Digital skills shortage hampering UK business growth

More research is released this week which adds to the growing pile of evidence that the digital skills crunch is limiting business growth.

The research commissioned by AND Digital, which surveyed 5,000 UK workers who use technology in their roles, analysed the digital skills capabilities at an individual, team and organisational level. It adds to the already weighty body of evidence that the shortage of digital skills is holding back UK businesses and shows that urgent action to digitally upskill the UK's workforce would benefit individuals, business and the economy overall.

The research reveals that 61% of business growth depends on digital outcomes, with 81% of managing directors admitting that a lack of digital skills is having a negative impact on their organisation already.

It is also clear from the research that misunderstandings still persist in terms of what exactly constitutes digital skills. 35% of workers surveyed believed that digital skills were primarily about the ability to fix IT issues. Similarly, almost half of respondents (47%) believe digital skills means either the ability to code and programme, build a website or create mobile/computer applications.

Computing has recently discussed the implications of these limited definitions of digital skills, and in particular the still widely held belief that digital equals technical. The more these perceptions linger, the harder it will be to close the digital skills gap as potential entrants to the market remove themselves from it on the basis that they can't code. Skills such as constantly evolving the way that you work to keep up with innovation and being experimental in a role using digital tools are important digital skills but much smaller proportions of those surveyed (34% and 26% respectively) considered them to be so.

Paramjit Uppal, Founder and CEO, AND Digital, said: "Digital skills mean so much more than just technical skills. It also includes professional skills, such as product and delivery management, and soft, human skills such as empathy, creativity and teaming. Individuals and teams with such skills are vital in creating a digital future, and for businesses to see continued growth and success.

Limited careers equals limited growth

Given the issues that the shortage of digital skills is creating for businesses, it is intuitive to think that employers would be investing in upskilling staff. However, the research uncovered a disconnect between employers and employees with over a quarter (27%) of UK workers feeling they lack sufficient digital skills for their job role. The research did uncover a certain appetite for upskilling, with 49% of respondents stating that improving their digital skills is essential for their career progression. However, 58% had not received digital upskilling from their employer.

This disconnect is having a deleterious effect on individual career progression and employee retention. 29% of those surveyed say it has meant being turned down from a pay rise or promotion or have simply avoided 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.

In addition to damaging individual prospects and life chances, businesses who aren't upskilling their staff are damaging themselves too. 27% of businesses attribute employee churn, a loss of talent, or difficulty attracting talent to a lack of digital skills. Critically, over a fifth (22%) admit it has impacted their ability to hit business targets, made them lose customers or key business opportunities. Of those employers that do prioritise upskilling, half (52%) of employees believe their organisation only sees it as a worthwhile investment for obvious tech-focused roles.

Uppal said: "Despite the digital skills gap discussion persisting for over a decade, UK organisations are still failing to sufficiently upskill employees, and it is directly impacting business and wider economic growth. This is because we have not come to a shared understanding of what the skills gap is or what digital skills means - this needs to be done to move forward and close the gap.

"In the next three years, AND Digital estimates the UK workforce will require eight million individuals proficient in digital skills to close the gap. A number which even the most effective recruitment teams will struggle with. This means organisations must prioritise digital upskilling - ensuring individuals, teams and organisations as a whole are fit for a digital present and future and helping to prevent economic stagnation."