Study : 72% plan to increase tech skills development despite economic fears

Pluralsight, a Draper-based technology workforce development company, has released its 2023 “State of Upskilling Report,” which compiles survey results from more than 1,200 tech learners and leaders in the United States, the United Kingdom, Australia and India on the most current trends and attitudes around tech skills development.

The report found that even amid economic uncertainty and downturn, organizations are leaning on their technologists to continue to innovate and drive business value. Though 65 percent of tech team leaders have been asked to cut costs, 72 percent still plan to increase their investment in tech skill development in 2023. And because upskilling existing talent is more cost-effective than hiring new employees, 97 percent of learning and development and human resources directors say they are prioritizing internal talent over hiring for open positions.

“This year’s research findings underscore the importance of maximizing employee potential and optimizing learning investments to drive business ROI,” said Gary Eimerman, chief product officer at Pluralsight. “Organizations and individuals alike are being asked to do more with less in the face of reduced workforces and larger economic pressures. For future-focused companies, an emphasis on continuous upskilling will help sharpen their competitive edge”

The past several months have brought an onslaught of layoffs and hiring freezes across industries — especially in the technology sector. As 65 percent of tech executives are being asked to look for cost efficiencies in response to economic uncertainty, the consequences have a ripple effect.

Sixty-seven percent of tech managers reported that workforce reductions in their organization across software, IT and data have resulted in their teams taking on more responsibility, while nearly half (47 percent) of technologists agree they have had to perform additional responsibilities outside of their primary job function.

Investing in tech skills development helps equip overwhelmed employees with the tools needed to conquer these new and unfamiliar responsibilities, Pluralsight reported. More than half (52 percent) of technologists said it’s important to learn new tech skills in times of economic turbulence, and as day-to-day responsibilities evolve and expand in response to layoffs, upskilling becomes a critical aspect of not just individual success, but organizational success.

Amid these workforce challenges, the 2023 report illuminates a decrease in tech skills confidence across respondents. Last year’s report found that 80 percent of technologists were confident they had the skills to master their current job. This year, the majority of technologists don’t feel that same level of confidence across major tech skill areas. The top three skills that technologists and technology managers are prioritizing to drive business value are cybersecurity, data science and cloud.

According to the report, 17 percent of technologists are completely confident in their cybersecurity skills while 21 percent are not confident at all. The report said 25 percent of technologists are completely confident in their data skills while 8 percent are not confident at all and 21 percent of technologists are completely confident in their cloud skills while 17 percent are not confident at all.

Lack of time and budget have remained the biggest barriers to upskilling over the past two years, according to the study. For technologists who secure the time or budget to prioritize upskilling, 30 percent don’t know where to focus their skills development, while 25 percent aren’t sure which resources to leverage.

With 85 percent of organizations actively engaged in — or planning to begin — a digital transformation project in 2023, technologists need guided learning mapped to key business outcomes.

The full report may be accessed at https://www.pluralsight.com/resource-center/state-of-upskilling-2023.