Turning insight into action for Hertfordshire’s workforce

LSIP is driving change across priority sectors with targeted investment and deepening employer engagement…

Hertfordshire’s economy is evolving – and so are its skills needs. With more than 2,500 employers participating in the Local Skills Improvement Plan (LSIP) process since 2023, the county is building a clearer picture than ever of what businesses need to grow, innovate and thrive.

The LSIP initiative, driven by the Hertfordshire Chamber of Commerce as the designated Employer Representative Body, has not only gathered data, it’s catalysed action.

As Donna Schultz, Chief Executive of the Chamber, puts it: “The LSIP has allowed us to put employers front and centre of the skills conversation. It’s about building a system that works for them – fast, responsive and grounded in real economic needs.”

A more strategic labour market

The 2024/25 LSIP survey, based on 1,138 responses, reveals a local labour market in transition. While 66 per cent of businesses still plan to recruit in the next 12 months – down slightly from 71 per cent in 2022/23 – the drop masks significant sector-specific variations. Sectors like transport and logistics (+39 points), charity and community (+8) and hospitality and tourism (+6) have seen renewed confidence and recruitment drive. Others, like digital/tech and sustainability, are experiencing recalibration as automation and AI reshape their workforce needs.

The shift isn’t about scaling back; it’s about hiring smarter. Employers are targeting specific skills rather than simply adding headcount. This points to a labour market where success depends less on job availability and more on job suitability.

Recruitment challenges: suitability over quantity

The top recruitment issue isn’t finding applicants; it’s finding the right applicants. “Not enough suitable candidates” is now the most cited barrier, up to 41 per cent of employers from 21 per cent two years ago. This reflects broader national patterns, but Hertfordshire remains ahead of the curve, with fewer total skill-shortage vacancies than the national average.

Encouragingly, 32 per cent of local employers reported no recruitment issues at all, up from 24 per cent in 2022/23. This suggests that while some firms are struggling with highly specialised talent needs, others are benefiting from clearer role definitions, better internal training or improved talent pipelines.

What employers want: digital fluency meets human skills

Across every major sector, two skillsets stand out: digital capability and interpersonal effectiveness. Demand for IT and digital skills rose from 46 per cent to 51 per cent between 2022/23 and 2024/25. Meanwhile, core employment skills like communication, adaptability and teamwork were cited by 49 per cent of employers, up from 45 per cent.

Traditional academic requirements like English and maths saw a sharp decline, suggesting that businesses are moving away from qualifications in favour of real-world capabilities. The future workforce needs to be tech-savvy and teamoriented – equally comfortable with digital tools and human collaboration.

Time vs. cost: a new training challenge

In 2022/23, lack of time was the top barrier to training. In 2024/25, cost has taken the lead. With 34 per cent of employers now citing cost as a major obstacle (vs. 26 per cent citing time), financial concerns are eclipsing logistical ones. This reflects tighter operating margins, economic uncertainty and rising expectations for return on training investment.

But access and awareness are improving. Only 14 per cent of businesses now struggle to find training providers (down from 19 per cent), and modular, online and sector-specific options are gaining traction.

What’s clear is that the skills system must now demonstrate value, not just availability.

Employer preferences: flexible, sector-specific training

Hertfordshire employers are asking for training that is:

• Short and modular

• Online or delivered locally

• Shaped with input from their sector

The appetite for long, generic training courses is waning. In contrast, professional apprenticeships, in-role coaching and CPD that ties directly to business needs are in high demand. For example, the NHS-backed Career Gateway programme developed with West Herts College is already being seen as a national model.

Investment willingness: rising financial support, falling capacity

More employers than ever – 52 per cent – say they’re willing to invest financially in training (up from 43 per cent). Support for staff involvement in delivery has also jumped to 43 per cent. However, willingness to help develop training content has declined, from 40 per cent to 32 per cent. This suggests that while businesses are ready to pay for and deliver training, they’re increasingly stretched for time to co-design it.

“The data tells a clear story,” Schultz adds. “Employers want to engage, but they need training that’s relevant, fast and doesn’t demand time they simply don’t have.”

LSIP impact: awareness equals engagement

Only 27-28 per cent of employers in Hertfordshire are currently aware of the LSIP, but those who are engaged show markedly stronger outcomes:

• More likely to recruit (70 per cent vs. 64 per cent)

• More likely to invest in training (55 per cent vs. 51 per cent)

• More likely to engage with colleges and universities

LSIP-aware businesses also report a more nuanced understanding of skills gaps, not just looking for qualifications, but real readiness for the workplace.

These employers aren’t just more involved; they’re better prepared.

FE colleges: innovating to meet demand

Thanks to funding through the Local Skills Improvement Fund (LSIF), Hertfordshire’s four FE colleges have launched major new projects:

• Digital and AI training with meta-college and VR learning environments

• Green construction with retrofit-focused CPD and sustainable technology

• Health and social care with a salaried route-into-work course co-designed with the NHS

• Creative industries with updated studio facilities and employer-led design briefs

As of spring 2025, 100 per cent of IT students secured external placements and 37 new film/media learners have benefitted from upgraded curricula. Engagement with employers like Willmott Dixon, Knorr-Bremse and the NHS has validated the curriculum updates.

What’s next? from summits to sector strategies

Hertfordshire Chamber has held multiple sector summits, including in life sciences, property and construction, creative industries and AI, gathering insight and aligning partners across the region.

Future plans include:

• Promoting co-designed training across emerging sectors like defence and sustainability

• Sharing employer case studies via Inspire magazine and social channels

• Expanding awareness among smaller businesses, who remain underrepresented in engagement

The LSIP programme has already exceeded many of its original objectives. The next phase is about sustaining momentum, widening participation, deepening alignment and making the skills system not just responsive, but predictive.

Final word: partnership is the path forward

The key message from employers is consistent: they don’t need more consultation, they need action. They want relevant training, credible delivery and sector-aligned support. And they want it now.

Hertfordshire’s LSIP isn’t just a plan; it’s a platform. One that connects employers, educators and policymakers with the clarity and confidence to act. And, as Donna concludes: “We’ve moved from insight to impact, but this is just the beginning. With continued collaboration, we can build a workforce ready for the challenges of tomorrow – and the opportunities that come with them.”

More employers than ever – 52 per cent – say they’re willing to invest financially in training (up from 43 per cent). Support for staff involvement in delivery has also jumped to 43 per cent. However, willingness to help develop training content has declined, from 40 per cent to 32 per cent. This suggests that while businesses are ready to pay for and deliver training, they’re increasingly stretched for time to co-design it.