New data has revealed a growing talent crisis in British businesses that could derail UK economic ambitions in light of a growing tax burden.
The Greatest Leap report, commissioned by leading business advisory and accountancy firm Menzies, surveyed 500 UK CEOs, MDs, COOs and founders to understand the challenges they face as they attempt to scale. The findings paint a concerning picture of the ‘people problem’ in UK businesses – a leadership and workforce gap that could stifle the country’s economic ambitions.
Over half (55%) of business surveyed stated that people management was the single biggest challenge they are facing in the present economic environment – including hiring, retention and managing company culture.
And what’s more is that almost one in three UK business leaders (32%) report struggling to build a competent senior management team. And for those who do, the same percentile (32%) admit that their inability to confidently delegate decisions down the chain has been a major obstacle to growth. This reluctance to hand over control is keeping leaders bogged down in daily operations instead of focusing on strategic, long-term objectives.
And this ‘people problem’ is not just limited to the most senior levels. The report reveals that 98% of large businesses have faced wider workforce-related issues, and 55% of business leaders said people management – including hiring, retention and managing company culture – is the single biggest challenge they are facing.
“The ability to build a capable team is fundamental to scaling a business: the right people are often the deciding factor between success and stagnation,” said Ed Hussey, People Solutions Director at Menzies. “A failure to secure the right people, particularly at the senior level, creates a domino effect – leaders can’t focus on the bigger picture, and the business misses out on growth opportunities. And when firms struggle to scale, it impacts more than just their bottom line. It’s a major roadblock to achieving the kind of high-growth, innovation-driven economy the UK needs.”
To support business leaders in overcoming these challenges, Menzies has developed a comprehensive guide, ‘Are You Ready for The Greatest Leap: How to Accelerate Your Business Ambitions’. The guide provides strategic advice on how to navigate the complex transition from medium-sized to large enterprises, with a chapter focused on overcoming people-related obstacles. From developing leadership teams to implementing effective HR practices and creating a strong company culture, the guide offers actionable insights designed to help businesses thrive.