By Nicholas Greene
New research conducted by SAP and Oxford Economics reveals that a full 60 per cent of businesses in Australia are not on track to evolve technologically to meet the forecast needs of their world in 2020.
The two entities recently released the Workforce 2020 report, while found that while most companies recognise the importance of managing an international, diverse and mobile workforce, the majority lack the strategy, culture and solutions to do so.
While 33 per cent of Australian executives say they use quantifiable metrics and benchmarking for workforce development, many companies have difficulty turning this into insightful information, with Australia lagging behind global businesses in their ability to extract meaning from the data available to them (32 per cent vs 42 per cent).
The report also revealed five key themes affecting Australian businesses as they move into the future.
1. Priorities are shifting: Less than one-half of Australian employees reported that they received enough training on workplace technology, and just 26 per cent said they had workplace access to the latest technology in their industry. In addition, the workforce makeup itself is changing, with 85 per cent of businesses saying they are using more seasonal, intermittent or consultant employees.
2. Management is out of touch with the needs of Millenials: Forty-one per cent of executives surveyed believe that Millennial employees are displeased with the quality of their managers, though none of the Millennials said this was actually the case.
3. Employee needs not understood by companies: Some 52 per cent of employees say that competitive compensation is important to them, but executives report said compensation is only offered by 36 per cent of businesses. The gap in flexible working conditions is even greater – 43 per cent of employees would like them, but only 24 per cent of employers are offering them.
4. Where’s the leadership?: Only 33 per cent of executives believe their companies have plans for succession and continuity in key roles, and 31 per cent say their leaders are ready to command a diverse employee base.
5. Training, education are best for all: Sixty-one per cent of Aussie execs say that their firms offer lots of supplemental training, but only 43 per cent of employees believe their companies are offering the right tools to cultivate success and growth.
“What we see from this research is a significant gap between business preparation and business requirements when it comes to skills, benefits and training to meet the needs of both the organisation and the employees over the next six years,” said Andrew Barkla, president and managing director, SAP Australia and New Zealand.
“The Australian market in particular appears to be disconnected when it comes to management concerns and leadership, as well as training and education to bring businesses even further into the digital world,” he added.
