Due to the fast-moving nature of the digital industry, employers are having to continuously adapt to both industrial changes as well as changes in the habits of their workforce. In addition to tackling changes in existing workforces, recruiting new talent has also become tricky for businesses of different sizes, due to the current skill gap and the barriers to implementing digital transformation. 

Sustainability and data protection are also essential factors for employers. 

But what are the main challenges digital and tech employers are facing in 2023? 

The digital skills gap 

Research has found that only one in ten UK workers possess digital skills. 

The existing skills gap is a concern for many UK employers and businesses in general. This has greatly played a role in recruiting new talent and plans when implementing hybrid working. The lack of digital skills has impacted employees’ ability to hit targets. 

Workers and those looking for new opportunities are increasingly being encouraged to upskill in their digital and tech careers in order to give themselves and their businesses a competitive edge. 

Digital Transformation 

The UK has seen a huge rise in the number of businesses trying to adapt to the digital landscape, increasing automation in the workplace in the process. Whilst this approach has vast benefits, it has also produced challenges for both employees and employers. Due to customer demands, businesses are having to invest more money into obtaining technology that will enhance business procedures and satisfy customers. 

Sustainability 

Sustainability has become a top priority for businesses and society in recent times. UK businesses are continuously finding ways to address this and find ways to incorporate it into their day-to-day operations. Not only are businesses feeling the effects of consumers switching to sustainable products, but employers also face the challenge of attracting and hiring employees who share similar values of sustainability. 

Recruiting talent 

This brings us to our next factor. Due to the skill shortages in the majority of sectors, employers find themselves increasing salaries and offering better incentives and benefits in a bid to attract top-tier talent. Whilst the initial rewards may be worth it, this could lead to financial complications in the long run due to matching high demands regularly. Businesses will feel the pressure of recruiting talent on very high salary demands, then leading to increased prices for consumers in a bid to maximize profit. 

Cost of living 

Perhaps one of the biggest determining factors for businesses and workers to consider when making decisions about the way forward in 2023, is the cost of living crisis. The UK has seen many people struggle to afford various essentials such as food, due to the increase in living costs. As a result, wage demands have increased, leaving some businesses unable to match and leaving employees redundant. This has also put pressure on businesses when ordering supplies. 

Data Protection 

Websites are collecting more and more information about visitors, and all that information must be protected and used in order to be compliant with legislation and customer expectations. Well-known UK brands have faced data breaches, this has led them to take more steps to ensure data is well protected. Businesses are working hard to protect customers from spam texts and online messages in addition to keeping databases secure.