The ability of British companies to attract, retain and educate skilled workers has slipped, although the UK remains in the world’s top ten for talent, according to a survey.
The global talent competitiveness index, published by Adecco Group on the sidelines of the World Economic Forum meeting in Davos, revealed that Britain ranks eighth, down from third last year.
Its ranking was undermined by weaker performance on tolerance and gender equality, Adecco said.
However, John Marshall, a UK executive at the group, said: “It is encouraging that the UK once again ranks among the top countries in its ability to attract, retain and grow talent. Greater diversity and inclusion are crucial if we are to foster skills and ensure that the UK not only remains a top destination for talent but can effectively compete in the global economy.
“By developing a true culture of diversity and inclusion, rather than letting it be another tick-box exercise, the UK could tackle one of its key challenges: low productivity.”
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Weak productivity growth since the financial crisis led the Office for Budget Responsibility, the government’s independent economic forecaster, to slash its growth expectations for the country before last year’s budget.
Adecco also cautioned that businesses had to prepare for various potential scenarios under Brexit. “Despite Article 50 being officially triggered in 2017, the continuing negotiations and lack of clarity over the UK’s position once it leaves the European Union in 2019 mean that the impact Brexit will have is not yet clear,” Mr Marshall said.
“It is important that both businesses and the government start preparing for different possible scenarios and keep the ability to attract and retain talent at the forefront of any strategy.”
Switzerland was ranked the most competitive country, followed by Singapore and the United States. Fifteen European countries are in the top 25.
The survey, which was produced with Insead, the international business school, and Tata Communications, the telecoms and internet group, examined 68 variables, including collaboration within organisations, the gender pay gap, labour productivity and university rankings. The index also assesses the policies and practices that enable a country to attract, develop and retain both technical and vocational skills.
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London is ranked the 14th most competitive city in the world. Cardiff and Birmingham are ranked 36th and 38th, respectively.
Social progress hampered by GDP obsession
The focus on GDP is fuelling inequality and short-termism, the World Economic Forum claimed as it unveiled its rankings using an alternative measure (Richard Fletcher writes).
The forum’s inclusive development index ranks how 103 countries perform on measures of economic progress in addition to GDP, such as healthy life expectancy and labour productivity.
The index, published ahead of the Davos meeting, shows that over the past five years social inclusion has fallen or remained unchanged in 20 of 29 advanced economies, despite a growing world economy. Intergenerational equity has deteriorated in 56 of 74 emerging economies.
The forum argued that the data suggested that economies were prioritising policies that support short-term growth over inclusion and sustainability, despite growing concerns about social inequality. Relatively strong GDP growth alone cannot be relied upon to generate inclusive socioeconomic progress and raise median living standards, the forum said.
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According to the index, the most inclusive advanced economy in the world in 2018 is Norway. Britain was ranked 21st.
Small European economies dominate the top of the index, with Australia the only non-European economy in the top ten. Of the G7 economies, Germany ranks the highest at 12th, followed by Canada at 17th and France at 18th.
“Economic growth as measured by GDP is best understood as a top-line measure of national economic performance. Broad, sustainable progress in living standards is the bottom-line result societies expect,” Richard Samans, managing director at the forum, said.
“Policymakers need a new dashboard focused more specifically on this purpose.”
Digital revolution creates skills crisis
Employees face an imminent skills crisis as the digital sector makes traditional roles redundant (Katherine Griffiths writes).
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About 1.4 million jobs in the United States alone will be at risk by 2026, with more than half that number performed by women, leading to a growing gender pay gap, the World Economic Forum said.
Those whose jobs are lost or significantly downgraded could suffer an almost $9,000 drop in their salary, it warned. It analysed almost all types of employment with Boston Consulting Group.
However, an average of two years of retraining could lead to an average annual salary increase of $15,000, the forum said. With this approach, up to 95 per cent of at-risk workers would find new work in new, higher-income jobs, it said.