82% of finance SMEs have ‘concerning’ skills gaps in project management
More than eight in ten small-to-medium enterprises (SMEs) in financial services have been identified with “concerning” skills shortages in project management, putting at risk the delivery of future projects, a survey by the Association for Project Management (APM), the chartered membership organisation for the project profession, has found.
APM polled over 500 project professionals working for UK-based SMEs and 82% in financial services said their employer needs to improve project skills across the workforce.
The most popular solution to fixing the skills gap was ‘greater awareness of project management as a profession’ (selected by 49% of the financial services respondents) followed by ‘recruiting more widely across different professions’ (45%) and on-the-job training (43%). Respondents could pick multiple options.
The skills gap was also cited when the same respondents were asked to rank the biggest challenges facing project growth. The top-ranked answer was ‘technology infrastructure inadequate to meet end user needs’ (43%) followed by ‘a lack of investment in training/professional development within my organisation’ and ‘economic and political uncertainty’ (both 36%).
A large majority (85%) said their employer has enough time and resources to dedicate to training and development for project professionals. In addition, 89% said their SME places value on training and developing or upskilling project professionals.
Meanwhile, soft skills and technical skills were highlighted as the most important attribute for successful project delivery. The highest-ranked answer was solutions development (25%) followed by leadership (19%), personal time management (16%) and budgeting, data literacy skills, and adaptability / flexibility (all 15%.) The least popular answers were emotional intelligence (4%) and stakeholder engagement (8%).
Professor Adam Boddison OBE, chief executive of APM, said: “Our survey sheds vital light on the critical need for SMEs in financial services to prioritise investment in project management. While it is somewhat encouraging that most employers appear to understand the unique value of project professionals, it is concerning that 82% of respondents believe their SME needs to improve project skills at such a critical time with net zero, technology and global events disrupting business activity.
“Project professionals are at the forefront of delivering growth and change but they need skills investment in order to provide real-time solutions for difficult challenges.
“As SMEs and the sector navigate an increasingly dynamic landscape, the need to manage projects effectively becomes ever more paramount for sustained growth and success. By taking action now to invest in project skills, employers can better streamline their operations and help ensure projects are delivered to budget, timescales and quality.”
The skills gap is defined as the disparity between skills employers need or find desirable and the skills current or future employees possess to meet job role demands. The term dates to the 1990s but long-standing concerns over the skills gap remain, exacerbated by globalisation, technology and the need for more specialised skills.
The survey follows APM’s Golden Thread Report 2024, conducted by PwC Research, which found project management contributes to the UK economy £186.8bn of annual gross value added (GVA) – a key measure of productivity – across all sectors. This is a growth of over £30bn in five years. The financial services GVA in project management was £13.12bn.
The project profession now employs an estimated 2.32 million full-time equivalent workers (FTEs) across all UK sectors, the report also found. It means 8.5% of the UK’s total FTEs are employed in project-related roles and the profession delivers over 9% of total UK GVA
Professor Adam Boddison added: “As the chartered body for the profession, APM is committed to helping SMEs in financial services to overcome any barriers they may face to bridge the skills gap with support and resources designed to empower their workforce with the necessary project skills.”