Scottish business leaders have revealed continued concerns about skills shortages, with 44% reporting that they do not currently have the right number of people in their workforce.
This is according to the latest Institute of Directors (IoD) Scotland State of the Nation Directors Survey, which also highlights that 43% of small and medium-sized enterprises (SMEs) are not confident in being able to recruit the right people for the vacancies they need to fill over the next 12 months – down 8% from the 2022 results.
This coincides with low levels of awareness of the Scottish Government’s Fair Work Principles Framework - a key workforce policy launched in 2016 aimed at driving security, opportunity and respect in the workforce.
The IoD found that 53% of respondents have not yet adopted the framework, while 48% were unaware of the policy.
Catherine McWilliam, Scottish director for the IoD, commented: “While the Fair Work Principles remain central to IoD’s vision for the Scottish workforce, today’s figures highlight there is more work to be done.
“We have always been at the forefront of tackling challenges facing directors, so our job now is to work hard with leaders and create an open dialogue with government to ensure they are relevant.”
Despite these challenges and wider economic pressures, the survey found Scottish directors showed a resilient ambition for growth.
The survey showed that 45% reckon their organisation is pursuing ‘steady’ growth, while 28% stated they are aiming for ‘fast’ growth.
The figures also noted a growth in the number of Scottish SMEs with 26 to 49 employees, with a 5% increase compared with the 2021 survey.
IoD Scotland will now use these findings to focus its efforts on seeking a collaborative relationship with the incoming Scottish Government, particularly to ensure directors are supported by access to a broad skilled workforce and the Fair Work Principles are made more accessible for businesses.
Elsewhere, the research found that businesses are on board with sustainability and environmental issues – 87% have either fully or partly embedded 'ESG' considerations into their business strategy, operations and products.
Directors also know the government’s plans on net zero - with 97% fully aware of Scottish Government’s targets - although 50% are keen for more support.
The survey also highlighted strong support behind the ‘fairness’ of Scotland’s personal and business taxes – there was a 45% backing the fairness of personal tax, while a majority (55%) support current business rates.
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