Human Resources



How the choice of a decision maker can hold back digital transformation

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Polling more than 1,000 L&D professionals in the US, Avado along with Censuswide see the majority of the companies have done little to assuage fear over job replacements by AI and put themselves at risk of technology outpacing their internal human capabilities, which is not a big surprise.

The edtech company further investigates the three major roadblocks of digital transformation, which are budget allocation, generational divide, and legacy programming of L&D initiatives. The fate of a successful digital transformation is in the C-suite’s hands.

The domination of C-suite decision makers
84% of all decisions on HR and L&D budgets are made by the C-Suite.

About half (45%) of respondents said only C-suite employees or board members are included in the company’s digital transformation, which means human resources leaders especially L&D specialists are excluded during the process.

Among these C-suite decision makers,  only 35% had the foresight to bring in HR/L&D in advance of digital transformation programs.

Many (47%) reported the business’ digital transformation plans are built without the help of an expert or third party, relying on a generic program or internal planning.

Less than half of all businesses either have no leadership program in place or have not started to implement one. More than half have not started any digital leadership program.

Attitude towards digital transformation
People aged over 55 are often in C-suite and leadership roles in companies, and these executives’ attitudes towards L&D and digital transformation may be worrisome.

95% of 25 to 44-year-old employees believe transformation is important, when only 72% of those in the 55+ age range cite the same.

25% of respondents aged 55+ said that digital transformation isn’t that important/important at all to their company while 4% of respondents aged 25-34 feel the same way.

“It’s no secret that many companies are already extremely late in preparation for ongoing digital transformation. If L&D programs are implemented swiftly and supported by C-suite executives, they can effectively upscale workforces and decrease job loss due to outdated skills and inability to grow alongside technology,” Niall McKinney, global president of AVADO, advised.

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