Our annual organizational and staffing survey of digital professionals heralds change in 2016. The meteoric growth in digital team sizes has plateaued, and as line-of-business teams take on responsibility for digital execution and technology management teams step up to manage digital development, the nature, makeup and role of the digital team is shifting. The demand for skills like analytics, customer experience and product management is growing as digital teams take on end-to-end ownership of their firm’s digital experience. Our latest report, Trends 2016: Staffing And Hiring For Digital Business, outlines the key organizational trends and benchmarks for digital teams in the coming year.
Our key findings from the survey are:
Headcount Growth Plateaus As Operating Model Shifts. Digital headcount growth has plateaued, with teams averaging 94 people, down from 95 in 2014 and 103 in 2013. As technology and line-of-business teams step up to the digital plate, digital teams focus their resources on strategy and governance, channeling execution headcount into operational teams.
Technology Skills Aren’t The Biggest Headache Anymore. Technology skills are still hard to find, but roles like analytics and product management are increasingly vital, and much harder to source. As the role of digital teams shift from being operators and executors to strategists and coaches guiding line of business teams as they embrace digital, so to does the nature of the skills in digital teams. This way of operating demands more strategic and consultative skills than operational or technical specialists.
We are constantly told that millennials are breaking the workplace rules. They refuse to work 9 to 5. They demand iPhones. They can’t work unless there’s a fridge full of beer and a pool table in the office. And with a growing war for digital talent, many digital leaders are setting their sights firmly on attracting the digital generation to their firms.
But a recent IBM study suggests an even more interesting conclusion. While the study largely agrees with every other conclusion on the desires of the millennial workforce, it also strongly pointed out that it’s not just “youngsters” that want autonomy, flexibility, empowerment, an awesome work environment that ignites their creativity and the feeling that what they do makes a difference.
It’s no great shocker that digital skills are in short supply.
In our annual organizational and staffing survey of eBusiness and channel strategy professionals, we found that while eBusiness budgets have grown by more than 10%, finding the skills and capabilities to execute on a digital strategy is becoming harder and harder.
It’s no secret that digital skills are in short supply. In fact, while some three quarters of executives tell us their firm now has some form of digital strategy (however rudimentary), a paltry 16% say they have the skills and capabilities necessary to deliver it. Even though the average eBusiness team’s staffing budget is growing year on year, finding the skills and capabilities to execute on a digital strategy is becoming harder and harder.
eBusiness Teams Have An Average Of 95 Employees. The average eBusiness team has 95 team members. As would be expected, the larger the worldwide revenue, online revenue, or total employee count is, the larger the eBusiness team is.
Technology And Customer Experience Are Still The Hardest Roles To Fill. Technology, customer experience, and business analytics are the hardest jobs to hire for. Additionally, technology and customer experience are the most outsourced, and technology is the most understaffed.
The Digital Skills Gap Continues To Widen. Digital transformation brings an increased level of responsibility for eBusiness employees who are often leading the charge for company-wide transformation in addition to handling day-to-day operations. As all business becomes digital business, eBusiness teams will have an increasingly difficult time sourcing talent.
Depending on the viewpoint of your favorite economist, the recession may be over. But retail growth is far from buoyant in many markets. The UK retail sector shows healthy signs of recovery, while US consumers seem be less confident. There are numerable success stories; John Lewis passed the £1bn online revenue mark this year, while Macys is in its fifth year of double-digit online growth, in spite of a slightly shaky offline performance. But as an eBusiness leader, no matter what your local market conditions, I’m willing to bet one thing.
Your growth targets haven’t gone down.
For many years, growing online revenues has been a core strategy for most B2C firms, and many B2B firms are also riding the eCommerce wave. But as markets become crowded and competition becomes tighter, globalization is an increasingly attractive option for eBusiness professionals. With southern European markets seeing online growth rates in the high teens and even bigger opportunities like Russia and China on the global horizon, it’s no surprise that an international strategy is high on the agenda for many eBusiness leaders.
It’s a very enlightening way of seeing digital disruption in action. When my wife and I bought our current house over a decade ago, we found it on a property website, but that’s where the digital engagement ended. We physically went to the estate agent to book a viewing. We were given a printed brochure about the house. Our mortgage application was done in person. We took photos of the house, printed them at the local Boots and stuck them in an album. When we moved we had to call our friends and tell them we’d moved.