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Australia’s digital skills shortage is costing Australian businesses $9 million a day, according to a new report by RMIT Online and Deloitte Access Economics.
The report, Ready, Set, Upskill: Prioritizing skills for a resilient workforce, highlights how the job market remains incredibly competitive, with unemployment at a record low (3.5%) and job growth of 15% year-on-year. Two-thirds of jobs were also advertised for 31 days or more, suggesting businesses are struggling to find staff.
As companies increasingly rely on technology to streamline operations and increase efficiency, employees with digital skills are more valuable than ever.
Four of the 10 fastest growing skills are digital. In fact, knowing how to use software to increase productivity was the fourth most in-demand skill in the job market in 2022, more frequently requested than problem-solving skills and organizational skills.
The demand for sophisticated and complex digital skills is also growing in line with the rapid development of advanced digital technologies. As the demand for digital skills continues to grow, the skills gap will continue to widen – and so will the cost to businesses.
The cost of not addressing the digital divide
According to the leaders surveyed, knowledge gaps impact companies in several ways, including lost business (19%), increased outsourcing costs (19%) and decreased productivity (18%), among others.
As the supply of skilled talent continues to dwindle relative to demand, companies are struggling to find the right candidates to fill their open positions. This has led to a renewed focus on upskilling existing staff along with hiring new staff with the necessary skills.
According to RMIT Online and Deloitte Access Economics, large Australian businesses will need to invest $1.5 billion in training to address the current digital skills gap.
John O’Mahony, partner at Deloitte Access Economics (part of Deloitte), said: “If businesses underinvest in digital skills training, it can result in lost revenue, additional costs of outsourcing work to external staff or contractors and reduced productivity . That’s why training is an investment, not just an expense.”
The role of training to bridge the gap
However, employers and employees differ on the frequency and quality of training, with employees stating that there are barriers that upskilling companies need to address.
While more than a quarter of employees (26%) believe they need to update their skills at least annually, employers believe this should happen more often, with a third (33%) saying workers need to update their skills at least every three months. .
Barriers to learning new skills include work commitments, training costs, employer resources or support. However, it is a win-win to invest in learning and development. Employees who received a promotion in 2022 spent an average of 50% more time in training than employees who did not receive a promotion.
Claire Hopkins, interim chief executive of RMIT Online, said: “Demand for digital skills is only going to increase and businesses and employees need to take action to stay one step ahead. It is therefore essential to provide training and education tailored to the skills required in today’s rapidly changing digital economy.”
“Investment in upskilling and reskilling can help close skills gaps and ensure Australian businesses remain competitive and resilient in the long term. The time has come for businesses and employees to take action and invest in their future by upskilling and reskilling.”
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