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London, UK – May, 2021: Avado, the professional academy, has unveiled research identifying a dramatically widening gap between business needs and people capabilities over the course of 2020.

Businesses that had previously invested in employee development, however, were somewhat protected from the worst effects of the pandemic: of those surveyed, 71% that saw growth over the last year had increased their training budget. Among businesses that saw a decline, 61% said they did not have a training strategy or that their strategy was not fit for purpose. This research comes at a pivotal moment as the government announces a new skills loan, giving all adults the equal opportunity to upskill and retrain in future.

The research surveyed over 1,000 executive leaders and senior HR staff from progressive UK and Asia Pacific (APAC) organisations. The research was further analysed by ambassador Miatta Fahnbulleh, Chief Executive of the New Economics Foundation. More than three-fifths of business leaders revealed that the events of 2020 had widened the skills gap to a capability chasm in 2020, with the majority feeling they had been unable to manage the issue. Over-reliance on traditional skill sets and recruiting to plug capability gaps at the expense of staff development were also shown to have negatively impacted business growth.

● In the UK, nearly half of executive leaders and two-fifths of HR leaders admitted to using recruitment of new talent to fill capability gaps.
● Respondents across all industries agreed their organisation had prioritised survival over capabilities (63%). This was particularly pronounced amongst HR respondents (69%).
● Concerns about mental health were global: 49% of UK respondents and 48% in APAC were concerned about the future mental health impact of the capabilities gap.
● In general, respondents in the UK were more concerned about the gap than in APAC.

Mark Creighton, CEO of Avado, said, “There is a definite opportunity for employers to invest more in their people to diversify the workforce and move the conversation beyond skills. The businesses that remain competitive in our recovering economy will be those that embrace a strategic approach to the development of capabilities, not just answer the challenge through recruitment. We must take urgent action to implement training strategies fit for the future that give existing employees, not just new recruits, the opportunity to contribute to business success.”

In 2020, the rapid transition to digital exposed and exacerbated the imbalance between capabilities organisations need, and capabilities employees possess, causing friction across all sectors surveyed. More than two-thirds of senior HR (69%) and half of executive leaders (57%) surveyed agreed that their organisation had prioritised survival over capabilities.

“Investment in capabilities matters more than ever to business growth and long-term productivity,” said Miatta Fahnbulleh, Chief Executive of the New Economics Foundation and ambassador for this research. “To succeed in a future of profound change, we need to think well beyond skills. In fact, we will need a capabilities revolution.”

Even in areas where concerns around the future were lowest, such as government and public services, more than half of respondents expressed worries about the impact of the capability chasm on mental health, redundancies, and the overall health of our economy. Tellingly, over half of all respondents had looked at training outside of their current role, taking matters into their own hands. The evidence is clear: the importance of capabilities across all industries for profitability, staff retention, and future competitiveness should not be underestimated.

Reflecting on the new UK skills loan as it relates to this research, Mark Creighton said, “We welcome the news that the government are putting skills at the forefront of the economy. Not that they have much of a choice. In fact, Covid has widened the skills gap to the point where the real issue is capabilities, rather than skills. The narrative has also changed from ‘free, fully-funded’ to ‘loans’. This raises some concern that those most in need may not be able to access it, or may be asked to take on a further form of debt to fulfil learning. Avado, alongside the whole sector, will be keeping a close eye on detail as it emerges.”

To be profitable long-term, businesses need to take stock of their priorities and their capabilities, moving urgently to put a strategy in place fit for the future. For more detail and a further breakdown of responses by industry, please view the full report here.


Note to Editors
The survey consisted of 15 individual questions, with respondents split evenly across five sectors: technology and telecommunications, pharmaceutical and healthcare, government and public services, financial services, and fast-moving consumer goods. This research was conducted twice, with identical questions, once in the UK and once in APAC.

The research, which was repeated in APAC with the same methodology and number of respondents, revealed a less dire situation than in the UK, although significant concerns around capability gaps remained across all five sectors. For more information on these findings, please view the full report here.

About Avado
At Avado, we believe in unlocking potential and changing lives. Learning with us makes real, lasting change happen for individuals, and entire organisations. Through our connected learning experiences in Data, Marketing, People, and Agility, we can help you drive real change.

Going beyond just technical skills, our award-winning programmes help teams find success in an ever-evolving world. With a strong emphasis on the behavioural and mindset shifts needed to embed new capabilities, we’ll work together to develop leaders, teams and individuals through interactive learning experiences. To find out more, visit

Media contact
Kaela Beaton
KWT Global on behalf of Avado
0775 753 5968

This press release was distributed by ResponseSource Press Release Wire on behalf of KWT Global in the following categories: Business & Finance, Education & Human Resources, Public Sector, Third Sector & Legal, for more information visit