Will closing the skills gap make us happier?  

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Skills gaps are making us unhappy at work. Can learning and development initiatives fix them? They’re a good place to start, writes Emma O’Dell 

The UK is at risk of becoming a ‘burnt-out nation’, with a poll revealing that 20% of workers needed to take time off due to poor mental health caused by high levels of stress at work. For many, most waking hours are spent at work, making job satisfaction a key factor in overall life satisfaction. In addition, studies show that workers who are happy are as much as 13% more productive than their colleagues.  

26% of the UK workforce is underqualified for their occupation, compared to an average of 18% in other countries  

But there’s an underlying issue. A report by UK government body shadow Skills England has revealed evidence of a disconnect between the skills demanded by employers and those possessed by individuals.  

This is known as a skills mismatch, which hinders our happiness, and in turn our productivity, at work. For individuals, not having the right skills results in reduced employability and lower job satisfaction, which is directly linked to a feeling of unhappiness at work. 

If this phenomenon remains unaddressed at an individual level, it’s highly likely that it will impact the entire UK workforce, creating an obstacle to the government’s overarching plans for economic growth in the UK.  

The impact of skills mismatches on individuals 

The UK has several skills mismatches, resulting in a significant level of underqualification compared to other countries. These mismatches are not limited to one skill level and can occur across the entire skills ecosystem.  

For example, the OECD Skills for Jobs database notes that as much as 26% of the UK workforce is underqualified for their occupation, compared to an average of 18% in other countries.  

At the same time, the UK is grappling with some individuals being over-skilled for their roles. Shadow Skills England’s report demonstrated that as many as one in four graduates are currently in medium and low-skilled employment, with few opportunities for progression, despite them being highly-skilled individuals.  

With these statistics in mind, it’s vital that business owners have the tools they need to identify and address skills mismatches from the offset. This will ultimately help to improve job satisfaction at an individual level and enhance economic growth throughout the UK.  

Bridging the gap through tailored L&D initiatives 

One way to reduce skills mismatches and boost job satisfaction is by giving employees the opportunity to improve their skills and knowledge through L&D initiatives such as apprenticeships. 

However, a survey revealed that 68% of employees feel that workplace training is a one-size-fits-all approach, which does not meet individual needs.  

A first step for employers is identifying the skills mismatches within their organisation. This means L&D initiatives will be tailored to their organisation’s needs and will contribute to addressing skills mismatches and increasing job satisfaction on an individual level.  

This approach cannot only be undertaken at a business level. If we’re to achieve changes across the workforce there must be collaboration across training, local business, and higher education stakeholders to identify recurring skills gaps that are causing bigger challenges.  

The role of the Growth and Skills Levy  

Many employers are also looking forward to seeing how the new Growth and Skills Levy will play out in 2025. It is hoped that through this new levy, organisations will be able to access a broader range of L&D initiatives outside of apprenticeships, and that Skills England will play a key role in defining exactly which options are available to employers.  

In November last year, an ‘initial engagement exercise’ took place, in which stakeholders across various sectors including construction, health and social care were consulted on non-apprenticeship training options available to them, and how the Growth and Skills Levy will increase their access to these.  

A total of eight sectors, from advanced manufacturing to life sciences, were identified as having ‘high-growth potential’, and these were laid out in the government’s Invest 2035 white paper.  

It’s hoped that this joined-up approach, bolstered by funding from the Growth and Skills Levy, will boost productivity by ensuring that employees can access exactly the right training opportunities.  

Having access to training programmes which are tailored to them will allow employees’ needs to be met, therefore boosting staff retention, job satisfaction and levels of happiness at work.  

Final thoughts  

A satisfied, productive workforce equipped with the right skills underpins the government’s ability to achieve its long-term goals of economic growth.  

By starting on an individual level, organisations can implement tailored L&D initiatives and reduce the skills mismatches which are contributing to unhappiness at work.  

L&D initiatives are by no means a complete solution to the UK’s skills challenges. However retraining and upskilling opportunities, as well as training opportunities for new entrants, can significantly boost output across key growth sectors – both those identified in the recent Invest 2035 white paper and beyond. 


Emma O’Dell is Skills and Capability Director at BPP 

Emma O’Dell

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