Interview with Josh Haagsma, AND Digital London Club Executive, on how a lack of digital skills is jeopardising London business growth
Digital services company AND Digital has today released its The Nature of the Digital Skills Gap report, revealing 64% of workers in London believe a lack of digital skills is having a negative impact on their organisation.
The report which also looks at the UK-wide impact highlights over half (61%) of business growth depends on digital outcomes. Based on AND Digital’s estimations, this equates to £50bn is at risk per year across the UK economy, and more than £240bn between now and 2026.*
These findings are alarming at a city-level, with 28% of businesses in London attributing employee churn, a loss of talent or difficulty attracting talent within their organisations to a lack of digital skills. Critically, nearly a fifth (18%) also say it has impacted either their ability to hit business targets, made them lose customers or key business opportunities. Yet, this issue is compounded by the fact that more than half of (52%) workers in London admit they have not received digital upskilling from their employer.
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. Overall, the research highlights that urgent action to digitally upskill the UK’s workforce could help its chance of economic recovery.
Workers are not receiving adequate upskilling to meet required growth
AND Digital found that almost a third (30%) of workers in London feel they lack sufficient digital skills for their current role, but a fifth (19%) say their employer does not offer digital skills upskilling. Of those London employers that do prioritise upskilling, over half (53%) of employees believe their organisation only sees it as a worthwhile investment for obvious tech-focused roles.
A widespread misunderstanding exists of what digital skills means
A widespread misunderstanding of what digital skills actually means presents a further barrier to closing the gap. Over a third (34%) of respondents in London believe it means 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. Skills such as constantly evolving the way they work to keep up with innovation (29%) and being experimental in their role using digital tools (21%) came further down the list.
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.”
Inadequate upskilling is also impacting individual careers in London
Despite the misunderstanding of what digital skills are, as well as a lack of current digital training, there is a clear appetite for upskilling in London. Over half (51%) of respondents stated that improving their digital skills is essential for their career progression – whether that’s earning more or performing better in their role. But workplace perceptions present a barrier, with four in 10 (43%) of London workers feeling daunted by the prospect of digital upskilling and not feeling comfortable bringing it up with their employer.
A lack of digital skills growth is directly impacting career progression, with almost three quarters of (73%) of those in London saying they have been affected negatively by a lack of digital skills. Over a quarter (28%) of these say it has meant being turned down from either pay rises, promotions or not putting themselves forward for promotion. One fifth (22%) say it has stopped them from applying for a certain job and 18% have felt they either had to quit their jobs or leave their industry.
AND Digital launches a new London club
The Nature of the Digital Skills Gap report comes as it launches its latest London club – its sixth in London – which will be fundamental to helping accelerate the digital capabilities of businesses in the city.
The club will be led by newly appointed Club Executive Josh Haagsma. Having previously led the Europe region of digital products company Tigerspike (now Concentrix Catalyst), Josh is experienced in the interplay between commercial results, people, delivery excellence and growth which digital services organisations require.
Josh Haagsma, AND Digital London Club Executive, said: “Despite the digital skills gap discussion persisting for over a decade, London 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.
“London is a terrific centre for diversity which results in amazing potential for innovation and testing ideas at scale. London organisations must harness this potential and prioritise digital upskilling – ensuring individuals, teams and organisations as a whole in the region are fit for a digital present and future, and helping to prevent economic stagnation.”