Digital skills gap not prioritised: RMIT

Four of the top five skills gaps were identified in digital however, the latest findings from RMIT found closing this divide is not prioritised in training budgets.

The findings follow as the university also identified businesses intend to boost spending on digital learning and development in 2024 to an estimated $8 billion.

The expected spend follows findings from the Melbourne-based university's ‘Ready, Set, Upskill’ report, which stated that, “Almost half (47 percent) of surveyed employees had never used generative AI in their role”.

Consequently, the survey claimed this will affect 86 percent of employees from all occupations. 

Despite this impact, the report found 45 percent of surveyed employers stated they weren't "prioritising training budgets to address skills gaps". 

According to RMIT, the $8 billion investment in training would cover “generative artificial intelligence (AI) or machine learning, data science, coding and cyber security”.

RMIT’s executive summary has furthered the urgency to fill the skills gap, recognising “the emergence of critical technologies such as AI”. 

The analysis showed “1.8 million new tech skills needed by 2030 if workers are to keep pace with changes.

Research from RMIT Online noted given the rising skills demand, "Surveyed employers are willing to pay an 8 percent premium [$5408] for data and digital skills". 

Despite large spending sums from businesses, RMIT Online's executive summary stated, “One in eight businesses are at risk of falling behind”. 

“This a significant risk because investing in training increases staff retention, business revenue and customer engagement; critical to maintain during challenging economic conditions,” the report stated. 

“No business is immune" 

Nic Cola, CEO of RMIT Online told Digital Nation, “No business is immune to the unpredictability of the market”.

“With uncertainty bringing a constant state of flux, having a team with the adept skills needed is the best currency to remain competitive.  

“While our research showed that spending is increasing overall, many organisations aren’t prioritising their training budgets to address the skills gaps,” Cola said.  

However, Cola proposed “New technologies, such as Generative AI, can support in making training more effective by helping identify skill gaps in the team.

Cola explained, “It’s the clear understanding from both employers and employees that we need to do more to address the nation's skills gaps.”

“In particular, employees are calling for investment in their learning and development. 

“However, those businesses expecting poorer prospects are twice as likely to plan to invest less in learning and development than those with a positive business outlook. 

“This a significant risk because investing in training increases staff retention, business revenue and customer engagement; critical to maintain during challenging economic conditions,” Cola said. 

John O’Mahny, Partner at Deloitte Access Economics and lead author of the RMIT Online report told Digital Nation, “There is a big disconnect between the productivity opportunity and individuals’ readiness for the coming wave of change from generative AI tools.” 

“Productivity gains from automating repetitive and time-consuming tasks could save employees 5.3 hours a week.  

“Our analysis shows 86 percent of occupations will be affected by generative AI, but our survey showed 73 percent of people don’t believe generative AI is relevant to them,” O’Mahny said. 

He said there is a “big disconnect” for business stating “while all industries will be affected in some way, and 26 percent face a ‘big bang’ scenario of disruption. 

“More than three in four (78 percent) surveyed employers have either not provided or are unaware of, generative AI training in their organisation.”

He echoed the urgency of digital learning and development stating Australia’s participation in technological learning is already low raising alarms of Australia being left behind.