In a challenging economic climate, UK firms are actively investing in digital transformation to bridge technology skills gaps.
- Despite increased spending on technology, productivity and digital maturity have not improved in UK businesses.
- Workers spend over 12 hours a week on low-value tasks, costing firms millions in lost productivity.
- Companies are turning to ‘quiet hiring’ and AI to address these skills gaps without increasing headcount.
- There’s a stark contrast between organisational and worker digital maturity, with many employees considering leaving due to outdated practices.
British firms are intensifying investments in digital transformation even as they navigate a difficult economic environment. This commitment, highlighted in Docusign’s Digital Maturity Report 2024, has yet to translate into tangible improvements in productivity or digital maturity. The research, conducted among 600 decision-makers in the UK and Ireland, underscores a paradox for employers: while technology investment is on the rise, there is a notable gap in productivity and efficiency.
The report reveals that employees waste nearly two working days each week on tasks that add little to no value—despite increased digital investments intended to enhance efficiencies. Such inefficiencies present a substantial threat, potentially costing UK businesses £275 million annually in lost productivity and impacting employee satisfaction and retention. Notably, 41% of UK respondents are contemplating leaving their roles due to the persistence of legacy work practices, up from 33% in 2023.
To navigate these challenges, 72% of business leaders report a widening skills gap in technology, a rise from 69% in the previous year. Skills deficits are most notable in AI, data analytics, and security. These gaps hinder firms from fulfilling operational goals, with 53% citing talent shortages as a critical issue. This impacts strategic plan delivery for 55% of organisations and stymies innovation for 54%.
In response, companies increasingly employ strategies such as ‘quiet hiring’ and leveraging AI technology to address skills shortages without expanding their workforce. Currently, 44% of organisations allow staff to upskill, and 34% provide retraining opportunities. Notably, there has been a 42% increase in businesses using tools like Chat GPT to enhance efficiencies and bridge these gaps.
Despite planning to invest in AI and machine learning, many organisations show hesitancy due to concerns over AI-related risks, such as security and data protection. Only 43% feel they possess a high level of readiness to integrate AI fully. Furthermore, only 19% consistently experiment with disruptive technologies like generative AI, indicating a gap between intentions to innovate and actual implementation.
UK firms must address the skills and productivity gap to prevent increased employee turnover and financial losses.
