Budget allocation, generational divide and legacy programming of learning and development initiatives are the three obstacles stopping companies from adapting digital transformation, according to a survey of more than 1,000 learning and development professionals, by AVADO.
The research found that about half of the respondents reported that only C-suite employees or the board are included in their company’s digital transformation. This not only excludes learning and development leaders but also HR and input from other employees. The C-suite dominates digital transformation decision-making but businesses rarely bring in HR/L&D before the digital transformation roll-out. Eighty-four percent of all decisions on HR and L&D budget are made by the C-suite and only 35% of businesses had the foresight to bring in HR/L&D in advance of digital transformation programs.
Many companies are already extremely late in preparation for ongoing digital transformation, said Niall McKinney, global president of AVADO.
“If L&D programs are implemented swiftly and supported by C-suite executives, they can effectively upscale workforces and decrease job loss due to outdated skills and inability to grow alongside technology.”
There is also a generational divide when it comes to prioritizing digital transformation, the survey found. People aged over 55 are often in C-suite and leadership roles at organizations that require change but this demographic doesn’t yet fully embrace and support the transformation process. The survey revealed that 95% of 25 to 44-year-olds believe transformation is important, only 72% of those in the 55 plus age range cite the same enthusiasm. For those who have yet started programs, more than 60% of those polled, don’t plan to implement in the future.
The survey also reveals that the impact on small business jobs in rural populations is potentially very damaging. SMBs are the largest category of business size that have no digital transformation program at nearly 20%, compared to 10% of larger enterprises. SMBs without leadership programs are also the least likely to build out these programs in the future.
Date: January 2, 2018