Ahead of the curve: AI adoption benchmarking for 2026 and beyond

Ahead of the curve: AI adoption benchmarking for 2026 and beyond

Regardless of your industry or sector, it will not have escaped your notice – out of nowhere, seemingly, artificial intelligence that feels almost human has become a disruptive technology sweeping its way into the world of business. It’s no wonder that organisations are worrying about how to keep up with such a rapidly evolving tech landscape, and it appears there are two choices: adapt and integrate the technology, or fade into irrelevance.

But with the dizzying pace of these advancements, and so much potential at our fingertips, getting started with AI in your business can feel like navigating a maze with no map to guide you. To ensure you’re AI-ready, you need to gain an accurate understanding of the current state of your operations, decide which processes could be optimised, and prepare your company to integrate AI functionality in a way that’s most relevant to you.

Alongside this, it’s important to be informed about the ways in which your peers and competitors are implementing AI, to ensure that you don’t get left behind. If you want to be ahead of the curve, AI adoption benchmarking can be a valuable tool in gaining data-driven insight that can help drive strategic and competitive advantage.

What is AI Adoption Benchmarking?

AI adoption benchmarking is the practice of measuring your organisation’s progress in adopting and integrating AI technologies, and then comparing those results against industry peers, competitors, or best-in-class performers.

While nearly all executives identify AI as a strategic priority, few can quantify adoption progress with precision. Benchmarking provides a standardised maturity framework and typically refers to comparing your organisation’s level of AI adoption (in technology, processes, governance, skills, etc.) against industry peers or best practices. The purpose of this is to understand any maturity gaps, identify areas for improvement, track progress over time, and ground your AI strategy in empirical data.

But the process of AI benchmarking is not just about counting tools or pilot projects that you have started to introduce. Effective benchmarking methods look deeper than this, asking questions such as:

  • “How widely is AI being used across our teams?”
  • “What value is it delivering?”
  • “How mature are our data pipelines, governance models and upskilling programmes?”
  • “How do we compare to organisations that are leading the way in AI integration?”
  • “What can we learn from the successes and failures of our competitors?”

By asking and answering these questions, businesses can not only gain data-led insights about their AI adoption, but also focus their investment where it can make the most impact. AI adoption benchmarking can provide your company with the clarity it needs to measure AI readiness and begin to align with industry standards.

What dimensions do companies benchmark?

 

When it comes to setting up AI adoption benchmarking, organisations tend to track a number of common dimensions and metrics. Some of these may include:

 AI usage: such as the percentage of employees using AI tools, how often, and the depth of feature usage (i.e. which capabilities are being used and to what extent). This can also include the measurement of AI usage distribution across different roles and business functions. Benchmarking AI usage can provide insight into the breadth of AI implementation.

Maturity, capability and infrastructure: Are aspects of your business functions such as data infrastructure, training, and workflows AI-ready? Thinking about technical readiness is important before implementing new systems and embedding AI into processes and workflows.

Risk, compliance, governance, ethics: How robust are the risk controls and oversight associated with AI models, especially in terms of security and data privacy? Compliance maturity is an essential part of the AI benchmarking process.

Value and impact (outcomes): What measurable benefits has AI delivered for your workforce in terms of cost savings, time savings, productivity uplift and quality improvement? Looking at this metric will demonstrate the overall business impact.

Adoption speed: How fast are AI pilot tools being rolled out and utilised? Correlating the above metrics over time enables an accurate analysis of transformation progress.

A critical aspect of benchmarking AI adoption using these metrics is to ensure that they are used in the appropriate context (in terms of industry, company size etc) in order to help set realistic targets that are relevant to each business. In addition, it’s important to implement mechanisms to measure the success of any AI adoptions, rather than just adopting a process; after all, it’s the value outcomes for your business that matter the most.

Why does AI Benchmarking Matter? What are the strategic benefits?

 

While AI adoption rates surge across multiple industries, organisations often lack a clear picture of how their progress compares with peers. Recent research has shown that 72% of companies now deploy AI in at least one business function (McKinsey, State of AI 2025) and 81% of large enterprises report accelerating AI investment over the past year (AI Readiness Benchmark Survey 2025). However, despite this high intent, only 21% of organisations have achieved company-wide integration of AI, citing barriers such as data readiness, governance, and talent shortfalls (ModelOp, AI Governance Benchmark Report 2025).

Benchmarking transforms these statistics into actionable intelligence and insight. It allows leaders to understand where their company sits in the race, as well as helping to prioritise investment and close gaps before they become competitive risks. The benchmarking process shines a light on these hidden capability gaps and opportunities, identifying functions that are not innovating as quickly as others. It also gives leaders the visibility they need to make smarter, more confident AI investments, by bringing credibility and clarity to spending decisions through empirical evidence and measurable gains.

Governance and risk management can also be strengthened through the use of AI adoption benchmarking. As more and more regulatory frameworks come into play, the importance of governance and compliance cannot be overlooked; especially as organisations face greater scrutiny around bias and fairness. Benchmarking governance readiness enables proactive and thorough compliance processes, reducing a company’s exposure to reputational and operations risks.

Learning from competitors can be another strategic advantage when benchmarking AI adoption. By looking at where peers have initiated AI measures that have been unsuccessful, an organisation can learn from these mistakes, ultimately reducing risk by avoiding the costly missteps that its competitors have experienced.

Perhaps most importantly, benchmarking enables continuous improvement and agility. Given the rapidly evolving nature of AI and automation technologies, static assessments of best practices quickly become irrelevant. Frequent benchmarking ensures that business strategy can keep pace with the speed of technological evolution, helping companies to stay adaptive and to build a culture that learns faster than the competition.

How to implement AI benchmarking most effectively

 

When it comes to implementation best practices, there are some important steps to take. Firstly, establishing a baseline is an essential first move, conducting initial

diagnostics in terms of your current AI maturity levels will give you a clearly defined place to start, allowing you to define your goals and benchmark accordingly. The next task will be to select the reference benchmarks that are most relevant to your sector, industry, geography and company size, so that the results are contextualised with sector-specific data from closely related comparators and peers.

Following these initial steps, an approach that blends performance metrics, maturity scoring and comparative analytics (integrating both quantitative and qualitative inputs) will deliver the most robust and actionable insights. The benchmarking process should prioritise high-impact gaps, focusing remediation efforts on areas where AI maturity will most significantly affect strategic outcomes for the business.

It’s then important to periodically reassess and update benchmarks, in order to keep pace with technological and regulatory shifts, and to ensure your company continues to be well-informed as to where it sits against the direct market as AI evolves.

Challenges and Considerations

 

While there are clear advantages to benchmarking AI adoption, there are several factors that warrant caution and should be considered by company leaders. These include:

Metric Overload: Using too many KPIs in the benchmarking process can obscure focus, and so it’s crucial to direct efforts towards a specific set of metrics that align with a business’s strategic objectives.

Contextual Variability (Context & Domain differences): Benchmarks that work well in one industry may not apply in others; for example, retail vs healthcare and manufacturing. The process and results of benchmarking need to be tailored for scale and sector, or they won’t be relevant and actionable.

Comparability and standardisation: In terms of measuring AI usage and timelines, different organisations may have different methods. Where specific metrics and definitions are not standardised, this could make objective comparisons difficult.

Lag between deployment and value capture: Many AI initiatives may be technically deployed but not yet delivering measurable results that drive business impact. This can potentially skew the results of benchmarking (in terms of value outcome metrics) if AI systems have only recently been implemented.

Data Availability, and privacy constraints: Measuring AI adoption may require instrumentation across multiple systems, which could trigger challenges in terms of data privacy, security, and governance.

Rapid change and benchmark obsolescence: As already mentioned, AI technologies evolve quickly, and so benchmarks can become outdated and irrelevant within a short space of time. It’s therefore a necessity to refresh reference datasets on a regular basis to ensure you are working from the most up-to-date insights.

Conclusion

 

In today’s era of constant change and advancements, where the capabilities of AI are redefining the workplace, staying ahead of the curve isn’t about early adoption – it’s about measured, intelligent adoption. By using benchmarking processes to establish where your company stands on the leaderboard of AI adoption, you are not just keeping pace with change; you are defining what progress looks like in your industry. Far from being just a diagnostic exercise, using AI adoption benchmarking can be a strategic tool for businesses to build capability, guide investments and transform their culture through intelligent technologies.

In addition, benchmarking can provide statistical evidence of progress to boards, investors and regulators, all of whom increasingly expect a high level of transparency and forward-thinking around AI readiness, governance, and business impact. Potential costs and risks can also be avoided by learning from the missteps of competitors’ AI journeys.

Organisations that systematically benchmark AI adoption are better equipped to quantify their AI maturity with precision and invest in areas that bring the highest returns. They can also strengthen their governance in line with emerging regulations, avoiding compliance issues. Most importantly, companies using a benchmarking process will have an innovative edge against their competitors.

Henley Insights Group: How we can support you through Talent Intelligence.

 

Henley Insights Group supports organisations with AI adoption benchmarking by combining Competitor Analysis and Transformation Planning capabilities to deliver a deep, evidence-based understanding of how peers and industry leaders are integrating AI.

Henley engages with insiders across competitor and adjacent organisations to uncover AI timelines, implementation strategies, governance practices, risk management, and talent structures.

This approach enables clients to benchmark their AI maturity, identify best practices and pitfalls, and design data-driven strategies for AI governance, sequencing, and talent acquisition.

To find out more, get in touch

Celebrating 30 years of Henley Research

Celebrating 30 years of Henley Research

Henley Research is officially 30 years old! 30 years since it all began, we have been looking back over the last three decades. Before the days of LinkedIn, still in the relatively early days of the internet and email, methods of contacting clients and candidates were very different, but some things remain the same: The Henley Spirit and our wonderful relationships with our clients and candidates alike.

Back at the start of our journey, we would obtain information from a CD ROM and hard copies of industry directories which would provide us with names of key stakeholders. We also relied a lot on telephone research to find those in the most suitable roles and to get in touch with suitable candidates.

It is safe to say technology has advanced a lot since then – we now have LinkedIn, video calls, and even AI and automation platforms which help make our jobs more efficient. Technology has become increasingly important in the work that we do, but even as we come to rely on more and more, we still prioritise the ‘human touch’ which is ever important for nurturing our relationships with our clients and candidates. The candidate experience is highly important to us, so our team will always focus on making this the best it can be, which means not relying on technology and automation for everything.

Beyond our professional achievements, the feedback we receive from former team members, particularly those who joined us early in their careers, highlights how their experience at Henley equipped them with invaluable life skills. These include resilience, confidence, and a deep understanding of diverse career paths. The dynamic environment at Henley, with its constant exposure to new challenges and the opportunity to learn from experienced professionals, provides a unique foundation for long-term success.

 

Looking Back: The Enduring Spirit and Evolving Role of Research at Henley

To truly appreciate how far we’ve come, it’s illuminating to look back at an article written about Henley Research 10 years ago, as we celebrated our 20th anniversary. Published in 2003, ‘Thrill of the Chase’ offered a fascinating glimpse into the world of executive search research and Henley’s place within it. While the core “Henley Spirit” and commitment to diligent research have remained, it’s clear how much the industry, and indeed our role within it, has evolved.

In 2003, the article captured the essence of finding information, without the assistance of today’s digital tools, stating: “Henley spends thousands of pounds a year on CD Roms and databases of companies around the world.” This provides a vivid contrast to our current reliance on platforms like LinkedIn and AI, demonstrating the incredible leap in technological advancement that has streamlined and enhanced our processes.

Perhaps one of the most significant shifts highlighted by comparing the two eras is the evolving role of the researcher. The 2003 article described researchers as the “faceless side of headhunting,” noting that “Researchers never meet the candidates they recommend, and only rarely see the client companies themselves.” It also stated, “The researcher only establishes a list of possibles… We speak to people for 10 to 20 minutes. We don’t meet them. All you can do is to get an impression.”

Today, while the rigorous data collection aspect of research remains key, our role has undeniably expanded. Oue researchers are trusted advisors to clients; we’ve moved beyond merely identifying “possibles” to nurturing relationships and providing nuanced insights that only come from genuine connection and understanding.

As we celebrate 30 years, we reflect on how the “hard slog” of research has evolved into a sophisticated blend of cutting-edge technology and unparalleled human insight. The tools may have changed dramatically, and our role has deepened, but the investigative spirit, perseverance, and unwavering commitment to excellence that defined Henley Research at 20 continue to drive us forward at 30. We are proud of our journey, our team, and the lasting relationships we’ve built.

To celebrate this incredible milestone, we celebrated clients, partners, former colleagues and current – photos below:

The escalating battle for STEM talent in defence

The escalating battle for STEM talent in defence

Executive Summary

The UK’s defence industry faces a critical talent shortage, posing a significant threat to its operational capabilities and national security. A perfect storm is brewing due to skill gaps in crucial areas like Artificial Intelligence, cybersecurity, robotics, and software development, compounded by an aging workforce and intense competition for STEM professionals from high-paying industries such as technology. Difficulties in retaining staff, evolving employee expectations, and a persistent lack of diversity further exacerbate these challenges, stifling innovation and narrowing the available talent pool.

This report underscores the urgent need for the defence sector to adopt innovative and strategic approaches to talent management. Key recommendations include comprehensive succession planning to safeguard institutional knowledge, the proactive development of external talent pipelines through collaborations with educational institutions, and significant investment in upskilling initiatives and internal mobility to bridge existing skill deficiencies. Furthermore, enhancing the employee value proposition through competitive compensation, flexible work arrangements, inclusive workplace cultures, and robust wellbeing programs is vital for attracting and retaining top-tier talent.

Examples from leading industry players, such as BAE Systems, illustrate that joint efforts between government and the private sector can yield substantial progress, particularly in addressing cybersecurity skill shortages and improving workforce diversity. However, continuous vigilance and investment are imperative to anticipate future skill demands and adapt to rapid technological advancements.

Ultimately, by embracing a forward-thinking, data-informed talent strategy, the UK defence sector can secure its technological advantage, bolster national resilience, and transform defence into a dynamic, innovative economic driver. Failing to act decisively risks falling behind global competitors in an increasingly unstable global landscape.

The Intense Competition for STEM Talent

The defence industry has historically relied heavily on individuals with backgrounds in Science, Technology, Engineering, and Mathematics (STEM). However, a concerning trend has emerged, with a recent report from Guidant Global indicating that a significant 83% of defence employers in the UK express concerns about a current scarcity of STEM talent. Fears are growing that the UK defence sector could fall behind global rivals as a direct consequence, especially as STEM skills are increasingly in demand across various other sectors, most notably the rapidly expanding technology industry. In 2024, the technology sector was identified as the highest-paying industry (Adria, 2024), making it unsurprising that STEM professionals might gravitate towards a career in technology rather than defence. The average starting salary in the UK tech sector is approximately £45,000, with experienced professionals potentially earning up to £120,000 (LSE, 2025). These figures significantly outpace many entry-level and mid-career positions within the defence sector. With major tech companies possessing the resources to offer more attractive salaries and benefit packages, the defence industry is struggling not only to retain its existing talent but also to attract new talent for the future.

What are the challenges surrounding STEM talent in Defence?

Skill Gaps in the Current Workforce

The skills required by the defence sector have undergone a massive transformation in recent years. In 2025, proficiency in areas such as Artificial Intelligence (AI), Software Development, Robotics, and Cybersecurity are fundamental for the defence sector’s operations. This represents a substantial shift from the skillsets that were essential when many defence professionals began their careers. Consequently, notable skill shortages and gaps have become evident within the existing workforce. For example, while traditional engineering disciplines remain important, the integration of AI into military systems necessitates a new generation of engineers with specialized expertise in machine learning (ML) and data analytics.

Currently, it’s estimated that only about 15% of engineers within the defence sector possess specific AI/ML expertise, creating a critical bottleneck in the development and deployment of advanced military capabilities (Engineering Council, 2024). Companies like BAE Systems and Raytheon Technologies have reported difficulties in finding engineers with the necessary experience to support next-generation platforms and digital warfare capabilities. This talent gap is further exacerbated by a global scramble for similar skills across diverse sectors such as fintech, space exploration, and large technology corporations.

This disparity between the traditional skills prevalent in much of the current workforce and the emerging demands presents a significant hurdle for the defence sector in maintaining its technological edge. This situation is a major concern, as a lack of expertise in modern technology and cybersecurity within the defence sector could leave the UK vulnerable to cyber-attacks. Without a skilled workforce capable of implementing and maintaining robust security measures, critical infrastructure and sensitive information face heightened risks. It will also make it difficult to maintain and upgrade existing systems. A talent deficit could result in the UK falling behind other nations in its defence capabilities.

The industry also faces two distinct yet pressing challenges: an impending wave of retirements threatens to erode decades of institutional knowledge, while simultaneously, there aren’t enough individuals entering the talent pipeline to absorb this accumulated expertise. Both Rolls-Royce Defence and Leonardo have identified succession pressures stemming from an aging workforce as a strategic concern, particularly within engineering, prompting accelerated succession planning and increased graduate intake schemes. The transition to a more digitally and AI-enabled defence force requires a meticulous transfer of expertise, alongside the crucial task of upskilling new recruits.

Securing qualified candidates is further complicated by non-compete agreements and lengthy security clearance processes, which contribute to bottlenecks in security clearance and onboarding. With delays extending to months or even years for hiring, clearing, and onboarding, many positions remain vacant, creating ripple effects on program timelines and delivery. The burden of security clearance disproportionately impacts emerging talent and lateral hires from outside the traditional defence domain.

Retention & Value Proposition

In addition to seeking new talent, it is crucial for the defence sector to effectively retain its existing workforce. Competitive salaries and comprehensive benefit packages offered by other industries can often entice defence employees to seek opportunities elsewhere. For instance, engineers trained in maintaining military aircraft are increasingly transitioning to robotics engineering outside of defence, where they are offered higher salaries (War on The Rocks, 2025).

Workforce expectations are evolving, with a younger engineering demographic increasingly prioritizing flexibility, a sense of purpose, and inclusive cultures. This further emphasizes the need for proactive Employee Value Propositions. Defence firms are adapting by actively soliciting feedback – enhancing career development pathways, introducing hybrid working models, conducting salary and total reward benchmarking exercises, and investing in sustainability initiatives to appeal to the next generation of talent. However, they continue to face strong competition from commercial tech firms that typically offer faster innovation cycles and less bureaucracy.

This retention issue is a significant factor contributing to the skill gap problem and will only intensify if not adequately addressed. As these challenges become more prevalent, there is an increased risk of employee burnout within the sector, as current employees face heightened pressure while attempting to compensate for personnel shortages. This could severely decrease workforce morale, consequently worsening retention issues as employees seek less stressful alternatives.

A Lack of Diversity

STEM fields are often contend with diversity challenges, and the defence sector is no exception, facing ongoing criticism regarding the significant underrepresentation of women and ethnic minorities – particularly in leadership and technical roles. For example, only 16.5% of individuals working in engineering occupations are women (Engineering UK). This highlights that fields vital to the defence sector exhibit a serious lack of diversity, further restricting the talent pool available to the defence sector. This absence of diversity not only limits the available talent but also impedes innovation and problem-solving by excluding a broad spectrum of perspectives and experiences.

Companies such as Lockheed Martin and Thales Group have integrated diversity and inclusion into the core of their workforce strategies, launching targeted outreach and internal development programs. Nevertheless, attracting and retaining underrepresented talent continues to be a major obstacle.

Cultivating a diverse and inclusive workforce can, among many benefits, foster innovation, drive improved decision-making, and support greater employee satisfaction. This can lead to a happier, more dynamic, and engaging work environment that supports organizational development, growth, and change. Ultimately, enhancing diversity will strengthen the sector’s capacity to adapt and innovate.

How Can These Challenges be Resolved?

The challenges outlined above indicate an urgent need for strategic and proactive solutions. Central to this is succession planning, which involves identifying employees who have the potential to fill future leadership roles and ensuring they receive appropriate training and development to prepare for when such a role becomes vacant. Providing targeted training, mentorship opportunities, and exposure to increasingly challenging responsibilities will equip these employees to seamlessly transition into leadership roles, making the process of filling a vacant position much less stressful and time-consuming.

Effective succession planning not only prepares an organization for when someone in a leadership role departs but also plays a crucial role in retaining top talent by offering these individuals a clear vision of their career progression within the organization. Knowing that opportunities for advancement exist and that their contributions are valued for the long term can significantly boost employee morale and confidence in the organization’s future, fostering a more stable and engaged workforce.

Building Talent Pipelines

While internal development is crucial, the defence sector must also proactively construct external talent pipelines to compensate for the significant STEM talent deficit. Moreover, if organizations within the defence sector only begin searching for talent once roles become available, they risk wasting time and enduring longer waits for positions to be filled. Building a talent pipeline resolves this issue, as it entails identifying and cultivating relationships with prospective talent before they are actually needed. This will ensure that the defence sector is prepared for its future talent requirements.

The initial step in establishing a talent pipeline is to anticipate what future skill gaps might look like and determine the skills future candidates will need. This involves considering upcoming technological advancements and the skills required to effectively utilize and manage this technology. Once the key skills have been identified, profiles outlining the ideal candidates should be created. These profiles should be tailored to specific roles and emphasize the essential skills, experience, and qualifications candidates would need. Subsequently, the process of sourcing and engaging with potential talent can commence. This involves building relationships with individuals who possess the required skills, even if they are not actively seeking new employment.

It is also important to engage with individuals at the outset of their careers. By engaging with students early, the defence sector can actively nurture the next generation of engineers, cyber specialists, and AI experts. This can be achieved through STEM initiatives in schools, apprenticeships, and graduate programs. Partnering with universities and colleges to offer internships, placements, and graduate programs would be an excellent way to cultivate the talent needed by the defence sector early on, preventing future skill gap issues.

Retention & Employee Value Proposition

For the Defence sector to retain its top talent, it must be able to offer competitive salary and benefits packages to prevent employees from being enticed to move elsewhere. Regular benchmarking against comparable roles in other sectors, particularly the technology industry, is essential to ensure that compensation remains appealing. The defence sector has made efforts to retain its staff, with the Ministry of Defence (MOD) implementing financial incentives, such as a £30,000 retention payment for a cohort of Tri-service aircraft engineers (announced in November 2024) (Gov.UK). Other financial incentives, beyond base pay and bonuses, often include life assurance policies and competitive employer pension rates.

While financial incentives can be an effective method of retaining staff, it is also important to consider alternative motivators. For instance, the defence sector can promote its unique value proposition by highlighting the fulfilling nature of mission-driven work and the direct contribution to national security. Additionally, if the defence sector cannot always match salaries offered by private organizations such as tech companies, there should be a broader focus on the overall employee value proposition. This means considering factors such as:

  • Transparent pay policies: Including clear, understandable pay progression frameworks.
  • Recognition: How exceptional work is rewarded, often linked to variable pay.
  • Meaningful performance measures: Clear and tangible indicators to motivate employees, where their input directly influences outcomes.
  • Non-financial employee benefits: Health and wellbeing initiatives, employee perks like retail discounts and memberships, and leave entitlements.
  • Working environment: Offering flexible working arrangements.
  • Company culture: Cultivating a positive company culture where everyone feels valued.
  • Learning & Development: Linking to career progression, with clear pathways for employee advancement.

The points listed above are all factors that could attract employees to the sector and make current employees less likely to leave. For example, non-financial employee benefits could encompass wellbeing perks such as free gym memberships, additional annual leave, childcare support, and flexible working arrangements. A particularly popular employee benefit is the provision of health cash plans. These allow employees to reclaim expenses for routine healthcare, such as dentist appointments, eye tests, physiotherapy sessions, and health screenings. This offers employees peace of mind regarding unexpected medical expenses and provides opportunities to bypass lengthy waiting lists by seeking private care. It also encourages employees to attend regular medical appointments, which can lead to earlier detection of health issues, reduced long-term absences due to illness, and an overall improvement in workforce health and wellbeing. Many modern health cash plans also include mental health provisions, such as access to 24/7 counseling helplines and therapy sessions. This can assist with stress management, contributing to a happier and more engaged workforce.

Furthermore, implementing attractive family policies (e.g., enhanced maternity/paternity pay and flexible or remote working arrangements) not only aids in retention but also contributes to addressing issues of diversity and inclusion. In particular, it will help to attract and retain more women, who often bear greater caring responsibilities and face more significant career interruptions when starting a family. Enhanced paternity leave also encourages a more equitable distribution of childcare responsibilities, further supporting women’s career progression and fostering a more inclusive workplace culture for everyone. By demonstrating a commitment to work-life balance through these supportive family policies, the defence sector can broaden its appeal to a wider and more diverse talent pool, attracting individuals who need to prioritize family alongside their professional aspirations.

Upskilling and Boosting Internal Mobility

While establishing long-term talent pipelines is crucial for future success, implementing strategies to enhance the skills of the existing workforce and promote internal mobility can offer more immediate solutions to address current skill gaps. Investing in comprehensive training and development programs can equip current defence workers with the new skills needed in emerging fields such as AI, cybersecurity, and robotics. Offering engaging and clearly defined career development opportunities within the sector also serves as a potent tool for employee retention. This approach is particularly effective as internal candidates often possess a deep understanding of existing processes and organizational culture, significantly reducing the time and resources required for onboarding into new roles. By fostering a culture of continuous learning and providing clear pathways for internal advancement, the defence sector can simultaneously address skill shortages and enhance employee engagement and loyalty.

How Can These Challenges be Resolved?

Industry Efforts to Tackle Talent Challenges: Case in point: BAE Systems

BAE Systems identified a critical risk to its succession planning as early as 2020, highlighting significant skills shortages and diversity gaps within its cybersecurity function. The 2019 (ISC)² Cybersecurity Workforce Study reported a global deficit of four million cybersecurity professionals and noted that just 24% of the workforce were women. The same study also revealed ‘major’ pay disparities across the sector.

While government initiatives, such as a £20 million cybersecurity skills program for 14-to-18-year-olds, were launched to address the issue, BAE Systems made a much more substantial commitment: investing £90 million in STEM programs across the UK, including targeted cybersecurity initiatives.

Recognizing the urgency of the skills gap, BAE has now trained approximately 3,000 apprentices and launched a national schools roadshow, reaching over 450 institutions throughout the UK. This proactive outreach enabled the company to engage with potential future talent early in their educational journeys, cultivating a pipeline of skilled professionals from diverse backgrounds.

This dual strategy, combining government support with private sector investment, has contributed to noticeable progress. According to the UK Government’s Cyber Security Skills in the UK Labour Market 2024 report, the number of cybersecurity graduates has increased by 34% since 2019. However, the study also found that women still only account for 17% of the workforce, indicating that gender representation remains a significant challenge in the field.

Further analysis by BAE Systems revealed that 90% of cybersecurity professionals believe the industry could do more to support Diversity, Equity, and Inclusion (DE&I) initiatives. Strikingly, two-thirds of respondents felt diversity was worse in tech than in any other UK sector. In response, BAE took deliberate steps to improve gender balance at the highest levels, appointing three women to its executive committee and publicly committing to achieving a 40% gender mix in senior leadership.

While BAE Systems appears to be making tangible progress on its diversity agenda, questions remain about the sustainability of its succession planning and overall skills resilience. The company must continue to horizon scan – investing in R&D, listening to employees, and building a diverse workforce with broad experience. As for what’s next? Industry insiders suggest that skills gaps in cryptography and communications security have doubled in recent years, from 12% to 24%, pointing to another looming challenge on the talent front.

Conclusion

The escalating competition for STEM talent is a challenge the UK defence sector simply cannot afford to overlook. The defence sector is confronting a growing talent crisis as it grapples with a perfect storm of skills shortages, succession risks, and evolving workforce expectations. As global threats change and technological innovation accelerates, defence companies are under increasing pressure to secure the right engineering and technical talent to maintain capability and readiness.

These significant skill gaps, coupled with a competitive global market for expertise and a lack of diversity, are all jeopardizing the nation’s defence capabilities. To maintain an operational advantage, defence organizations must adopt a more proactive and data-driven approach to talent intelligence. Without bold changes, this traditionally rigid sector risks falling behind both technologically and demographically, as other sectors embrace adaptability as the norm.

By embracing proactive strategies focused on robust succession planning, strategic talent pipeline development to forecast future skill needs, a compelling employee value proposition, and a steadfast commitment to upskilling and internal mobility, the sector can move towards a more secure and innovative future.

Talent Attraction Insights: Survey Results

Talent Attraction Insights: Survey Results

We surveyed Talent Acquisition Professionals across a range of sectors and business sizes to gain insights into how well utilised their employer brand is within talent acquisition, and how they believe it needs to work harder for them in attracting top talent in the future.

Could your Employer Brand be working harder for you?

77% believe their employer brand needs further development and adoption

Your employer brand will play an integral role in attracting new talent, so it’s important to get it right

Where do you think your employer brand should play a stronger role in the future?

Be proactive in discussing benefits, working environment and D&I initiatives in pre-employment conversations

What features most when talking with prospective employees now and will be more important to discuss in the future?

Key Actions

Understand the market

Ensure you have robust data and benchmarks to reliably inform pay and reward strategies

Gather Insights on how relevant external talent view your brand. Allowing you to address potential barriers ahead of time

Refine recruitment processes, ensuring TA/HR teams are well versed in your USP’s and can proactively drive a positive hiring experience

At Henley Research we have completed over 5000 talent research assignments across a wide spectrum of clients, roles, sectors and business sizes.

We are passionate about ensuring candidates have a premium recruitment experience as we see first hand how vital this is in attracting them to a new role. The employer brand plays a key part in making this process a success.

Getting this right in turn puts our clients in the best position to secure the top talent they need to achieve their business goals.

Please get in touch to find out how we can help

Great Feedback on Talent Mapping and Competitor Insight

Great Feedback on Talent Mapping and Competitor Insight

One year ago, Henley Research delivered a significant Talent Mapping and Competitor Insight analysis to a major international FMCG manufacturing client. This client asked Henley to look into its four major global competitors in North America and in Europe. Our brief was to identify all senior-level executives in roles related to Commercial, Marketing & Sales, Innovation, Business Development, R&D, General Management and Sustainability.

 

The reason our client wanted this information was essentially twofold:

 

  • They wanted to better understand their competitors’ organisational structures (so we provided org charts for each competitor by function by geography)
  • They wanted a list of potential candidates from their key competitors (we produced a detailed mapping report with over 700 profiles in total)

 

Our report was widely circulated within the client organisation to a range of senior stakeholders, and the market/competitor insight was well received. Last week we also received this feedback: “from the work that you did we have been able to make 40 hires and achieve around $1m in cost avoidance with recruitment agencies”.

 

This shows the value our clients can expect from Talent Mapping combined with Competitor Analysis, and the very real cost savings that can be achieved.

To find out how our services can help your business, please get in touch.

Email: helen.davies@henleyresearch.com

Tel: +44 (0)121 201 3333

Elevating Ethical Standards: We Join the Voluntary Code of Conduct for Executive Search Firms

Elevating Ethical Standards: We Join the Voluntary Code of Conduct for Executive Search Firms

As a responsible group, we are constantly seeking ways to enhance our operations, foster transparency, and promote ethical practices within our industry. We are excited to announce that we have recently taken a significant step towards achieving these goals by signing up to the Voluntary Code of Conduct for Executive Search Firms. This decision underscores our commitment to elevating our standards, benefiting not only our clients and candidates but the executive search industry as a whole.

 

Understanding the Voluntary Code of Conduct

 

The Voluntary Code of Conduct for Executive Search Firms is a comprehensive set of guidelines and best practices aimed at promoting integrity, fairness, and diversity in the executive search process. The code was developed collaboratively by prominent executive search firms and industry leaders to address the evolving challenges and opportunities in the field of executive recruitment.

 

Why We Chose to Participate

 

Our decision to join the Voluntary Code of Conduct is driven by our dedication to fostering an inclusive and equitable work environment for all. By adopting these best practices, we aim to improve the overall executive search experience, making it more effective, transparent, and respectful for our clients and candidates alike.

 

Key Commitments and Benefits

 

  1. Diversity and Inclusion: We firmly believe that diverse leadership teams lead to stronger organisations. By adhering to the code’s guidelines on promoting diversity and inclusion, we will proactively seek out candidates from all backgrounds and ensure a fair and unbiased recruitment process.

 

  1. Client Collaboration: The code emphasises open communication and collaboration between executive search firms and their clients. We are committed to understanding our clients’ specific needs and values to deliver tailor-made solutions and find the best possible candidates for their executive roles.

 

  1. Candidate Experience: We recognise the importance of treating candidates with the utmost respect and professionalism. Our adherence to the code ensures that candidates are provided with clear information about the recruitment process, feedback, and regular updates, thereby enhancing their overall experience.

 

  1. Confidentiality: Confidentiality is a cornerstone of any executive search process. By following the code’s guidelines, we guarantee the highest level of discretion when dealing with sensitive information, protecting the interests of both clients and candidates.

 

  1. Ongoing Improvement: Our participation in the Voluntary Code of Conduct reflects our dedication to continuous improvement. We will regularly assess and update our internal processes to align with the latest industry standards, ensuring that we remain at the forefront of ethical executive search practices.

 

By joining the Voluntary Code of Conduct for Executive Search Firms, we are taking a vital step towards promoting integrity, fairness, and diversity within our industry. Our commitment to adhering to these principles reinforces our passion for excellence and dedication to serving our clients and candidates with the utmost respect and professionalism.

 

Together, we can drive positive change, making the executive search process a more rewarding and inclusive experience for everyone involved.