The rapid advance and uptake of technologies such as AI and the cloud in business are fundamentally disrupting how, where and even when we work. Employers are transforming their business models and processes to keep pace with such developments, but alongside this comes the need to ensure that their employees have the appropriate digital skills.
For an idea of the scale of the training intervention required, consider the OECD’s recent estimate that technological change will transform about one billion roles – about one-third of all jobs in the world – before the end of this decade.
“It’s forecast that digital transformation could grow the UK economy by more than £413bn by 2030,” says Alexeis Garcia-Perez, professor of digital business and society at Aston University. “But, despite the accelerating digital transformation, persistent gaps in digital literacy across the workforce threaten the country’s long-term competitiveness.”
He cites a recent study by Future Dot Now, an industry-led group working to improve the population’s digital skills, as evidence that more needs to be done across society. Its research has found that almost 60% of the UK workforce (about 23.4 million people) cannot perform all 20 digital tasks that the government has defined as essential for work.
“As we make the transition to a knowledge economy and jobs are transformed by technology, employees who lack the adaptability enabled by digital fluency risk structural unemployment,” Garcia-Perez says. “For businesses, this would represent a challenge to recruit, execute new strategies and keep pace with change. Investing to cultivate a culture of continuous learning and to improve access to digital skills is therefore key.”
The role of business
While almost all businesses understand the need to develop their employees’ “digital fluency”, it’s hard for them to plan exactly what combination of skills they’ll require in the medium to long term. Indeed, 45% of UK employers believe that most vacancies they’ll be trying to fill in 2030 don’t currently exist, according to a recent survey of business leaders by Adecco in the UK.
Dealing with this challenge requires rethinking our approach to talent management. With the demand for tech skills far outstripping the supply, employers are increasingly looking to upskill existing employees and target under-represented talent pools with digital training. Take banking giant JPMorgan Chase, for instance. In 2019, it committed $350m (£290m) to a training programme aimed at preparing itself for a digital future. This included piloting new courses in tech skills and establishing partnerships with colleges.
Dr Antonio Weiss is an expert in digital public services and the author of the 2022 book The Practical Guide to Digital Transformation. He believes that many firms could – and should – be making it easier for their employees to pick up the skills they require.
“Digital skills development needs to tie into the day-to-day work of staff. If it’s separate, the skills won’t be embedded as easily.” Weiss says. “And, when deploying new software or hardware, employers should look to solutions that are well attuned to the digital skills of their workforce. Anything that requires significant training probably isn’t an appropriate solution.”
Long-term strategy
He stresses that employers need to be tuned into wider changes in the digital world so that they understand the human impact of new tech. Moreover, any transformation project must focus on the specific needs of the business, rather than being driven by the latest technological trend.
“Leadership teams need to be digitally curious and serve as role models in this respect. They should set a digital skills ambition that is appropriate to their sector and driven by their strategic goals, rather than the latest digital fads,” Weiss warns.
Garcia-Perez argues that more coherent and joined-up planning by stakeholders at all levels is vital if UK plc is to meet the challenges posed by the digital transformation of business.
“Targeted strategies and coordination between governments, employers and educators are required to digitally prepare the workforce,” he says. “Apprenticeships, vocational programmes and knowledge-transfer partnerships that develop digital skills must be expanded.”
Employers must also understand that the need for more and better digital skills training will persist over the coming years. Developing new ways to learn and creating enough space and time for employees to do so will be crucial, Garcia-Perez adds, as inaction is not an option.
“A digitally literate workforce that can design and implement digital transformation initiatives will be a key competitive asset,” he says. “Developing talent by giving people access to the digital skills required for existing and emerging roles is essential for innovation, participation and economic growth.”
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