Australian businesses are in the midst of a digital skills crisis, with the digital skills gap costing Australian businesses $3.1 billion annually, or as much as $9 million per day, according to new research from RMIT Online and Deloitte Access Economics. It became clear that the Closing the current digital skills gap requires a significant $1.5 billion investment.
The report suggests that companies are missing out on new business opportunities, spending more money on outsourcing costs, and experiencing lower productivity due to the digital competency gap.
nevertheless recession economic forecast, 80% of business owners and managers expect to hire at least the same number of employees this year as last year.
Investing in employee digital skills training is essential
Claire Hopkins, interim CEO of RMIT Online, said key business owners are aware of the severity of the problem and are focusing on training.
“It is essential for companies to invest in employee capabilities When building an efficient and robust workforce. Demand for digitally savvy people will only increase, and businesses will suffer financially if they do not take action to close these gaps.”
Fortunately, companies seem to be embracing training as a way to keep staff motivated and engaged.Preferred by nearly half (48%) of surveyed employers upskilling or reskilling of existing employees; They believe that internal solutions create additional benefits such as better retention, stronger team culture, and better cost-effectiveness, which is why they are superior to hiring externally.
Hopkins agreed, saying, “While paying employees up front to learn and refocus may seem daunting, adopting this proactive approach now will lead to huge savings down the road. It is clear,” he added.
Top digital and soft skills
A third of employers believe that employees should update their skills at least every three months, but many employees feel that time is scarce, costs are high, They cite barriers to training, including lack of support from employers. Additionally, the most valuable types of training for employees were mandatory on-the-job training, formal qualifications, and formal certifications.
John O’Mahony, partner at Deloitte Access Economics, said: digital skills training It can lead to lost revenue, additional costs of outsourcing work to external staff or contractors, and lost productivity. That’s why training is an investment, not just a cost. “
The survey also revealed that businesses are anticipating continued demand. soft skillsEmployees see leadership as the most important skill in the next five years (27%), and employers see communication and collaboration (14%).
The report also delved into why employees are drawn to the company and why they leave. Business culture is important to employees, but higher wages followed by flexible working hours are cited as the number one reason people are attracted to jobs. However, when it comes to leaving, workplace culture (33%) and feeling unappreciated by management (33%) are among the top reasons employees leave their jobs.
Learn more about Ready, Set, Upskill reports here.