News: Data skills gap is costing organizations billions in lost productivity

Skilling

Data skills gap is costing organizations billions in lost productivity

Firms globally are still struggling to build teams that can capitalize on the true value of data, finds a study.
Data skills gap is costing organizations billions in lost productivity

While most organizations understand the incredible opportunity of data, a gap has emerged between organizations’ aspirations to be data-driven and their employees’ ability to create business value with data, according to a study by Accenture and Qlik.

Data is a gold mine that can fuel a culture of innovation and growth. However, when employees struggle to make sense of data, productivity and business value can be affected. The survey of 9,000 employees around the world found that each year companies lose an average of more than five working days (43 hours) per employee. These lost days due to procrastination and sick leave stem from stress around information, data and technology issues, and equate to billions in lost productivity around the globe. 

The research identified how the data literacy gap is impacting organizations’ ability to thrive in the data-driven economy. First, despite nearly all employees (87 percent) recognizing data as an asset, few are using it to inform decision-making. Only 25 percent of surveyed employees believe they’re fully prepared to use data effectively, and just 21 percent report being confident in their data literacy skills — i.e., their ability to read, understand, question and work with data. Additionally, only 37 percent of employees trust their decisions more when based on data, and almost half (48 percent) frequently defer to a “gut feeling” rather than data-driven insights when making decisions.

Second, a lack of data skills is shrinking productivity. An eye-opening three quarters (74 percent) of employees report feeling overwhelmed or unhappy when working with data, impacting their overall performance. Some overwhelmed employees will go to further lengths to avoid using data, with 36 percent of surveyed employees stating that they will find an alternative method to complete the task without using data. Six in 10 respondents (61 percent) report that data-overload has contributed to workplace stress, culminating in nearly one-third (31 percent) of the global workforce taking at least one day of sick leave due to stress related to information, data and technology issues. 

“No one questions the value of data – but many companies need to re-invent their approach to data government, analysis and decision-making. This means ensuring that their workforce has the tools and training necessary to deliver on the new opportunities that data presents,” said Sanjeev Vohra, group technology officer and global lead for Accenture’s Data Business Group. “Data-driven companies that focus on continuous learning will be more productive and gain a competitive edge.”

To succeed in the data revolution, business leaders must help employees become more confident and comfortable in using data insights to make decisions, suggests the study. Employees who identify as data-literate are at least 50 percent more likely to say they feel empowered to make better decisions and are trusted to make better decisions. Furthermore, more than one-third (37 percent) of employees believe that data literacy training would make them more productive, adds the study.

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Topics: Skilling, Strategic HR

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