Businesses are investing large sums into digital technologies, but the technological race won’t be won without the right talent.
To succeed in harnessing the full might of the upcoming technology tsunami, businesses are investing huge sums of money into technologies like artificial intelligence (AI), blockchain and robotics in order to become digitally superior. Businesses understand that if they don’t use this technology to innovate, they risk becoming rapidly obsolete. But beyond bolstering our tech armory, are we sufficiently acquiring and developing the necessary digital skills to ride this wave of disruption? Or will a lack of digital talent mean that many businesses are washed away into obsolescence?
Technology is outpacing talent
A study I recently commissioned shows that Europe is currently in the throes of a pronounced skills crisis. Quite simply, innovation is happening at a faster rate than companies can hire the skills that they need in order to successful adopt and harness the new technology. According to our Building a Better Working Europe study, two in five (41%) of the human resource (HR) leaders believe that it’s hard for European businesses to recruit the talent necessary to drive digital transformation, with skills in cybersecurity, big data and analytics, AI and robotics in particularly short supply.
Our survey also uncovered a worrying disconnect between organizations’ digital and people strategies. Just 57% of businesses have their people strategy as part of their digital transformation agenda, while less than half (43%) of businesses have an HR strategy that looks more than three years ahead. The risks to businesses are clear. Already two-thirds (67%) of HR leaders are saying that skills shortages are damaging top-line growth, with 73% seeing a negative impact on productivity and profitability.
The relentless march of digitalization is already having a profound impact on the labor market, creating shortages in specialist digital skills and surpluses in other areas. Unfortunately, unless this disruption is managed carefully, it threatens to undermine the genuine potential for the Fourth Industrial Revolution to be an era of inclusive growth that underpins a more equal society.
So how can we rise to the skills challenge that digitalization presents? For me, these are some of the things we need to embrace:
Mindset and life-long learning
It is clear that individuals, businesses and governments each have a part to play in making sure that everyone has the chance to benefit from workplace transformation. Individuals need flexible mindsets and commitment to life-long learning. These will allow them to develop new skills, enhance existing skills and retrain where appropriate. As a result, they will continue to enjoy meaningful and productive careers – something that matters greatly as people increasingly work for longer.