The PwC global survey of 1,300 CEOs has revealed UK business leaders are more concerned about the availability of key skills than any of their Western European counterparts – rating it as the greatest threat to the growth of their business.
The research showed employers are looking to the Government to help them plug this skills gap. Three out of four UK CEOs said creating and encouraging a skilled workforce should be the Government's highest priority for business for the year ahead.
This is in contrast to employers' own immediate investment priorities, with only a third of UK CEOs placing filling talent gaps as a major priority for 2013. Instead, they see it as a longer-term goal; with 70% of respondents saying they plan to increase investment in their workforce over the next three years.
The research revealed mining, energy, engineering and construction companies have the most chronic shortage of skilled employees.
Laura Hinton, HR consulting partner at PwC, said: "UK businesses are struggling with a widening mismatch between the skills of their workforce and the skills they need to achieve strong growth.
"There needs to be a joint approach to addressing the problem, with business and Government working together to plug the skills gap. Apprenticeship programmes are a great example of where business and the Government are already working together to tackle this issue.
"At a time when growth is top of all businesses' agendas, investment in employee training and development should be a key priority for CEOs for the year ahead rather than a longer-term aspiration."
The research also found UK employers are planning to hire this year, with more planning to increase their headcount (45%) than make cuts (35%). The remaining respondents expect their headcount to remain relatively static.
Hinton said: "Despite the difficult economic backdrop, it is encouraging that UK businesses are continuing to hire. While headcount has been an obvious target for cost cutting in the past, many business leaders are finding smarter ways to strip costs out of their business which won't damage their employees' engagement and leave them with talent shortages in the future.
"The most successful companies will combine recruitment with developing the people they already have. Those with a balanced approach to growing their own talent and buying in key skills are most likely to succeed."
In November HR magazine held a Live Web TV debate on the skills gap in the UK. This is still available to view and you can also take part in the research.