Employers looking to undergo digital transformation, upskill employees

Digital transformation initiatives are front of mind for employers as they recognise their employees need additional skills to perform projects and tasks.

Recent research from Robert Half has found that 47 per cent of employers have begun to recognise their staff need additional skills as they look to improve and enhance their digital transformation plans.

According to the research, 84 per cent of Australian employers had a department set to take part in a “major digital transformation” initiative over the next two years.

Of these initiatives, 42 per cent planned automation of accounts payable/receivable processes, 36 per cent were implementing or upgrading a core enterprise resource planning system, and 36 per cent were looking to adopt advanced data analytics and dashboards for financial insights were among the most common.

The research also revealed that there were varied stages of readiness; however, an increasing number of employers were looking to adopt initiatives if the right approvals could be secured.

Forty-five per cent of employers had a well-defined roadmap for digital transformation, 39 per cent had digital planning in the early stages, 10 per cent noted initiatives would be possible if the budget and leadership could be secured, and only 6 per cent had no major digital transformation initiatives planned.

Nicole Gorton, Robert Half director, said digital transformation had shifted from being a competitive differentiator to a business imperative.

“The fact that most organisations now have a roadmap in place shows that we’ve moved beyond experimentation and into a new stage where digital capabilities form the backbone of core business operations,” she said.

In terms of specific target areas looking to go under digital transformation, HR, finance, customer experience and data analytical initiatives were among those looking to capitalise on the capabilities.

When employers were asked why they were looking to undergo digital transformation, many responded with the motivation to improve the employee and customer experience, while also generating efficiencies.

Despite the motivation to take on a digital transformation, a significant skills gap was noted, as only 47 per cent of employers believed their current workforce possessed the right skills to successfully execute planned digital transformation initiatives.

Gorton said that while professional development was regarded as the primary focus area, seeking additional support was a preferred approach for many employers looking to roll out digital transformation initiatives.

Fifty-seven per cent of employers revealed they would look to upskill existing employees, 41 per cent would reskill existing employees for new roles, 39 per cent would hire new permanent talent, 35 per cent would hire new contract talent, and 32 per cent would partner with external providers.

“The biggest hurdle to digital transformation isn’t always the technology itself, but the availability of skills to implement and sustain it,” Gorton said.

“Organisations are recognising that success will come from a mix of hiring, upskilling, and leveraging external partners to ensure they have both the technical expertise and change management capabilities to deliver impact.”