Skills For All: Ten Key Insights from Employers

The St Martin’s Group has today (4th June 2025) published a new report calling for inclusive, employer-led skills reform. The report, Skills for All: Ten Key Insights from Employers, reveals that when addressing a skills gap, more than half of employers surveyed said that, in the event of a skills gaps, they typically prioritise developing existing staff over hiring externally and that a national skills policy that supports all ages and all levels would best benefit their organisation.

Based on polling carried out by Ipsos and The St Martin’s Group (SMG), and gathering evidence from more than 800 employers from two surveys across England, the report also finds that less than 10% of those surveyed selected creating more university places as the one initiative that the UK government should prioritise to help support organisations like theirs – instead, indicating a stronger preference for greater focus on vocational and technical training.

After the Education Secretary stated the Government is ‘backing the next generation’ by providing more training opportunities and with the creation of Skills England marking a significant step in ongoing policy reform; this report offers a timely and practical roadmap to achieving that ambition. Grounded in employer experience, the findings highlight that skills policy must better reflect the realities of workforce development and actively support employers of all sizes to create sustainable and inclusive pathways to employment.

Additional findings from the both the Ipsos and SMG polling include:

Over two-thirds (69%) of those surveyed by Ipsos declared they would support a new Growth and Skills Levy.
A strong majority of those surveyed (62% Ipsos, 74% SMG) call for skills policy to be coordinated at both local and national levels. SMG believes this would allow flexibility and relevance across regions.
Most employers surveyed (53% Ipsos, 70% SMG) chose flexibility over the content and structure of apprenticeship programmes.
55% of SMG and 49% of Ipsos respondents report finding it fairly or very difficult to recruit for positions requiring higher level skills.
Only a third (33%) of SMG respondents find it easy to develop a young person’s soft skills compared with 58% who find it easy to develop their technical skills.

Brenda McLeish, Co-Chair of The St Martin’s Group and CEO of Learning Curve Group, said:

“This report reinforces what we hear daily from employers: the skills system must work for all. Whether it’s apprenticeships or short-term technical training, policy must reflect the full spectrum of employer needs and provide flexible, high-quality pathways that benefit learners and businesses alike.”

The report reveals employers’ clear preferences for a system that works with and not around their organisations. Employers particularly value flexible training programmes and call for policy that allows greater autonomy in programme content, provider selection and access to levy funds.

The report, therefore, sets out a series of recommendations to policymakers:

Back young people with work-ready skills: invest in pre-employment programmes that develop soft skills and improve job readiness, particularly for those facing barriers to work.
Make the system work for SMEs and large employers alike: design flexible, clear pathways, that meet the differing needs of small and large businesses.
Build an all-age, all-level skills system: ensure national policy supports lifelong learning, enabling people to upskill and reskill at every stage of their career.
Ensure the Growth and Skills Levy delivers real flexibility, enabling investment in a broader range of training programmes.
Enhance coordination between national strategy and local delivery, recognising the need for national consistency and enabling place-based approaches to skills development.

Jane Hadfield, Co-Chair of The St Martin’s Group and National Lead for Apprenticeships at NHS England, said:

“There is a significant opportunity here for policymakers to create a system that genuinely supports lifelong learning and opens doors for young people and adults across the country. That begins by listening to employers, who are ready and willing to invest in skills, if given the right tools.”