Home topics news Image credit: Headway on Unsplash News News Study reveals Australian businesses losing $3.1 billion annually due to digital skills gap Yajush Gupta March 9, 2023 A recent study by RMIT Online and Deloitte Access Economics revealed that Australian businesses are losing $3.1 billion annually due to the digital skills gap. However, the study also suggests that an investment of $1.5 billion could help close this gap. The skills shortage has impacted companies in various ways, including reduced productivity, increased outsourcing costs, and loss of business. Despite predictions of slow economic growth and inflation impacts, 80% of business leaders expect to hire at least as many people in 2023 as they did last year. According to Claire Hopkins, interim CEO of RMIT Online, businesses need to invest in skills and development capabilities now to grow a resilient and competitive workforce. As the demand for digital skills continues to grow, it is crucial to address these gaps, or the cost to businesses will only increase. “While the upfront cost to solve our upskilling and reskilling crisis may seem high, our research shows investing in training is necessary for Australian businesses to reap substantial and long-lasting benefits, and to mitigate the impact of the digital skills gap,” concludes Hopkins. Almost half (48%) of surveyed employers prefer upskilling or reskilling existing employees over external hiring to address the skills gap. They believe internal solutions generate additional benefits, such as increased retention, stronger team culture, and higher cost-effectiveness. On average, employees who