Two thirds (66%) of Scottish businesses have recruited early careers talent in the past year, while firms have called for better access to suitable candidates to help them invest, according to new research from Bank of Scotland.
Of the companies that hired early careers talent in the past 12 months, 90% expect to recruit more over the next year.
Even among Scottish businesses that did not recruit early careers talent in the past year, 75% say they would have done so if they had felt able to, the highest 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, Scottish employers highlighted better access to suitable candidates and stronger external collaboration.
Nearly two fifths (39%) cited greater certainty over government funding as a primary catalyst. This was followed by better access to suitable candidates (34%), stronger links with education providers (28%) and more relevant local training provision (27%).
Nearly a fifth (17%) pointed to access to finance to manage upfront recruitment and training costs.
Businesses confident on funding skills investment
This confidence extends to wider investment in skills, with nearly nine in ten Scottish businesses (89%) confident they can secure the funding needed to invest in training, apprenticeships or new hires over the next one to three years. This is the highest of any UK nation or region, ahead of second placed Yorkshire and the Humber and nine percentage points above the UK average of 80%.
On the types of skills firms need, customer service and relationship management (37%) was the most cited by Scottish companies, followed by sales and business development (30%) and specialist sector or technical knowledge (29%).
Internal upskilling drives workforce development strategy
When it comes to addressing anticipated skills gaps, Scottish businesses are taking a practical approach with internal training and upskilling of existing staff leading the responses at 54%.
This research comes after Lloyds announced an investment of £100m in future skills in August as it expanded its support for young people*.
Martyn Kendrick, Scotland director at Bank of Scotland Commercial Banking, said: “Scotland’s businesses clearly have an appetite to grow and invest in the next generation of talent and it’s particularly encouraging that Scottish firms lead the UK in their confidence to secure funding for skills investment, while many more would recruit early careers talent if they felt able to.
“What comes through strongly is that the willingness to invest is there and the bigger challenge is making sure businesses can find the people with the skills they need.
“Bringing businesses, education and training providers closer together will be key to closing that gap, helping more young people into work and giving Scottish firms access to the talent they need to grow.”
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."