UK Tech Skills Gap Costs Businesses up to £380,000 a Year

More than one in three UK technology executives say the skills gap could cost their businesses at least £380,000 a year, according to research by Pluralsight. The estimate was shared by 35% of executives surveyed. Among cybersecurity professionals, 41% agreed with the same estimate.

Skills shortages are linked to higher costs and missed work. Some 40% of respondents said they had unexpectedly outsourced work because their organization lacked the necessary skills, while 30% reported budget overruns. Another 39% said their organizations had failed to deliver key projects, and 27% said they had lost clients or contracts.

The research also found that 94% of UK organizations surveyed had invested in at least some AI tools, but only 6% reported AI literacy across their entire workforce. Meanwhile, 85% said they had hired the same number or more junior technology professionals this year than before, including 10% who said they had significantly increased hiring. The main concern, cited by 88%, was that too few junior candidates were entering the workforce.

Pluralsight Author Fellow Faye Ellis said businesses could not rely on recruitment alone and should provide development pathways for new and existing employees. Still, 53% of senior leaders said they were unsure how to address their skills gaps.