Digital services company AND Digital released its The Nature of the Digital Skills Gap Report, which revealed that more than half (61%) of the business growth is dependent on digital outcomes. Most (81%) of managing directors admitted that a lack of skills in digital areas has a negative effect on their organization.
According to AND Digital’s estimates, this is equivalent to PS50bn annually across the UK, and over PS240bn by 2026.
The findings are alarming. Over a quarter of businesses (27%) attribute employee churn or loss of talent as well as difficulty in attracting talent to the lack of digital skills.
Over a fifth of respondents (22%) say that it has affected their ability to achieve business goals and caused them to lose clients or important business opportunities.
This problem is exacerbated by the fact almost half of all workers (58%) admit that they did not receive digital upskilling training from their employers.
Digital Skills: Workers are not getting the upskilling they need to meet growth requirements
AND Digital found that almost a quarter of respondents (22%) do not feel they have the digital skills to perform their job.
Of the employers who prioritise skills upskilling for their employees, only half (52%) believe that it is a good investment in tech-focused jobs.
There is a widespread misconception about digital skills
The widespread misunderstanding of what digital skill means is a barrier to closing the gap. Over a third of respondents (35%) believe that it is the ability to solve IT problems.
Nearly half (47%) of respondents believe that digital skills are the ability to program, code, or build a mobile/computer application.
The list was ranked by skills such as being able to adapt their work style in order to stay up-to-date with the latest innovations (34%) or using digital tools for experimentation (26%)
Paramjit Uppal is the founder and CEO of AND Digital. He said: “Digital Skills are so much more than technical skills. This includes soft skills like empathy, creativity, teamwork, and product management. These skills are essential for the digital future and business success. .”
Individual careers are also affected by inadequate upskilling
There is an appetite to upskill despite the lack of digital training and the misunderstanding of digital skills. The half (49%) of respondents said that improving digital skills was essential to their career advancement – whether it be earning more money or performing better at their job.
However, workplace perceptions are a barrier. Four in ten (42%) workers feel intimidated by the prospect and do not feel comfortable discussing it with their employer.
Six in ten (58%) say that a lack digital skills has negatively affected their career. Nearly a third of people (29%) claim that it led to them being denied pay raises, promotions, or even not applying for promotion.
One-fifth (20%) of respondents say that it stopped them from applying to a particular job, and 16 percent felt forced to leave their current jobs or industry.
Paramjit Upadal, founder and CEO of AND Digital, said
“Despite the digital skill gap debate spanning over a decade in the UK, organisations still fail to adequately upskill their employees. This directly impacts business and wider economic development. We haven’t reached a consensus on what the digital skills gap or the skills gap itself is. This is necessary to close the gap.
And Digital believes that in order to close this gap, the UK workforce needs eight million people with digital skills. Even the most efficient recruitment teams will have trouble with this number. It is important that organisations prioritise the digital upskilling of their employees, teams, and organisation as a entire. This will help to prevent economic stagnation.
