According to research from the Industrial Skills Strategy Council, 20% of the UK workforce could be significantly under skilled
for their jobs by 2030.
With other data showing that 27% of UK workers feel they don’t have the right digital skills for their job role, a disconnect between what employers want, and what employees can deliver,
is emerging.
82% of job descriptions in the UK list digital or technology
skills as a requirement, and 29% of workers saying that their lack of digital skills has limited their pay, promotion possibilities as well as their career progression.
5 jobs to apply for this week
- Financial Control Manager, NatWest, Manchester
- Private Client Tax Director, Forvis Mazars, Poole
- Principal Engineer, Ripple Labs, London
- SaaS Product Marketing Specialist (Remote UK based role), Quant Network, London
- Business Tax Accountant - Work From Home - 3+ Yrs Experience
Required, Intuit, Exeter
According to professional services firm Grant Thornton, the reasons for skills gaps are multifaceted, and include the fact that the UK workforce is shrinking. The Institute of Chartered Accountants in England and Wales (ICAEW) says we are experiencing a
“changeover in generations” as the larger Baby Boomer cohort exits the workforce.
Other factors include Brexit, which led to the departure of skilled European workers who have not returned to the UK to work.
Identifying skills gaps
Skills gaps have been an issue across the UK workforce for many years. In 2019, for example, the same UK Skills Mismatch in 2030 report
that the most widespread under-skilling is in basic digital skills, with an added issue here being that the goalposts of what we consider “basic” are changing rapidly.
Management capabilities are lacking across the UK workforce too. Around 2.1 million workers are likely to be acutely under-skilled in at least one core management skill such as leadership, decision-making, or advanced communication.
The issue is further compounded by a lack of understanding about what these skills are. A skills gap report from AND Digital found that a third of UK workers see digital skills as “the ability
to fix IT issues,” with 50% believing that digital means coding, programming, and building websites.
Instead, according to Paramjit Uppal, CEO and founder of AND digital, "Digital skills are so much more than just technical skills. It also includes professional skills like product management and delivery, and human skills like empathy, creativity, and teaming."
That’s a view echoed by the World Economic Forum (WEF). In its 2023 Future of Jobs report, the group identified that analytical thinking and creative thinking will be top in-demand
skills by 2027, along with leadership, social influence, curiosity, and lifelong learning.
There is another key skill that the WEF identified. It highlights AI and big data as essential areas for workers to upskill in, with 60% growth in demand predicted by 2027.
The Forum points out that while companies have identified these areas as crucial, only 42% intend to prioritise training for employees.
As a result, another gap is widening for workers. A new study published in the Oxford Economics Papers journal identified
that university graduates who have what is called “AI capital” or business-related AI studies listed on their CVs are more likely to get a job interview for a role they have applied for.
Additionally, they are likely to receive salary offers that are about 13% higher on average, thanks to that AI capital. If companies decide to simply recruit new AI talent instead of upskilling their existing workers, this could leave existing employees
exposed.
What is the solution? Adopting artificial intelligence is a business imperative for many companies, with Grant Thornton research finding that 53% of mid-market
business leaders say productivity issues are affecting growth.
Deloitte says that a two-way approach is required. “As we move from possibilities
to practicalities in enterprise Generative AI adoption, scaling up and skilling up go hand in hand,” says Deborshi Dutt, the artificial intelligence strategic growth offering lead and principal at Deloitte Consulting LLP.
He added that, “To help stay competitive in an ever-evolving market, it is crucial for leaders to foster trust and remain focused on AI fluency when evolving their workforce to meet this moment of transformation.”
If you find that, when it comes to AI, your workplace is adopting a “buy vs. build” mindset where new AI-skilled hires are prioritised, it may be time to explore your options at a company where learning and development policies support the existing workforce.
Ready to find a new full-time or part-time role? Visit the Finextra Job Board to see what’s on offer.