Regulatory compliance and the battle for talent emerge as top business challenges

Daniel Bevan - Editor

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Regulatory compliance and talent retention have emerged as the most pressing challenges facing UK business leaders since 2020, according to new research from Alliance Manchester Business School (AMBS).

A survey of 500 senior decision-makers, conducted by Censuswide on behalf of AMBS, found that nearly three-quarters (73%) believe business leadership has become more complex over the past five years, reflecting a rapidly shifting operating environment for UK firms.

Among the factors driving this complexity, navigating policy, regulation and legislation ranked as the most significant challenge.

Some 59% of respondents said this aspect of their role had become more difficult since 2020, the highest proportion recorded across all categories.

Talent pressures were close behind. More than half (56%) of business leaders said attracting and retaining the best people had become harder, underlining the continued strain in the UK labour market.

The same proportion also cited maintaining a competitive advantage over rivals as increasingly challenging, pointing to intensifying competition across sectors.

Sarah Featherstone, Director of Operations at Alliance Manchester Business School, said: “The message from business leaders is loud and clear – they feel their roles have become much more complex over the past five years.

“What’s telling is how this increased complexity is then translating into business outcomes, with the majority of the leaders surveyed highlighting how critical challenges, such as regulatory compliance and talent retention, are far harder today than they were in 2020.

“Businesses have found themselves in the middle of a perfect storm.

“How and where people work is changing; the economic climate has been challenging in recent years with inflationary pressures impacting businesses and consumers alike; AI is disrupting products, processes and systems; and employees’ financial and cultural demands are changing all the time.

“So, it is alarming that as many as 29% of UK business leaders have received no formal training to enable them to execute their roles well.

“Whether it is managing a digital transformation project or evolving a business’ proposition to gain a competitive advantage, business leaders require support if they are to excel in key facets of their job.

“The key for organisations and individuals themselves is to identify what training and support will have the greatest impact and source the right ways to upskill, empowering them to lead with confidence and achieve excellence.”