Research from Hays suggests four in ten (40 per cent) UK employers are facing critical skills gaps in mid-level professionals. This skills gap is becoming a significant barrier to growth as businesses struggle to secure the experienced professionals needed to turn their ambitions into action. As firms strive to boost productivity and deliver transformation, 27 per cent of employers also report shortages in leadership capability. More broadly, more than 85 per cent of employers experienced some form of skills shortage over the past year. Poor succession planning to replace seasoned colleagues is also a key issue.
The annual Hays Workforce Trends and Salary Report 2027 draws on insights from more than 11,200 professionals and employers including responses over 1,200 senior leaders and C-suite decision-makers.
The study reveals that some of the most acute skills gaps are among experienced professionals who can turn strategy into delivery, and these pressures are being felt across specialisms. Nearly half (47 per cent) of technology employers say AI, machine learning and data science capabilities are the hardest to hire, while 36 per cent of business support employers highlight commercial awareness and business judgement as the most difficult to secure.
In HR, 26 per cent of employers point to HR technology and systems capability as their greatest capability gap. In construction and property, skilled labour shortages are a key pressure on project delivery, while life sciences employers report scarce specialist clinical, manufacturing and technical expertise. These capabilities are increasingly critical as organisations look to deliver transformation and improve productivity.
Many organisations are also pursuing ambitious transformation and productivity agendas without significantly increasing headcount. While 39 per cent plan to increase hiring next year, almost half (48 per cent) plan to invest in AI and automation over the next 12 months to achieve their top organisational goal, compared with 24 per cent planning to increase permanent headcount.
“The findings show that for many organisations in the UK, the challenge is not about defining the strategy but having the right people in place to deliver it,” says Tom Way, Hays CEO for UK and Ireland. “We’re seeing growing pressure in the layer of experienced professionals who translate ambition into action, lead teams, manage projects and drive transformation. These are the people who keep businesses moving forward. When that capability is missing, growth can be impacted, productivity suffers and senior leaders find themselves focused on resolving issues rather than pursuing opportunities.”
When it comes to hiring, businesses identified attracting the right permanent talent as their biggest workforce challenge (35 per cent), followed by budget pressures versus market expectations (25 per cent).
Mr Way added: “The good news is that business ambition remains strong. Workforce readiness now needs to match intent.
“Many organisations are investing in transformation and emerging technologies, but our findings suggest workforce capability is becoming the barrier between what are very good plans, and actual, delivered impact.
“We are certainly not seeing a blanket freeze. But we have entered a super selective phase for UK business, as employers look for every new hire to make a meaningful impact.
“To close the gap, employers need to look beyond the external market alone. That means investing in developing their existing people, building clear succession pipelines before experienced colleagues step back, and taking a more specialist approach to finding the people with the skills to turn plans into delivery.”
