Creating effectives leaders has become the top HR priority for businesses this year, according to research by business advisors Deloitte.

Deloitte’s UK Human Capital Trends 2014 showed that this theme grew in importance over the last 12 months and rose from fourth place last year to number one on the priority list.

“Re-skilling the workforce” was second on the index, with retention and engagement, and talent management third and fourth respectively.

The news hints at a sharper focus on skills and motivation as the UK's economic recovery gathers pace.

"Developing leaders is one of HR's most important function," said David Parry, head of Deloitte UK's human capital practice. "Sadly, however, while leadership is listed as the top priority for UK organisations the readiness to address this issue remains low.

“There is a ticking time bomb aspect to this trend, as there is strong evidence to suggest that Millennials are not being sufficiently engaged and developed as future leaders and pathways to leadership for all employees aren't clearly defined."