New research from O’Reilly, a leading platform for technology and business education, reveals that UK employees are actively seeking digital reskilling opportunities to enhance their career prospects amidst salary and headcount freezes.

The study, conducted by Censuswide in September 2024, surveyed 500 employers from large UK companies with more than 250 employees. It sheds light on how businesses are addressing the widening skills gap in fields like artificial intelligence (AI), cybersecurity, and cloud computing as they navigate economic challenges.

Salary and Headcount Freezes Spark Demand for Upskilling

According to the research, half (50%) of UK employers have introduced salary and headcount freezes in the last 12 months. As a result, employees have become more proactive in seeking opportunities to enhance their digital skills. More than three-quarters (79%) of employers have observed staff requesting upskilling and reskilling opportunities to accelerate their career progression in light of the stagnant job market.

This demand for reskilling is not limited to technical roles. Non-technical staff across all departments are seeking new skills in areas such as AI and machine learning (62%), cybersecurity (53%), data analysis (49%), and programming (31%). Meanwhile, technical staff, particularly within IT teams, are increasingly looking to upskill in AI and machine learning (66%), cybersecurity (52%), cloud computing (44%), and software architecture (25%).

Employers Favour Upskilling Over New Hires

UK employers have responded positively to this trend, with 81% viewing digital upskilling and reskilling as a more cost-effective approach than recruiting new staff. With a focus on digital transformation, businesses are aiming to enhance workforce skills in AI and machine learning (61%), cybersecurity (48%), data analysis (48%), and cloud computing (43%) over the next year.

Alexia Pedersen, SVP International at O’Reilly, commented on the findings: “Successful integration of digital technologies requires more than just deploying cutting-edge tools. It requires executive support for and investment in a culture of continuous learning to build a highly skilled workforce across every level and department that will drive ongoing innovation and growth.”

Growing Demand for AI and Digital Literacy

O’Reilly’s research highlights a significant increase in demand for learning materials on their platform, particularly for AI programming (66%), data analysis (59%), and operational AI/machine learning (54%). As generative AI tools continue to be adopted rapidly across industries, companies are facing challenges such as “AI hallucinations,” where AI systems generate incorrect or nonsensical information. This has driven a growing need for general AI literacy, not just within IT teams, but across entire organisations.

Pedersen noted, “Most leaders agree their workforces need to be reskilled in GenAI over the next three years, yet only 10% of workers are currently trained on these tools. UK employers have a responsibility to prepare every individual within their workforce for the digital tech of the future.”

Building a Culture of Continuous Learning

To remain competitive in a rapidly evolving digital landscape, companies must adopt a continuous learning strategy that equips employees with the skills needed to leverage emerging technologies. This approach to workplace learning not only enhances employee engagement and productivity but also fosters innovation that contributes to business growth.

As AI, cybersecurity, and cloud computing become increasingly integral to business operations, companies that prioritise reskilling and upskilling initiatives will be better positioned to adapt to the demands of the future workforce. O’Reilly’s research underscores the importance of preparing the workforce for these shifts to ensure long-term success in a digital-first economy.