How the defence sector is battling a skills crisis

Earlier this year, the Ministry of Defence unveiled plans for a substantial £1 billion investment in artificial intelligence-powered battlefield systems and announced the establishment of a new Cyber and Electromagnetic Command. However, the military and its supply chain partners are finding themselves in fierce competition with technology firms and the broader business world for specialists in these critical fields. This summer, a government report highlighted the sector’s "strong requirement for STEM skills," expressing particular concern about a shortage of these skills originating from the school system. The identified gaps span a wide spectrum, from essential craft skills, such as those held by electrical engineers and welders, to emerging competencies like digital technologies, cybersecurity, and green technologies. This widening skills gap poses a significant threat to the government’s ambitious plan to leverage the defence sector as a key engine for economic growth across the nation.

Phil Bearpark, who specializes in defence recruitment at the firm Reed Talent Solutions, observes that public support for the military may not be as pronounced as in previous eras. He posits, "Does that leak into the defence industry? I’d say yes, it’s intrinsically linked." However, he acknowledges that this ethical consideration is just the starting point of the recruitment challenges. Louise Reed, solutions director at Reed, elaborates on the evolving mindset of younger generations, stating, "Gen Z have got a different mindset when it comes to what they want from work, and morals, ethics, come into it. They want to work for very green companies that give back and have a purpose."

The defence sector is acutely aware of this perception and is actively working to reframe its narrative. Colin Hillier, CEO of Mission Decisions, a company developing AI and machine-learning technology for defence, emphasizes the broader applications of the sector’s work. "If you look at what the defence sector does, a very small proportion is making a kinetic thing that blows up," he explains. He points to the dual-use nature of technologies, citing the example of helicopters used by the Royal Navy for operations also being deployed for rescue missions and disaster relief.

French technology giant Thales, with its substantial defence business, also operates across cybersecurity and critical national infrastructure. Lindsey Beer, Thales UK HR Director, highlights the company’s commitment to showcasing the wider societal impact of its innovations. "We also create a huge amount of technology that protects people through every facet of their life," she states. To this end, Thales engages in extensive outreach programs, beginning at the primary school level, to educate the public about its work and to foster the development of STEM and digital skills more broadly.

Beyond the branding challenges, the industry recognizes the need to address its perception as a rigid and conservative sector compared to other industries. Alex Bethell, a final-year computer systems engineering student at Bath, completed his industrial placement with a defence-related firm and expressed a desire to continue his career in the sector. However, he voiced concerns about potentially working on "slightly older systems" that might require maintenance for extended periods. He noted that his peers are eager to engage with cutting-edge technology, focusing on design and advanced verification testing. This preference could make smaller, innovation-focused firms with younger workforces more attractive to emerging talent than traditional, large-scale "prime" contractors.

The defence sector’s historical reliance on individuals with ex-military backgrounds, while providing valuable subject matter expertise, can inadvertently narrow the pool of potential candidates and may deter younger recruits. "They’re essentially the subject matter experts," explains Mr. Hillier. "So, we need them to understand how our customer thinks, to support what we’re developing." However, he advocates for a broader recruitment approach for engineers, suggesting that individuals without military experience may bring diverse skills that can be highly beneficial.

Thales actively encourages its employees to upskill and transition between various roles, encompassing areas from procurement and program management to digital skills development. In addition to its graduate and apprenticeship programs, Thales is increasingly focused on attracting career switchers from civilian tech companies and other industries. A recent recruitment initiative successfully brought in individuals with diverse backgrounds, including former teachers and a chef, according to Mr. Guy. Thales also collaborates with universities and colleges to ensure that curricula align with the skills the sector requires.

However, Mrs. Reed suggests that defence firms should broaden their recruitment horizons beyond the university sector, particularly as higher education is "not particularly open to all anymore." She notes that one company she is assisting recognized its graduate-only policy as a "door closer" and has since shifted its focus to recruiting non-graduates who possess transferable skills and can be trained. These efforts appear to be yielding some positive results, as Mr. Bethell observes that approximately half of his cohort undertook their industrial placements with defence or defence-adjacent companies.

Caleb anticipates that a significant portion of his peers will ultimately find employment within the defence sector, even if it wasn’t their initial career aspiration. "When everybody turns up at uni, they’re like, ‘I’m going to make video games in my basement, come up with this amazing idea and sell it for millions’," he muses. "Then they start to realize that actually that might not happen. And they might just need to get a job."