NEW data has revealed a digital skills gap is jeopardising Warrington’s business growth, although work is ongoing to address the issue.
To help tackle the issue locally-based AND Digital has launched Warrington club – Club Babbage – to accelerate the digital capabilities of businesses in the town, after releasing its “The Nature of the Digital Skills Gap” report, which reveals over half (52%) of workers in Warrington believe a lack of digital skills is having a negative impact on their organisation.
The report which also looks at the UK-wide impact highlights over half (61%) of business growth depends on digital outcomes. Based on AND Digital’s estimations, this equates to £50bn is at risk per year across the UK economy, and more than £240bn between now and 2026.*
These findings are alarming, with nearly a quarter (23%) of businesses in Warrington attributing employee churn, a loss of talent or difficulty attracting talent within their organisations to a lack of digital skills. Critically, one in ten (10%) also say it has impacted either their ability to hit business targets, made them lose customers or key business opportunities. Yet, this issue is compounded by the fact that 42% of workers in Warrington admit they have not received digital upskilling from their employer.
The research commissioned by AND Digital, which surveyed 5,000 UK workers who use technology in their roles, analysed the digital skills capabilities at an individual, team and organisational level. Overall, the research highlights that urgent action to digitally upskill the UK’s workforce could help its chance of economic recovery.
AND Digital found that over a quarter (28%) of workers in Warrington feel they lack sufficient digital skills for their current role, but 10% say their employer does not offer digital skills upskilling. Of those Warrington employers that do prioritise upskilling, over half (55%) of employees believe their organisation only sees it as a worthwhile investment for obvious tech-focused roles.
A widespread misunderstanding of what digital skills actually means presents a further barrier to closing the gap. 41% of respondents in Warrington believe it means the ability to fix IT issues. Similarly, almost half of respondents (46%) believe digital skills means either the ability to code and programme, build a website or create mobile/computer applications. Skills such as constantly evolving the way they work to keep up with innovation (35%) and being experimental in their role using digital tools (26%) came further down the list.
Nathan Warner, AND Digital Warrington Club Executive, said: “Digital skills mean so much more than just technical skills. It also includes professional skills, such as product and delivery management, and soft, human skills such as empathy, creativity and teaming. Individuals and teams with such skills are vital in creating a digital future, and for businesses across the UK and in Warrington to see continued growth and success.”
Despite the misunderstanding of what digital skills are, as well as a lack of current digital training, there is a clear appetite for upskilling in Warrington. Almost half (49%) of respondents stated that improving their digital skills is essential for their career progression – whether that’s earning more or performing better in their role. But workplace perceptions present a barrier, with over a quarter (28%) of Warrington workers feeling daunted by the prospect of digital upskilling and not feeling comfortable bringing it up with their employer.
A lack of digital skills growth is directly impacting career progression, with over half (57%) of those in Warrington saying they have been affected negatively by a lack of digital skills. Over a quarter (28%) of these say it has meant being turned down from either pay rises, promotions or not putting themselves forward for promotion. One fifth (20%) say it has stopped them from applying for a certain job and 13% have felt they either had to quit their jobs or leave their industry.
The release of the Nature of the Digital Skills Gap report comes as AND Digital launches a club in Warrington – Club Babbage. This club will be fundamental to helping Warrington-based business and businesses across the North West bridge the digital skills gap.
Nathan added: “Despite the digital skills gap discussion persisting for over a decade, organisations in the North West are clearly still failing to sufficiently upskill employees, and it is directly impacting business and wider economic growth. This is because we have not come to a shared understanding of what the skills gap is or what digital skills means – this needs to be done to move forward and close the gap.
“In the next three years, AND Digital estimates the UK workforce will require eight million individuals proficient in digital skills to close the gap. A number which even the most effective recruitment teams will struggle with.
“Warrington is slowly evolving into a new base for tech talent, so organisations must harness this potential and prioritise digital upskilling – ensuring individuals, teams and organisations as a whole in the region are fit for a digital present and future, and helping to prevent economic stagnation.”
More data can be found in the The Nature of the Digital Skills Gap report at https://landing.and.digital/uk_digital_skills_gap
In response to the report Warrington Chamber of Commerce Chief Executive Stephen Fitzsimons said: “As the UK moves towards future technologies in areas such as renewable energy and process automation, digital skills are in great demand, especially in Warrington.
“However, “digital” is not a stand-alone sector and instead cuts through all industries, including our world-class engineering and nuclear companies at Birchwood Park.
“Warrington Chamber works closely with the Local Enterprise Partnership (LEP) which is very active locally, delivering the government’s Skills Bootcamps in areas such as computer science, cyber security and data analytics.
“The LEP has also promoted the Women into Tech Scholarship across Warrington schools and in 2020 awarded grants of £4.6m to support 13 digital projects across the county.”
A Warrington Borough Council spokesperson added: “Whilst we are not familiar with this particular piece of research, the importance of digital skills in growing the local economy is understood and forms a key part of our response to local employer skills needs. This is evidenced in the ongoing development of the Digital Enterprise Hub at St. James’ Business Centre on Wilderspool Causeway and the Advanced Creative & Digital Skills Centre at Warrington Vale Royal College.”
