UK businesses find the workforce the hardest single factor to plan for when considering the future success of their business, according to research by Barclays Commercial Bank.

The research found that in 79% of business plans, people strategy beats off marketing and sales, financial forecasts, risk management and environmental and corporate responsibility policies as the most difficult part of a business plan to get right. This challenge is compounded for many companies by the issue of skills shortages, with 42% saying this represents a significant threat to their business.

It found that 31% of companies say that an injection of new talent and skills would have the single greatest impact on their competitiveness over the next 12 months. This was considered even more important than business expansion via merger/acquisition (27%), additional cash flow (21%) or trading overseas (13%).

The research found that 42% of businesses have already invested more in recruitment and employee development during the past 12 months.

Alexander Baldock, commercial director at Barclays Commercial Bank, says: "It's revealing that people-related issues such as the skills gap, retention and succession planning are seen by businesses as the hardest thing to get right when planning for the future. Business leaders have been talking for some time about 'the war for talent' and this research shows just how tough it is to develop a successful people strategy.

"However, despite clear thinking about the impact these issues may have on a business, it's not always translating into solid, strategic action."