New report outlines the skills challenges and opportunities facing construction SMEs
Construction SMEs look for a ‘good work ethic’ when recruiting new employees, according to the latest Skills Horizon Barometer from the Department for Education’s Skills for Life campaign.
The research found the top five characteristics and transferable skills that construction SMEs are looking for in candidates:
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According to the findings, just over half (51%) of employers are looking to offer opportunities to those early on in their career, but crucially candidates who have some experience.
While one quarter (25%) of businesses still look to hire those from traditional academic routes, such as university, nearly a third (32%) of firms would hire candidates directly from school or college.
In addition, 28% of employers would look to hire candidates with experience from a different field.
Specialist skills
When asked about specialist skills, respondents said artificial intelligence (AI) is high on the agenda. Nearly a quarter (23%) are poised to train their staff in AI-related skills or recruit those with knowledge in the field.
The research found one in five (19%) are regularly using AI in day-to-day operations, with a further 20% using it occasionally. One in five (19%) also say experience in AI is an asset on a CV for potential new recruits.
The research also shows that 83% of SMEs are anticipating skills challenges across their business in the year ahead.
According to the report, SMEs are more likely to have noticed a skills gap at entry level than in specialist areas (34% versus 31%).
However, concerns about retaining staff have decreased since last year. Just under a quarter (23%) of SME employers cited it as a worry this year, compared to just over a quarter (28%) in 2024.
Addressing skills needs
Commenting on the findings, Jacqui Smith, minister for skills, apprenticeships and higher education, said: “Meeting the skills needs of the next decade is central to delivering the government's ‘Plan for Change’.
“Employers are key partners in our mission, helping address skills needs across sectors like AI, green tech, and construction.
"Using Skills Bootcamps, apprenticeships, HTQs, and T Levels, we’re supporting businesses and individuals to upskill, and establishing Skills England to find and fill skills gaps and support sustained economic growth.
“The Skills Horizon report highlights the progress we’re making together – giving people the skills they need to seize opportunity and drive growth.”
Employer perspective
The report features commentary from construction firm TG Sowerby Developments, highlighting some of the recruitment challenges and opportunities facing SMEs across the industry.
Discussing TG Sowerby Developments’ approach to recruitment, director James Bonsall said the leadership team looks for young talent with some experience and a perspective that aligns with the company’s values.
“Hiring apprentices is great because we can source talent at the start of their career, we can mould them, teaching our ways of working and our level of standard,” he added.
“We find many apprentices learn these skills and then stay on for many years, so it’s a great time investment for us.
“I’d encourage other businesses who are facing skills gaps to look into the opportunities available to them via technical education. There are many options for recruiting and upskilling and we have found it to be a really valuable asset.”
