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How does a chronic skills gap affect business evolution and shifting employees’ culture?
Regardless of political implications on internal UK and external EU economies, the United Kingdom is facing paramount digital skills problems, leading up to an extensive talent shortage.
Emerging technologies such as Artificial intelligence, Machine learning or Robotic Process Automation could help fill this gap, compensating for the loss of physical workforce. There is no doubt that multinationals will turn towards such technologies in the future, however, in the short-term, this poses a new problem: where do you find the resources or how do you train them in time?
It’s not just the UK struggling to exist in the new Age of automation, but most 1st world countries are encountering similar barriers. Whether we address the lack of digital skills amongst existing workforces or the lack of proper training in Universities for Entry-level job postings, both components can hamper the evolution and growth of technology-driven businesses, up to the point of causing industries to suffer radical loses.
We are not reinventing the wheel, as we recognize that this is not a unique topic. It is however, a pressing one on most Head of Departments’ agenda for 2019, as we can all concede that #NewYear doesn’t exactly mean a new approach to project development or a new business model, but a commitment to improving solutions, creating better and more personalized user experiences and staying ahead of the competition, by ultimately launching fresh features or products.
How do you sanction a chronic skills’ deficit within a country’s economy and within your own organisation? An amateur’s guide:
The first step to everything is admitting there is a problem. When more than one of your acquaintances complaints that they’ve had several roles opened for more than 2 to 3 months and when job boards and recruitment agencies’ listings confirm that, in fact, there is an increasing trend within organisations disabling them to close job openings over a long period of time, that’s when you need to acknowledge that skills deficit is clearly a serious issue in your residential area, if not, your country.
According to research conducted by Workable in September 2018, the average time to fill an IT position in the UK & Ireland is 55 days, whereas in the rest of Europe is 57 days. In the same token, a research conducted by Glassdoor earlier in 2018 shows that an average employer spends about £3000 and 27.5 days to hire a new worker. We could argue that costs rise in accordance to spent days and to find out how much would that impact your hiring budget, we have conducted our own research on January 17th, 2019 on LinkedIn, based on 553 Ruby on rails Job roles/skills match, revealing: 17 roles opened for 3 months, 11 roles opened for 4 months, 8 roles opened for 5 months, 2 roles opened for 6 months, 1 for 8 months, 2 for 9 months, 1 or 10 months, 5 for 11 months and 1 for 2 years, subsequently. If the same Glassdoor study includes Time Frame to Fill Headcount as Hiring Metric for the Cost-Per-Hire formula, it could stand to reason that Cost-Per-Hire of 1 x IT function can highly supersede your initial hiring KPI, but also that a great digital skills gap exists in the market, for disabling you fill the position at least in the doubled time allotted.
Collective minds ask the same question: Is there a battle for talent? Our view on this in tomorrow’s blog post. See you soon!
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