Read Gemma’s full comment in the People Management article.
New research from the CIPD and Omni RMS has highlighted a shift in how UK employers are responding to recruitment and skills challenges, with 48% increasing their efforts to develop talent internally over the past year.
The research, based on more than 1,000 UK employers with HR decision-making responsibilities, also found that 58% had experienced an increase in unsuitable applications, while 53% of organisations that had recruited experienced difficulties attracting candidates, particularly for senior and skilled roles.
Commenting on the findings for People Management, Gemma Bullivant highlighted the growing importance of internal talent development as part of a wider workforce strategy.
Internal development is becoming a core workforce strategy
Gemma explained that relying solely on external recruitment can limit an organisation’s options, particularly when employers may already have people within the business who could be developed to meet future skills needs.
“Internal development is increasingly becoming a core workforce strategy. Recruitment is expensive, risky and unpredictable, while employers often already have people with the potential to fill future skills gaps. Developing that capability creates more options internally, strengthens retention and helps retain valuable organisational knowledge.”
The rise in applications isn’t necessarily making recruitment easier either.
With 58% of employers reporting more unsuitable candidates applying for roles, Gemma cautioned against equating application volume with greater choice.
“Recruitment is always challenging, whether you’re operating in a scarce market or dealing with an abundance of applicants. More applications can actually make finding the right person harder, not easier. More candidates does not automatically mean more choice – sometimes it simply means more noise.”
Learning and development can deliver two important returns
The research also highlighted the relationship between skills development and retention. Some 44% of employers said talent had become more difficult to retain, while 45% of organisations introducing retention initiatives had increased learning and development opportunities.
Gemma identified two potential returns from investing in L&D:
- Creating a more compelling proposition for employees, and
- Deliberately developing the capabilities the organisation needs.
“Clear opportunities to develop and progress give people a reason to see their future within the organisation. People are more likely to stay and perform when they can see a future for themselves in the organisation.”
However, Gemma also stressed that organisations cannot rely solely on development happening organically through day to day work.
“While much development happens on the job, leaving it to chance risks critical skills gaps. A clear plan and targeted investment are crucial to developing the skills needed now and in the future.”
Skills planning matters even more when budgets are under pressure
With 54% of employers expecting measures in the Employment Rights Act 2025 to increase employment costs to some or a large extent, decisions about where organisations invest in their workforce are also likely to face greater scrutiny.
Gemma argued that this makes effective workforce and skills planning more important, rather than diminishing the case for development.
“Employers need to understand which capabilities will genuinely drive the business forward and concentrate investment there. Development has a cost, but so does failing to develop people – particularly if valuable skills, experience and organisational knowledge subsequently walk out of the door.”
Start with the business strategy
For HR teams deciding where development investment should be targeted, Gemma recommended starting with the future direction of the organisation rather than individual training requirements.
“Good skills planning is about joining the dots between business strategy, future skills needs and the potential already sitting within your workforce.”
Gemma advised HR teams to consider where the organisation is heading and the capabilities it will need to get there, before mapping those requirements against the existing skills, transferable capabilities and potential within the workforce.
This, she explained, provides a stronger basis for identifying critical gaps and targeting development investment where it can have the greatest impact.
What does this mean for HR teams?
For HR teams, the findings reinforce the importance of viewing recruitment, retention, learning and development, and workforce planning as interconnected rather than separate challenges.
As external recruitment remains challenging and budgets come under greater pressure, the opportunity is to understand more clearly what capability the organisation will need in future, where that potential already exists internally and where targeted development could close the most important gaps.
This shifts the conversation away from simply responding to vacancies or individual training requests and towards a more strategic question: what capabilities will the organisation need to deliver its future strategy, and how much of that potential does it already have?
Thinking more strategically about where you invest in your people? Gemma also works with organisations on Reward and Pay Advisory, helping HR and leadership teams make informed reward decisions that support their wider people and business priorities.
