Three in five (60%) North West businesses have recruited early careers talent in the past year, according to new research from Lloyds, while firms have called for better access to suitable candidates to help them invest.

The latest Lloyds Business Barometer has found that of those who recruited last year, 95% plan to continue investing in talent in the year ahead, with only London (96%) and the South East (97%) recording higher figures in the UK.

Which factors would increase employer confidence to invest in early careers talent?

When asked what factors would most increase their confidence to invest specifically in early careers talent, employers highlighted access to people and information.

A third (33%) identified better access to suitable candidates as the primary catalyst, while more than a quarter (28%) cited better information on the support that’s available.

Nearly a quarter also reported that finance to smooth their cashflow until training pays back (24%), simpler apprenticeship and training schemes (23%) and finance to manage the upfront costs (22%) would increase their confidence to invest in early careers workers.

Businesses confident on funding skills investment

This confidence extends to the wider skills investment picture where more than four in five North West businesses (83%) are confident they can secure the capital required to invest in training, apprenticeships or new hires over the next one to three years.

On the types of skills businesses need, customer service and relationship management (41%) was the most cited by businesses followed by sales and business development (35%) and financial management (24%).

Internal upskilling drives workforce development strategy

When it comes to addressing anticipated skills gaps, businesses are taking a practical approach with a third (33%) planning to increase internal training and upskilling of existing staff.

This research comes after Lloyds announced an investment of £100m in future skills in August as it expanded its support for young people*.

Jenny France, Area Director in the North West at Lloyds, said: “It’s important we’re giving opportunities to young talent to help them take the first step on their career journeys, so it’s encouraging so many firms in the North West are expecting to continue providing those vital early careers roles over the next year.

“Investing in skills is an investment in our long-term prosperity. At a time when technology is evolving at pace, technical knowledge is significant, but firms are clear that the softer and more interpersonal skills are also crucial and need to continue being developed to help them remain competitive.”

The national picture

More than half (52%) of UK businesses have recruited early careers talent in the past year, with the North East leading on recruiting early careers talent at 70% followed by Scotland (66%) and the North West (60%).

Of the companies that hired early careers talent in the past 12 months, 89% expect to recruit more over the next year. That figure rises among South East and London businesses to 97% and 96% respectively.

Even among those that didn't recruit early careers talent in the last year, 56% say they would do so if they felt able. That figure increases to 75% in Scotland and 71% in London.

Four in five businesses (80%) are confident they can secure the capital required to invest in training, apprenticeships or new hires over the next one to three years. The UK figure compares to the top three nations and regions: 89% in Scotland, 87% in Yorkshire & Humber and 85% in the West Midlands.

On the types of skills that businesses need, customer service and relationship management (33%) was the most cited by businesses, followed by AI and automation (26%) and digital and data (23%).

Amanda Murphy, CEO for Lloyds Business and Commercial Banking, said:
"Businesses are not simply hiring for today, they are investing in the people who will shape their future. The strength of employers’ appetite for early careers talent is encouraging, but ambition needs to be matched by better access to candidates, clearer routes into training and the confidence to keep investing.

“Technology will continue to transform how businesses operate, and the findings are a powerful reminder that customer facing skills still matter. The ability to understand customers, build trust and manage relationships will help set the best businesses apart.

“Closing the gap between ambition and action will be a joint effort between businesses, government, communities and education providers. By helping businesses find the right people and develop the skills they need, we can build a stronger pipeline of talent and support growth across the UK.”