UK firms struggle with skills gaps in key areas amid £275M productivity loss

According to Docusign’s Digital Maturity Report 2024 72% of companies are lacking the necessary talent in key areas like AI, data analytics, and cyber security, up from 69% in 2023.

Businesses are increasingly focusing on ‘quiet hiring,’ upskilling their current workforce, and leveraging AI tools such as ChatGPT to address the shortage without expanding headcount. The number of companies using AI to fill skills gaps has risen by 42 per cent in 2024.

Despite increased investment in digital transformation, UK companies are still struggling to improve productivity. Workers are wasting an average of two days a week on manual, low-value tasks, costing businesses over £275 million in lost productivity each year. 

This inefficiency is also causing dissatisfaction among employees, with 41 per cent considering leaving their roles due to outdated processes.

However, while 35% of companies plan to invest more in AI over the next year, only 43% feel fully prepared to implement it, with concerns around security and data protection still holding many back.

Despite these challenges, boosting efficiency through AI and digital tools remains a top priority as companies look to close the gap between their technology investments and productivity outcomes.

Sheila Flavell, COO Of FDM Group commented: “With AI advancing rapidly, businesses are investing more to stay competitive. However, it’s crucial for companies to provide high-impact skills training to help their staff keep pace with evolving technology. Upskilling in AI, data analytics, and security ensures they have the talent needed to drive digital transformation.

To effectively upskill workers in these areas, businesses must prioritise experiential learning, giving employees the hands-on experience necessary to apply new technologies. This approach not only boosts productivity but also reduces the reliance on ‘quiet hiring’ and helps retain top talent by offering real opportunities for growth.”