Closing the skills gap and elevating UK productivity: Why competency management matters

There are two major challenges currently facing the UK - talent shortages and sluggish productivity.

Across the UK, industries such as construction, healthcare, manufacturing, and tech are grappling with two interconnected problems: a lack of skilled professionals and underwhelming productivity levels. Despite ongoing recruitment efforts, many organisations struggle to keep pace with global productivity benchmarks set by nations like Germany, France, and the United States.

A key issue? A lack of insight into the true capabilities of the workforce. Many businesses rely on outdated compliance records and general training logs that don’t accurately reflect employee competence. Without a clear understanding of team strengths and weaknesses, how can meaningful improvements be made?

As Henry Ford once said,

“If you do what you’ve always done, you’ll get what you’ve always gotten.”

Tackling these deep-rooted issues calls for a fresh, strategic approach to workforce development.

Recruiting More People Isn’t the Long-Term Fix

Many companies respond to skill shortages by hiring more staff. However, this short-term solution often fails to improve overall performance. Without a clear plan for enhancing existing employee capabilities, organisations risk increased costs with little productivity gain.

An expanding workforce without targeted development results in:

  • Growing payrolls without corresponding performance improvements.
  • Greater strain on onboarding and training resources.
  • Continued inefficiencies due to mismatched skills.

Rather than focusing solely on headcount, organisations should aim to unlock the full potential of their current employees through targeted development strategies.

Competency vs Training: A Smarter Way to Build Capability

Conventional training methods typically focus on delivering knowledge, not necessarily ensuring that individuals can apply it in their roles. This leads to a disconnect—qualifications may be obtained, but confidence and capability often lag behind.

Competency management addresses this gap by evaluating actual performance, not just learning activity. With this model, organisations can:

  • Evaluate people based on proven skills, not course completions.
  • Understand capability levels in a more detailed, meaningful way—not just “trained” vs “untrained.”
  • Develop in-house expertise rather than continually relying on new hires.

Competency-Led Strategies to Improve Organisational Output

A competency-focused model gives leaders detailed, actionable insights into team capabilities. This enables smarter decisions around learning investment and resource deployment. Some key benefits include:

  • Pinpointing Skills Gaps – Aligning employee capabilities with role requirements highlights where development is needed most.
  • Improving Role Fit – Assigning tasks based on strengths enhances efficiency and performance.
  • Minimising Errors and Waste – A skilled, competent workforce reduces rework and boosts operational quality.
  • Fostering Growth – Clear development pathways help retain talent and increase engagement.

Backing British Industry with Competency-Driven Thinking

As UK manufacturers and service providers, we have a unique opportunity to lead the charge in building a more capable and productive workforce—driven by homegrown innovation and proven British technologies. Supporting British jobs, nurturing local talent, and increasing resilience across UK supply chains begins with effective workforce planning.

For British manufacturers and organisations navigating post-Brexit challenges, rising costs, and supply chain volatility, investing in internal capability isn’t just a best practice—it’s a competitive advantage. Building stronger teams from within helps secure long-term growth while supporting the wider economy.

Leveraging Technology for Smarter Workforce Management

The deeper and more accurate your competency data, the more value you can extract from it. Yet many businesses still rely on basic spreadsheets or static training records that don’t scale well or offer real insight.

This is where digital solutions like SkillStation come in. As a purpose-built competency management system, it offers a robust framework for capturing, analysing, and acting on workforce data—making it easier than ever to make strategic decisions.

With tools like:

  • Real-time skills tracking and visual Skills Matrices.
  • Automated compliance and skill validations.
  • Intelligent team assignment based on capability data.

Organisations can move from reactive to proactive workforce planning—building teams that are not only compliant, but capable.

A Shift in Thinking: Time for UK Industry to Embrace Competency-Led Planning

At Think Eleven, we’ve spent over two decades supporting organisations in unlocking their workforce’s potential. Our experience shows that competency-driven approaches are central to solving today’s productivity and skills challenges.

There’s growing recognition of the issue, but what’s needed now is coordinated action. That includes:

  • Leadership commitment to integrating competency into workforce strategy.
  • Policy support for national productivity initiatives based on capability development.
  • Adoption of modern digital tools to track and nurture workforce skills.

The UK has an opportunity to move beyond outdated approaches. By investing in competency management today, businesses can bridge the skills gap, increase productivity, and build resilient, future-ready teams—proudly powered by British innovation.

Find out more about Think Eleven Limited on their member profile page here

Member-created content 3 months ago | From members

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