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Firms 'being shackled' by skills shortages

Wednesday 15 December 2010 by Gina Le Prevost

A shortage of talent is holding back the growth of many businesses, a new report has revealed, which may be of interest to those in trust jobs.

According to the study, conducted by the Institute of Directors (IoD), 60 per cent of companies are not operating to their full potential due to a lack of skills among both candidates and existing employees.

It also found 31 per cent of bosses are having difficulty filling vacancies, with nearly three-quarters of these saying this was because applicants did not have the required qualifications or experience for the job.

Management expertise and technical knowledge are among the areas most lacking, the IoD stated.

Director-general of the group Miles Templeman said it is "disturbing" that growth in the private sector was being stalled by these shortages, going on to urge the government to do more to encourage organisations to invest in training.

However, a recent report by the Recruitment and Employment Confederation and KPMG revealed there had been an increase in demand for staff in the past month, with more candidates becoming available to fill positions.