C-Level Tech Leaders Feel the Weight of Skill Gaps, Research Shows
June 18, 2024
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An unpredictable economic landscape compounded with the lingering effects of a global pandemic has left organizations facing unprecedented challenges. Add in the disruption of rapidly emerging technologies, like generative AI, and their associated skill gaps, and it’s no wonder why business leaders are feeling the pressure to be the catalyst for transformative change.
Nearly every sector of the global economy has been impacted — and the tech industry is no exception. At the forefront of this upheaval are C-suite executives who are tasked with navigating the complexities of this ever-evolving landscape. While these challenges may seem insurmountable, forward-thinking leaders understand that within every obstacle lies an opportunity.
In fact, according to the IDC, "the implementation of skills development, powered by GenAI and automation, will enable organizations to drive one trillion dollars in productivity gains worldwide by 2026."
The problem is that while AI has become a top investment area for most C-suite executives, skill gaps still remain.
According to Skillsoft’s latest report, "The C-Suite Perspective," 71% of executives say skills gaps are present within their organization, and nearly 62% anticipate more skill gaps to arise in the next 1 to 2 years.
In our study, tech leaders share how a combination of factors drives their skilling struggle:
- It’s hard to hire candidates with the right skills.
- The rate of technological change exceeds skills training.
- And it’s difficult to attract candidates with the right skills.
That’s because tech leaders face additional challenges beyond what’s happening in the global economy.
KEY CHALLENGES FACED BY TECH EXECUTIVES
Based on the responses from our report, C-level tech executives list these are their biggest concerns:
- Resource, budget constraints
- Workload
- Talent retention
The three of these all impact one another. Budget constraints limit what executives can do — hiring, change management, product development and more. Since they can't hire more staff, the workload for existing team members remains too high. This can lead to higher attrition. The cycle starts over.
Thankfully, employee development can go a long way toward solving all of these challenges, at least on some level. And executives realize this more and more.
From the Report:
Skill gaps alone cause a number of issues for leaders, but other topics swirl in the heads of executives. Tech leaders are also trying to answer pressing questions like:
- What do I do with AI?
- Am I doing enough to secure my organization's data?
- How do I get skilled workers to fill open positions?
- How do I maximize resources?
- How do I get the most from my team in a post-pandemic world?
The real question is: What's the solution?
That's becoming clearer after reading the report. The answer centers on building skills.
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Investing in Your Workforce = Investing in the Future
According to Skillsoft’s most recent IT Skills and Salary Report, 53% stated they were at least somewhat likely to look for another position in the next 12 months, with the main reason being a lack of growth and development.
This should send a clear message to tech executives. Companies that invest in their people, invest in their future.
From the report:
When employees are offered professional development opportunities, they feel more engaged, become more productive, and remain committed to the organization's long-term success. This is true of organizations around the world.
Research from McKinsey shows that the most effective learning organizations provide an average of 75 hours of training per employee annually. In return, they see higher promotion rates for employees and achieve higher employee retention.
By adopting a continuous skilling strategy, tech leaders can empower their employees to not only develop or adopt new technology but also continue to adapt and innovate in the face of change. As shown above, the lion's share of leaders already set their sights on this endeavor.
As leaders focus on building skills in-house, these are the areas they're prioritizing:
- Cybersecurity/information security (35%)
- AI and machine learning (35%)
- Data Analytics, Data Management, Data Science (30%)
- Cloud Computing (22%)
- Business Process Management (19%)
Why? These domains are among the toughest to hire for, and they can have an outsized impact on the overall organization.
While technical skills will help make progress toward developing applications, onboarding new tech, and more, the focus isn't solely on hard skills anymore. Soft skills are becoming a greater focus.
Are Technical Skills Enough These Days?
Leaders see great value in team and interpersonal communication. These skills fall under the umbrella known as “soft” skills or “power skills,” which include critical thinking, adaptability, creativity, collaboration, effective listening, and so on. According to this research, leaders look for these skills in prospective job candidates.
Historically, training for these power skills was reserved for upper-level management or C-suite executives. However, it’s important to recognize that these “leadership skills” aren’t just for leaders. They’re essential for every employee as power skills need to be learned, developed, nurtured, and practiced just like any other skill.
The good news is that it’s a problem with a solution. Sixty-eight percent of tech leaders stated that their companies offer leadership development programs, a clear sign that most organizations see the impact of these skills.
But do the technical departments see the value in it? Do they have access to this training? Are they encouraged to take it?
Answering questions like these can help executives quickly assess their next move. Naturally, it's critical to have technically skilled professionals on the team to get the work done. But when teams manage their time well, communicate clearly, and empathize with one another, bonds become stronger and outcomes improve.
Access the Full Report Now
Executives have a lot on their plate, but ambitious leaders are focused on their teams' skills and their own. These CIOs, CISOs, CTOs and others will find that sustained investments in their team will pay off. Continuous learning addresses high attrition, tough recruiting, and low morale. It also drives innovation and execution.
Failing to invest in development will only exacerbate the issues that executives already struggle with. But the report doesn't signal that this is the case. More organizations are investing in training their employees, which ultimately prepares them and the greater workforce for the promised change.
For more insights, Skillsoft's C-Suite Perspective Report provides a detailed look at the findings and an in-depth analysis to help leaders map out their employee development strategies.
