Evidence of a growing digital skills gap has provoked panic in recent years, yet it remains a challenge that requires urgent action across businesses. As the champions of people, HR professionals will play a crucial role in helping organisations navigate and overcome this challenge.
Our recent report, “The Nature of the Digital Skills Gap”, found over half (61%) of UK business growth is dependent on digital outcomes. Our estimations equate this to £50bn per year across the UK economy, and more than £240bn between now and 2026. In short, digital is important for businesses – and so should digitally upskilling employees.
However, we found a distinct lack of digital skills within businesses – with over a quarter (27%) of workers admitting they don’t have the right skills for their job. What’s more, over a fifth (22%) of business leaders believe a lack of digital skills has already impacted them – seeing business targets unfulfilled, or customer relationships and key business opportunities lost as a result.
What do digital skills mean for you?
For HR leaders to help close the digital skills gap and enable their businesses to have a digital future, organisations need to first understand what digital skills actually mean for them. They need to have a grasp on the gap that currently exists in both people and technical capabilities and why having employees digitally upskilled is important for the individuals they employ, teams they put together and the business as a whole.
Only then will HR and L&D professionals be able to build effective upskilling and training programmes that benefit all.
Six in 10 (58%) workers say they have been affected negatively by a lack of digital skills.
Instilling a culture of continuous learning is crucial
Our report found that people in all roles have insufficient access to digital skills and upskilling. In fact, a quarter (22%) of workers claim that their company does not offer digital upskilling at all. What is equally worrying is, as many as four in 10 workers (42%) say they feel daunted by the prospect of digital upskilling and are uncomfortable acknowledging gaps in their knowledge with their employer. This statistic rises to 55% for those in more senior leadership and C-suite roles.
This is simply not good enough. It’s imperative for UK businesses and HR teams to make the first move in fostering a culture that encourages their people to come forward and talk about their upskilling needs. Otherwise, the impact of not doing this will be detrimental for both businesses and the people they employ.
Investment in the people behind the innovations will be the reason some organisations are able to stand apart from the rest.
Interestingly, according to our research, six in 10 (58%) workers say they have been affected negatively by a lack of digital skills. Almost a third (29%) say it has meant being turned down from either pay rises, promotions or not putting themselves forward for promotion. One fifth (20%) say it has stopped them from applying for a certain job and 16% have felt they either had to quit their jobs or leave their industry.
These findings alone should be enough for businesses to place digital upskilling as a top priority - not only for growth but for employee morale. With a mutual understanding of people’s needs HR professionals can guide such initiatives.
In the current cost-of-living climate it is understandable, more than ever, for people looking for support from employers. Carving out bespoke upskilling programmes tailored to suit peoples’ specific needs and a clear progression path will instil confidence in workers' and help them see a positive future in the business - whether that’s heading towards a new role, a pay boost or something else.
Align upskilling opportunities with individual, team and business needs
Realising ambitious digital growth targets will mean empowering people with the right skills – ones that are adaptable and interchangeable as technological innovations come into existence. A fifth (21%) of workers told us that they found the upskilling they have received was unhelpful for their career development or job. To see more impact, training and upskilling needs to align with a company’s growth trajectory.
Tailoring upskilling to employees is also important when we think about the format of training – as not everyone likes to learn the same. For example, we found four in 10 (40%) people expressed a preference to learn from others on the job alongside formal training, but just 23% of leadership say they prioritise this type of upskilling.
There is ample evidence that experiential learning produces better learning outcomes. On-the-job training allows those with less experience to pick up a range of skills from more experienced colleagues, allows for learning tailored to the individual, and complements well-structured formal learning. It will be key these things are top of mind for people professionals developing upskilling and training programmes.
HR and L&D professionals must create an environment in which people can be themselves, explore possibilities and thrive.
Put people at the core of your digital future
Investment in the people behind the innovations will be the reason some organisations are able to stand apart from the rest.
Closing the digital skills gap in your teams and with your people will likely start with acknowledging that it is made up of a multiplicity of gaps. Then, finding a shared understanding of what those gaps are for your organisation. Only then will businesses be able to take effective action and people teams able to support them.
As we look to the future, with the potential of a recession and other constraining factors on the jobs market, HR and L&D professionals must create an environment in which people can be themselves, explore possibilities and thrive. It’s in those conditions where businesses can embrace the transformative power of tech and be prepared for whatever comes next.
