THREE out of four companies are being affected by a shortage of skilled workers, new research suggests.
A study by the Open University and the British Chambers of Commerce found skills shortages remain one of the top challenges facing employers.
Despite the problem, over half of the 1,200 organisations surveyed said they do not have any specific initiatives, skills programmes or workplace adjustments in place to attract underrepresented groups such as people with disabilities or workers from diverse ethnicities.
The ongoing skills shortage continues to have a negative impact on existing staff morale and wellbeing, with three in four organisations reporting increased workload on current staff.
Baroness Martha Lane Fox, chancellor at the Open University and president of the British Chambers of Commerce said: "It's clear that the skills shortage has not improved, despite the existing efforts from organisations across the UK. We haven't solved it yet.
"But what is even more concerning is that organisations aren't investing in specific talent pools, including underrepresented groups. If organisations continue to ignore these workers, they risk missing out on untapped talent and deepening the skills gap even further.
"There could be a big opportunity for employers here if hidden talent is given a boost."
Jane Gratton, head of people policy at the British Chambers of Commerce, added: "Skills shortages are biting hard; damaging businesses and holding back our economic growth.
"Never has it been more important for businesses, governments and training providers to work together to find solutions.
"There's no doubt that more investment in training and reskilling is essential - together with a laser-like focus on boosting technical skills at all levels - and, crucially, creating a much more agile and flexible skills system to help employers who are struggling with hard-to-fill job vacancies."
