Is the Australian tech skills gap a myth?

As Australia transitions into a skills-based economy, leaders in the technology and IT space are at the forefront of navigating this pivotal shift. Organisations are increasingly focused on providing their employees with curated, personalised learning experiences to upskill and reskill in popular subjects to stay ahead of the curve.

A recent report from the Australian Computer Society highlighted a critical issue: Australia will need 1.3 million technology workers by 2030, but the country is not on track to meet the industry demand. Additionally, the report emphasises the need to ensure the nation possesses skills required by the industry and community, amid a rapidly evolving cybersecurity landscape and the rise of AI in the workplace. This underscores the urgent need for a shift towards skills-based hiring and talent management practices across the world and in Australia.

Thus there is an increasing focus worldwide on skills and competencies over job titles and formal qualifications for recruiting top talent. This need has been driven by heightened industry competition as well as emerging skills and tools due to rapid digital transformation, amplified by economic uncertainty. This shift presents an opportunity to set up businesses with skills-based practices to provide compelling and in-demand learning content and adopt upskilling initiatives at scale to drive better business outcomes.

Embracing a skills-based approach can drive innovation, enhance operational efficiency, and align teams with the rapidly changing technological landscape. As leaders steer their organisations through these transformative times, understanding and leveraging this shift will be key to maintaining a competitive edge and fostering a dynamic, future-ready workforce.

While there is a recognised demand for digital skills such as GenAI, data science, coding and cybersecurity, the lack of investment in upskilling and reskilling the workforce can be a challenge for organisations looking to address widespread skills gaps. Recent research from RMIT reveals a concerning trend: one in eight Australian businesses have cut training investments, putting at risk $2 billion worth of skills annually — that’s a staggering $5.6 million per day.

Therefore, the real-time impact of neglecting workforce learning and development and failing to address the needs of an evolving technology-focused workplace can hamper organisations from staying competitive. The impact can manifest in several ways, such as:

• Underdeveloped digital skills: Despite the high demand for tech skills, many employees lack proficiency in areas like AI, data science and cybersecurity.
• Training gaps: With only a fraction of businesses prioritising employee training, many workers are not receiving the necessary resources to develop the skills needed for modern digital roles.
• Missed opportunities: The annual $2 billion at risk highlights the financial implications of not addressing the learning gap. Businesses may struggle to keep up with technological advancements, ultimately impacting their competitiveness and growth.

So how can technology businesses address foreseen challenges?

Businesses need to promote lifelong learning. Cultivating a culture of continuous learning within organisations encourages employees to keep their skills updated. This proactive approach helps workers match competence and confidence in their personal and professional development.

Investing in training programs should also be prioritised. Investing in this way equips employees with the skills needed for today’s skills-based economy. Online learning platforms can help by integrating resources into an organisation’s training strategies, and allowing employees to acquire skills at their own pace.

Thinking ahead

As more of Gen Z enters the workforce each year, how are businesses equipped to understand their perspective on learning and new technology?

Gen Z plays a critical role in shaping culture. A recent Gen Z in the Workplace report highlights that despite some scepticism, Gen Z recognises the potential benefits of GenAI-assisted learning. As individuals who have grown up in the digital space, they are particularly drawn to personalised learning experiences, such as learning paths tailored to their strengths and weaknesses (42%), real-time assistance and tutoring (39%), and flexible learning schedules that accommodate their individual pace (35%).

Significantly, Gen Z’s apprehension about misinformation — standing at 43% — is notably higher than that of Millennials (40%) and Gen X (39%). This statistic underscores a growing demand for transparency and reliability in technological tools. For traditional technology businesses, this means that simply deploying AI solutions is no longer sufficient. Ensuring that AI systems are accurate, transparent and used responsibly will be crucial in gaining and retaining the trust of this discerning generation. Adapting to these concerns not only aligns with Gen Z’s values but also positions businesses as leaders in ethical and effective tech development.

Addressing the learning gap

Addressing the learning gap requires a strategic and personalised approach to learning at scale. As Australia navigates this shift towards a skills-based economy, addressing the learning gap will be crucial for leveraging the full potential of the workforce. Increased job mobility and personalised career development will allow employees to leverage skills across industries and roles, leading to enhanced job satisfaction, increased salary, and growth.

Image credit: iStock.com/Supatman