Executives are increasingly struggling under pressure to keep up with rapid technological advancements, like generative AI, and are reporting widespread skills gaps within their workforce.
The recent “C-Suite Perspective” report published by Skillsoft shows that 71% of C-level executives have identified skill gaps within their organizations.
The report suggests the fast pace of technological change often outstrips existing skills training efforts at companies, and this makes it harder for organizations to keep up.
Executives in the survey say much of the difficulty arises in hiring candidates with the necessary skills, and in attracting talent in high-demand fields — such as cybersecurity, AI, data analytics, and cloud computing.
Executives reported these top reasons for the skills gaps:
- We struggle to hire candidates with the skills we need – 44%
- Rate of technology change exceeds skills development programs – 43%
- It’s difficult to attract candidates with the skills we need to our organization’s industry – 36%
- We cannot pay what candidates demand – 34%
- We have not invested enough in training to develop the skills we need – 33%
- Our current training programs are not effective in developing the skills we need our employees to have – 32%
- We have not anticipated the skills we need – 27%
- We struggle to retain employees – 24%
- We do not have the ability to assess the skills that exist in our employee base – 21%
- Other – 6%
The difficulty in hiring and keeping candidates is worsening the problem.
“While they may feel secure in their own roles, most of our executives have dealt with several unfilled positions within their organization in the last 12 months,” according to the report. “Sixty-eight percent report having three or more unfilled positions, and more than half (56%) are having a hard time filling those positions. Last year, 67% reported having a difficult time filling openings on their teams.”
An unpredictable economic landscape has intensified skills-related challenges. Nearly 62% of executives in the survey said they anticipate skill gaps will persist and likely increase over the next one to two years.
Skills that are more important in remote and hybrid work models are also expected to be persistently challenging to find. Leaders increasingly value team and interpersonal communication skills, known as soft or what the report calls “power” skills. These include “critical thinking,” “adaptability,” and “collaboration.”
Continuous learning and development are not just about addressing immediate skill shortages. They are seen as essential for driving innovation, reducing turnover, and improving recruitment and morale, which impact IT-decision makers.
The top challenges for IT decision-makers were:
- Resource and budget constraints – 31%
- Workload – 31%
- Talent retention – 27%
- Talent recruitment – 26%
- Innovation and change management – 24%
- Developing stronger teams – 23%
- Executing with urgency and excellence – 20%
- Employee morale – 15%
- Alignment with my organization’s strategy – 15%
- Lack of work-life balance – 14%
- Lack of equity in pay – 12%
- Lack of professional development and career opportunities – 11%
- Lack of effective leadership – 9%
- Workplace safety – 9%
- Lack of inclusion – 8%
- Lack of equity in opportunities – 7%
- Lack of diversity – 6%
- Ethical decision-making – 6%
- Harassment – 6%
- Other – 1%
Skillsoft’s reports that organizations are already making significant investments in training and development to prepare employees so they can adapt and succeed in the face of rapid technological changes.
