The Digital Skills Gap Affects All Employers
NKY Works gathers local subject matter experts on a regular basis to discuss how we as a region can best connect employers with the talent they need in light of ever-evolving workforce dynamics. This month, our focus area on Employer Best Practices welcomed guest speaker Jeran Culina, a senior manager at the National Skills Coalition (NSC). She discussed the skills mismatch in today’s workforce. The “skills mismatch” is a discrepancy between the skills sought by employers and the skills possessed by individuals. The available jobs require a certain set of skills, but the available workforce does not have those skills. In some cases, the mismatch reflects a lack of training among potential workers. Sometimes, workers have the “wrong” training, meaning their skills no longer align with the high-need jobs in their area. Often this points to a need to “upskill” existing workers whose skills have not kept up with rapidly changing technology.
Rapidly changing technology has exacerbated the skills gap because most jobs now require some digital skills. In 2021, the NSC analyzed 43 million “help wanted” ads across the country. They found 92% of all job openings required digital skills. Nearly half of these openings described requirements that the NSC classified as definitely digital, such as the ability to use a specific software program. Another 45 percent included requirements they labeled as likely digital. Examples include customer account review, making travel arrangements, and clerical support. Only 8% described jobs that did not require any digital skills. Further, all industries required digital skills, even those typically thought to be rooted in hands-on skills, like construction, manufacturing and food service.
Above, slide showing percent of jobs requiring digital skills from the National Skills Coalition
The need for digital skills is true at all experience levels, including entry-level positions. The NSC study found that 95% of entry-level job postings required skills that were likely digital or definitely digital, and the expectations increase with experience. For example, essentially all jobs requiring 6 to 8 years of experience include digital duties. Likewise, jobs at all educational levels required workers to possess digital skills, as seen in the chart below. Note the strongest link to digital skills is for jobs requiring bachelor’s degrees.
The good news for workers is that jobs with digital responsibilities pay dramatically better. Per the NSC study, jobs that require even one definitely digital skill pay 23% better than jobs that do not require digital skills. That means that acquiring digital skills can help workers qualify for jobs paying a living wage.
Above, slide showing pay increase for workers with one definitely digital skill
You might think that all Americans possess at least one digital skill, but unfortunately, that is not true. Almost one-third of our workforce does not have the necessary digital skills. Thirteen percent have no digital skills at all, and 18 percent have limited digital skills. This is true even among our youngest workers, those “digital natives” who grew up with easy access to smartphones, tablets and computers. The NSC found young workers have “fragmented” digital skills and described this situation this way:
That is, they are comfortable with some digital tasks, such as sending a text message or making a TikTok video, but not comfortable with others, such as creating a spreadsheet. For this reason, it’s especially important that workforce and education programs provide opportunities for people to build from the skills they have to the skills they need (Closing the Digital Skill Divide: The Payoff for Workers, Business and the Economy, p 10).
The good news for companies is that digital skills can be taught. Companies can embed training for their specific digital skills in their onboarding process with new workers. They can provide ongoing training to upskill their existing workforce. There are several funding options and training programs that may be available to help. For example, Kentucky companies may qualify for funding to support upskilling through the KCTCS TRAINS program. (Learn more about TRAINS program at Gateway Community and Technical College here.) The payoff for this investment will be employee retention and increased workplace productivity. Retaining even one productive employee saves companies from $25,000 to $78,000 in turnover costs, per the NSC. You can access the full NSC report for more details here.
NKY Works can help your company identify your digital-skills gaps and connect you to resources to address your specific needs. We can also discuss potential funding opportunities and available training options for you and your workers. To learn more, contact us at 859.657.WRKS (9757) or NKYWorks@NKADD.org.
The NKY Works Employer Best Practices Focus Area meets monthly, typically using a virtual platform, to discuss a wide range of topics affecting workforce development in Greater Cincinnati. To get involved, contact Vicki Berling.