The Digital Skills Gap – Why It Exists and How Solving It Accelerates Business Success

In a bid to address the critical digital skills gap, the UK government’s previous initiatives have fallen short, leaving businesses grappling with the consequences. Rishi Sunak’s £3bn funding promise in 2021 was a mere drop in the ocean, while Liz Truss’s ‘growth’ plan in 2022 ignored the pressing need for skills development, resulting in a staggering £63bn loss to the economy. The time has come to address shortcomings in the UK’s business landscape and find a fresh approach to digital skills training to make the UK ‘fit for the future.’

To do so, this article focuses on Econsultancy’s latest report – Winning the Race for Digital Skills – and the numerous learning and development (L&D) insights contained within.

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The Digital Skills Dilemma: Good News and Bad News for UK Businesses

A stark reality haunts UK businesses: over two-thirds admit lacking the necessary digital skillset to achieve their objectives, with 27% claiming proficiency. The correlation between digital skills and growth is undeniable, with 83% of executives acknowledging its impact on their company’s success. Moreover, a staggering 92% report the pressing need for skills that are new to their business, while 79% believe that education and training are vital for digital transformation.

To add fuel to the fire, a shortage of digital talent has left 54% of enterprise organisations scrambling to retain their competitive edge.

While recognising the gravity of the skills gap is a step in the right direction, this understanding is overshadowed by a lack of tangible solutions to ‘bridge’ this gap.

Why does this gap persist despite widespread acknowledgment?

Firstly, time and resource constraints hinder comprehensive training that delivers a substantial return on investment. Economic downturns exacerbate these challenges, as businesses scrutinise their resources and bottom-line objectives.

Secondly, the lightning-fast pace of technological innovation further compounds the issue. Digital transformation remains a top priority, yet the continuous influx of new tech leaves L&D departments struggling to keep up. In a mere four years, the frequency of necessary digital marketing skills updates has skyrocketed, with professionals now requiring new skills training at least monthly, up from a quarterly basis. Identifying and prioritising the right digital skills training within limited budgets has become a formidable task.

Hiring employees equipped with the required skills, and fostering knowledge transfer within existing workforces, has proven equally arduous. The exorbitant costs and time-consuming nature of hiring deter businesses from fully bridging the skills gap. Conversely, senior staff recognise that training and education offer the fastest (70%) and most cost-effective (61%) route to bolstering general digital skills. Regrettably, only 43% of executives believe their organisation excels at training to meet strategic objectives.

Lastly, employee resistance to additional training poses a significant challenge. While expanding learning opportunities yields tangible benefits and job satisfaction, nearly a third of employees fail to recognise the value of further training. Encouraging active participation requires raising awareness of available training options and the accompanying skill enhancements.

Addressing the Skills Gap: Unlocking the Potential of UK Businesses

The narrative surrounding skills gaps in UK businesses is undergoing a significant shift. Previously plagued by limited prioritisation and inadequate budgets, learning and development (L&D) have now taken centre stage. However, significant barriers in the form of time and cost continue to hinder progress. To bridge these gaps effectively, certain considerations and practices must be embraced.

Identification: Targeting the Right Solutions

For optimal results, L&D strategies must align with business objectives. This entails proactive and transparent identification of existing skills gaps across departments, without siloing training efforts. Addressing immediate issues and pre-empting future gaps require prioritisation of training programs that yield the greatest impact on job roles and overall operational performance.

Collaboration: Driving Change from the Top

Action follows identification, and the implementation of new learning strategies necessitates close collaboration between L&D professionals and senior leadership. Justifying the need for training and articulating the required learning platforms are essential for securing investment, fostering transparency, and driving engagement throughout the organisation.

Employee Support: Cultivating Motivation

Motivating employees to embrace new skills is pivotal to a successful L&D strategy. Tailoring programs to align with employees’ career goals and personal development plans enhances engagement. Interestingly, when development programs align with career aspirations and offer diverse learning options, only 19% of employees struggle to find time for training.

A well-rounded digital skills training program serves two vital purposes: equipping employees to meet current tasks effectively and enhancing their capabilities for future endeavours. Research demonstrates that blending various learning modes and offering on-demand learning for specific tasks leads to superior outcomes. Multi-modal approaches prove 35% more effective in conveying the tangible benefits of learning compared to programs heavily reliant on a single method (68% vs. 48%). Notably, executives at companies investing in multi-modal L&D are significantly more confident in their organisations’ ability to meet business goals (57% vs. 27%).

Motivation remains a crucial consideration. Some employees may lack the appetite for acquiring new skills, but incentivising activities can help overcome this hurdle. Skill-based awards and highlighting programs as stepping stones to promotion serve as effective incentives. Moreover, celebrating employees’ qualification in specific skills or the attainment of accredited qualifications reinforces engagement.

Additionally, gaining employee feedback is imperative for analysing and optimising learning programs. Understanding the perception of specific courses enables businesses to tailor them more effectively to particular departments, fostering enthusiasm among participants and attracting others to partake in new courses as they become available.

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Tracking: Measuring Impact for Continuous Improvement

Investigating, planning, and implementing new training programs must be accompanied by post-training impact tracking. Key performance indicators (KPIs), including long-term business metrics such as revenue increases or cost reductions, should be established beforehand. Evaluating performance, particularly on campaigns where newly acquired skills are most applicable, provides valuable insights. Collaborating with peers aids evaluations and stimulates discussions about the benefits and areas for improvement in courses.

Navigating the Tech Landscape: Discerning Relevance

While it’s tempting for businesses to chase the latest technology trends, such pursuits often divert resources from learning initiatives that can yield more immediate and substantial results. Vigilance is crucial when assessing the specific benefits of emerging technologies before launching training programs. Prioritising real-world applications and suitability over trendy tech ensures effective utilisation of resources.

Embracing the Future

UK businesses recognise the urgent need for more effective digital skills training. Economic uncertainty has posed challenges for L&D investment. By clearly identifying existing and future skills gaps, collaboratively implementing training courses, and enhancing transparency around new initiatives, businesses can address critical gaps in their operations. This proactive approach encourages training engagement and operational benefits to keep pace with the speed of digital transformation, giving them advantages over competitors who have not fully deliberated their own skills gaps.