Companies need to re-focus on digital skills

The world is living through a skills crisis – and the situation is particularly acute in the digital space.

A survey by Qlik found that just 11% of employees are fully confident in their data literacy skills. In addition, only 27% have had formal data literacy training and just 21% of employees believe their employer is preparing them for a more data-orientated and automated workplace.

In addition, Salesforce’s survey of 23,000 global workers found that 40% said they were very prepared for digital skills now, but this dropped to 34% when asked about the next five years. 73% said they did not feel equipped to learn digital skills now, this rose to 76% for 2027.

All of this data is confirmed by new research by WTW (formerly Willis Towers Watson). A survey of 1,650 employers found that 78% were having issues attracting and retaining digital talent, particularly in artificial intelligence (AI), cybersecurity and analytics.

This feeds into the fact that just 15% of employers are prepared for future digital transformations – and 9% have not taken any action.

The need for digital upskilling

These figures from WTW and Qlik are concerning because the remote future of work requires not only technology, but also digitally skilled individuals to operate effectively in this new paradigm.

So what should companies do?

WTW digital product lead for work and rewards Michiel Klompen commented: “The ongoing shortage of digital skills is pressing companies to take a different approach. Those that choose a wait-and-see approach will likely continue facing their current recruitment struggles.”

Instead, they need to rethink who they hire, and who they focus on retaining. Yes, the world is living through a talent shortage – dubbed the ‘Great Resignation’ – but in this context, it is crucial that employers focus on what skills they need to thrive in the present and the future, and prioritize that talent.

To help here, WTW found that two in three European organizations are going to offer tailored rewards to those workers with digital, and future-focused skills. Klompen noted: “To design a competitive rewards package, companies need to have access to insights on the digital skills that are emerging – as well as those that are cooling off- and how they impact pay.”

Companies need to invest in upskilling at work, but also keeping track of what skills you actually need to thrive. Currently, less than one in three companies are effectively using analytics to track and measure skills.

The final thing to do is ensure that you are not just prioritizing learning, but also development.

Just 36% of the companies surveyed by WTW had a formal, defined career development path. But high performing organizations were 21% more likely to already provide career paths.