Press Release
SKILLS SHORTAGES WORSENING IN FINANCIAL SERVICES
9 May, 2008
The Chartered Insurance Institute's (CII) second annual skills survey reveals a worsening skills shortage in the financial services sector. Three quarters of employers surveyed reported shortages of technical skills which represents a 5% increase on 2007.
The issue has become so critical that it is now on the agenda in four out of five boardrooms which represents a huge increase of 20% on 2007.
Over half the employers (57%) accused the education system of failing to meet the needs of the industry with only 3% describing basic levels of education as "more than adequate". In addition employers felt that nearly two thirds (61%) of graduates struggled with even the basic skills like grammar and numeracy.
These findings coincide with an increase of 14% to 73% of employers who believe that employees will need higher qualifications in the future.
In response to the findings CII President Lord Hunt said, "The results of this survey provide a wake up call, if indeed one was needed, that we all need to play an active part in raising skill levels. The increase in those reporting skills gaps is a particular worry. Employers, individuals and institutions like the CII, the Financial Services Skills Council and the Government need to continue to work together to ensure that the industry's needs are being met.
"In this period of economic instability it is vital that we do not take our eye off the skills issue, tempting though that may be. Cuts to training budgets in order to make a quick saving will in the end prove to be a false economy.
"The industry needs to continue to embrace the vision for UK skill levels as set out by Lord Leitch and contribute to meeting the challenging, targets he set. We must continue to work at attracting the highest calibre of individual into our sector. The CII's Talent Initiative is a good example of a scheme that looks to address the problem but we must not neglect those already working in the industry. As Leitch points out, much of the future workforce is already in place and should be encouraged to develop further. The CII's Broker Academy is designed to help in this regard.
"The UK financial services industry is world renowned for its commitment to improving the skill levels of its staff. Yet we cannot be complacent and must continue to commit time and resources to training and development if we are to remain competitive in the face of intense global competition."
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