British companies are confronting significant technology skills gaps, prompting innovative strategies to bridge them.
- 72% of UK businesses report technological skill shortages, a rise from last year’s figures.
- Docusign’s report highlights increased technology investments, yet productivity and digital maturity remain stagnant.
- Organizations adopt quiet hiring and AI to mitigate the impact of skill deficiencies without expanding headcounts.
- Efforts center on upskilling and retraining employees, with AI tools like Chat GPT being pivotal in addressing these gaps.
In the face of challenging economic conditions, British firms are increasingly investing in digital transformation. Despite these efforts, as highlighted in Docusign’s Digital Maturity Report 2024, there has not been a corresponding improvement in productivity or digital maturity. Research involving 600 decision makers in the UK and Ireland unveils a paradox wherein technological investments are climbing, yet manual processes continue to consume significant time, leading to increased worker dissatisfaction and consideration of job changes.
Currently, a vast majority—72%—of business decision-makers have reported skills gaps within their companies, marking an increase from the previous year. Specifically, deficiencies in AI, data analytics, and security are prevalent, with 63%, 62%, and 61% of organizations respectively identifying these as areas of concern. This skills shortage is significantly affecting business operations, as 53% of respondents noted a material impact on their ability to meet strategic objectives, with many stymied in their efforts to experiment with innovative technologies.
A notable increase in the focus on ‘quiet hiring’ techniques and AI-driven tools like Chat GPT is being observed. Quiet hiring allows companies to enhance their workforce skills while avoiding the need for larger recruitment campaigns. Such practices are being prioritized by 44% of firms offering opportunities for employees to upskill, and 34% encouraging retraining. Notably, there has been a significant rise—from 24% in 2023 to 34% in 2024—in firms using AI tools to increase efficiency and close skills gaps.
Despite plans for increased AI and machine learning investments in the next year, only a minority of organizations feel adequately prepared for AI integration. Only 43% report a high level of AI readiness, with few having designated a specific AI lead, often leaving strategic oversight to CTOs, CIOs, or CEOs. Concerns around AI’s risks, such as security and data protection, are prevalent. Concurrently, while 46% express a desire to focus on digital tool training and experimentation, just 19% actively pursue regular engagement with disruptive technologies.
The scenario within UK and Irish firms is particularly paradoxical. While expectations are placed on AI to alleviate challenges, inefficient manual processes persist alongside insufficient expertise development. This sentiment is echoed by Ronan Copeland of Docusign, who emphasizes the urgency for companies to focus on upskilling in AI to align technological investments with actual productivity gains. Julia Hobsbawm, highlighting the necessity for simplified digital tool adoption, reinforces this insight, underscoring a universal demand for streamlined, effective solutions in the workplace.
Addressing technology skills gaps with strategic innovations is essential for UK firms to enhance productivity and digital maturity.
