In a world that is constantly evolving, businesses must stay ahead of the game by adapting to modern technologies and digitalisation. However, a truly innovative organisation knows that it takes more than just machines and software to succeed - it takes talented individuals who can bring fresh ideas and creativity to every aspect of the business process – whether it is developing groundbreaking software or delivering exceptional customer experiences.
Unfortunately, attracting and retaining top talent is far more challenging in the modern workplace. Our recent survey revealed that 41% of organisations in the UK view talent attraction and retention as their most significant hurdle, with nearly half of all respondents prioritising this issue. Further analysis across different sectors highlights that dual challenge of talent acquisition and retention, particularly in education (59%), local and central government (57%), and the NHS and Health & Care sectors (57%) is an ongoing problem.
So, what lies at the heart of this issue? And how are organisations addressing this pressing concern workforce shortage? Let's dig and find out!
Digital skills gap: Root cause of workforce shortage
The digital skills gap poses a significant challenge for organisations seeking to attract and retain talent. In the rapidly evolving digital landscape, the demand for skilled individuals in areas such as artificial intelligence, data analysis, and cybersecurity is soaring. However, supply is failing to keep pace with demand, leading to a severe shortage of individuals with the necessary digital competencies. This gap is not confined to specific sectors but is a universal issue affecting businesses across the board. As a result, organisations are grappling with the challenge of finding highly qualified candidates who possess the essential digital competencies required to thrive in today's digital landscape. This pressing issue calls for a concerted effort to bridge the skills gap and nurture a talent pool that can harness the full potential of digital technologies.
How do organisations navigate the challenge of attracting and retaining top talent?
According to our recent survey, 24% of professionals employed in local and central government sectors have identified the digital skills gap as one of the biggest challenges faced by their organisations, significantly more than the average 13% of all respondents, highlighting the fact that this is more of a problem for some sectors over others. Therefore, addressing the daunting challenge of the digital skills gap is the first step towards overcoming concerns related to talent attraction and retention.
To bridge this gap, organisations must harness the power of modern technologies such as Artificial Intelligence (AI). AI offers a powerful medium for learning and development, allowing organisations to provide personalised training experiences that target specific skills gaps. Furthermore, this innovative technology has the potential to automate routine tasks, freeing up employees to focus on more complex, creative aspects of their roles. This not only enhances job satisfaction but also drives innovation, establishing a workforce that is adept at leveraging digital technologies to their fullest extent.
AI, when effectively integrated into learning and development strategies, can play a crucial role in attracting and retaining talent. However, is it the sole solution for talent shortage? What other areas should organisations prioritise? We will delve into these topics in our upcoming blog series. In the meantime, you can download our Annual Trends Report to gain a comprehensive understanding of the latest trends, challenges, and strategies in the skill and talent landscape.
Read the Advanced Annual Business Trends Report 2023/24 here.