The research, published jointly on Wednesday (5 February) by The Chartered Institute of Management Accountants (CIMA) and research agency Opinium, found that fewer than one in three SME employees have undergone training in the past year, yet 82% express a desire to upskill.
Sue Warman, the CIMA's chief people officer, told HR magazine: “It's crucial in this environment that we embrace innovation to help reimagine training and development. Fortunately, there are many cost-effective ways available to us today, such as online platforms.
“Informal training can also play its part, as can creating a learning culture that encourages inquisitive mindsets and peer-to-peer learning.”
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Key skills gaps included tech and IT (38%), AI (37%), and job performance skills (36%).
Lack of budget (41%) and lack of time (39%) are the primary barriers preventing employer investment into training and development, according to the survey findings.
Tina Benson, founder of event provider Team Tactics, told HR magazine that smaller teams often struggle to find time away from their everyday tasks for training: “If you have a marketing department of one, for example, having them take time out of the business to attend a course can disrupt workflow and operations significantly.”
Benson added that SMEs are turning to external providers to plug skills gaps, but government funding could help change this.
“Increasingly, we’re seeing SMEs outsource specialists, using freelancers and skills marketplace websites to find the specific skills they need. Yet, increased government funding across training and apprenticeship initiatives would help more businesses build and keep skills in-house,” she said.
The research revealed that 38% of employers who have not invested in formal training or accessed government funding find it too complex and time-consuming to engage with.
Meanwhile, 32% of employers cite rising wage costs, including rises in minimum wage and national insurance contributions, as their biggest concern for 2025.
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Charlie O’Brien, head of people at software platform Breathe HR, said that SMEs should focus on closing specific skills gaps and internal cross-training, to ensure that development can be achieved within tight budgets.
Speaking to HR magazine, she said: “There isn’t always room for SMEs to offer a smorgasbord of different training courses, especially when budgets are limited. HR should pinpoint exactly where the company’s skills gaps are, and offer targeted training accordingly.
“Another solution is to promote cross-training through job rotations, job shadowing and encouraging employees to take on new projects that stretch their current skills. This benefits both the employees and the business.”
She added that HR professionals should create a ‘learning culture’ and encourage employees to dedicate time to self-directed learning: “Publicly recognising those who take the initiative to upskill can motivate others to follow and cement learning in your company culture.”
Benson added that SMEs could use the intergenerational nature of today’s workforce to their advantage: “The four-generation workforce brings together a range of skills, experiences and passions that can be harnessed and shared. We can learn a lot from each other, and by introducing monthly ‘lunch and learn’ sessions, where one employee takes the reins to teach their colleagues about a certain topic, others can learn from the benefit of their experience.
“Not only will employees learn new skills and practices from their peers, but this method can also go a long way to strengthen intergenerational employee relationships and overcome hierarchical barriers, creating a more pleasant and collaborative working culture.”
CIMA's research also revealed that 76% of employees under 35 believe that a lack of skills training hinders their career progression. This compares with 54% of workers aged 55 and over.
HR should remind leaders that upskilling should take precedence, even when budgets are tight, O’Brien added.
She said: “HRs must remind leaders that employee development is essential, and a key way to close skills gaps. It will pay dividends in the long run.
“Data can help to get leaders on board. For example, the new research from CIMA shows that employees want to upskill and see the value of training for their career progression. This suggests that staff will engage with courses offered to them, making it a worthwhile investment for SMEs.
“When leaders see the value, they’re also more likely to commit the resources needed to access government funding for training.”
The Mind the Skills Gap 2025 survey was carried out among UK SMEs (organisations with 10-249 employees) by Opinium Research on behalf of CIMA. Fieldwork for employers and employees took place online between November and December 2024 to a sample of 1,000 SME decision-makers and a sample of 1,000 SME employees.
