FTSE 100 companies prioritize technology over workforce skills
Technology is getting all the attention in boardrooms, but one critical piece is missing—people. A deep dive into over 700 annual reports from FTSE 100 companies shows a clear trend. An overwhelming 69% of these companies see technology as a strategic priority, yet only 7% place the same importance on workforce skills and training. That’s a huge gap, and it raises a serious question: if companies aren’t actively investing in talent, who’s going to drive real innovation?
Spending big on technology without building the skills to use it effectively is shortsighted. Cutting-edge tools are only as good as the people operating them. Companies betting everything on digital transformation while sidelining skill development risk falling behind—not because of a lack of tech, but because they lack the workforce needed to maximize its potential. This disconnect is already showing up in the data. Euan Blair, CEO of Multiverse, points out that while investment in technology is accelerating, skills training has stagnated. UK productivity has followed the same pattern. The correlation isn’t surprising.
For executives, the takeaway here is simple: technology alone doesn’t create value—execution does. And execution depends on people. Companies that prioritize both technology and skills development will be the ones defining the future.
Companies talk about reskilling, but their budgets say otherwise
Companies frequently mention reskilling and upskilling, but the numbers tell a different story. Out of all FTSE 100 companies, only 10% disclose their training budgets. The average spend? Just £600 per employee. Even more concerning, the median budget allocation for training is only 0.16% of company revenue. These figures make one thing clear: while executives recognize the importance of skill development, they aren’t backing it with meaningful investment.
This gap between acknowledgment and action creates an obvious problem. Technology is advancing rapidly, and businesses need employees who can use it effectively. Without proper training, even the most sophisticated technology won’t deliver the returns leadership expects. Skills development is a long-term competitive advantage. Organizations that integrate continuous learning into their strategy will have a workforce that adapts quickly. Those that don’t will struggle to keep up.
For decision-makers, this should be a wake-up call. Investing in training is about making sure businesses remain agile, innovative, and competitive. Allocating resources to workforce skills should be as fundamental as investing in the next major technological upgrade.
Compliance and DEI training dominate, While AI skills are overlooked
Companies are overwhelmingly focused on compliance and Diversity, Equity, and Inclusion (DEI) training. According to the latest analysis of FTSE 100 reports, 97% of companies highlight these programs. In contrast, only 34% mention training for Artificial Intelligence (AI). This imbalance suggests that while businesses recognize the importance of regulation and inclusivity, they are not preparing their workforce for the technological changes reshaping industries.
AI is rapidly transforming how businesses operate, from decision-making and automation to predictive analytics. Yet, most organizations are not prioritizing AI skill development at the same level as compliance training. Without a workforce that understands how to implement and use AI effectively, companies risk falling behind competitors that are actively integrating these capabilities. Training in AI is relevant to leadership, operations, and customer service.
For executives, this is a clear signal to reevaluate priorities. Compliance will always be a necessity, but future growth will depend on a workforce that can leverage emerging technologies. Companies that invest in AI training today will have teams capable of driving efficiency, innovation, and competitive advantage in the years ahead.
Companies shift talent strategy toward apprenticeships and internships
Corporate hiring strategies are evolving. A growing number of FTSE 100 companies are prioritizing apprenticeship programs over traditional graduate schemes. The numbers confirm this shift—59% of companies now reference apprenticeship programs, compared to 48% that mention graduate schemes. Meanwhile, internship programs have become more common, increasing from 19% to 32% over the past decade.
This trend reflects a broader recognition that workforce development must be more dynamic. Apprenticeships offer businesses a way to develop talent with skills tailored to specific industry needs, while internships provide an entry point for young professionals to gain relevant experience. Traditional graduate hiring models remain important, but companies are clearly diversifying their approach to ensure a steady pipeline of qualified talent.
For executives, this shift presents both opportunities and challenges. Investing in apprenticeships and internships can help close skill gaps and bring in talent that is more closely aligned with evolving business needs. However, the success of these programs depends on structured training and mentorship, ensuring that new employees can contribute effectively and grow into future leadership roles. Companies that take a strategic approach to these initiatives will benefit from a highly capable workforce that is ready to meet the demands of emerging technologies and business transformations.
A lack of investment in skills training threatens the impact of technology
Companies are pouring massive investments into technology, but without a skilled workforce, the value of these advancements is severely limited. Euan Blair, CEO of Multiverse, makes this point clear: “Technology tools are only as powerful as the people who use them.” Yet, many organizations continue to invest in cutting-edge solutions while neglecting the training necessary for employees to use them effectively. This misalignment could undermine productivity gains and slow innovation.
The data supports this concern. The Institute for Fiscal Studies reports a decline in training days and employer spending on workforce development. At the same time, global AI investment is expected to reach $200 billion, signaling a future where automation, machine learning, and data-driven decision-making will dominate industries. Companies that fail to equip their employees with the right skills will be left struggling to catch up.
For executives, the message is straightforward: closing the gap between technology and skills development is essential for sustainable growth. Investing in advanced digital tools without ensuring employees can maximize their value leads to inefficiencies and missed opportunities. Businesses that make skills development a priority will see stronger performance, higher adaptability, and a greater return on their technology investments.
Key takeaways for leaders
- Tech spending outpaces skills investment: FTSE 100 companies prioritize technology, but only 7% emphasize workforce skills development. Leaders must align talent investment with technology spending to ensure long-term innovation and productivity.
- Workforce training budgets remain insufficient: Despite mentions of reskilling, only 10% of companies disclose training allocation, averaging just £600 per employee. Executives should reassess training investments to build a workforce capable of leveraging advanced technologies.
- Compliance and DEI training dominate, AI skills lag: 97% of companies focus on compliance and DEI, but only 34% reference AI training. Organizations must expand skill development strategies to keep pace with AI and automation advances.
- Apprenticeships and internships gain traction: Apprenticeships are now referenced by 59% of FTSE 100 companies, surpassing traditional graduate schemes. Leaders should refine talent pipelines to ensure targeted skill development aligned with business needs.
- Failure to invest in skills threatens tech ROI: Without sufficient training, even the most advanced technology will be underutilized. Companies that integrate continuous workforce development into their strategy will see higher returns from their tech investments.
