What are digital skills?

The digital world is continuously evolving, and technology is making its way into every aspect of our lives. As a result, there is an increasing demand for professionals who can navigate this fast-paced environment. The need for employees to be digitally literate is growing, basic digital skills are no longer enough. But what are the essential digital skills exactly? This is exactly what we have set out to answer in this article.

What exactly are digital skills

At the most basic level, digital skills refer to the essential skills needed to use computers and digital devices to access and manage information. However, digital skills go beyond basic knowledge, and cover more complex set of skills. There are two categories valued digital skills: basic digital skills and advanced digital skills, so keep reading.

The importance of digital skills in today’s workforce

Digital skills have become crucial in today’s workforce, with 92% of jobs analyzed requiring digital skills. The demand for these skills is high across every state and industry, including entry-level and frontline positions. However, one-third of workers don’t have the foundational digital skills necessary to enter and thrive in today’s jobs, highlighting a significant skills gap in the workforce.

Impact on career opportunities

The level of digital skills an individual possesses can significantly impact their career opportunities and earning potential. Workers in highly digital occupations have a mean annual wage of $72,896, while those in middle-level digital jobs earn $48,274, and those in the least digitally intense positions earn $30,933. This wage disparity underscores the importance of developing strong digital skills for career advancement and financial stability.

Role in business growth and innovation

Digital skills play a crucial role in driving business growth and innovation. As companies increasingly rely on technology for their operations and strategies, employees with strong digital skills become invaluable assets. These skills enable businesses to adapt to changing market conditions, improve efficiency, and develop innovative products and services.

The COVID19 pandemic accelerated the digital transformation, as roughly 70% of full-time employees switched to working from home. As a result, the demand for all employees to have basic digital skills increased.

Government bodies, like the House of Lords in the UK, recognize digital skills as the third core subject, along with numeracy and literacy. Employers who want to future proof their business by introducing digital technologies have to recognise the importance of digital skills and create an envioriment where employees upskill and reskill their digital skills.

What are basic digital skills?

At the basic skill level, digital literacy for younger generations, think of Millenials and Gen Z, digital content comes as second nature as they were brought up with technology, whereas, older generations may actively have to learn digital skills.

Basic digital skills are grouped into six categories:

• Digital foundation skills – is the ability to navigate digital technologies such as web browsers and search engines and keep passwords secure.
• Communicating – is using communication applications like email and social media to communicate with others.
• The handling of information and content – having digital awareness and understanding the digital footprint we leave behind.
• Transacting – is the ability to use online resources to complete basic tasks like paying the bills and doing online shopping.
• Problem-solving – is the ability to navigate search engine results to find solutions to problems and answers.
• Being safe and legal online – understand how to keep yourself safe in the digital sphere.

More and more employers are expecting potential candidates or job seekers to hold the above-mentioned basic skills.

Types of digital skills

Technical skills

Technical digital skills encompass a wide range of abilities, from basic computer operations to advanced programming and data analysis. These skills include:

• Proficiency in using office productivity software
• Understanding of web development and coding languages
• Knowledge of data analysis tools and techniques
• Familiarity with cloud computing platforms
• Expertise in cybersecurity practices

Soft digital skills

Soft digital skills are equally important and complement technical abilities. These include:

• Digital communication and collaboration
• Critical thinking and problem-solving in digital contexts
• Adaptability to new digital tools and platforms
• Digital creativity and innovation
• Digital ethics and responsible use of technology

What are advanced digital skills?

As of 2021, the global digital transformation market size was evaluated at USD 608.72 billion and is expected to grow further by 23.1% from 2022 to 2030, thus, increasing the demand for digital skills. The ability to use a computer is nothing that sets potential employees apart from other candidates.

Although some digital skills are sector-specific, we went ahead and identified the most popular in-demand digital skills important to:

• Digital Marketing – the internet has forever changed how marketing works. Nowadays, digital marketers specialize in one or more types of digital marketing:
  • Social media marketing – utilizes social media platforms to promote products or services, usually aimed at the B2C market.
  • Search engine marketing – promotes websites by increasing their visibility in search engine results.
  • Email marketing – as the name implies, using an email to send commercial messages to customers. Email marketing is especially successful in promoting products of an online store to potential or existing customers.
• Social Media digital skills – 85% of company executives agree that social media data will be the primary source of business intelligence in the future. Thus, employers will be looking for individuals who not only can use social media but also social media tools, measure performance, and understand how to present and market a brand online.
• User Experience – is the combination of technical skills and workplace skills that make websites, apps, and online experiences more intuitive and enjoyable. As an employer don’t overlook the importance of this advanced digital skill, 88% of online users said they would not return to a website after having a bad user experience.
• Web Analytics – the digital skill that collects, measures, performs data analysis, and reporting of web data to better understand and optimize web usage. Here, what is as equally important is data visualization, businesses need the big data to be presented in a clear, easy-to-understand way to make intelligent business decisions.
• Artificial Intelligence (AI) – is a relatively new digital skill set that focuses on teaching machines to perform tasks, predict, and make decisions based on the raw data provided.

Essential digital skills for the modern workplace

Digital communication and collaboration

In today’s interconnected work environment, effective digital communication and collaboration are essential. This includes proficiency in:

• Video conferencing tools
• Project management platforms
• Instant messaging and team chat applications
• Cloud-based document sharing and co-editing

Data literacy and analytics

As businesses become more data-driven, the ability to interpret and analyze data is crucial. Key skills include:

• Basic data analysis and interpretation
• Familiarity with data visualization tools
• Understanding of data privacy and protection principles

Cybersecurity awareness

With the increasing prevalence of cyber threats, basic cybersecurity awareness is vital for all employees. This includes:

• Understanding of common cyber threats
• Knowledge of best practices for password management and data protection
• Ability to identify and report potential security risks

Most in-demand digital skills

So far, we covered the basic and advanced digital skills. Let us now focus on the most in-demand digital skills.

• Cybersecurity – refers to the basic knowledge of how to protect computers, digital devices, and networks from information disclosure, theft, damage, or breach of electronic data.
• Programming, Web, and App Development – is the familiarity with core programming languages for web and app development. Fun fact, there an anywhere between 700 and 9,000 programming languages.
• Customer Service – refers to the ability to navigate through customer relationship management systems used to manage customer interactions.
• Digital Image and Video Editing – is the ability to use infographics, tutorials, and scaling videos to present big data or promote a product.
• Cloud Technology and E-commerce – is the knowledge of how-to-access programs and data through the internet rather than relying on computer hard drives.
• Digital Business Analysis – knowledge of data analytics tools helps businesses make wiser choices. As digital transformation is central to all organizations in the digital economy, digital business analysis skills have become the most in-demand digital skill.
• Digital Project Management – refers to understanding how digital projects are developed and the ability to manage them using SCRUM and AGILE methodologies.
• Digital Product Management – having the ability to develop, define, deliver, observe and refine digital products to maximize results.

As technology evolves and digital transformation continues to shape how businesses operate, the list of digital skills will continue to grow. New job opportunities in emerging technologies will be opening up, and we will see a growth in the creation of new roles, so the key is for potential employees to learn new skills.

Emerging digital skills for the future

Artificial intelligence and machine learning

As AI and machine learning technologies continue to advance, skills in these areas are becoming increasingly valuable. This includes:

• Understanding of AI principles and applications
• Basic machine learning concepts and algorithms
• Ethical considerations in AI development and deployment

Internet of things (IoT)

The growing interconnectivity of devices creates new opportunities and challenges. Key skills in this area include:

• Understanding of IoT ecosystems and architectures
• Knowledge of sensor technologies and data collection methods
• Familiarity with IoT security protocols

Blockchain technology

While often associated with cryptocurrencies, blockchain has broader applications. Relevant skills include:

• Understanding of blockchain principles and use cases
• Familiarity with smart contracts
• Knowledge of blockchain security and privacy considerations

Which Jobs Require Digital Skills?

The latest European Commission report found that 90% of professionals (even agricultural workers) should possess basic digital skills. Therefore, the short answer is nearly all jobs require basic digital skills.

The positions that require more advanced digital skills are as follows:

• Coding
• Mobile app development
• Marketing
• Customer Service
• Sales
• Retail
• Management
• Journalists and creative writers
• Engineering
• Doctors
• Nurses
• Teachers
• Accountants
• Software developers

Digital skills in specific industries

Healthcare

The healthcare industry is increasingly relying on digital technologies. Key digital skills in this sector include:

• Electronic health record (EHR) management
• Telemedicine platforms and protocols
• Health data analytics and privacy compliance

Finance

The finance sector has been transformed by digital technologies. Essential skills include:

• Financial technology (FinTech) applications
• Blockchain and cryptocurrency knowledge
• Data analytics for financial forecasting and risk assessment

Education

Digital skills are reshaping education at all levels. Important skills for educators include:

• Learning management system (LMS) proficiency
• Digital content creation and curation
• Online assessment and feedback tools

How big is the digital skills gap?

The rise in the use of technology is not on par with the growing number of skilled candidates. We are making technological advances and incorporating more technology into our daily lives, but we are not generating enough candidates with the right digital skills. As a result, we are facing a growing skills gap.

We should not ignore the digital skills gap, as it comes with its repercussions. The latest forecasts estimate that 14 of the world’s major economies can miss out next generation on $11.5 trillion cumulative GDP growth.

What is scarier is the fact that 88% of workplaces have not addressed that digital skills gap and only 28% of employees are participating in training programs to improve digital skills.

Right now, the realities of digital age, are bleak for employers. It is estimated that 85 million jobs will go unfilled globally by 2030 due to the digital skills gap. The decisions companies make now, whether to tackle the skills gap or not, will directly influence future generations.

It is the technological advancements that dictate what new digital skills employers will seek. Thus, it is within the employer’s best interest to invest in their employee upskilling and reskilling.

Strategies for Developing Digital Skills

Online courses and certifications

Online learning platforms offer a wide range of courses and certifications in digital skills. These include:

• Massive Open Online Courses (MOOCs) from platforms like Coursera and edX
• Industry-specific certifications from companies like Google and Microsoft
• Coding bootcamps and intensive online programs

Hands-on projects and internships

Practical experience is crucial for developing digital skills. Strategies include:

• Participating in open-source projects
• Taking on freelance work or side projects
• Seeking internships or apprenticeships in tech-focused roles

Mentorship and networking

Learning from experienced professionals can accelerate skill development. Approaches include:

• Joining professional associations and attending industry events
• Participating in mentorship programs
• Engaging in online communities and forums related to specific digital skills

How to Get the Most Out of Digital Upskilling

Developing digital skills is crucial. The World Economic Forum estimates that 54% of all employees will require significant reskilling by 2022. The need to upskill employees will differ across regions. For example, the European Commission estimates that 37% of workers in Europe do not possess basic digital skills.

Therefore, there is a real need for employers to focus on upskilling their employees.

Digital upskilling refers to the process of giving employees the skills and knowledge they need to improve their digital literacy.

Employers should prepare for the disruption caused by the digital skills gap by making digital upskilling possible within the workplace. To save you time we created the top 3 ways how to future-proof your business for digital natives:

• Purchase subscriptions to e-learning services like HubSpot or Linkedin Learning and give your employees access to the platforms to learn additional skills.
• Have a learning day where employees work half a day, and the second half is dedicated to acquiring new skills.
• Create programs or initiatives where employees can take time out of their working day to complete certified courses. Some courses can be pricy, which can deter employees, so why not create a fund that will cover some or all of the course price? Remember it is not just the employee who is benefiting from this.

However, as an employer, you should be mindful of what skills your employees choose to upskill or reskill. You, as the employer, need to understand your employee’s strengths and weaknesses before deciding what skills employees will improve.

For example, an employee who is quite creative and artistic may not be the best candidate for a data analyst reskill, and vice versa. Understanding individual employees strengths and weaknesses is vital for your business growth.

Measuring Digital Skill Proficiency

Assessment tools

Various tools and methods can be used to assess digital skill proficiency:

• Online skill assessment platforms
• Industry-standard certification exams
• Practical skill demonstrations and projects

Industry standards and bench> Industry standards and benchmarks

Industry standards and benchmarks help organizations measure digital skill proficiency:

• Frameworks like the European e-Competence Framework (e-CF)
• Industry-specific skill matrices and competency models
• Benchmarking against industry leaders and competitors

Benefits of mapping skills as a talent

The ability to identify and make new hires and address skills gaps fuels business growth. The DevSkiller TalentBoost talent management and skill mapping platform can:

• Help businesses identify skill gaps within the company. Based on the data provided, employers can then make the right decisions whether to hire, promote or upskill employees.
• Identify clear progression routes for employees by identifying their prerequisites to progress within a particular skill. Introducing clear career paths will keep employees motivated and happy.
• Have data support the HR decisions you made with regards to hiring and letting employees go.
• Maximize employee skill training and reduce the costs of training by clearly understanding which employee is perfectly suited for which digital skills.
• Streamline projects by identifying the right employees for them.

The Role of Employers in Digital Upskilling

Corporate training programs

Employers play a crucial role in addressing the digital skills gap through corporate training programs:

• Developing tailored in-house training curricula
• Partnering with e-learning platforms to provide access to digital skills courses
• Creating mentorship programs to facilitate knowledge transfer within the organization

Partnerships with educational institutions

Collaborations between businesses and educational institutions can help bridge the digital skills gap:

• Developing industry-aligned curricula with universities and colleges
• Offering internships and apprenticeships to students
• Sponsoring research projects in emerging digital technologies

Overcoming Barriers to Digital Skill Acquisition

Addressing the digital divide

The digital divide remains a significant barrier to digital skill acquisition. Strategies to address this include:

• Providing access to digital devices and internet connectivity in underserved communities
• Offering free or low-cost digital literacy programs
• Collaborating with local libraries and community centers to provide digital skills training

Age-related challenges

Older workers may face unique challenges in acquiring digital skills:

• Developing age-inclusive training programs
• Providing additional support and resources for older learners
• Emphasizing the relevance of digital skills to existing roles and experiences

Concluding thoughts

According to those reports mentioned previously, thanks to digital transformation, digital skills are now prevalent in 90% of professions. However, 88% of workplaces have not addressed the digital skills gap. As a result, 14 of the G20 countries are facing an $11.5 trillion drop in GDP growth. The digital skills gap is a real threat to businesses and their annual revenue.

However, this can change if employers place more importance on digital skills, more specifically upskilling and reskilling their employees. DevSkiller TalentBoost can help you to identify skill gaps in your company and create clear progression routes for your employees.