As organizations increasingly rely on data to drive decisions and strategies, the gap in data skills among employees poses a challenge. Skills gaps are a drain on productivity and efficiency across various departments. Addressing this issue is essential for maintaining competitive advantage and optimizing workforce potential.
How data skills gaps are dragging down your company’s productivity
Data skills gaps are a pressing issue, directly impacting the productivity of businesses. Companies lose an average of 25 working days per employee per year due to these gaps. This equates to nearly a month of lost productivity annually for each employee, showing the severity of the problem.
Inefficiencies stem largely from employees’ struggles with data-related tasks. Data analysis, process automation, and forecasting are key areas where employees lack proficiency.
Many workers find themselves ill-equipped to handle them effectively, leading to wasted time and resources.
The hidden struggles employees face with data tasks
Data tasks have become a core component of many job roles across industries. Yet, employees frequently find themselves facing challenges in managing these tasks efficiently.
Why efficient data management is still a mystery for many employees
Approximately half of all employees report difficulties in executing data analysis, automating processes, and making accurate forecasts. These challenges are often compounded by a lack of proper training and tools, leaving employees to navigate complex data landscapes with inadequate support.
For many, spreadsheets become the default tool for data management. However, spreadsheets are often insufficient for handling large datasets or complex analyses, leading employees to spend excessive time manually inputting and manipulating data.
Inefficient use of spreadsheets causes frustration but also contributes to productivity losses. Employees often spend hours trying to extract insights from poorly structured data, further amplifying the skills gap and its impact on overall productivity.
How much time are your employees really spending on data?
On average, employees dedicate about 14.3 hours per week to data tasks, which constitutes roughly 36% of their workweek. While this time allocation reflects the importance of data in daily operations, it also highlights an issue: out of these 14.3 hours, approximately 4.3 hours per week are considered unproductive due to skills gaps.
Unproductive time accounts for about 10% of an employee’s workweek, suggesting that a lack of data skills is a notable factor in wasted time and lost productivity.
What employers expect vs. what they provide for data training
The expectations for data literacy within organizations are high. Most employers anticipate that employees across all departments will possess a certain level of data proficiency, regardless of their specific role or function.
Expectations are only set to grow, with projections indicating that by 2025, 70% of employees will use data in their job roles to some extent.
Are employees ready for data literacy everywhere
Despite the rising demand for data literacy, many employees are not adequately prepared to meet these expectations. The pressure to perform data-related tasks is high, yet the training provided to employees often falls short.
Many employees find themselves learning on the job without formal instruction or guidance, which can lead to inconsistent skill levels and further contribute to inefficiencies.
Why aren’t more companies providing key data training?
A gap exists between what employers expect and what they provide. Only 39% of companies offer data training to all employees, which leaves a large portion of the workforce without the necessary skills to handle data effectively.
Shortfalls are compounded when the belief held by 75% of leaders, as reported by Forrester and Tableau, that employees should learn about data on the job. This mindset overlooks the need for structured learning and ignores the benefits of proactive training programs.
What’s holding back continuous learning in your organization?
Continuous learning and upskilling are key for keeping pace with technological advancements and evolving job requirements. However, several barriers prevent widespread skills development in organizations.
Employees face numerous obstacles when it comes to upskilling, including a lack of time, financial constraints, and a lack of motivation.
Many employees already feel overwhelmed with their daily responsibilities, leaving little room for additional training.
Financial barriers also play a role, as employees may be unwilling or unable to invest in further education without support from their employer.
Lastly, a lack of motivation can stem from insufficient incentives or recognition for skill development, leading employees to deprioritize upskilling efforts.
Upskilling and talent development must-haves
As organizations look ahead, the focus on upskilling and talent development becomes increasingly important. Preparing the workforce for future challenges requires targeted investments in key areas where skills gaps are most pronounced.
In order to address these challenges, companies are directing their upskilling efforts towards fields that are experiencing talent acquisition difficulties.
Cybersecurity, artificial intelligence (AI), and data training are at the front of these efforts. When investing in these critical skills, organizations can make sure they are equipped to handle the challenges of a rapidly changing business environment.
Preparing employees with comprehensive training in these areas helps bridge the current skills gap but also positions companies for sustained success in an increasingly data-driven world.
