 
 
 
 
 
2-4  
18,642 
4 
9,697 
5 
10,339 
5 
5-24 
46,875 
7 
23,313 
10 
24,835 
10 
25-49 
15,136 
9 
5,451 
15 
5,907 
15 
50-99 
2,947 
12 
2,707 
18 
2,950 
19 
100-249 
1,469 
17 
1,208 
22 
1,332 
22 
250+ 
18,642 
4 
411 
30 
455 
30 
Sector 
 
 
 
 
 
 
Agriculture 
850 
5 
1,590 
7 
1,853 
7 
Manufacturing 
7,690 
5 
3,269 
8 
3,477 
9 
Electricity, Gas and 
Water 
1,344 
4 
438 
10 
514 
10 
Construction 
6,423 
3 
3,471 
7 
3,713 
6 
Wholesale and Retail 
15,022 
4 
7,697 
6 
8,164 
6 
Hotels and 
Restaurants 
8,251 
10 
4,229 
15 
4,530 
14 
Transport and 
Communications 
7,660 
5 
4,213 
8 
4,501 
9 
Financial Services 
1,790 
4 
1,162 
6 
1,268 
6 
Business Services 
14,142 
4 
6,229 
7 
6,629 
7 
Public Administration 
1,480 
7 
402 
12 
459 
13 
Education 
5,275 
5 
2,635 
11 
2,808 
11 
Health and Social 
Work 
7,953 
7 
3,908 
11 
4,189 
11 
Arts and Other 
Services 
7,189 
7 
3,499 
10 
3713 
10 
Base: 2011 – All establishments in England, NI and Wales; 2015 ‒ All establishments in Module 2. 
*Note: retention difficulties were last covered by the Employer Skills Survey in 2011. For that survey, due to 
differing policy priorities and constraints on the length of the questionnaire, employers in Scotland were not 
asked to describe their experience of retention difficulties. As such, no Scotland or UK-wide data is available 
for time series comparisons. 
 
 

170 
Table A.2.20 Incidence of retention difficulties for each occupation by sector 
 
 
Managers 
Professionals 
Associate 
Professionals 
Administrative / 
Clerical staff 
Skilled Trades 
occupations 
Caring, Leisure and 
Other Services 
Sales and Customer 
Services 
Machine Operatives 
Elementary staff 
 
Unwtd 
Base 
 
 
 
 
 
 
 
 
 
UK 
4,924 
2 
11 
10 
4 
21 
13 
9 
8 
20 
 
 
 
 
 
 
 
 
 
 
 
Agriculture 
127 
1 
- 
1 
1 
12 
4 
- 
9 
70 
Manufacturing 
343 
2 
6 
12 
2 
40 
- 
3 
25 
10 
Electricity, Gas and 
Water 
50 
1 
7 
8 
3 
19 
- 
10 
37 
14 
Construction 
279 
2 
3 
5 
4 
53 
- 
3 
10 
19 
Wholesale and Retail 
685 
6 
1 
6 
1 
23 
1 
38 
12 
11 
Hotels and 
Restaurants 
846 
1 
* 
* 
1 
40 
4 
2 
1 
51 
Transport and 
Communications 
470 
2 
13 
13 
7 
15 
* 
10 
32 
6 
Financial Services 
70 
6 
5 
15 
33 
1 
3 
27 
- 
7 
Business Services 
624 
2 
19 
25 
8 
15 
4 
6 
5 
15 
Public Administration 
53 
2 
29 
18 
8 
5 
27 
3 
1 
5 
Education 
353 
* 
50 
9 
1 
1 
20 
- 
* 
18 
Health and Social 
Work 
572 
2 
29 
4 
4 
1 
53 
1 
1 
6 
Arts and Other 
Services 
452 
1 
3 
10 
7 
7 
56 
2 
2 
11 
Base: All establishments with difficulties retaining staff (Module 2); ‘*’ denotes a figure greater 
than zero but smaller than 0.5. ‘-‘ denotes a figure of zero. 
 
 
 
 

171 
Chapter 3: The Internal Skills Challenge 
Table A.3.1  Incidence, number and density of skills gaps, by size and sector (2011-2015) 
 
 
2011 
 
 
2013 
 
    
2015 
 
 
% of establishments with 
any skills gaps 
Number of staff not fully 
proficient (skills gaps) 
% of staff reported as 
having skills gaps  
% of establishments with 
any skills gaps 
Number of staff not fully 
proficient (skills gaps) 
% of staff reported as 
having skills gaps  
% of establishments with 
any skills gaps 
Number of staff not fully 
proficient (skills gaps) 
% of staff reported as 
having skills gaps 
Row percentages 
 
 
 
 
 
UK 
17 
1,485,500 
5.5 
15 
1,409,900 
5.2 
14 
1,380,200 
5.0 
Size 
 
 
 
 
 
 
 
 
 
2-4 
8 
85,600 
3.6 
7 
69,900 
2.9 
6 
62,100 
2.6 
5-24 
23 
352,800 
5.5 
21 
315,600 
4.9 
19 
287,000 
4.3 
25-49 
35 
185,200 
5.5 
32 
169,500 
5.1 
30 
158,000 
4.5 
50-99 
39 
186,900 
5.5 
36 
178,100 
5.2 
33 
155,700 
4.5 
100-249 
44 
235,800 
5.8 
44 
221,100 
5.5 
39 
216,900 
5.1 
250 + 
47 
439,100 
6.0 
48 
455,700 
6.2 
43 
500,400 
6.7 
Sector 
 
 
 
 
 
 
 
 
 
Agriculture 
11 
17,200 
4.6 
9 
16,700 
4.4 
7 
11,800 
2.9 
Manufacturing 
20 
146,900 
5.9 
17 
138,800 
5.9 
19 
173,400 
7.2 
Electricity, Gas 
and Water 
19 
15,400 
5.6 
18 
14,400 
5.1 
14 
13,900 
4.9 
Construction 
13 
64,900 
4.8 
11 
59,100 
4.7 
10 
44,500 
3.8 
Wholesale and 
Retail 
19 
293,500 
6.6 
17 
254,400 
5.8 
16 
242,200 
5.4 
Hotels and 
Restaurants 
23 
155,600 
9.0 
21 
159,400 
8.9 
19 
140,100 
7.2 
Transport and 
Communications 
15 
99,300 
4.6 
13 
94,500 
4.4 
12 
108,900 
4.9 
Financial Services 
21 
46,000 
4.4 
19 
83,800 
8.1 
16 
36,400 
3.7 
Business Services 
13 
220,900 
5.1 
13 
224,100 
5.0 
12 
249,300 
5.2 
Public 
Administration 
23 
83,000 
5.3 
20 
69,000 
4.8 
23 
86,000 
6.4 
Education 
22 
94,900 
3.8 
18 
97,700 
3.8 
19 
103,700 
4.0 
Health and Social 
Work 
20 
180,200 
5.2 
19 
143,600 
4.0 
15 
122,700 
3.2 
Arts and Other 
Services 
16 
67,800 
5.6 
14 
54,200 
4.4 
12 
47,400 
3.8 
Note: The number of employees not fully proficient has been rounded to the nearest 100. 
Percentages are based on all employment, rather than all establishments; proportions therefore show the percentage 
of staff with a skills gap. See Table A.1.3 in Annex A for base sizes. 
 
 
 

172 
Table A.3.2  Density of skills gaps by sector within nation (2013-2015)  
 
 
England 
Northern 
Ireland 
Scotland 
Wales 
 
 
2013 
2015 
2013 
2015 
2013 
2015 
2013 
2015 
 
 
% 
% 
% 
% 
% 
% 
% 
% 
All sectors 
 
5.1 
5.0 
5.2 
3.3 
5.9 
5.0 
5.8 
4.5 
 
 
 
 
 
 
 
 
 
 
Agriculture 
 
4.1 
3.0 
6.6 
2.8 
5.5 
2.6 
2.9 
2.3 
Manufacturing 
 
5.4 
6.8 
5.9 
4.2 
7.9 
10.5 
10.2 
8.8 
Electricity, Gas and 
Water 
 
5.4 
5.4 
4.3 
0.8 
4.8 
2.1 
1.8 
4.7 
Construction 
 
4.8 
3.7 
4.6 
2.8 
3.9 
4.3 
4.6 
4.8 
Wholesale and Retail 
 
5.7 
5.4 
6.6 
5.7 
5.9 
5.5 
5.2 
3.6 
Hotels and Restaurants 
 
8.8 
7.2 
8.0 
6.1 
9.0 
7.2 
10.2 
6.9 
Transport and 
Communications 
 
4.4 
5.0 
2.7 
2.2 
5.8 
4.7 
3.9 
3.7 
Financial Services 
 
8.9 
3.6 
2.3 
1.9 
1.7 
4.3 
5.2 
4.2 
Business Services 
 
5.1 
5.2 
3.4 
2.2 
5.0 
5.2 
4.4 
6.3 
Public Administration 
 
5.1 
7.6 
4.2 
0.2 
4.2 
2.1 
1.8 
1.8 
Education 
 
3.6 
4.0 
1.8 
1.3 
6.3 
5.3 
5.3 
2.4 
Health and Social Work 
 
3.4 
3.3 
7.2 
3.3 
6.5 
2.7 
6.6 
3.5 
Arts and Other Services 
 
4.4 
3.8 
4.2 
2.9 
5.2 
3.9 
4.0 
3.8 
Base: All establishments 
Densities are based on skills gaps as a proportion of all employment within each occupation by sector, rather 
than the number of establishments with skills gaps. 
Where base between 25 and 49 establishments, figures are shown in italics 
 
 
 
 

173 
Table A.3.2a  Unweighted base sizes for previous table (Table 3.2)  
 
 
England 
Northern 
Ireland 
Scotland 
Wales 
 
 
2013 
2015 
2013 
2015 
2013 
2015 
2013 
2015 
All sectors 
 
75,255 75,129 4,014 4,019 6,014 6,035 5,996 6,027 
 
 
 
 
 
 
 
 
 
 
Agriculture 
 
2,263 
2,651 
133 
84 
519 
492 
492 
405 
Manufacturing 
 
6,389 
5,821 
327 
339 
430 
411 
414 
427 
Electricity, Gas and 
Water 
 
935 
880 
43 
29 
86 
70 
84 
62 
Construction 
 
5,980 
6,334 
259 
246 
496 
489 
467 
405 
Wholesale and Retail 
 
14,321 
13,126 
866 
859 
991 
938 
1,109 
1,203 
Hotels and Restaurants 
 
7,314 
7,274 
385 
415 
571 
582 
618 
649 
Transport and 
Communications 
 
5,743 
7,538 
282 
289 
446 
583 
419 
526 
Financial Services 
 
1,886 
2,121 
112 
93 
205 
227 
127 
108 
Business Services 
 
12,000 
11,158 
491 
507 
784 
763 
736 
715 
Public Administration 
 
696 
721 
55 
49 
124 
102 
67 
75 
Education 
 
4,756 
4,549 
292 
267 
354 
338 
394 
361 
Health and Social Work 
 
6,882 
6,963 
408 
382 
568 
594 
602 
617 
Arts and Other Services 
 
6,090 
5,993 
361 
460 
440 
446 
467 
474 
 
 

174 
Table A.3.3  Proportion of each occupation lacking full proficiency within country  
 
UK 
England Northern 
Ireland Scotland 
Wales 
 
% 
% 
% 
% 
% 
Managers 
2.7 
2.8 
1.2 
1.9 
2.2 
Professionals 
3.0 
3.0 
1.2 
3.4 
3.0 
Associate Professionals 
5.3 
5.5 
2.1 
4.6 
4.9 
Administrative / Clerical staff 
5.4 
5.6 
1.9 
4.8 
3.5 
Skilled Trades occupations 
5.5 
5.3 
4.1 
7.4 
5.5 
Caring, Leisure and Other 
Services 
4.1 
4.1 
4.6 
3.5 
5.0 
Sales and Customer Services  
6.5 
6.6 
4.6 
6.8 
5.2 
Machine Operatives 
7.0 
6.8 
6.3 
8.7 
7.4 
Elementary staff  
6.9 
7.1 
4.4 
6.3 
5.8 
Base: All establishments with staff in each occupation 
Percentages are based on all employment, rather than all establishments; proportions therefore show the 
percentage of staff with a skills gap. 
Where base between 25 and 49 establishments with gaps, figures are shown in italics 
 
Table A.3.3a  Unweighted base sizes for previous table (Table A.3.3) 
 
UK 
England Northern 
Ireland Scotland 
Wales 
Managers 
3,492 
2,960 
94 
237 
201 
Professionals 
1,518 
1,281 
42 
129 
66 
Associate Professionals 
1,473 
1,262 
28 
110 
73 
Administrative / Clerical staff 
4,301 
3,627 
117 
333 
224 
Skilled Trades occupations 
3,142 
2,639 
66 
242 
195 
Caring, Leisure and Other 
Services 
2,308 
1,994 
46 
133 
135 
Sales and Customer Services 
4,540 
3,804 
163 
292 
281 
Machine Operatives 
1,813 
1,499 
71 
141 
102 
Elementary staff  
4,533 
3,791 
129 
353 
260 
 
 
 
 

175 
Table A.3.4 Density of skills gaps by occupation and sector 
 
Managers 
Professionals 
Associate 
Professionals 
Administrative and 
Clerical  
Skilled Trades  
Caring, Leisure 
and Other Services 
Sales and 
Customer Service 
Machine 
Operatives 
Elementary 
occupations 
UK 
2.7 
3.0 
5.3 
5.4 
5.5 
4.1 
6.5 
7.0 
6.9 
 
 
 
 
 
 
 
 
 
 
Agriculture 
1.1 
** 
** 
** 
4.3 
** 
** 
4.4 
4.7 
Manufacturing 
4.0 
4.4 
5.5 
4.9 
7.1 
** 
7.9 
10.5 
5.8 
Electricity, Gas and 
Water 
2.6 
** 
** 
2.9 
4.1 
** 
** 
6.3 
3.2 
Construction 
1.3 
3.5 
6.0 
3.2 
5.6 
** 
3.5 
5.0 
5.6 
Wholesale and Retail 
2.7 
2.6 
4.8 
4.5 
5.6 
** 
6.3 
5.4 
7.0 
Hotels and 
Restaurants 
2.9 
** 
11.5 
5.1 
5.9 
5.0 
8.5 
9.7 
8.8 
Transport and 
Communications 
3.7 
3.5 
4.6 
7.1 
6.7 
** 
6.4 
4.5 
4.2 
Financial Services 
1.9 
** 
3.1 
5.7 
** 
** 
5.1 
** 
** 
Business Services 
1.9 
3.0 
6.8 
4.6 
5.8 
13.4 
7.8 
6.0 
10.6 
Public Administration 
6.8 
3.1 
6.7 
9.9 
** 
** 
** 
** 
5.9 
Education 
2.6 
4.0 
5.1 
4.8 
4.0 
3.4 
6.6 
** 
4.5 
Health and Social 
Work 
3.3 
1.4 
2.8 
4.8 
1.4 
3.7 
5.1 
** 
2.5 
Arts and Other 
Services 
1.7 
2.0 
2.9 
4.4 
3.9 
4.3 
3.7 
1.9 
6.2 
Base: All establishments employing each occupation by sector 
Densities are based on skills gaps as a proportion of all employment within each occupation by sector, rather 
than the number of establishments with skills gaps. 
‘**’ Figure not shown because of a low base (fewer than 25 establishments employing occupation) 
Where base between 25 and 49 establishments with gaps, figures are shown in italics 
 = density 9% or above 
 
 = density between 5% and 8% 
 
 = density between 1% and 4% 
 
 
 
X 
X 
X 

176 
Table A.3.4a  Unweighted base sizes for previous table (Table A.3.4) 
 
Managers 
Professionals 
Associate 
Professionals 
Administrative / 
Clerical staff 
Skilled Trades 
occupations 
Caring, Leisure and 
Other Services 
Sales and 
Customer Services 
Machine 
Operatives 
Elementary staff 
UK 
3,492 1,518 
1,473 4,301 3,142 2,308 4,540 1,813 4,533 
 
 
 
 
 
 
 
 
 
 
Agriculture 
64 
** 
** 
** 
44 
** 
** 
40 
142 
Manufacturing 
342 
95 
178 
423 
557 
** 
305 
653 
286 
Electricity, Gas and 
Water 
37 
** 
** 
44 
39 
** 
** 
51 
41 
Construction 
195 
35 
67 
253 
576 
** 
74 
115 
170 
Wholesale and Retail 
815 
62 
138 
559 
445 
** 
2,312 
355 
665 
Hotels and Restaurants 
601 
** 
32 
198 
513 
104 
486 
64 
1856 
Transport and 
Communications 
243 
185 
173 
376 
298 
** 
312 
202 
152 
Financial Services 
62 
** 
47 
223 
** 
** 
182 
** 
** 
Business Services 
432 
478 
458 
960 
373 
94 
530 
258 
285 
Public Administration 
46 
32 
40 
114 
** 
** 
** 
** 
33 
Education 
182 
367 
125 
361 
67 
603 
54 
** 
332 
Health and Social Work 
238 
157 
95 
410 
72 
1,044 
51 
** 
267 
Arts and Other Services 
235 
59 
101 
358 
137 
406 
193 
35 
298 
‘**’ Corresponds with the double asterisks shown in Table A.3.4 (base is fewer than 25 establishments) 
 
 

177 
Table A.3.5 Main causes of skills gaps, by sector 
 
Overall 
Agriculture 
Manufacturing 
Electricity, Gas 
& Water 
Construction 
Wholesale & 
Retail 
Hotels & 
Restaurants 
Transport & 
Comms 
Financial 
Services 
Business 
Services 
Public Admin. 
Education 
Health & Social 
Work 
Arts & Other 
Services 
Unweighted Base 
18,265 
292 
1,697 
163 
1,132 
3,669 
2,610 
1,345 
435 
2,601 
200 
1,211 
1,663 
1,247 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
They are new to the role 
60 
51 
65 
75 
58 
63 
72 
51 
71 
55 
57 
52 
58 
59 
Their training is currently only partially 
completed 
56 
45 
66 
73 
68 
55 
64 
42 
59 
53 
48 
51 
56 
59 
Staff lack motivation 
34 
34 
31 
22 
23 
38 
39 
38 
20 
35 
17 
34 
38 
32 
They have been on training but their 
performance has not improved sufficiently 
29 
25 
25 
24 
22 
33 
38 
25 
24 
23 
33 
32 
37 
28 
The introduction of new working practices 
28 
19 
26 
18 
23 
24 
23 
31 
19 
25 
57 
39 
35 
25 
They have not received the appropriate training 
26 
29 
30 
46 
24 
27 
25 
30 
17 
23 
24 
23 
27 
27 
Unable to recruit staff with the required skills 
26 
32 
31 
26 
28 
22 
33 
29 
14 
24 
12 
28 
29 
25 
The introduction of new technology 
20 
20 
19 
13 
16 
19 
12 
24 
9 
18 
49 
20 
27 
20 
The development of new products and services 
19 
10 
25 
15 
17 
18 
18 
26 
15 
13 
38 
19 
14 
15 
Problems retaining staff 
18 
14 
14 
14 
13 
15 
29 
24 
17 
17 
18 
12 
19 
17 
Summary: New to role / training not 
complete (transient factors)  
73 
63 
79 
82 
79 
76 
82 
63 
78 
67 
62 
65 
70 
77 
Base: All establishments with skills gaps – up to two occupations followed up 
Percentages are based on all skills gaps, rather than all establishments with skills gaps; proportions therefore show the percentage of skills gaps attributed to each cause.

178 
Table A.3.6 Main causes of skills gaps, by occupation 
 
Managers 
Professionals 
Associate 
Professionals 
Administrative 
and Clerical 
Skilled Trades 
Caring, 
Leisure and 
Other Services 
Sales and 
Customer 
Services 
Machine 
Operatives 
Elementary 
occupations 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
Unweighted Base 
7,090 
6,829 
5,280 
8,514 
7,552 
9,904 
17,019 
9,088 
19,904 
They are new to the role 
45 
63 
65 
56 
58 
59 
70 
58 
61 
Their training is currently only partially 
completed 
41 
61 
62 
55 
70 
56 
55 
62 
52 
Staff lack motivation 
33 
25 
19 
23 
26 
31 
38 
32 
50 
They have been on training but their 
performance has not improved sufficiently 
29 
22 
23 
26 
21 
32 
36 
24 
36 
The introduction of new working practices 
36 
32 
32 
39 
22 
35 
24 
25 
21 
They have not received the appropriate 
training 
37 
25 
25 
26 
29 
24 
24 
26 
23 
Unable to recruit staff with the required 
skills 
18 
31 
22 
17 
33 
29 
22 
28 
31 
The introduction of new technology 
30 
24 
27 
34 
22 
16 
18 
17 
10 
The development of new products and 
services 
27 
23 
23 
20 
18 
12 
22 
17 
14 
Problems retaining staff 
12 
18 
17 
11 
18 
20 
20 
13 
24 
Summary: New to role / training not 
complete (transient factors)  
57 
76 
78 
69 
81 
71 
78 
73 
71 
Base: All establishments with skills gaps in each occupation – up to two occupations followed up 
Percentages are based on all skills gaps, rather than all establishments with skills gaps; proportions therefore show the percentage of skills gaps attributed to each cause.

179 
Table A.3.7a  Technical and practical skills lacking among staff with skills gaps, by 
occupation 
 
Overall 
Managers 
Professionals 
Associate 
Professionals 
Administrative / 
Clerical staff 
Skilled Trades 
occupations 
Caring, Leisure and 
Other Services 
Sales and Customer 
Services 
Machine Operatives 
Elementary staff 
Unweighted Base 
9,119 
1,483 
652 
649 
1,829 
1,427 
1,082 
2,013 
801 
2,069 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
Specialist skills or 
knowledge 
48 
40 
70 
59 
37 
62 
57 
46 
37 
44 
Solving complex 
problems 
39 
55 
50 
50 
45 
42 
26 
38 
39 
24 
Knowledge of products 
and services offered 
37 
21 
37 
43 
37 
35 
34 
53 
30 
32 
Knowledge of how the 
organisation works 
36 
25 
48 
41 
38 
25 
36 
41 
33 
27 
Adapting to new 
equipment or materials 
32 
34 
31 
20 
42 
36 
20 
25 
41 
33 
Computer literacy / 
basic IT skills 
30 
28 
29 
30 
40 
21 
32 
24 
32 
30 
Reading/understanding 
instructions, reports etc. 
29 
17 
22 
24 
25 
29 
35 
24 
44 
35 
Advanced or specialist 
IT skills 
27 
41 
45 
45 
51 
17 
12 
12 
27 
12 
Complex 
numerical/statistical 
skills 
24 
34 
34 
23 
41 
15 
14 
16 
24 
17 
Writing instructions, 
reports etc. 
22 
22 
25 
22 
22 
18 
35 
16 
28 
18 
Basic numerical skills 
20 
9 
14 
9 
22 
15 
21 
19 
36 
23 
Manual dexterity 
14 
18 
1 
10 
4 
27 
6 
7 
22 
23 
Communicating in a 
foreign language 
13 
23 
6 
4 
10 
11 
14 
10 
6 
22 
Oral Welsh language 
skills (Wales only base) 
1 
1 
2 
1 
1 
* 
2 
1 
* 
* 
Written Welsh language 
skills (Wales only base) 
1 
1 
2 
1 
1 
* 
1 
1 
* 
* 
None of the above 
9 
11 
4 
6 
4 
9 
5 
14 
7 
11 
Base: All establishments with skills gaps in each occupation – up to two occupations followed up 
Percentages are based on all skills gaps, rather than all establishments with skills gaps; 
proportions therefore show the percentage of skills gaps attributed to each skill. 
‘*’ denotes a figure greater than zero but smaller than 0.5. 
 
 

180 
Table A.3.7b  People and personal skills lacking among staff with skills gaps, by 
occupation 
 
Overall 
Managers 
Professionals 
Associate 
Professionals 
Administrative / 
Clerical staff 
Skilled Trades 
occupations 
Caring, Leisure and 
Other Services 
Sales and Customer 
Services 
Machine Operatives 
Elementary staff 
Unweighted Base 
9,119 
1,483 
652 
649 
1,829 
1,427 
1,082 
2,013 
801 
2,069 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
Ability to manage own 
time and prioritise 
tasks 
59 
57 
68 
57 
67 
54 
58 
58 
53 
59 
Team working 
56 
53 
54 
42 
56 
46 
56 
48 
62 
69 
Customer handling 
skills 
46 
33 
51 
33 
63 
26 
38 
64 
26 
50 
Managing own 
feelings / handling 
those of others 
46 
56 
49 
34 
47 
36 
47 
42 
50 
47 
Managing or 
motivating other staff 
41 
68 
49 
47 
31 
31 
34 
33 
45 
40 
Persuading or 
influencing others 
39 
58 
52 
43 
35 
27 
28 
41 
39 
37 
Setting objectives for 
others / planning 
resources 
30 
60 
36 
46 
38 
20 
16 
21 
33 
18 
Instructing, teaching 
or training people 
28 
42 
43 
28 
20 
27 
30 
22 
35 
23 
Sales skills 
23 
25 
24 
21 
17 
12 
11 
53 
6 
23 
Making speeches or 
presentations 
17 
27 
27 
31 
15 
10 
13 
13 
14 
12 
None of the above 
12 
8 
11 
12 
9 
23 
11 
14 
14 
9 
Base: All establishments with skills gaps in each occupation – up to two occupations followed up 
 
Percentages are based on all skills gaps, rather than all establishments with skills gaps; 
proportions therefore show the percentage of skills gaps attributed to each skill. 

181 
Table A.3.7c  Technical and practical skills lacking among staff with skills gaps, by sector 
 
Overall 
Agriculture 
Manufacturing 
Electricity, Gas 
& Water 
Construction 
Wholesale & 
Retail 
Hotels & 
Restaurants 
Transport & 
Comms 
Financial 
Services 
Business 
Services 
Public Admin. 
Education 
Health & Social 
Work 
Arts & Other 
Services 
Unweighted Base 
9,119 
145 
870 
73 
574 
1,833 
1,319 
672 
205 
1,269 
96 
609 
824 
630 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
Specialist skills or knowledge 
48 
51 
42 
47 
56 
41 
43 
44 
44 
55 
45 
57 
46 
56 
Solving complex problems 
39 
36 
50 
64 
39 
27 
28 
48 
24 
44 
56 
33 
47 
34 
Knowledge of products and services offered 
37 
25 
33 
42 
38 
42 
45 
32 
44 
43 
28 
32 
22 
31 
Knowledge of how the organisation works 
36 
27 
34 
39 
29 
31 
42 
34 
36 
40 
62 
45 
32 
32 
Adapting to new equipment or materials 
32 
38 
35 
37 
29 
34 
23 
25 
49 
26 
48 
41 
32 
28 
Computer literacy / basic IT skills 
30 
20 
30 
34 
20 
30 
17 
20 
57 
27 
34 
43 
32 
31 
Reading/understanding instructions, reports etc. 
29 
28 
39 
61 
28 
22 
31 
30 
15 
27 
33 
34 
31 
26 
Advanced or specialist IT skills 
27 
12 
28 
31 
19 
17 
7 
44 
57 
28 
54 
32 
29 
23 
Complex numerical/statistical skills 
24 
20 
24 
51 
19 
16 
13 
31 
51 
26 
49 
28 
24 
14 
Writing instructions, reports etc. 
22 
19 
26 
31 
20 
15 
17 
25 
19 
21 
16 
29 
36 
16 
Basic numerical skills 
20 
26 
28 
32 
18 
17 
17 
10 
45 
22 
21 
18 
14 
21 
Manual dexterity 
14 
44 
16 
10 
22 
12 
18 
16 
2 
14 
2 
4 
18 
14 
Communicating in a foreign language 
13 
20 
14 
6 
6 
10 
25 
10 
3 
9 
4 
8 
22 
20 
Oral Welsh language skills (Wales base only) 
1 
1 
* 
- 
* 
1 
1 
* 
* 
1 
4 
1 
1 
1 
Written Welsh language skills (Wales base only) 
1 
1 
* 
- 
* 
* 
* 
* 
- 
1 
4 
1 
1 
1 
None of the above 
9 
11 
7 
7 
10 
16 
14 
7 
2 
5 
7 
5 
4 
8 
Base: All establishments with skills gaps in each occupation – up to two occupations followed up 
 
Percentages are based on all skills gaps, rather than all establishments with skills gaps; proportions therefore show the percentage of skills gaps attributed to each skill. 
 

182 
Table A.3.7d  People and personal skills lacking among staff with skills gaps, by occupation 
 
Overall 
Agriculture 
Manufacturing 
Electricity, Gas 
& Water 
Construction 
Wholesale & 
Retail 
Hotels & 
Restaurants 
Transport & 
Comms 
Financial 
Services 
Business 
Services 
Public Admin. 
Education 
Health & Social 
Work 
Arts & Other 
Services 
Unweighted Base 
9,119 
145 
870 
73 
574 
1,833 
1,319 
672 
205 
1,269 
96 
609 
824 
630 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
Ability to manage own time and prioritise own 
tasks 
59 
48 
53 
76 
53 
53 
59 
60 
79 
56 
64 
75 
68 
50 
Team working 
56 
51 
61 
52 
36 
48 
62 
46 
72 
48 
62 
63 
64 
63 
Customer handling skills 
46 
22 
23 
67 
34 
49 
67 
48 
82 
42 
57 
49 
33 
55 
Managing their own feelings, or handling the 
feelings of others 
46 
38 
51 
66 
32 
35 
52 
46 
57 
39 
63 
47 
54 
52 
Managing or motivating other staff 
41 
30 
46 
47 
36 
34 
49 
30 
18 
37 
63 
45 
47 
44 
Persuading or influencing others 
39 
22 
44 
45 
31 
37 
38 
30 
27 
42 
63 
41 
38 
44 
Setting objectives for others and planning 
human, financial and other resources 
30 
21 
35 
35 
22 
24 
27 
31 
54 
28 
49 
33 
32 
21 
Instructing, teaching or training people 
28 
20 
41 
39 
19 
20 
38 
32 
11 
25 
23 
40 
22 
28 
Sales skills 
23 
13 
14 
27 
13 
37 
41 
24 
18 
24 
10 
13 
9 
29 
Making speeches or presentations 
17 
13 
22 
26 
16 
8 
16 
22 
14 
20 
14 
20 
15 
15 
None of the above 
12 
25 
15 
6 
21 
15 
8 
10 
5 
16 
7 
5 
9 
10 
Base: All establishments with skills gaps in each occupation – up to two occupations followed up 
 
Percentages are based on all skills gaps, rather than all establishments with skills gaps; proportions therefore show the percentage of skills gaps attributed to each skill. 

183 
Table A.3.7e  Skills lacking among staff with skills gaps, by nation 
 
UK 
England 
Northern 
Ireland 
Scotland 
Wales 
Unweighted Base 
9,119 
7,683 
271 
593 
572 
 
% 
% 
% 
% 
% 
Technical and practical skills 
 
 
 
 
 
Specialist skills or knowledge 
48 
47 
54 
47 
56 
Solving complex problems 
39 
39 
40 
41 
37 
Knowledge of products and services offered 
37 
36 
43 
34 
44 
Knowledge of how the organisation works 
36 
37 
42 
31 
40 
Adapting to new equipment or materials 
32 
31 
25 
38 
37 
Computer literacy / basic IT skills 
30 
29 
21 
31 
37 
Reading/understanding instructions, reports etc. 
29 
30 
23 
24 
35 
Advanced or specialist IT skills 
27 
27 
20 
17 
33 
Complex numerical/statistical skills 
24 
25 
16 
13 
28 
Writing instructions, reports etc. 
22 
23 
17 
19 
21 
Basic numerical skills 
20 
20 
12 
16 
24 
Manual dexterity 
14 
14 
12 
8 
25 
Communicating in a foreign language 
13 
13 
13 
17 
10 
Oral Welsh language skills (Wales base only) 
1 
n/a 
n/a 
n/a 
22 
Written Welsh language skills (Wales base only) 
1 
n/a 
n/a 
n/a 
19 
None of the above 
9 
9 
9 
8 
5 
People and personal skills 
 
 
 
 
 
Ability to manage own time and prioritise tasks 
59 
59 
56 
56 
67 
Team working 
56 
55 
48 
59 
59 
Customer handling skills 
46 
47 
46 
38 
43 
Managing own feelings / handling those of others 
46 
46 
33 
40 
50 
Managing or motivating other staff 
41 
40 
31 
43 
45 
Persuading or influencing others 
39 
39 
36 
41 
46 
Setting objectives for others / planning resources 
30 
31 
28 
21 
31 
Instructing, teaching or training people 
28 
29 
26 
23 
32 
Sales skills 
23 
24 
27 
16 
24 
Making speeches or presentations 
17 
16 
23 
14 
29 
None of the above 
12 
12 
13 
17 
12 
Base: All establishments with skills gaps in each occupation – up to two occupations followed up 
 
Percentages are based on all skills gaps, rather than all establishments with skills gaps; 
proportions therefore show the percentage of skills gaps attributed to each skill. 
 
 

184 
Table A.3.8  Skills lacking among staff, ‘old’ skills descriptor time series comparisons 
 
2011 
2013 
2015 
Unweighted Base 
20,820 
20,228 
9,146 
 
% 
% 
% 
Technical, practical or job-specific 
32 
58 
55 
Planning and organisation 
46 
57 
48 
Team working 
46 
54 
41 
Customer handling 
46 
50 
40 
Problem solving 
42 
49 
42 
Oral communication 
41 
47 
34 
Written communication 
34 
36 
26 
Basic computer literacy / using IT 
20 
26 
20 
Strategic Management 
22 
25 
21 
Literacy 
22 
25 
18 
Advanced IT or software 
18 
23 
22 
Numeracy 
19 
23 
15 
Foreign language 
10 
12 
9 
Oral Welsh language skills (Wales base only) 
* 
1 
1 
Written Welsh language skills (Wales base only) 
* 
1 
1 
None of the above 
3 
2 
6 
Base: All establishments with skills gaps in each occupation – up to two occupations followed up 
Percentages are based on all skills gaps, rather than all establishments with skills gaps; 
proportions therefore show the percentage of skills gaps attributed to each skill. 
‘*’ denotes a figure greater than zero but smaller than 0.5. 
 

185 
Table A.3.8a  Skills lacking among staff, ‘old’ skills descriptor nation comparisons 
 
UK 
England Northern 
Ireland 
Scotland 
Wales 
Unweighted Base 
9,146 
7,726 
249 
643 
528 
 
% 
% 
% 
% 
% 
Technical, practical or job-
specific 
55 
55 
54 
58 
50 
Planning and organisation 
48 
47 
34 
60 
48 
Team working 
41 
39 
39 
57 
48 
Customer handling 
40 
39 
37 
55 
41 
Problem solving 
42 
41 
35 
45 
55 
Oral communication 
34 
34 
41 
37 
26 
Written communication 
26 
26 
23 
27 
34 
Basic computer literacy / using 
IT 
20 
19 
33 
28 
20 
Strategic Management 
22 
21 
26 
22 
23 
Literacy 
18 
18 
26 
17 
32 
Advanced IT or software 
21 
22 
26 
25 
19 
Numeracy 
15 
14 
19 
16 
33 
Foreign language 
9 
9 
20 
12 
6 
Oral Welsh language skills 
(Wales base only) 
1 
n/a 
n/a 
n/a 
16 
Written Welsh language skills 
(Wales base only) 
1 
n/a 
n/a 
n/a 
15 
None of the above 
6 
6 
7 
3 
4 
Base: All establishments with skills gaps in each occupation – up to two occupations followed up 
Percentages are based on all skills gaps, rather than all establishments with skills gaps; 
proportions therefore show the percentage of skills gaps attributed to each skill. 
 
 

186 
Table A.3.9  Extent of impact of skills gaps, by country, size and sector 
Row percentages 
Unwtd Base 
 
Major 
impact 
Minor 
impact 
No impact 
UK 2011 
20,820 
% 
15 
46 
39 
UK 2013 
20,228 
% 
16 
48 
37 
UK 2015 
18,265 
% 
17 
48 
34 
Country 
 
 
 
 
 
England 
15,409 
% 
17 
48 
35 
Northern Ireland 
520 
% 
18 
51 
31 
Scotland 
1,236 
% 
18 
52 
30 
Wales 
1,100 
% 
17 
47 
36 
Size  
 
 
 
 
 
2-4 
1,240 
% 
23 
45 
32 
5-24 
10,084 
% 
16 
48 
36 
25-49 
3,530 
% 
16 
50 
35 
50-99 
1,948 
% 
14 
51 
35 
100-249 
1,064 
% 
14 
58 
29 
250+ 
399 
% 
17 
54 
28 
Sector 
 
 
 
 
 
Agriculture 
292 
% 
18 
47 
35 
Manufacturing 
1,697 
% 
16 
47 
37 
Electricity, Gas and Water 
163 
% 
10 
52 
38 
Construction 
1,132 
% 
15 
42 
43 
Wholesale and Retail 
3,669 
% 
18 
49 
33 
Hotels and Restaurants 
2,610 
% 
21 
50 
28 
Transport and 
Communications 
1,345 
% 
20 
49 
31 
Financial Services 
435 
% 
16 
48 
36 
Business Services 
2,601 
% 
19 
49 
33 
Public Administration 
200 
% 
11 
60 
29 
Education 
1,211 
% 
14 
49 
37 
Health and Social Work 
1,663 
% 
14 
44 
42 
Arts and Other Services 
1,247 
% 
16 
47 
37 
Base: All establishments with skills gaps 
 
 

187 
Table A.3.10  Implications of skills gaps (prompted), by country, size and sector  
 
 
 
Prompted implications 
Row percentages 
Unwtd 
Base 
 
Increase workload for 
other staff 
Have higher operating 
costs 
Have difficulties 
meeting quality 
standards 
Have difficulties 
introducing new 
working practices 
Lose business or 
orders to competitors 
Delay developing new 
products or services 
Outsource work 
UK 
18,265 
% 
52 
27 
25 
24 
21 
17 
11 
Country 
 
 
 
 
 
 
 
 
 
England 
15,409 
% 
52 
26 
25 
24 
21 
17 
11 
Northern Ireland 
520 
% 
56 
32 
29 
28 
21 
22 
13 
Scotland 
1,236 
% 
57 
29 
29 
27 
20 
15 
10 
Wales 
1,100 
% 
54 
28 
27 
23 
20 
19 
11 
Size 
 
 
 
 
 
 
 
 
 
2-4 
1,240 
% 
53 
27 
25 
25 
26 
23 
15 
5-24 
10,084 
% 
51 
25 
24 
22 
20 
16 
8 
25-49 
3,530 
% 
53 
28 
26 
24 
19 
14 
10 
50-99 
1,948 
% 
51 
29 
29 
25 
18 
14 
11 
100-249 
1,064 
% 
59 
34 
33 
30 
16 
16 
11 
250+ 
399 
% 
60 
41 
26 
34 
18 
19 
16 
Sector 
 
 
 
 
 
 
 
 
 
Agriculture 
292 
% 
52 
38 
20 
22 
10 
12 
18 
Manufacturing 
1,697 
% 
50 
37 
26 
23 
18 
20 
13 
Electricity, Gas & Water 
163 
% 
50 
31 
15 
21 
12 
13 
10 
Construction 
1,132 
% 
42 
25 
17 
19 
18 
13 
13 
Wholesale & Retail 
3,669 
% 
54 
22 
24 
23 
27 
15 
7 
Hotels & Restaurants 
2,610 
% 
58 
35 
34 
26 
26 
20 
9 
Transport & Comms. 
1,345 
% 
56 
32 
23 
24 
24 
23 
16 
Financial Services 
435 
% 
49 
20 
24 
18 
19 
13 
7 
Business Services 
2,601 
% 
53 
28 
25 
23 
23 
18 
13 
Public Administration  
200 
% 
60 
15 
26 
38 
8 
17 
8 
Education 
1,211 
% 
51 
21 
29 
27 
9 
15 
10 
Health & Social Work 
1,663 
% 
49 
19 
25 
27 
10 
17 
9 
Arts and Other Services 1,247 
% 
48 
20 
26 
26 
21 
19 
9 
Base: All establishments with skills gaps 
 

188 
Table A.3.11  Actions taken to overcome skills gaps, by country, size and sector 
 
 
 
Prompted implications 
Row percentages 
Unwtd 
Base 
 
Increase training 
activity 
More supervision 
More appraisals 
Mentoring 
Reallocating work 
Changing working 
practices 
Increase 
recruitment 
activity
Recruit non-UK 
nationals  
Any action 
UK 
18,265 
% 
68 
56 
46 
45 
33 
27 
19 
10 
85 
Country 
 
 
 
 
 
 
 
 
 
 
 
England 
15,409 
% 
68 
56 
46 
45 
33 
27 
20 
10 
85 
Northern Ireland 
520 
% 
67 
49 
41 
35 
30 
27 
16 
12 
82 
Scotland 
1,236 
% 
67 
58 
47 
45 
35 
29 
17 
9 
84 
Wales 
1,100 
% 
66 
58 
47 
48 
35 
29 
20 
8 
83 
Size 
 
 
 
 
 
 
 
 
 
 
 
2-4 
1,240 
% 
56 
44 
31 
33 
25 
20 
11 
5 
75 
5-24 
10,084 
% 
68 
58 
47 
45 
35 
28 
19 
10 
86 
25-49 
3,530 
% 
77 
62 
55 
53 
38 
31 
26 
15 
91 
50-99 
1,948 
% 
79 
63 
59 
56 
37 
32 
28 
16 
92 
100-249 
1,064 
% 
80 
58 
57 
58 
39 
36 
31 
15 
92 
250+ 
399 
% 
79 
55 
53 
61 
41 
38 
35 
27 
90 
Sector 
 
 
 
 
 
 
 
 
 
 
 
Agriculture 
292 
% 
49 
42 
21 
23 
29 
21 
9 
7 
70 
Manufacturing 
1,697 
% 
66 
50 
40 
38 
32 
30 
19 
13 
84 
Electricity, Gas & Water 
163 
% 
70 
52 
41 
48 
35 
23 
19 
12 
86 
Construction 
1,132 
% 
60 
44 
34 
39 
24 
19 
14 
6 
78 
Wholesale & Retail 
3,669 
% 
67 
56 
49 
44 
33 
27 
17 
9 
85 
Hotels & Restaurants 
2,610 
% 
70 
61 
52 
47 
34 
30 
29 
19 
87 
Transport & Comms. 
1,345 
% 
68 
51 
44 
42 
36 
27 
21 
12 
84 
Financial Services 
435 
% 
77 
64 
47 
53 
38 
25 
20 
6 
89 
Business Services 
2,601 
% 
69 
55 
43 
44 
34 
24 
20 
10 
85 
Public Administration  
200 
% 
75 
64 
50 
53 
42 
35 
17 
5 
90 
Education 
1,211 
% 
76 
65 
60 
64 
43 
34 
19 
7 
92 
Health & Social Work 
1,663 
% 
74 
65 
54 
53 
34 
32 
20 
10 
89 
Arts and Other Services 
1,247 
% 
65 
53 
43 
41 
33 
26 
16 
7 
83 
Base: All establishments will skills gaps  
 
 
 

189 
Table A.3.12  Skills gaps and skill-shortage vacancies, by country, size and sector 
Row percentages 
Unwtd 
Base 
% of 
establishments 
with any skills 
gaps 
% of 
establishments 
with a skill-
shortage 
vacancy 
% of 
establishments 
with either 
UK 2011 
86,522 
17 
3 
19 
UK 2013 
91,279 
15 
4 
18 
UK 2015 
91,210 
14 
6 
18 
Country 
 
 
 
 
England 
75,129 
14 
6 
18 
Northern Ireland 
4,019 
9 
3 
12 
Scotland 
6,035 
14 
6 
17 
Wales 
6,027 
14 
6 
17 
Size 
 
 
 
 
2-4 
20,527 
6 
3 
9 
5-24 
49,584 
19 
7 
23 
25-49 
11,657 
30 
11 
36 
50-99 
5,836 
33 
13 
40 
100-249 
2,689 
39 
17 
47 
250 + 
917 
43 
20 
52 
Sector 
 
 
 
 
Agriculture 
3,632 
7 
2 
9 
Manufacturing 
6,998 
19 
8 
24 
Electricity, Gas and Water 
1,041 
14 
8 
20 
Construction 
7,474 
10 
5 
13 
Wholesale and Retail 
16,126 
16 
4 
18 
Hotels and Restaurants 
8,920 
19 
7 
22 
Transport and Communications 
8,936 
12 
7 
17 
Financial Services 
2,549 
16 
4 
19 
Business Services 
13,143 
12 
6 
16 
Public Administration 
947 
23 
5 
26 
Education 
5,515 
19 
8 
24 
Health and Social Work 
8,556 
15 
7 
20 
Arts and Other Services 
7,373 
12 
6 
16 
Base: All establishments 
 
 

190 
Chapter 4: Employer perceptions of under-use of skills and qualifications 
Table A.4.1  Impact of re-defining under-utilisation on incidence, by country size and sector 
(2011 - 2015) 
 
% of establishments reporting under-
utilisation 
Row percentages 
2011 
2013 
2015 
 
Unwtd 
Base 
 
Unwtd 
Base 
 
Unwtd 
Base 
 
UK 
86,522 
48 
45,644 
48 
91,210 
30 
Size 
 
 
 
 
 
 
2-4  
17,905 
47 
9,532 
47 
20,527 
29 
5-24 
47,770 
48 
25,704 
48 
49,584 
30 
25-49 
10,239 
50 
5,545 
51 
11,657 
34 
50-99 
5,712 
50 
2,802 
51 
5,836 
35 
100-249 
3,270 
49 
1,472 
50 
2,689 
34 
250+ 
1,626 
48 
589 
48 
917 
35 
Sector 
 
 
 
 
 
 
Agriculture 
921 
38 
1,725 
38 
3,632 
20 
Manufacturing 
7,834 
41 
3,839 
39 
6,998 
24 
Electricity, Gas and Water 
1,406 
42 
571 
45 
1,041 
27 
Construction 
6,576 
41 
3,623 
40 
7,474 
25 
Wholesale and Retail 
15,163 
51 
8,731 
50 
16,126 
32 
Hotels and Restaurants 
8,421 
61 
4,359 
60 
8,920 
40 
Transport and Communications 
7,810 
45 
3,427 
44 
8,936 
27 
Financial Services 
1,853 
51 
1,169 
50 
2,549 
30 
Business Services 
14,297 
45 
6,939 
44 
13,143 
26 
Public Administration 
1,584 
53 
480 
53 
947 
36 
Education 
5,422 
53 
2,907 
54 
5,515 
37 
Health and Social Work 
8,067 
50 
4,221 
53 
8,556 
36 
Arts and Other Services  
7,164 
52 
3,653 
52 
7,373 
35 
Base: 2011 & 2015 - All establishments; 2013 – All establishments in Module 2 
Note: Incidence of under-utilisation in 2015 uses a different measure than 2011 and 2013, meaning that these 
proportions are not directly comparable. This table should be considered in the sense of impact of the new 
measure on incidence. 

191 
Table A.4.2 Reasons for under-utilisation by occupation 
 
Managers 
Professionals 
Associate 
Professionals 
Admin. / 
Clerical staff 
Skilled Trades 
occupations 
Caring, 
Leisure and 
Other 
Services staff 
Sales and 
Customer 
Services staff 
Machine 
Operatives 
Elementary 
staff 
Unweighted Base 
8,118 
2,267 
2,155 
3,738 
1,630 
3,138 
2,838 
795 
3,148 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
They are not interested in taking on a higher level role 
with more responsibility 
27 
27 
28 
23 
28 
33 
20 
30 
17 
The working hours suit them better 
11 
11 
11 
26 
10 
18 
19 
14 
19 
Lack of jobs in the desired higher level role 
8 
8 
11 
12 
8 
11 
19 
15 
17 
To gain experience / current role is lower level in same 
industry as desired higher level role 
7 
13 
14 
10 
8 
18 
11 
8 
9 
They own the business / are a partner in the business 
16 
8 
5 
3 
6 
1 
1 
2 
3 
Attractive conditions of employment (e.g. pay and 
benefits location of firm) 
7 
5 
8 
7 
8 
5 
8 
6 
7 
Current role is temporary job / stop gap before starting 
desired career 
3 
2 
5 
6 
3 
5 
20 
5 
21 
Family run business 
5 
2 
2 
6 
6 
1 
2 
3 
3 
We actively seek staff with qualifications and/or skills 
beyond those needed 
4 
6 
6 
3 
6 
5 
2 
7 
2 
Competition for higher level roles / they are struggling 
to get a higher level job 
2 
3 
4 
4 
2 
4 
7 
4 
6 
Qualifications / Skills not relevant to job role 
3 
3 
3 
2 
2 
3 
1 
2 
1 
They have more than one job 
1 
1 
1 
1 
1 
1 
1 
2 
3 
Other 
5 
6 
5 
4 
6 
5 
4 
5 
5 
No particular reason / it just happened 
12 
11 
12 
8 
11 
8 
6 
9 
6 
Don’t know 
4 
6 
6 
6 
7 
4 
5 
6 
5 
Base: All establishments with under-utilised staff 

192 
 
Table A.4.3 Reasons for under-utilisation by country 
 
2015 
 
UK 
England Northern 
Ireland Scotland Wales 
Unweighted Base 
28,159 
22,879 
1,223 
1,968 
2,089 
 
% 
% 
% 
% 
% 
They are not interested in taking on a 
higher level role with more 
responsibility 
26 
26 
24 
28 
22 
The working hours suit them better 
15 
15 
15 
13 
14 
Lack of jobs in the desired higher 
level role 
11 
10 
21 
13 
14 
To gain experience / current role is 
lower level in same industry as 
desired higher level role 
10 
10 
10 
10 
9 
They own the business / are a 
partner in the business 
8 
9 
3 
6 
8 
Attractive conditions of employment 
(e.g. pay and benefits location of 
firm) 
7 
7 
4 
5 
9 
Current role is temporary job / stop 
gap before starting desired career 
7 
7 
4 
8 
6 
Family run business 
4 
4 
4 
8 
7 
We actively seek staff with 
qualifications and/or skills beyond 
those needed 
4 
4 
2 
4 
5 
Competition for higher level roles / 
they are struggling to get a higher 
level job 
4 
4 
4 
4 
5 
Qualifications / Skills not relevant to 
job role 
3 
3 
1 
2 
4 
They have more than one job 
1 
1 
* 
1 
1 
Other 
5 
5 
7 
7 
2 
No particular reason / it just 
happened 
10 
10 
14 
11 
6 
Don’t know 
5 
5 
3 
5 
6 
Base: All establishments with under-utilised staff 
 
 
 

193 
Table A.4.4 Reasons for under-utilisation by establishment size 
 
2 to 4 
5 to 24 
25 to 49 
50 to 99 
100 to 
249 
250+ 
Unweighted Base 
5,859 
14,892 
4,009 
2,120 
950 
329 
 
% 
% 
% 
% 
% 
% 
They are not interested in taking on a 
higher level role with more responsibility 
25 
26 
28 
28 
23 
18 
The working hours suit them better 
14 
16 
16 
16 
16 
13 
Lack of jobs in the desired higher level 
role 
8 
13 
15 
16 
25 
25 
To gain experience / current role is lower 
level in same industry as desired higher 
level role 
7 
11 
14 
16 
18 
24 
They own the business / are a partner in 
the business 
13 
4 
1 
1 
* 
0 
Attractive conditions of employment (e.g. 
pay and benefits location of firm) 
6 
8 
8 
8 
9 
7 
Current role is temporary job / stop gap 
before starting desired career 
4 
9 
12 
9 
11 
10 
Family run business 
6 
3 
1 
* 
* 
* 
We actively seek staff with qualifications 
and/or skills beyond those needed 
4 
4 
4 
4 
5 
9 
Competition for higher level roles / they 
are struggling to get a higher level job 
2 
5 
6 
7 
9 
7 
Qualifications / Skills not relevant to job 
role 
3 
3 
2 
3 
1 
3 
They have more than one job 
1 
1 
1 
1 
* 
1 
Other 
5 
4 
4 
6 
6 
4 
No particular reason / it just happened 
12 
8 
7 
6 
5 
5 
Don’t know 
4 
6 
6 
5 
5 
4 
Base: All establishments with under-utilised staff. 
 
 

194 
Table A.4.5 Reasons for under-utilisation by sector 
 
Agriculture 
Manufacturing 
Electricity, 
Gas and 
Water 
Construction 
Wholesale 
and Retail 
Hotels and 
Restaurants 
Transport, 
Storage and 
Comms 
Financial 
Services 
Business 
Services 
Public Admin. 
Education 
Health and 
Social Work 
Arts and Other 
Services 
Unweighted Base 
735 
1,644 
273 
1,756 
5,200 
3,892 
2,446 
737 
3,356 
355 
2,068 
3,024 
2,673 
 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
% 
They are not interested in taking on a higher level role 
with more responsibility 
26 
22 
23 
22 
24 
22 
24 
21 
24 
29 
30 
35 
33 
The working hours suit them better 
11 
13 
9 
12 
16 
17 
12 
14 
13 
20 
24 
16 
17 
Lack of jobs in the desired higher level role 
4 
12 
14 
6 
14 
14 
8 
11 
9 
20 
10 
11 
9 
To gain experience / current role is lower level in 
same industry as desired higher level role 
6 
8 
8 
8 
9 
8 
8 
13 
10 
13 
18 
13 
11 
They own the business / are a partner in the business 
10 
12 
12 
17 
6 
7 
12 
8 
11 
1 
2 
3 
6 
Attractive conditions of employment (e.g. pay and 
benefits location of firm) 
4 
9 
7 
7 
8 
7 
7 
7 
7 
7 
5 
8 
6 
Current role is temporary job / stop gap before 
starting desired career 
2 
4 
3 
2 
10 
17 
3 
3 
4 
3 
5 
5 
6 
Family run business 
21 
4 
7 
7 
4 
3 
4 
3 
4 
* 
* 
1 
2 
We actively seek staff with qualifications and/or skills 
beyond those needed 
3 
4 
10 
5 
2 
2 
5 
4 
6 
5 
4 
5 
4 
Competition for higher level roles / they are struggling 
to get a higher level job 
1 
4 
4 
1 
5 
5 
3 
4 
3 
4 
4 
5 
4 
Qualifications / Skills not relevant to job role 
3 
3 
2 
3 
2 
2 
3 
4 
4 
2 
3 
3 
3 
They have more than one job 
2 
1 
0 
1 
1 
3 
1 
1 
1 
2 
* 
1 
2 
Other 
3 
7 
8 
4 
5 
4 
5 
5 
5 
6 
4 
7 
5 
No particular reason / it just happened 
14 
10 
8 
14 
9 
8 
11 
11 
11 
6 
7 
7 
9 
Don’t know 
2 
5 
6 
5 
5 
5 
6 
6 
6 
7 
5 
4 
4 
Base: All establishments with under-utilised staff 

195 
Chapter 5: Training and workforce development 
Table A.5.1 Proportion of employers providing any training (2011 – 2015) 
 
2011 
2013 
2015 
 
Unwtd 
Base 
Any 
Training 
Unwtd 
Base 
Any 
Training 
Unwtd 
Base 
Any 
Training 
Row percentages 
 
% 
 
% 
 
% 
UK  
86,522 
65 
91,279 
66 
91,210 
66 
Country 
 
 
 
 
 
 
England 
74,156 
65 
75,255 
66 
75,129 
66 
Northern Ireland 
3,921 
65 
4,014 
63 
4,019 
62 
Scotland 
2,487 
73 
6,014 
70 
6,035 
71 
Wales 
5,958 
63 
5,996 
62 
6,027 
63 
Size 
 
 
 
 
 
 
2-4 
17,905 
51 
19,058 
52 
20,527 
51 
5-24 
47,770 
77 
51,565 
77 
49,584 
78 
25-49 
10,239 
92 
10,947 
93 
11,657 
92 
50-99 
5,712 
95 
5,584 
95 
5,836 
95 
100-249 
3,270 
96 
2,938 
97 
2,689 
96 
250+ 
1,626 
97 
1,187 
97 
917 
97 
Sector 
 
 
 
 
 
 
Agriculture 
921 
52 
3,407 
50 
3,632 
50 
Manufacturing 
7,838 
62 
7,560 
59 
6,998 
63 
Electricity, Gas & Water 
1,406 
76 
1,148 
75 
1,041 
74 
Construction 
6,576 
58 
7,202 
56 
7,474 
57 
Wholesale & Retail 
15,163 
60 
17,287 
61 
16,126 
60 
Hotels & Restaurants 
8,421 
61 
8,888 
62 
8,920 
63 
Transport & Comms. 
7,810 
61 
6,890 
63 
8,936 
62 
Financial Services 
1,853 
76 
2,330 
77 
2,549 
74 
Business Services 
14,297 
67 
14,011 
67 
13,143 
68 
Public Administration  
1,584 
90 
942 
90 
947 
90 
Education 
5,422 
91 
5,796 
92 
5,515 
93 
Health & Social Work 
8,067 
89 
8,460 
89 
8,556 
88 
Arts and Other Services 
7,164 
69 
7,358 
69 
7,373 
70 
Base: All establishments 
 
 
 

196 
Table A.5.2 Incidence of off and on-the-job training’ (2011 – 2015) 
 
2011 
2013 
2015 
 
Unwtd 
Base 
Any off-
job 
training 
Any on-
job 
training 
Unwtd 
Base 
Any off-
job 
training 
Any on-
job 
training 
Unwtd 
Base 
Any 
off-job 
training 
Any on-
job 
training 
Row percentages 
 
% 
% 
 
% 
% 
 
% 
% 
UK  
86,522 
47 
53 
91,279 
49 
52 
91,210 
49 
53 
Country 
 
 
 
 
 
 
 
 
 
England 
74,156 
46 
52 
75,255 
48 
52 
75,129 
48 
52 
Northern Ireland 
3,921 
48 
50 
4,014 
49 
47 
4,019 
47 
49 
Scotland 
2,487 
53 
60 
6,014 
53 
57 
6,035 
52 
58 
Wales 
5,958 
47 
50 
5,996 
47 
49 
6,027 
50 
49 
Size 
 
 
 
 
 
 
 
 
 
2-4 
17,905 
34 
38 
19,058 
36 
37 
20,527 
35 
37 
5-24 
47,770 
56 
64 
51,565 
58 
63 
49,584 
58 
64 
25-49 
10,239 
75 
83 
10,947 
77 
83 
11,657 
76 
83 
50-99 
5,712 
82 
87 
5,584 
83 
88 
5,836 
82 
88 
100-249 
3,270 
84 
91 
2,938 
87 
92 
2,689 
85 
91 
250+ 
1,626 
87 
94 
1,187 
89 
93 
917 
86 
92 
Sector 
 
 
 
 
 
 
 
 
 
Agriculture 
921 
37 
36 
3,407 
40 
30 
3,632 
41 
31 
Manufacturing 
7,838 
43 
48 
7,560 
43 
45 
6,998 
46 
50 
Electricity, Gas 
& Water 
1,406 
60 
61 
1,148 
60 
59 
1,041 
61 
58 
Construction 
6,576 
46 
38 
7,202 
45 
37 
7,474 
46 
38 
Wholesale & 
Retail 
15,163 
36 
50 
17,287 
40 
50 
16,126 
39 
48 
Hotels & 
Restaurants 
8,421 
38 
50 
8,888 
39 
51 
8,920 
40 
52 
Transport & 
Comms. 
7,810 
42 
48 
6,890 
46 
48 
8,936 
44 
48 
Financial 
Services 
1,853 
52 
67 
2,330 
54 
66 
2,549 
53 
64 
Business 
Services 
14,297 
50 
52 
14,011 
51 
52 
13,143 
51 
53 
Public 
Administration  
1,584 
73 
81 
942 
73 
79 
947 
74 
78 
Education 
5,422 
80 
81 
5,796 
80 
82 
5,515 
82 
84 
Health & Social 
Work 
8,067 
73 
78 
8,460 
75 
77 
8,556 
72 
77 
Arts and Other 
Services  
7,164 
50 
56 
7,358 
52 
56 
7,373 
51 
58 
Base: All establishments 
 
 

197 
Table A.5.3 Unweighted base sizes for Tables 5.1 and 5.3  
 
2011 
2013 
2015 
UK 
86,522 
91,279 
91,210 
Country 
 
 
 
England 
74,156 
75,255 
75,129 
Northern Ireland 
3,921 
4,014 
4,019 
Scotland 
2,487 
6,014 
6,035 
Wales 
5,958 
5,996 
6,027 
Size 
 
 
 
2-4 
17,905 
19,058 
20,527 
5 to 24 
47,770 
51,565 
49,584 
25-49 
9,416 
10,123 
11,657 
50-99 
5,416 
5,315 
5,836 
100-249 
3,270 
2,938 
2,689 
250+ 
1,626 
1,187 
917 
Base: All establishments  
 
 
 

198 
Table A.5.4 Number employed and trained over the last 12 months by sector, and the 
proportion of the workforce trained 
 
 
 
2011 
2013 
2015 
Row percentages 
 
Unwtd 
Base 
% of 
staff 
trained 
% of 
staff 
trained 
Number 
employed 
(000s) 
Number 
trained 
(000s) 
% of 
staff 
trained 
Agriculture 
1,871 
39 
41 
402 
159 
40 
Manufacturing 
5,055 
46 
50 
2,418 
1,248 
52 
Electricity, Gas & Water 
796 
55 
68 
284 
166 
58 
Construction 
5,004 
49 
48 
1,169 
621 
53 
Wholesale & Retail 
11,470 
52 
55 
4,500 
2,473 
55 
Hotels & Restaurants 
6,849 
55 
59 
1,955 
1,252 
64 
Transport & Comms. 
5,981 
44 
56 
2,228 
1,233 
55 
Financial Services 
1,920 
59 
67 
988 
704 
71 
Business Services 
10,623 
52 
60 
4,792 
2,878 
60 
Public Administration  
851 
61 
67 
1,346 
993 
74 
Education 
5,300 
65 
76 
2,620 
1,962 
75 
Health & Social Work 
7,941 
66 
80 
3,791 
2,949 
78 
Arts and Other Services 
5,840 
55 
63 
1,262 
767 
61 
Base: Establishments that had funded or arranged training in the previous 12 months.  
Note: ‘the percentage of staff trained’ refers to the number of staff trained over the last 12 months (whether or 
not they still work at the establishment) as a percentage of the number of staff currently employed. 
 
 

199 
Table A.5.5 Unweighted base sizes for Figure 5.2 
 
2011 
2013 
2015 
Occupation 
 
 
 
Managers 
83,138 
87,946 
87,590 
Professionals 
16,360 
17,407 
17,483 
Associate Professionals 
13,753 
12,577 
13,309 
Administrative and Clerical  
50,780 
53,759 
53,622 
Skilled Trades occupations 
20,540 
23,644 
24,025 
Caring, Leisure and Other Services 
12,731 
14,017 
15,310 
Sales and Customer Services 
26,790 
27,417 
25,940 
Machine Operatives 
13,381 
14,059 
14,105 
Elementary staff 
30,663 
32,192 
31,970 
Base: All establishments with staff in each occupation (excluding establishments where the numbers of staff if 
unknown)  
 
 

200 
Table A.5.6 Unweighted base sizes for Tables 5.2 and 5.3  
 
2011 
2013 
2015 
UK 
66,439 
69,842 
69,541 
Country 
 
 
 
England 
56,713 
57,787 
57,422 
Northern Ireland 
2,903 
2,894 
2,869 
Scotland 
2,170 
4,884 
4,894 
Wales 
4,653 
4,277 
4,356 
Size 
 
 
 
2-4 
9,121 
9,580 
10,317 
5-24 
37,758 
40,801 
39,461 
25-49 
9,416 
10,123 
10,742 
50-99 
5,416 
5,315 
5,547 
100-249 
3,150 
2,864 
2,584 
250+ 
1,578 
1,159 
890 
Base: Establishments that had funded or arranged training in the previous 12 months.  
 

201 
Table A.5.7 Average training days over the last 12 months per person trained 
 
 
 
Average days training per person trained 
Row percentages 
 
Unwtd 
Base 
 
1 day or 
less 
2 
3-4 
5-6 
7-10 
11+ 
UK 
69,541 
% 
11 
14 
19 
16 
13 
18 
Country 
 
 
 
 
 
 
 
 
England 
57,422 
% 
11 
14 
19 
16 
13 
18 
Northern Ireland 
2,869 
% 
11 
14 
22 
18 
13 
14 
Scotland 
4,894 
% 
11 
14 
20 
17 
13 
17 
Wales 
4,356 
% 
11 
15 
19 
18 
13 
18 
Size 
 
 
 
 
 
 
 
 
2-4 
10,317 
% 
12 
13 
19 
16 
14 
19 
5-24 
39,461 
% 
10 
15 
19 
16 
13 
18 
25-49 
10,742 
% 
10 
15 
19 
17 
12 
16 
50-99 
5,547 
% 
10 
16 
19 
17 
12 
14 
100-249 
2,584 
% 
12 
16 
20 
17 
10 
11 
250+ 
890 
% 
13 
13 
23 
18 
9 
7 
Sector 
 
 
 
 
 
 
 
 
Agriculture 
1,871 
% 
16 
22 
25 
14 
9 
9 
Manufacturing 
5,055 
% 
12 
17 
19 
15 
11 
17 
Electricity, Gas & Water 
796 
% 
11 
13 
21 
21 
13 
13 
Construction 
5,044 
% 
11 
16 
20 
17 
12 
18 
Wholesale & Retail 
1,170 
% 
13 
14 
18 
15 
12 
20 
Hotels & Restaurants 
6,849 
% 
15 
14 
16 
13 
12 
21 
Transport & Comms. 
5,981 
% 
11 
14 
17 
18 
14 
18 
Financial Services 
1,920 
% 
7 
11 
16 
19 
16 
24 
Business Services 
10,623 
% 
10 
14 
21 
17 
14 
16 
Public Administration  
851 
% 
6 
15 
22 
23 
11 
13 
Education 
5,300 
% 
9 
15 
22 
21 
13 
11 
Health & Social Work 
7,941 
% 
7 
12 
20 
17 
17 
17 
Arts and Other Services 
5,840 
% 
12 
14 
20 
15 
12 
19 
Base: Establishments that had funded or arranged training in the previous 12 months. 
 
 

202 
Table A.5.8 Total training and development days, and days per person trained and per employee by sector 2011 to 2015 
 
2011 
 
2013 
2015 
 
 
Unwtd 
Base 
Total 
training 
days 
Days 
per 
person 
trained 
Days per 
employee 
 
Unwtd 
Base 
Total 
training 
days 
Days 
per 
person 
trained 
Days per 
employee 
 
Unwtd 
Base 
Total 
training 
days 
Days 
per 
person 
trained 
Days per 
employee 
UK 
66,439 
115m 
7.8 
4.2 
69,842 
113m 
6.7 
4.2 
69,541 
118m 
6.8 
4.2 
Sector 
 
 
 
 
 
 
 
 
 
 
 
 
Agriculture 
548 
1.0m 
7.2 
2.8 
1,710 
0.9m 
5.7 
2.4 
1,871 
0.9m 
5.4 
2.1 
Manufacturing 
5,450 
8.9m 
7.7 
3.6 
5,231 
6.3m 
5.3 
2.7 
5,055 
7.6m 
6.1 
3.1 
Electricity, Gas & Water 
1,070 
1.3m 
8.6 
4.7 
878 
1.7m 
9.0 
6.0 
796 
0.9m 
5.3 
3.1 
Construction 
4,399 
4.6m 
6.9 
3.4 
4,777 
3.7m 
6.2 
3.0 
5,044 
4.1m 
6.7 
3.5 
Wholesale & Retail 
11,001 
20.0m 
8.7 
4.5 
12,425 
19.3m 
7.9 
4.4 
11,470 19.0m 
7.7 
4.2 
Hotels & Restaurants 
6,185 
10.7m 
11.4 
6.2 
6,761 
9.6m 
9.1 
5.3 
6,849 
13.2m 
10.5 
6.8 
Transport & Comms. 
5,430 
6.1m 
6.5 
2.9 
4,939 
6.8m 
5.8 
3.2 
5,981 
6.7m 
5.4 
3.0 
Financial Services 
1,460 
4.1m 
6.6 
3.9 
1,824 
3.4m 
4.9 
3.3 
1,920 
3.8m 
5.4 
3.8 
Business Services 
11,268 
15.2m 
6.7 
3.5 
11,127 
19.2m 
7.1 
4.3 
10,623 18.2m 
6.3 
3.8 
Public Administration  
1,444 
9.4m 
9.9 
6.0 
861 
7.4m 
7.7 
5.2 
851 
5.1m 
5.2 
3.8 
Education 
5,117 
9.0m 
5.5 
3.6 
5,568 
9.6m 
4.9 
3.8 
5,300 
10.8m 
5.5 
4.1 
Health & Social Work 
7,484 
18.2m 
7.9 
5.2 
7,935 
19.0m 
6.6 
5.3 
7,941 
21.1m 
7.2 
5.6 
Arts and Other Services 
5,583 
6.0m 
8.9 
4.9 
5,806 
5.9m 
7.7 
4.8 
5,840 
6.4m 
8.4 
5.1 
Base: Establishments that had funded or arranged training in the previous 12 months.  
‘Days per employee’ is based upon employment across all establishments. 

203 
Table A.5.9 Percentage of training that has been health and safety or induction training 
(2011, 2013 & 2015) 
 
2011 2013 
2015 
 
UK 
UK 
UK 
England Northern 
Ireland Scotland Wales 
Unweighted Base 
 
 
69,541 
57,422 
2,869 
4,894 
4,356 
 
% 
% 
% 
% 
% 
% 
% 
Less  than 20% 
23 
28 
25 
25 
23 
27 
25 
20-49% 
24 
22 
23 
23 
20 
23 
24 
50-80% 
18 
15 
17 
17 
17 
16 
18 
More than 80% but not all 
5 
3 
4 
4 
3 
4 
4 
All of it (100%) 
7 
9 
11 
11 
18 
10 
10 
AT LEAST 50% 
30 
27 
32 
32 
39 
29 
32 
None 
18 
19 
15 
15 
14 
16 
14 
Don’t know 
5 
3 
5 
5 
4 
4 
5 
Base: Establishments that had funded or arranged training in the previous 12 months. 
 
 

204 
Table A.5.10 Types of training provided over the last 12 months (prompted) 
Row percentages 
Unwtd 
Base 
 
Job specific 
Health & Safety 
New technology 
Basic Induction 
Extensive 
induction 
Management 
UK 2011 
66,439 
% 
85 
75 
47 
47 
n/a 
35 
UK 2013 
69,842 
% 
85 
74 
48 
48 
n/a 
35 
UK 2015 
69,541 
% 
85 
75 
49 
66 
37 
37 
Country 
 
 
 
 
 
 
 
 
England 
57,422 
% 
86 
75 
49 
66 
37 
37 
Northern Ireland 
2,869 
% 
82 
78 
50 
61 
33 
35 
Scotland 
4,894 
% 
86 
74 
49 
66 
36 
34 
Wales 
4,356 
% 
86 
77 
51 
66 
37 
37 
Size 
 
 
 
 
 
 
 
 
2-4 
10,317 
% 
81 
62 
47 
46 
23 
24 
5-24 
39,461 
% 
87 
80 
48 
74 
41 
39 
25-49 
10,742 
% 
92 
93 
55 
90 
54 
60 
50-99 
5,547 
% 
94 
95 
61 
93 
59 
66 
100-249 
2,584 
% 
96 
96 
71 
96 
64 
76 
250+ 
890 
% 
96 
96 
79 
96 
69 
88 
Sector 
 
 
 
 
 
 
 
 
Agriculture 
1,871 
% 
80 
68 
43 
32 
13 
14 
Manufacturing 
5,055 
% 
84 
79 
48 
69 
35 
28 
Electricity, Gas & Water 
796 
% 
88 
86 
44 
69 
40 
35 
Construction 
5,044 
% 
77 
81 
36 
55 
25 
25 
Wholesale & Retail 
11,470 
% 
85 
76 
52 
70 
40 
41 
Hotels & Restaurants 
6,849 
% 
85 
85 
34 
79 
46 
47 
Transport & Comms. 
5,981 
% 
85 
60 
65 
58 
30 
28 
Financial Services 
1,920 
% 
92 
61 
57 
62 
37 
43 
Business Services 
10,623 
% 
87 
64 
57 
60 
32 
32 
Public Administration 
851 
% 
91 
84 
61 
75 
44 
56 
Education 
5,300 
% 
93 
89 
59 
79 
46 
58 
Health & Social Work 
7,941 
% 
89 
89 
41 
77 
50 
47 
Arts and Other Services 
5,840 
% 
85 
76 
46 
67 
36 
32 
Base: Establishments that had funded or arranged training in the previous 12 months. 
n/a: Extensive induction was a new code added into the 2015 survey 
 
 

205 
Table A.5.11 Training to nationally recognised qualifications in the last 12 months among 
employers that train 
Row percentages 
 
 
Unwtd 
Base 
Any staff 
trained to a 
qualification 
Number 
trained to a 
qualification 
% of those 
trained to a 
qualification 
% of all 
employees 
trained to a 
qualification 
UK 
69,541 
47 
3.5m 
20 
12 
Size 
 
 
 
 
 
2-4 
10,317 
36 
0.3m 
26 
11 
5-24 
39,461 
49 
0.9m 
25 
14 
25-49 
10,742 
63 
0.5m 
23 
15 
50-99 
5,547 
69 
0.5m 
20 
13 
100-249 
2,584 
73 
0.5m 
17 
12 
250+ 
890 
80 
0.8m 
15 
10 
Sector 
 
 
 
 
 
Agriculture 
1,871 
44 
* 
29 
11 
Manufacturing 
5,055 
43 
0.2m 
16 
8 
Electricity, Gas & 
Water 
796 
55 
* 
22 
13 
Construction 
5,044 
53 
0.2m 
31 
17 
Wholesale & Retail 
11,470 
38 
0.3m 
13 
7 
Hotels & Restaurants 6,849 
51 
0.2m 
19 
12 
Transport & Comms. 5,981 
39 
0.3m 
24 
13 
Financial Services 
1,920 
47 
0.1m 
18 
13 
Business Services 
10,623 
41 
0.5m 
17 
10 
Public Administration 
851 
62 
0.2m 
17 
13 
Education 
5,300 
65 
0.3m 
14 
10 
Health & Social Work 7,941 
65 
0.9m 
29 
23 
Arts and Other 
Services  
5,840 
50 
0.2m 
29 
17 
Base: Establishments that had funded or arranged training in the previous 12 months.  
Note the final column shows the proportion of all employees in that size band or sector that were trained to a 
qualification (not the proportion of employees within establishments that train). 
Note: * refers to a figure of less than £50,000 
 
 

206 
Table A.5.12 Whether establishment has funded or arranged online training or e-learning, or 
other self-learning, over the past 12 months 
 
 
 
 
 
Online training 
Other self-learning 
Row percentages 
Unwtd 
Base 
% funding or 
arranging online 
% funding or 
arranging other 
% funding or 
arranging either 
Unwtd 
Base 
% reporting 
increase 
% reporting 
decrease 
Unwtd 
Base 
% reporting 
increase 
% reporting 
decrease 
UK 
69,541 
45 
38 
57 
39,695 
39 
18 
35,783 
29 
23 
Country 
 
 
 
 
 
 
 
 
 
 
England 
57,422 
45 
39 
57 
33,257 
39 
18 
29,864 
30 
23 
Northern Ireland 
2,869 
34 
35 
48 
1,268 
38 
22 
1,324 
24 
27 
Scotland 
4,894 
44 
36 
55 
2,805 
40 
17 
2,449 
29 
25 
Wales 
4,356 
43 
37 
56 
2,365 
40 
19 
2,146 
30 
24 
Size 
 
 
 
 
 
 
 
 
 
 
2-4 
10,317 
35 
32 
48 
4,212 
35 
22 
4,127 
28 
26 
5-24 
39,461 
47 
39 
58 
21,708 
40 
17 
19,022 
29 
23 
25-49 
10,742 
61 
51 
72 
7,195 
43 
13 
6,458 
34 
20 
50-99 
5,547 
62 
56 
74 
3,892 
41 
14 
3,660 
32 
19 
100-249 
2,584 
70 
60 
81 
1,965 
42 
12 
1,836 
31 
19 
250+ 
890 
78 
65 
87 
723 
44 
9 
680 
29 
18 
Sector 
 
 
 
 
 
 
 
 
 
 
Agriculture 
1,871 
14 
20 
28 
413 
28 
37 
559 
16 
36 
Manufacturing 
5,055 
29 
24 
40 
1,913 
42 
24 
1,772 
29 
30 
Electricity, Gas & 
Water 
796 
35 
27 
46 
337 
37 
24 
287 
27 
29 
Construction 
5,044 
30 
25 
42 
2,021 
37 
23 
1,700 
28 
28 
Wholesale & Retail 
11,470 
41 
34 
52 
6,240 
43 
16 
5,254 
31 
24 
Hotels & Restaurants 6,849 
49 
39 
61 
4,396 
40 
15 
3,798 
31 
24 
Transport & Comms. 5,981 
43 
42 
58 
2,923 
36 
19 
2,765 
30 
21 
Financial Services 
1,920 
71 
54 
80 
1,501 
36 
11 
1,218 
31 
18 
Business Services 
10,623 
48 
40 
60 
6,288 
37 
19 
5,683 
28 
22 
Public Administration 
851 
67 
55 
79 
615 
44 
12 
521 
33 
19 
Education 
5,300 
65 
55 
7 
4,103 
38 
17 
3,649 
31 
21 
Health & Social Work 7,941 
62 
55 
75 
5,924 
42 
15 
5,623 
31 
21 
Arts and Other 
Services  
5,840 
35 
36 
51 
3,021 
41 
22 
2,954 
28 
25 
Base: Columns 1-3: Establishments that had funded or arranged training in the previous 12 months; columns 
4-5: Establishments providing online training or e-learning in the last two years; columns 6-7: establishments 
providing other self-learning in the last two years   

207 
Table A.5.13 Total training expenditure and training spend per person trained and per employee by sector (2011 - 2015) 
 
2011 
2013 
2015 
 
 
 
Unwtd 
Base 
Total 
Spend per 
trainee 
Spend per 
employee 
Unwtd 
Base 
Total 
Spend per 
trainee 
Spend per 
employee 
Unwtd 
Base 
Total 
Spend per 
trainee 
Spend per 
employee 
UK 
11,027 
£43.8bn 
£2,974 
£1,620 
12,522 
£43.0bn 
£2,560 
£1,600 
12,614 
£45.4bn 
£2,610 
£1,640 
Size 
 
 
 
 
 
 
 
 
 
 
 
 
2-4 
1,774 
£5.5bn 
£5,700 
£2,290 
2,317 
£5.6bn 
£5,650 
£2,320 
1,963 
£5.9bn 
£5,810 
£2,470 
5-24 
6,542 
£12.0bn 
£3,570 
£1,880 
6,953 
£12.7bn 
£3,630 
£1,970 
7,661 
£14.1bn 
£3,750 
£2,100 
25-49 
1,452 
£6.1bn 
£3,100 
£1,810 
1,722 
£6.4bn 
£3,080 
£1,930 
1,779 
£6.3bn 
£2,810 
£1,820 
50-99 
708 
£5.5bn 
£2,740 
£1,616 
928 
£5.5bn 
£2,460 
£1,610 
782 
£6.5bn 
£2,820 
£1,860 
100+ 
551 
£14.7bn 
£2,290 
£1,290 
602 
£12.7bn 
£1,600 
£1,120 
429 
£12.7bn 
£1,560 
£1,080 
Sector 
 
 
 
 
 
 
 
 
 
 
 
 
Agriculture 
87 
£1.1bn 
£7,780 
£3,030 
297 
£0.4bn 
£2,680 
£1,110 
260 
£0.6bn 
£3,590 
£1,420 
Manufacturing 
816 
£3.4bn 
£2,960 
£1,370 
867 
£2.6bn 
£2,200 
£1,110 
972 
£3.2bn 
£2,570 
£1,320 
Electricity, Gas & Water 
137 
£0.3bn 
£1,860 
£1,020 
163 
£0.3bn 
£1,490 
£1,010 
168 
£0.7bn 
£3,960 
£2,320 
Construction 
655 
£2.5bn 
£3,629 
£1,790 
893 
£2.4bn 
£4,050 
£1,960 
826 
£2.5bn 
£4,090 
£2,170 
Wholesale & Retail 
1,815 
£5.1bn 
£2,220 
£1,150 
1,945 
£6.5bn 
£2,630 
£1,460 
1,813 
£5.1bn 
£2,050 
£1,130 
Hotels & Restaurants 
1,055 
£3.0bn 
£3,185 
£1,740 
1,091 
£2.7bn 
£2,510 
£1,460 
1,273 
£3.3bn 
£2,670 
£1,710 
Transport & Comms. 
862 
£3.1bn 
£3,320 
£1,460 
954 
£3.3bn 
£2,770 
£1,540 
1,135 
£3.4bn 
£2,720 
£1,500 
Financial Services 
220 
£1.5bn 
£2,410 
£1,430 
369 
£1.3bn 
£1,880 
£1,270 
344 
£1.6bn 
£2,320 
£1,650 
Business Services 
2.036 
£8.3bn 
£3,680 
£1,900 
2,337 
£8.5bn 
£3,170 
£1,910 
2,073 
£9.8bn 
£3,420 
£2,060 
Public Administration  
231 
£3.1bn 
£3,330 
£2,010 
213 
£2.1bn 
£2,220 
£1,490 
176 
£1.9bn 
£1,960 
£1,450 
Education 
558 
£4.9bn 
£2,980 
£1,930 
621 
£5.4bn 
£2,770 
£2,100 
678 
£4.6bn 
£2,320 
£1,740 
Health & Social Work 
1,515 
£5.2bn 
£2,270 
£1,500 
1,540 
£5.1bn 
£1,790 
£1,420 
1,790 
£6.1bn 
£2,070 
£1,610 
Arts & Other Services 
1,011 
£2.3bn 
£3,412 
£1,880 
1,232 
£2.3bn 
£3,010 
£1,890 
1,106 
£2.6bn 
£3,410 
£2,070 
Base: Establishments completing the Investment in Training study. Note: figures for spend per person trained and per employee have been rounded to the nearest £10. 

 
 
 
208 
Table A.5.14 Training expenditure spent on Further Education colleges, Universities or 
other Higher Education institutions, and the proportion of the total fees to external 
providers that this represents 
Row percentages 
Unwtd 
Base 
Total fees to 
external 
providers 
Total fees to 
FE/HE providers 
 
% of fees to 
external 
providers paid to 
FE/HE providers 
UK 
12,614 
£3.0bn 
£453m 
% 
15 
Size 
 
 
 
 
 
2 to 4 
1,963 
£0.5bn 
£73m 
% 
15 
5 to 24 
7,661 
£1.0bn 
£143m 
% 
14 
25 to 49 
1,779 
£0.4bn 
£61m 
% 
14 
50 to 99 
782 
£0.3bn 
£35m 
% 
10 
100+ 
429 
£0.7bn 
£141m 
% 
19 
Sector 
 
 
 
 
 
Agriculture 
260 
£0.1bn 
£10m 
% 
18 
Manufacturing 
972 
£0.2bn 
£34m 
% 
16 
Electricity, Gas & 
Water 
168 
£0.04bn 
£2m 
% 
5 
Construction 
826 
£0.3bn 
£37m 
% 
14 
Wholesale & Retail 
1,813 
£0.3bn 
£39m 
% 
11 
Hotels & Restaurants 
1,273 
£0.1bn 
£8m 
% 
7 
Transport & Comms. 
1,135 
£0.2bn 
£20m 
% 
10 
Financial Services 
344 
£0.1bn 
£8m 
% 
11 
Business Services 
2,073 
£0.9bn 
£158m 
% 
17 
Public Administration 
176 
£0.1bn 
£11m 
% 
10 
Education 
678 
£0.2bn 
£45m 
% 
19 
Health & Social Work 
1,790 
£0.3bn 
£61m 
% 
19 
Arts and Other 
Services 
1,106 
£0.1bn 
£20m 
% 
15 
Base: Establishments completing the Investment in Training study. 
First column rounded to the nearest £0.01bn; second column to the nearest £1m 
 
 

 
 
 
209 
Table A.5.15 Whether training employers would have liked to provide more training, and if 
so the main barriers (prompted) 
 
 
% would have liked to provide 
more training 
 
 
Main barriers among those 
wanting to provide more training 
Row percentages 
Unwtd 
Base 
Unwtd 
Base 
 
Lack of funds/ training 
expensive 
Can’t spare time for 
employees to be training 
Hard to find the time to 
organise training 
Lack appropriate training / 
qualifications in the subjects 
we need 
Difficulty finding provider to 
deliver where and when we 
want 
UK 
69,541 
46 
33,281 
% 
52 
49 
14 
5 
4 
Country 
 
 
 
 
 
 
 
 
 
England 
57,422 
46 
27,152 
% 
51 
49 
14 
5 
4 
Northern Ireland 
2,869 
47 
1,406 
% 
60 
44 
14 
5 
5 
Scotland 
4,894 
50 
2,513 
% 
53 
54 
12 
4 
6 
Wales 
4,356 
49 
2,210 
% 
52 
47 
16 
6 
7 
Size 
 
 
 
 
 
 
 
 
 
2-4 
10,317 
43 
4,382 
% 
53 
47 
14 
5 
4 
5-24 
39,461 
48 
18,801 
% 
49 
51 
14 
5 
4 
25-49 
10,742 
49 
5,281 
% 
52 
51 
15 
4 
4 
50-99 
5,547 
50 
2,798 
% 
55 
52 
14 
3 
3 
100-249 
2,584 
57 
1,486 
% 
61 
48 
14 
3 
3 
250+ 
890 
59 
533 
% 
65 
51 
14 
3 
5 
Sector 
 
 
 
 
 
 
 
 
 
Agriculture 
1,871 
34 
659 
% 
43 
49 
14 
11 
9 
Manufacturing 
5,055 
45 
2,321 
% 
50 
51 
14 
6 
4 
Electricity, Gas & Water 
796 
40 
328 
% 
55 
48 
13 
3 
5 
Construction 
5,044 
40 
2,076 
% 
52 
49 
14 
5 
4 
Wholesale & Retail 
11,470 
46 
5,514 
% 
39 
52 
16 
4 
4 
Hotels & Restaurants 
6,849 
51 
3,599 
% 
46 
44 
15 
3 
3 
Transport & Comms. 
5,981 
48 
2,774 
% 
53 
51 
15 
5 
4 
Financial Services 
1,920 
39 
736 
% 
34 
60 
15 
3 
3 
Business Services 
10,623 
43 
4,650 
% 
54 
52 
15 
4 
3 
Public Administration  
851 
50 
422 
% 
63 
49 
13 
5 
5 
Education 
5,300 
53 
2,850 
% 
71 
48 
9 
4 
4 
Health & Social Work 
7,941 
52 
4,201 
% 
61 
46 
12 
5 
5 
Arts and Other Services 5,840 
53 
3,151 
% 
64 
43 
12 
4 
4 
Base: Column 1: Establishments that had funded or arranged any training in the previous 12 months; Columns 
2-6 Establishments that would have liked to provide more training 
 
 

 
 
 
210 
Table A.5.16 Reasons for not funding or arranging training over the last 12 months 
(unprompted) 
 
2011 2013 
2015 
 
UK 
UK 
UK 
England Northern 
Ireland Scotland Wales 
Unweighted Base 
19,363 20,704 20,719 
16,899 
1,119 
1,070 
1,631 
 
% 
% 
% 
% 
% 
% 
% 
All our staff are fully proficient / no 
need for training 
64 
69 
68 
68 
64 
67 
66 
No money available for training 
11 
10 
7 
7 
10 
6 
9 
Training is not a priority for the 
establishment 
9 
7 
7 
7 
10 
6 
9 
No training available in relevant 
subject area 
7 
5 
5 
5 
4 
4 
6 
Managers have lacked the time to 
organise training 
3 
3 
2 
2 
2 
3 
3 
Employees are too busy to undertake 
training 
2 
2 
2 
2 
2 
3 
3 
Employees are too busy to give 
training 
1 
2 
2 
2 
2 
1 
2 
External courses are too expensive 
2 
2 
1 
1 
1 
1 
1 
Learn by experience/as you go 
3 
2 
3 
3 
2 
2 
3 
Business not operating long 
enough/New business 
1 
1 
1 
1 
1 
1 
1 
Small firm/training not needed due to 
size of establishment  
1 
1 
1 
1 
1 
1 
2 
Trained staff will be poached by other 
employers 
1 
1 
1 
1 
2 
1 
1 
Courses interested in not available 
1 
1 
1 
1 
1 
1 
1 
No new staff (only train new staff) 
* 
1 
* 
* 
* 
* 
1 
No particular reason 
5 
5 
6 
5 
8 
9 
3 
Base: Establishments that had not funded or arranged training or development in the previous 12 months. 
Note: responses are only shown if given by one per cent or more of respondents in 2015  
‘*’ denotes a figure larger than zero but smaller than 0.5 
 
 

 
 
 
211 
Table A.5.17 Incidence of wider development activities 
 
 
 
 
 
2015 
 
 
 
Row percentages 
2015 Unwtd Base 
2013 Unwtd Base 
2011 Unwtd Base 
 
Supervision guiding 
employees through their 
job role 
Opportunities for staff to 
watch others carry out 
their roles 
Allowed to perform tasks 
beyond their job roles 
Any wider development 
activities 2015 
Any wider development 
activities 2013 
Any wider development 
activities 2011 
UK  
91,210 91,279 86,522 % 
74 
70 
66 
84 
85 
82 
Country 
 
 
 
 
 
 
 
 
 
 
England 
75,129 75,255 74,156 % 
74 
70 
67 
84 
85 
82 
Northern Ireland 
4,019 
4,014 
3,921 % 
75 
69 
64 
85 
81 
83 
Scotland 
6,035 
6,014 
2,487 % 
75 
71 
65 
85 
86 
84 
Wales 
6,027 
5,996 
5,958 % 
70 
67 
62 
81 
81 
79 
Size 
 
 
 
 
 
 
 
 
 
 
2-4 
20,527 19,058 17,905 % 
62 
57 
57 
75 
76 
73 
5-24 
49,584 51,565 47,770 % 
85 
81 
74 
93 
93 
91 
25-49 
11,657 10,947 19,239 % 
93 
90 
80 
98 
98 
96 
50-99 
5,836 
5,584 
5,712 % 
94 
91 
79 
98 
98 
97 
100-249 
2,689 
2,938 
3,270 % 
95 
92 
83 
99 
99 
98 
250+ 
917 
1,187 
1,626 % 
95 
91 
85 
99 
99 
99 
Sector 
 
 
 
 
 
 
 
 
 
 
Agriculture 
3,632 
3,407 
921 
% 
51 
50 
42 
65 
66 
69 
Manufacturing 
6,998 
7,560 
7,838 % 
73 
69 
65 
83 
81 
79 
Electricity, Gas & Water 1,041 
1,148 
1,406 % 
76 
67 
63 
85 
86 
85 
Construction 
7,474 
7,202 
6,576 % 
65 
58 
54 
76 
74 
72 
Wholesale & Retail 
16,126 17,287 15,163 % 
75 
73 
68 
85 
87 
83 
Hotels & Restaurants 
8,920 
8,888 
8,421 % 
81 
75 
70 
89 
88 
85 
Transport & Comms. 
8,936 
6,890 
7,810 % 
66 
65 
65 
81 
82 
80 
Financial Services 
2,549 
2,330 
1,853 % 
79 
74 
70 
88 
91 
90 
Business Services 
13,143 14,011 14,297 % 
72 
67 
68 
84 
84 
81 
Public Administration  
947 
942 
1,584 % 
88 
82 
74 
94 
96 
95 
Education 
5,515 
5,796 
5,422 % 
87 
89 
79 
96 
96 
94 
Health & Social Work 
8,556 
8,460 
8,067 % 
90 
82 
75 
95 
95 
94 
Arts and Other Services 7,373 
7,358 
7,164 % 
78 
74 
69 
89 
88 
86 
Base: All establishments 
 

 
 
 
212 
Chapter 6: High Performance Working practices and product market strategies 
Table A.6.1  Summary of recruitment activity, experience of hard-to-fill vacancies (HtfVs) and skill-shortage vacancies (SSVs) by HPW classification and size 
 
 
Have vacancies 
Have HtFVs 
Have SSVs 
HtFVs / vacs 
SSVs / vacs 
SSVs / HtFVs 
Row percentages 
Unwtd Base 
% 
% 
% 
% 
% 
% 
HPW employers 
 
 
 
 
 
 
2-4 
322 
25 
14 
11 
46 
33 
73 
5-24 
4,213 
33 
12 
8 
33 
22 
66 
25-49 
2,004 
46 
15 
11 
29 
20 
68 
50-99 
1,222 
57 
19 
14 
31 
20 
66 
100-249 
721 
65 
20 
15 
22 
15 
68 
250+ 
310 
69 
28 
23 
22 
19 
85 
5-99 
7,439 
39 
13 
10 
31 
21 
66 
Non-HPW Employers 
 
 
 
 
 
 
 
2-4 
9,866 
9 
4 
3 
39 
25 
65 
5-24 
20,536 
21 
8 
6 
39 
26 
66 
25-49 
3,746 
39 
14 
11 
31 
21 
68 
50-99 
1,664 
48 
17 
12 
30 
20 
66 
100-249 
636 
61 
22 
17 
28 
20 
71 
250+ 
152 
72 
22 
18 
19 
15 
79 
5-99 
25,946 
24 
9 
7 
36 
24 
67 
Base: All establishments by HPW classification and size. 
‘HtFVs / vacs’ is shown as all hard-to-fill vacancies as a proportion of all private sector vacancies; ‘‘SSVs / vacs’ is shown as all skill-shortage vacancies as a proportion of all private sector 
vacancies; ‘SSVs / HtFVs’ is shown as all skill-shortage vacancies as a proportion of all hard-to-fill private sector vacancies

 
 
213 
Table A.6.2  Training activity among HPW employers and non-HPW employers by size band 
and sector 
Row percentages 
Unwtd 
Base 
Any training 
Proportion of staff 
trained 
 
 
% 
% 
Size 
 
 
 
HPW employers 
 
 
 
2-4 
322 
96 
89 
5-24 
4,213 
98 
78 
25-49 
2,004 
98 
75 
50-99 
1,222 
99 
76 
100-249 
721 
99 
75 
250+ 
310 
99 
78 
5-99 
7,439 
98 
76 
Non-HPW employers 
 
 
 
2-4 
9,866 
50 
42 
5-24 
20,536 
75 
51 
25-49 
3,746 
89 
60 
50-99 
1,664 
93 
59 
100-249 
636 
93 
57 
250+ 
152 
93 
56 
5-99 
25,946 
77 
55 
Sector  
 
 
 
HPW employers 
 
 
 
Agriculture 
42 
100 
61 
Manufacturing 
474 
98 
66 
Electricity, Gas and Water 
87 
97 
73 
Construction 
295 
99 
74 
Wholesale and Retail 
1,702 
96 
71 
Hotels and Restaurants 
1,118 
97 
83 
Transport and Communications 
437 
99 
68 
Financial Services 
223 
97 
86 
Business Services 
1,424 
98 
74 
Public Administration 
182 
98 
82 
Education 
887 
100 
80 
Health and Social Work 
1,255 
99 
88 
Arts and Other Services 
666 
97 
73 
 
 
 
 
Non-HPW employers 
 
 
 
Agriculture 
1,737 
50 
39 
Manufacturing 
3,047 
61 
41 
Electricity, Gas and Water 
440 
71 
48 
Construction 
3,466 
54 
45 
Wholesale and Retail 
6,260 
55 
46 
Hotels and Restaurants 
3,272 
60 
55 
Transport and Communications 
3,998 
59 
49 
Financial Services 
1,058 
70 
60 
Business Services 
5,090 
64 
49 
Public Administration 
306 
84 
53 
Education 
1,820 
92 
70 
Health and Social Work 
3,112 
86 
77 
Arts and Other Services 
2,994 
68 
58 
Base: All establishments in Module 1 by HPW classification. 
 
 

 
 
214 
Table A.6.3  Profile of private sector employers in each Product Market Strategy classification 
by country and sector 
 
Very Low  
Low 
Medium 
High 
Very High 
Unweighted Base 
2,673 
8,771 
18,544 
22,832 
13,385 
 
% 
% 
% 
% 
% 
Country 
 
 
 
 
 
England 
80 
83 
85 
85 
87 
Northern Ireland 
5 
4 
3 
3 
2 
Scotland 
9 
8 
7 
8 
7 
Wales 
6 
5 
5 
4 
4 
Sector 
 
 
 
 
 
Agriculture 
19 
11 
6 
3 
2 
Manufacturing 
5 
6 
6 
8 
8 
Electricity, Gas and Water 
1 
1 
1 
1 
1 
Construction 
15 
13 
11 
9 
7 
Wholesale and Retail 
20 
24 
23 
23 
22 
Hotels and Restaurants 
10 
11 
10 
10 
9 
Transport and 
Communications 
6 
7 
8 
9 
9 
Financial Services 
2 
2 
3 
2 
2 
Business Services 
17 
19 
23 
24 
25 
Public Administration 
* 
* 
* 
* 
* 
Education 
* 
1 
1 
1 
2 
Health and Social Work 
1 
2 
3 
4 
6 
Arts and Other Services 
3 
4 
5 
5 
7 
 
 
 
 
 
 
Base: All private sector establishments in each PMS classification by country and sector. 
‘*’ denotes a figure greater than zero but smaller than 0.5. 
 
 

 
 
215 
Table A.6.4  Volume of skill-shortage vacancies by Product Market Strategy classification and 
occupation 
 
Very low  
Low 
Medium 
High 
Very high 
Unweighted Base 
2,673 
8,771 
18,544 
22,832 
13,385 
 
% 
% 
% 
% 
% 
Have vacancies 
11 
14 
18 
21 
23 
Have HtFVs 
6 
7 
8 
9 
9 
Have SSVs 
4 
5 
6 
7 
7 
Density of HtFVs (as % of 
vacancies) 
47 
42 
35 
37 
34 
Density of SSVs (as % of 
vacancies) 
33 
27 
27 
25 
25 
Density of SSVs (as % of 
HtFVs) 
70 
65 
77 
68 
74 
Base: All private sector establishments in each PMS classification 
 
 

 
 
216 
Table A.6.5 Training provision over the last 12 months by Product Market Strategy and size 
Row percentages 
Unwtd 
Base 
Any training 
Proportion of staff trained 
 
 
% 
% 
Very low PMS 
 
 
 
2-4 
1,110 
35 
38 
5-24 
1,313 
65 
41 
25-49 
162 
88 
48 
50-99 
62 
92 
49 
100-249 
18 
** 
** 
250+ 
8 
** 
** 
Low PMS 
 
 
 
2-4 
2,862 
46 
35 
5-24 
4,749 
73 
47 
25-49 
751 
90 
56 
50-99 
279 
94 
57 
100-249 
98 
97 
51 
250+ 
32 
100 
59 
Medium PMS 
 
 
 
2-4 
4,660 
49 
39 
5-24 
10,543 
76 
51 
25-49 
2,006 
91 
59 
50-99 
893 
94 
59 
100-249 
330 
94 
63 
250+ 
112 
96 
56 
High PMS 
 
 
 
2-4 
4,809 
53 
43 
5-24 
12,965 
79 
56 
25-49 
2,894 
93 
63 
50-99 
1,342 
96 
64 
100-249 
648 
96 
63 
250+ 
174 
97 
69 
Very high PMS 
 
 
 
2-4 
2,454 
57 
50 
5-24 
7,413 
80 
59 
25-49 
1,960 
93 
65 
50-99 
919 
96 
65 
100-249 
480 
95 
66 
250+ 
159 
99 
70 
Base: All private sector establishments in each PMS classification by size. 
 ‘Proportion of staff trained’ is shown as a proportion of all private sector employment 
‘**’ denotes figure not shown because of a low base (fewer than 25 respondents); Figures in italics denote base 
size smaller than 50: figures should be treated with caution 
 
 
 
 

 
 
217 
Appendix B: National Time Series Tables 
The UK Commission’s Employer Skills Survey 2011, 2013 and 2015 was designed in such a 
way as to preserve key time series measures from the surveys carried out previously by the 
individual nations where possible. 
The eligible employer population and weighting strategy in the 2013 survey was different to 
that used in 2011; therefore, the 2011 data has been reweighted to give comparable time 
series data. The 2015 survey follows the same strategy as that applied in 2013.  
For the constituent nations of the UK, the degree to which we can track time series prior to 
2011 depends on the approach the nation took to their predecessor skills survey.   
England: England carried out the National Employer Skills Survey (NESS) biennially from 
2005, and annually from 2001 prior to this. The population used in NESS matches that used 
in ESS 2013 (2+ employment), therefore we can make some comparisons over a longer time 
period. It should be noted that the weighting strategy of the NESS surveys was based on SSC 
sectors rather than the 14 broad SIC sectors used in 2011 and 2013, therefore some caution 
needs to be exercised when making comparisons with data prior to 2011. 
Northern Ireland: The Northern Ireland Skills Monitoring Survey (NISMS) was conducted in 
2005 and 2008 on a 1+employee population. This does not match the population used in ESS 
2013, therefore no time series comparisons can be drawn prior to 2011. 
Scotland: The Scottish Employer Skills Survey (SESS) ran annually from 2006 to 2010. The 
surveys were conducted using a 1+employee population which does not match the population 
used in ESS 2013, therefore no time series comparisons can be drawn prior to 2011. 
Wales: Future Skills Wales (FSW) was conducted in 2005 on a 2+ employment population. 
This gives some scope to make comparisons with this point in time, however it should be 
noted that the weighting strategy employed in 2005 used different sector and size band 
definitions to those used in 2011, 2013 and 2015, therefore some caution needs to be 
exercised when making comparisons with the 2005 data. 
 
 

 
 
218 
England Time Series: Key Figures 
 
NESS 03 
NESS 05 
NESS 07 
NESS 09 
ESS 2011 
ESS 2013 
ESS 2015 
Vacancies and skill-shortage 
vacancies 
 
 
 
 
 
 
 
 
% of establishments with any 
vacancies 
17% 
17% 
18% 
12% 
14% 
15% 
20% 
% of establishments with any 
hard-to-fill vacancies 
8% 
7% 
7% 
3% 
5% 
5% 
8% 
% with SSVs 
n/a 
5% 
5% 
3% 
3% 
4% 
6% 
% of all vacancies which are 
SSVs 
n/a 
25% 
21% 
16% 
15% 
22% 
23% 
Number of vacancies 
679,000 
573,900 
619,700 
385,700 
501,200 
559,600 
797,400 
Number of hard-to-fill vacancies 
271,000 
203,600 
183,500 
85,400 
107,100 
160,000 
262,300 
Number of skill-shortage 
vacancies 
135,000 
143,100 
130,000 
63,100 
76,900 
124,800 
180,200 
Skills gaps 
 
 
 
 
 
 
 
 
% of establishments with any 
staff not fully proficient 
22% 
16% 
15% 
19% 
17% 
15% 
14% 
Number of skills gaps 
2.4m 
1.26m 
1.36m 
1.70m 
1.28m 
1.17m 
1.18m 
Number of staff not fully 
proficient as a % of employment 
11% 
6% 
6% 
7% 
6% 
5% 
5% 
Training 
 
 
 
 
 
 
 
 
% of establishments training staff 
over the last 12 months 
59% 
65% 
67% 
68% 
65% 
66% 
66% 
% of establishments providing 
off-the-job training in the last 12 
months 
n/a 
46% 
46% 
51% 
47% 
48% 
48% 
% of workforce trained 
53% 
61% 
63% 
56% 
54% 
62% 
63% 
Total number of training days 
n/a 
n/a 
n/a 
109m 
97m 
95m 
100m 
**Eurostat data used for calculating total training spend was subject to an adjustment in 2013, therefore no data is 
available prior to 2011 that is directly comparable with 2011 and 2013 data.  

 
 
219 
Northern Ireland Time Series: Key Figures 
 
ESS 2011 
ESS 2013 
ESS 2015 
Vacancies and skill-shortage vacancies 
 
 
 
% of establishments with any vacancies 
10% 
10% 
13% 
% of establishments with any hard-to-fill vacancies 
3% 
3% 
4% 
% with SSVs 
2% 
3% 
3% 
% of all vacancies which are SSVs 
21% 
19% 
14% 
Number of vacancies 
18,400 
15,200 
19,700 
Number of hard-to-fill vacancies 
5,000 
4,000 
4,200 
Number of skill-shortage vacancies 
3,900 
2,900 
2,800 
Skills gaps 
 
 
 
 
% of establishments with any staff not fully proficient 
13% 
14% 
9% 
Number of skills gaps 
34,100 
37,700 
24,000 
Number of staff not fully proficient as a % of employment 
4% 
5% 
3% 
Training 
 
 
 
 
% of establishments training staff over the last 12 months 
65% 
63% 
62% 
% of establishments providing off-the-job training in the last 
12 months 
48% 
49% 
47% 
% of workforce trained 
56% 
59% 
64% 
Total number of training days 
2.71m 
2.69m 
2.60m 
 
 
 

 
 
220 
Scotland Time Series: Key Figures 
 
ESS 2011 
ESS 2013 
ESS 2015 
Vacancies and skill-shortage vacancies 
 
 
 
% of establishments with any vacancies 
14% 
15% 
19% 
% of establishments with any hard-to-fill vacancies 
4% 
6% 
8% 
% with SSVs 
3% 
4% 
6% 
% of all vacancies which are SSVs 
15% 
25% 
24% 
Number of vacancies 
44,500 
54,500 
73,600 
Number of hard-to-fill vacancies 
9,100 
18,200 
24,600 
Number of skill-shortage vacancies 
6,700 
13,400 
17,700 
Skills gaps 
 
 
 
 
% of establishments with any staff not fully proficient 
21% 
19% 
14% 
Number of skills gaps 
121,000 
135,100 
117,700 
Number of staff not fully proficient as a % of employment 
5% 
6% 
5% 
Training 
 
 
 
 
% of establishments training staff over the last 12 months 
73% 
70% 
71% 
% of establishments providing off-the-job training in the last 
12 months 
53% 
53% 
52% 
% of workforce trained 
58% 
65% 
62% 
Total number of training days 
9.8m 
10.0m 
9.86m 
 
 
 

 
 
221 
Wales Time Series: Key Figures 
 
FSW 05 
ESS 2011 
ESS 2013 
ESS 2015 
Vacancies and skill-shortage vacancies 
  
 
 
 
% of establishments with any vacancies 
21% 
12% 
14% 
17% 
% of establishments with any hard-to-fill vacancies 
10% 
4% 
5% 
7% 
% with SSVs 
4% 
3% 
4% 
6% 
% of all vacancies which are SSVs 
14% 
18% 
20% 
24% 
Number of vacancies 
37,900 
22,500 
25,700 
36,500 
Number of hard-to-fill vacancies 
13,200 
6,600 
7,200 
12,100 
Number of skill-shortage vacancies 
5,400 
4,000 
5,100 
8,800 
Skills gaps 
 
 
 
 
 
% of establishments with any staff not fully 
proficient 
18% 
16% 
16% 
14% 
Number of skills gaps 
63,800 
53,900 
67,400 
53,800 
Number of staff not fully proficient as a % of 
employment 
6% 
5% 
6% 
5% 
Training 
 
 
 
 
 
% of establishments training staff over the last 12 
months 
n/a 
63% 
62% 
63% 
% of establishments providing off-the-job training in 
the last 12 months 
n/a 
47% 
47% 
49% 
% of workforce trained 
n/a 
56% 
62% 
64% 
Total number of training days 
n/a 
4.93m 
5.56m 
5.40m 
n/a: question not asked or not asked in a comparable manner in previous years’ surveys 
 
 

 
 
222 
Appendix C: Industry coding 
During the sampling and weighting process, each establishment was allocated to one of 15 
sectors, based on their Standard Industrial Classification (SIC). SIC 2007 was used to classify 
establishments using the following method. Using the four-digit Standard Industrial 
Classification (SIC) supplied for each record from the Experian database, a description of 
business activity was read out to each respondent. If they agreed that this description matched 
the main activity undertaken at the establishment, then the SIC on Experian’s database was 
assumed to be correct. If however, the respondent felt the description did not correspond to 
their main business activity at the site (which about a quarter reported), a verbatim response 
was collected to find out what they do (see question A7 on the survey; questionnaire shown 
in the accompanying Technical Report). At the analysis stage this was coded to a four-digit 
SIC which was then used as the basis for allocation into sector. For the purposes of reporting, 
Mining & Quarrying were merged with Manufacturing to create ‘Manufacturing’, while 
Transport and storage and Information and Communications were merged to create 
‘Transport, storage and communications’. The final sector, which in previous iterations of the 
survey has been classified as ‘Other Community, Social and Personal Services’, has been 
renamed to ‘Arts, Entertainment, Recreation and Other Service activities’, in line with ONS 
guidance. 
The table below shows the 15 sectors and their corresponding SIC 2007 definitions. 
Sector 
SIC 2007 
1. Agriculture 
A - Agriculture, forestry and fishing (01-03) 
Including farming, hunting and other related service 
activities, 
forestry 
and 
logging, 
fishing 
and 
aquaculture 
2. Mining & Quarrying 
B - Mining and quarrying (05-09) 
Including mining of coal, metals, sand/stone/clay, 
and extraction of crude petroleum and natural gas  
3. Manufacturing 
C - Manufacturing (10-33) 

 
 
223 
Sector 
SIC 2007 
Including manufacture of food and beverage, 
textiles, chemicals and chemical products, basic 
pharmaceutical products, other mineral products, 
manufacture of metals and metal products, 
machinery, computer and electronic products and 
equipment, motor vehicles and other transport 
equipment, furniture, and repair and installation of 
machinery and equipment 
4. Electricity, Gas and Water  
D - Electricity, gas, steam and air conditioning 
supply (35) 
  
E - Water supply, sewerage, waste management 
and remediation activities (36-39)  
Including electric power generation, transmission 
and distribution, manufacture of gas and distribution 
of gaseous fuels, steam and air conditioning supply, 
water collection, treatment and supply, sewerage 
and waste collection, treatment and disposal 
activities and materials recovery 
5. Construction 
F - Construction (41-43) 
Including the construction of buildings, civil 
engineering (constructing roads, railways and other 
utility projects), demolition, and specialised activities 
such as electrical installation, roofing and scaffold 
erection 
6. Wholesale and Retail 
G - Wholesale and retail trade; repair of motor 
vehicles and motor cycles (45-47) 
Including sale, maintenance and repair of motor 
vehicles, 
parts 
and 
accessories, 
non-vehicle 
wholesale (for example agriculture, food, household 
goods), and the retail trade of all products whether 
in stores, stalls, markets, mail order or online 
7. Transport and Storage 
H - Transportation and storage (49-53) 
Including land, water and air transport (passenger 
and freight), warehousing and support activities for 
transportation, postal and courier activities 
8. Hotels and Restaurants 
I - Accommodation and food service activities (55-
56) 

 
 
224 
Sector 
SIC 2007 
Including hotels, campsites, youth hostels, holiday 
centres, 
villages 
and 
other 
short 
stay 
accommodation, restaurants and takeaways, event 
catering and licensed clubs, pubs and bars 
9. Information and 
Communications 
J - Information and communication (58-63) 
Including publishing (books, journals, newspapers 
etc. and software/computer games), television, film 
and 
music 
production, 
broadcasting, 
telecommunications, computer programming and 
consultancy, information service activities (e.g. data 
processing and hosting) 
10. Financial Services 
K - Financial and insurance activities (64-66) 
Including banks and building societies, activities of 
holding companies, trusts, funds and similar 
financial 
entities, 
credit 
granting, 
pensions, 
insurance and reinsurance 
 
 
11. Business Services 
L - Real estate activities (68) 
M - Professional, scientific and technical activities 
(69-75) 
N - Administrative and support service activities (77-
82) 
Including the buying, selling and renting of real 
estate, legal activities, accounting, bookkeeping and 
auditing, management consultancy, architectural 
and engineering activities, scientific research and 
development, advertising and market research, 
specialist design, photographic activities, translation 
and interpretation, veterinary activities, renting and 
leasing of tangible goods (motors, household, 
machinery), employment agencies, travel agencies 
and tour operations, security and investigation 
activities, office administration and business support 
12. Public Administration 
O - Public administration and defence; compulsory 
social security (84) 

 
 
225 
Sector 
SIC 2007 
Including administration of the State and economic 
and social policy of the community, provision of 
services to the community as a whole such as 
defence activities, foreign affairs, justice and judicial 
activities, fire service and compulsory social security 
activities 
13. Education 
P - Education (85) 
Including pre-primary, primary, secondary and 
higher education, other education (such as sports, 
driving schools, cultural education), educational 
support activities 
14. Health and Social Work 
Q - Human health and social work activities (86-88) 
Including Hospitals, medical and dental practices, 
residential care, social work activities 
15. 
Arts, 
Entertainment, 
Recreation and Other Service 
activities 
R - Arts, entertainment and recreation (90-93) 
S - Other service activities (94-96) 
Including performing arts, libraries and museums, 
gambling and betting, sports facilities, amusement 
and recreation activities, activities of membership 
organisations (religious, political, trade union, 
professional), 
personal 
services 
(hairdressing, 
beauty, textile cleaning, well-being activities, funeral 
activities)  
NOT COVERED IN SURVEY 
T - Activities of households as employers; 
undifferentiated goods and services producing 
activities of households for own use (97-98) 
U - Activities of extraterritorial organisations and 
bodies (99) 
Including households as employers of domestic 
personnel, private households producing goods for 
own use 
 
 

 
 
226 
Appendix D: Occupational Coding 
The occupational data collected in the survey were collected both pre-coded and verbatim. 
The former included the occupational breakdown of employment (question D5 to D8) where 
respondents were asked how many of their workforce fell into each of the nine major (one-
digit) Standard Occupation Classification (SOC) 2010 categories (Managers, Directors and 
Senior Officials through to Elementary occupations). However, on vacancy measures (for 
example the occupations in which vacancies exist – question C2) this information was 
collected verbatim. This was then coded at the analysis stage, where possible to a four-digit 
level SOC, if not three, two- or one-digit level. 
Examples of what might fall into each occupational band are as follows: 
Occupational 
group 
Primary sectors 
(Agriculture, 
manufacturing, 
construction etc.) 
Service sectors (retail, 
business, finance, 
transport etc.) 
Public sector (Public 
Admin, Health, 
Education etc.) 
Managers, 
Directors and 
Senior Officials 
Site managers, 
Department Heads, Shift 
Managers (not 
supervisors) 
Directors, Managers / 
Branch/site managers, 
shift managers (not 
supervisors 
Police inspectors and 
above, department heads, 
Head teachers, Senior 
Officials 
Professionals 
Professional engineers, 
software and IT 
professionals, 
accountants, chemists, 
scientific researchers 
Solicitors, lawyers, 
accountants, IT 
professionals, economists, 
architects, actuaries 
Doctors, nurses, midwives, 
teachers, social workers, 
librarians  
Associate 
Professionals 
Science and engineering 
technicians, lab 
technicians, IT 
technicians, accounting 
technicians 
Insurance underwriters, 
finance/investment 
analysts and advisers, 
writers/journalists, buyers, 
estate agents 
Junior police/fire/prison 
officers, therapists, 
paramedics, community 
workers, H&S officers, 
housing officers 
Administrative 
staff 
Secretaries, receptionists, 
PAs, telephonists, 
bookkeepers 
Secretaries, receptionists, 
PAs, communication 
operators, market research 
interviewers, clerks 
Secretaries, receptionists, 
PAs, local government 
officers and assistants, 
office assistants, library 
and database assistants 
Skilled Trades 
Farmers, electricians, 
machine setters / tool 
makers, carpenters, 
plasterers 
Motor mechanics, printers, 
TV engineers, butchers 
Chefs 
Caring, Leisure 
and Other Service 
Occupations 
Care assistants, nursery 
nurses 
Travel agents, travel 
assistants, hairdressers, 
housekeepers 
Care assistants, home 
carers, nursery nurses, 
ambulance staff, pest 
control, dental nurses, 
caretakers 
Sales and 
customer service 
occupations 
Customer facing roles: 
sales staff and call centre 
agents 
Sales assistants and retail 
cashiers, telesales, call 
centre agents 
Customer care operations 
Process, plant 
and machine 
operatives  
Routine operatives, 
drivers, machine 
operators, sorters and 
assemblers 
HGV, van, fork-lift, bus and 
taxi drivers 
Drivers, vehicle inspectors  
Elementary 
occupations 
Labourers, packers, goods 
handling and storage staff 
Bar staff, shelf fillers, 
catering assistants, 
waiters/waitresses, 
cleaners 
Labourers, cleaners, road 
sweepers, traffic wardens, 
security guards 
 

 
 
227 
Appendix E: Sampling Error and Statistical 
Confidence 
Sampling errors for the survey results overall and for key sub-groups are presented in the 
table below. Figures have been based on a survey result of 50 per cent (the ‘worst’ case in 
terms of statistical reliability), and have used a 95 per cent confidence level. Where the table 
indicates that a survey result based on all respondents has a sampling error of +/- 0.32 per 
cent, this should be interpreted as follows: ‘for a question asked of all respondents where the 
survey result is 50 per cent, we are 95 per cent confident that the true figure lies within the 
range 49.68 per cent to 50.32 per cent’.  
As a note, the calculation of sampling error has taken into account the finite population 
correction factor to account for cases where we are measuring a significant portion of the 
population universe (i.e. even if two sample sizes are the same, the sampling error will be 
lower if in one case a far higher proportion of the population was covered). 
These confidence intervals are based on the assumption of a normal distribution of responses. 
Sampling error (at the confidence 95 per cent level) associated with findings of 50 per 
cent 
 
Population 
Number of 
interviews 
(Maximum) 
Sampling 
Error 
Overall  
1,766,838 
91,210 
+/-0.32 
By country 
 
 
 
England  
1,488,171 
75,129 
+/-0.36 
Northern Ireland  
54,518 
4,019 
+/-1.55 
Scotland  
142,947 
6,035 
+/-1.26 
Wales  
81,202 
6,027 
+/-1.26 
By size of establishment 
 
 
 
2-4  
907,944 
20,527 
+/-0.68 
5-24 
668,618 
49,584 
+/-0.44 
25-49  
101,082 
11,657 
+/-0.91 
50-99 
50,432 
5,836 
+/-1.28 
100-249 
26,900 
2,689 
+/-1.89 
250+  
11,812 
917 
+/-3.24 
 
 
 
 
By sector 
 
 
 

 
 
228 
 
Population 
Number of 
interviews 
(Maximum) 
Sampling 
Error 
Agriculture 
97,359 
3,632 
+/-1.63 
Manufacturing 
100,262 
6,998 
+/-1.17 
Electricity, Gas and Water 
10,151 
1,041 
+/-3.04 
Construction 
158,790 
7,474 
+/-1.13 
Wholesale and Retail 
371,231 
16,126 
+/-0.77 
Hotels & Restaurants 
159,893 
8,920 
+/-1.04 
Transport and 
Communications 
128,789 
8,936 
+/-1.04 
Financial Services 
38,259 
2,549 
+/-1.94 
Business Services 
363,790 
13143 
+/-0.85 
Public Administration 
19,814 
947 
+/-3.18 
Education 
58,124 
5,515 
+/-1.32 
Health and Social Work 
132,505 
8,556 
+/-1.06 
Arts and Other Services 
127,871 
7,373 
+/-1.14 
 
 
 
 

 
 
229 
Appendix F:  Weighted base sizes  
Number of employers… 
UK 
England 
NI 
Scotland 
Wales 
Overall  
1,766,868 1,488,201 
54,518 
142,947 
81,202 
Chapter 2: Employers’ experience of skill shortages 
With a vacancy 
341,549 
293,439 
7,256 
27,079 
13,775 
With a hard-to-fill vacancy 
134,861 
115,653 
2,426 
11,004 
5,777 
With a skill-shortage vacancy 
100,223 
85,525 
1,803 
8,284 
4,612 
Chapter 3: Retention difficulties 
With any jobs in which have 
difficulties retaining staff 
149,680 
124,013 
3,878 
14,442 
7,347 
Chapter 4: The Internal Skills Challenge 
With at least one skills gap 
246,330 
210,820 
5,098 
19,315 
11,097 
Chapter 5: Under-utilisation 
With at least one employee with 
more qualifications and skills 
than job role requires 
529,470 
440,463 
15,499 
46,305 
27,203 
Chapter 6: Employer Investment in Training and Skills 
Providing any training 
1,163,955 976,742 
33,769 
101,981 
51,463 
On-the-job training only 
305,494 
258,210 
7,962 
28,001 
11,321 
Off-the-job training only 
233,759 
195,488 
7,111 
19,761 
11,400 
Both on- and off-the-job 
training 
624,702 
523,044 
18,697 
54,219 
28,742 
Providing no training for staff 
602,913 
511,459 
20,749 
40,966 
29,739 
Providing training towards 
nationally recognised 
qualifications 
546,682 
459,058 
14,687 
45,326 
27,611 
Chapter 7: HPW and PMS 
14 out of 21 HPW practices 
215,392 
184,466 
4,961 
16,665 
9,299 
Very high / high / medium PMS 
1,064,335 909,047 
29,486 
80,570 
45,232 
Very high / high PMS 
689,724 
591,534 
17,589 
53,028 
27,573 
Very low / low PMS 
254,443 
209,738 
9,754 
20,576 
14,374 
Base: All establishments 
 
 
 

 
 
230 
Appendix G:  Unweighted base sizes  
 
 
Establishments with…  
 
 
Overall 
Vacancies Hard-to-fill 
vacancies 
Skill-
shortage 
vacancies 
Skills 
gaps 
Estab’s that 
train 
UK 
91,210 
24,306 
9,223 
6,831 
18,265 
69,541 
Country 
 
England 
75,129 
20,697 
7,857 
5,801 
15,409 
57,422 
Northern Ireland 
4,019 
713 
228 
172 
520 
2,869 
Scotland  
6,035 
1,619 
612 
453 
1,236 
4,894 
Wales 
6,027 
1,277 
526 
405 
1,100 
4,356 
Size 
  
2-4 
20,527 
1,869 
869 
645 
1,240 
10,317 
5-24 
49,584 
11,864 
4,733 
3,517 
10,084 
39,461 
25-99 
17,493 
8,151 
2,820 
2,044 
5,478 
16,289 
100-249 
2,689 
1,759 
585 
446 
1,064 
2,584 
250+ 
917 
663 
216 
179 
399 
890 
Sector 
 
Agriculture 
3,632 
207 
98 
67 
292 
1,871 
Mining and Quarrying 
171 
23 
7 
4 
23 
140 
Manufacturing 
6,827 
1,582 
735 
618 
1,674 
4,915 
Electricity, Gas and Water 
1,041 
221 
86 
76 
163 
796 
Construction 
7,474 
1,173 
552 
461 
1,132 
5,044 
Wholesale and Retail 
16,126 
3,753 
1,154 
850 
3,669 
11,470 
Hotels and Restaurants 
8,920 
3,420 
1,288 
844 
2,610 
6,849 
Transport and Communications 
8,936 
1,993 
887 
711 
1,345 
5,981 
Financial Services 
2,549 
472 
133 
106 
435 
1,920 
Business Services 
13,143 
3,859 
1,534 
1,285 
2,601 
10,623 
Public Administration  
947 
276 
78 
44 
200 
851 
Education 
5,515 
2,073 
666 
486 
1,211 
5,300 
Health and Social Work 
8,556 
3,152 
1,242 
793 
1,663 
7,941 
Arts and Other Services 
7,373 
2,102 
763 
486 
1,247 
5,840 
Occupation 
 
Managers 
87,590 
23,762 
8,961 
6,655 
17,829 
67,471 
Professionals 
17,483 
6,830 
2,599 
2,050 
4,112 
15,752 
Associate Professionals 
13,309 
5,248 
1,896 
1,566 
3,597 
11,709 
Administrative/ Clerical staff 
53,622 
16,277 
6,196 
4,743 
11,874 
43,913 
Skilled Trades occupations 
24,025 
7,677 
3,396 
2,651 
6,303 
19,318 
Caring, Leisure and Other 
Services 
15,310 
6,123 
2,380 
1,560 
3,348 
14,252 
Sales and Customer Services 
25,940 
8,343 
2,797 
2,189 
7,002 
20,725 
Machine Operatives 
14,105 
4,095 
1,793 
1,434 
3,690 
11,282 
Elementary staff 
31,970 
10,938 
4,186 
3,005 
8,409 
26,499 
 
 

 
 
231 
Appendix H: A Note on Proficiency and Skills Gaps 
To ascertain the number of staff with skills gaps, respondents were asked, for each major 
(one-digit SOC 2010) occupation where they employed staff, how many of those they 
employed were fully proficient. If respondents asked for clarification, then a proficient 
employee was described as ‘someone who is able to do their job to the required level’. 
‘Proficient employee’, however, is clearly a subjective and relative term to the extent that: 
• 
different managers in an organisation may have different views on whether an individual 
member of staff is able to do the job to the required level. Indeed, they may have different 
views on what the required level is that the organisation is looking for within an 
occupational category. 
• 
an employee could be regarded as fully proficient but if the requirements of the job change 
(for example, some new machinery or technology is introduced) then they could be 
regarded as not being able to do their job to the required level, despite the fact that their 
skills were unchanged. 
• 
the same is true if a person were to be promoted to a more demanding position – the 
company might go from having no skills gaps to saying that this newly promoted member 
of staff was not fully proficient in the new job, despite having the same proficiency as 
before. 
• 
different companies may be more demanding and ‘critical’ of their staff than others: an 
individual considered fully proficient by one company might be seen as having a skills gap 
if performing the same role to the same standard in another company. 
A final point to note is that the survey categorises all staff as either fully proficient or not: it 
takes no account of the range that can clearly exist between those who are very nearly 
proficient and those who significantly lack the skills that employers require. While from a policy 
perspective, therefore, there is clearly interest in raising the skill levels of the workforce, survey 
data can only identify changes year on year in the proportion of staff reported as fully proficient, 
not cases where skills levels have been raised but where staff still remain below full 
proficiency. 
 
 

 
 
232 
Appendix I: Technical Appendix 
A full Technical Report accompanies this document and can be downloaded from the UKCES 
website or obtained by contacting UKCES directly. This appendix provides brief details on the 
key areas of sampling, fieldwork and analysis.  
The survey comprised two facets:  
• Wave 1: the main skills survey, covering business strategy, retention, recruitment, skills 
gaps and high performance working; 
• Wave 2: covering the financial investment establishments make in training their staff. 
Employer Skills Survey: Wave 1 
Sampling 
The sample design was based on a three-dimensional grid, crossing size band (defined by 
employment) by 15 broad SIC-based sectors (see Appendix C for definitions) within region (9 
English GOR regions, Northern Ireland, Scotland and Wales). Quotas were set on this basis, 
proportioned to give a robust base size in each subgroup of the overall sample. To ensure 
coverage at a local level, quota targets were also set for each Local Authority (LA) grouped 
according to the Local Education Authority (LEA) definitions41 in proportion to the population 
that each LEA accounted for in each GOR. 
91,210 interviews were carried out in total: 
Country 
Number of interviews 
England  
75,129  
Northern Ireland  
4,019 
Scotland  
6,035 
Wales  
6,027  
 
 
 
                                                 
41 Targets were set LA grouped to 151 LEAs (the Cornwall and Isles of Scilly LEAs were combined due to the limited business 
population in Isles of Scilly). 

 
 
233 
Fieldwork 
A total of 91,210 interviews were conducted by telephone using computer-assisted telephone 
interviewing (CATI) technology. Fieldwork across the regions was undertaken by three 
research agencies, as follows: 
Agency 
Regions 
BMG 
East of England 
 
North West 
 
South West 
 
Northern Ireland 
IFF Research 
London 
 
South East 
 
Yorkshire and the Humber 
 
Wales 
 
Large multisites* 
Ipsos MORI 
East Midlands 
 
North East 
 
West Midlands 
 
Scotland 
Interviews were conducted with the most senior person at the site with responsibility for 
recruitment, human resources and workplace skills. 
Fieldwork took place from March to July 2015. 
 
 

 
 
234 
Response rate 
The overall response rate for the survey was 42 per cent, calculated as a proportion of all 
completed contacts. A detailed breakdown of survey outcomes in shown below: 
Outcome 
Number of 
contacts 
% of all 
sample 
% of 
complete 
contacts 
Total sample 
742,599 
100 
 
Ineligible establishments (e.g. just 1 
working proprietor at site) 
44,640 
6 
 
‘Live’ / not available during fieldwork / 
Out of quota 
391,591 
53 
 
Unobtainable / invalid numbers 
90,095 
12 
 
Total complete contacts 
216,273 
29 
100 
Achieved interviews 
91,210 
12 
42 
Respondent refusal 
116,678 
16 
54 
Quits during interview 
8,386 
1 
4 
Questionnaire design 
Following a review of the 2011 and 2013 ESS questionnaires by UKCES and their partners, 
and given the need for time series comparisons, the questionnaire used for ESS 2015 did not 
require substantial redevelopment. Nevertheless, an extensive questionnaire review took 
place at the outset of the research process with a particular emphasis on: 
1. Developing the list of skills used in the survey to better understand the skills lacking in the 
workforce and among applicants; 
2. Considering the introduction of an online resource to assist employers in accurately 
categorising their workforce into the nine occupational classifications used in the survey; 
3. Reviewing the core under-utilisation measure, and inclusion of a set of questions to 
understand the causes and implications of skills under-utilisation; 
4. Developing new training questions to capture provision of online, e-learning and other self-
learning training, and how use of these training methods has changed over time. 
Another key change from the 2013 survey was the inclusion of retention questions, in place of 
those relating to upskilling. The 2011 survey included a question relating to retention, and this 
module of questions was originally intended to rotate in alternate surveys with the upskilling 
questions which appeared in the 2013 survey. 

 
 
235 
A full list of the changes between the questionnaires used in the 2013 and 2015 Employer 
Skills Surveys, along with the reasons for these alterations, can be found in Appendix C in the 
full Technical Report42. 
The rationale for the changes to the skill descriptors is detailed below. 
Changes to Skills descriptors 
During the Autumn of 2014 UKCES commissioned the National Institute of Economic and 
Social Research (NIESR) to undertake a review of the skill descriptors used in the 2011 and 
2013 Employer Skills Surveys. A total of 13 skill descriptors were used in 2011 and 2013 
concerning the skills lacking among applicants (question C13). 
The NIESR review was undertaken amid concern that the existing information collected has 
not been sufficiently detailed to allow for the formulation of specific, actionable responses to 
address the skill issues identified in the survey. Another reason was that the survey could 
improve its coverage of the higher-level skills that underpin innovative business practices. In 
addition, the review sought to assess whether there were opportunities to harmonise the skill 
descriptors used with those of other international studies. 
Some key international surveys (e.g. SES43, PIAAC44, and CEEDEFOP45) were taken into 
consideration during the review, to provide useful pointers as to how the list of descriptors in 
ESS might usefully be expanded. Taking the strengths of these surveys into consideration 
(and the perceived weaknesses of the ESS skills 2011 and 2013 skill descriptors), the NIESR 
review recommended transitioning to an expanded list of 21 skill descriptors split across two 
broad themes: 
• skills relating to using information, equipment and materials; and 
• skills relating to dealing with people. 
 
 
                                                 
42 https://www.gov.uk/government/publications/ukces-employer-skills-survey-2015-uk-results 
43 Skills and Employment Surveys (SES) 
44 OECD’s Programme for the International Assessment of Adult Competencies (PIAAC) 
45 CEDEFOP Employer Survey on Skill Needs 

 
 
236 
Following cognitive testing and piloting46 to develop the wording and phrasing of the skills so 
that they would be understood by employers, a list of 24 items47 was used for the main survey 
(see the table below). 
Using information, equipment and 
materials 
 
Dealing with people 
• Computer literacy / basic IT skills 
 
• Instructing, teaching or training 
people 
• Advanced or specialist IT skills 
 
• Sales skills 
• Solving complex problems requiring a 
solution specific to the situation 
 
• Customer handling skills 
• Reading and understanding 
instructions, guidelines, manuals or 
reports 
 
• Persuading or influencing others 
• Writing instructions, guidelines, manuals 
or reports 
 
• Team working 
• Basic numerical skills and 
understanding 
 
• Managing or motivating other staff 
• More complex numerical or statistical 
skills and understanding 
 
• Ability to manage own time and 
prioritise own tasks 
• Communicating in a foreign language 
 
• Setting objectives for others and 
planning human, financial and 
other resources 
• Manual dexterity – for example, to 
mend, repair, assemble, construct or 
adjust things 
 
• Managing their own feelings, or 
handling the feelings of others 
• Adapting to new equipment or materials  
• Making speeches or presentations 
• Knowledge of products and services 
offered by your organisation and 
organisations like yours 
 
 
• Knowledge of how your organisation 
works 
 
 
• Specialist skills or knowledge needed to 
perform the role 
 
 
                                                 
46 Twenty cognitive interviews and 100 pilot interviews were undertaken. Further details of the cognitive testing and piloting of 
the survey are provided later in the report. 
47 There were 26 pre-coded options for workplaces located in Wales, as two items were added on Welsh language skills under 
the ‘using information, equipment and materials’ list. 

 
 
237 
It was agreed to treat ESS 2015 as a transitional year for the implementation of this expanded 
list of skill descriptors. That is to say that once an employer’s answers identified them as 
having at least one skill-shortage vacancy and/or at least one internal skills gap they would be 
randomly assigned to be asked either the ‘old’ list of skill descriptors used in 2013 or the ‘new’ 
list of skill descriptors. This approach was taken in order to allow for time series analyses 
against 2013, whilst allowing for a full transition to the new list of skill descriptors in the next 
iteration of the survey.  
Weighting / Grossing up 
Data for the survey was weighted and grossed up to population estimates of establishments 
and to the population of employees, as derived from the 2014 Inter-Departmental Business 
Register (IDBR). 
The grossing-up procedure on which this report has been based was undertaken at a regional 
level; within each region grossing up took place on a broad 15 sector and seven size band 
interlocking grid (i.e. 105 cells for each geographic region). In instances where no interviews 
had been completed in a cell but the IDBR indicated establishments existed, and in instances 
where a low number of interviews were conducted in relation to the population of that cell, 
cells were merged primarily within size band (i.e. across industries) but where necessary 
across size band as well. 
Employer Skills Survey: Investment in Training follow-up 
A separate Investment in Training study was conducted by IFF Research to provide detailed 
estimates of employer expenditure on training. The approach replicated that of previous Cost 
of Training studies in England and Northern Ireland. 
Sampling 
At the end of the UK ESS Wave 1 questionnaire those respondents who had arranged or 
funded training for their staff in the previous 12 months were asked if they would be willing to 
take part in a follow up study on training expenditure. Those agreeing to participate formed 
the sample for this follow-up survey. 
Quotas were set on the basis of training type by size within region. Due to limited sample a 
census approach was taken in the devolved administrations. 
 
 

 
 
238 
Fieldwork 
Employers who had indicated agreement to take part were called by an IFF interviewer to 
confirm participation and contact details. They were then sent a datasheet via email or fax 
containing the questions that were to be asked in the full interview (a copy of which can be 
seen below). Sending this datasheet in advance allowed the respondent time to collect the 
relevant information and increase the accuracy of responses. A few days after sending, an 
interviewer called back to conduct the full interview. 
In total, information on training expenditure was collected from 13,197 establishments, though 
583 were rejected because of incompleteness (a large number of ‘don’t know’); hence analysis 
is based on data from 12,614 establishments. 
Fieldwork was undertaken by IFF Research from 1st May to 26th August 2015. 
Weighting/grossing up 
In order to weight the Investment in Training study, population figures were calculated from 
weighted UK ESS Wave 1 data which had in turn been weighted using the IDBR figures used 
for the main survey analysis. Data was weighted on the basis of interlocking grids on size by 
sector by the type of training they carried out, with a regional rim weight. 
Data modelling 
In order to weight the Investment in Training study, population figures were calculated using 
the core ESS 2015 survey data (which had in turn been weighted using the IDBR figures used 
for the main survey analysis). Data were weighted on the basis of interlocking grids on seven 
size bands by 14 SIC sectors (as in the core survey, but with Mining and Quarrying merged 
with Manufacturing), by the type of training they carried out (on-the-job only, off-the-job only, 
or both).  
A regional RIM weight was then applied using targets based on the proportion training in the 
English GOR regions, Northern Ireland, Scotland and Wales. An additional step was also 
undertaken in 2015: an adjustment was applied to each weight to ensure that the profile of 
size band within country was correct. This was in order to ensure establishment size was 
accurately represented at a country as well as a UK level, increasing the accuracy of the spend 
figure within countries48. 
                                                 
48 A technical paper with a more detailed description of the Investment in Training weighting approach is available on the 
UKCES website. 

 
 
239 
Only establishment-based weights were created for the Investment in Training survey, as all 
data in the survey are establishment orientated. 
Questionnaire design 
Given the need to closely replicate the Investment in Training studies undertaken in the UK in 
2011 and 2013, and previously in England in 2005, 2007 and 2009, and also in Northern 
Ireland in 2008, the datasheet was largely unchanged compared to that used for these 
previous surveys.  
The only change made to the telephone questionnaire was the addition of one new question, 
Q25, to estimate the amount spent by establishments on online training or e-learning, including 
the costs incurred purchasing or developing online or e-learning. This question was asked of 
those who identified in the core ESS 2015 interview that they had arranged or funded training 
for staff in the last 12 months which involved online training or e-learning. Q25 was not added 
to the datasheet due to the more straightforward nature of the information required, and to 
avoid alteration of the components of the investment in training survey. 
 
 

 
 
240 
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Winters, G. (2014) Understanding Skills and Performance Challenges in the Logistics Sector. 
UKCES Evidence report 88. UK Commission for Employment and Skills, Wath-upon-Dearne. 
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Work. The Work Foundation, London. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This document is available at 
www.gov.uk/ukces 
ISBN 978-1-908418-72-2 
© UKCES 1st Ed/01/16 
 
Evidence Reports present detailed findings of the 
research produced by the UK Commission for 
Employment and Skills. The reports contribute to the 
accumulation of knowledge and intelligence on skills 
and employment issues through the review of existing 
evidence or through primary research.  
 
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