Future of Work Skills Research Findings - TURKEY · Internet-of-Things (IoT) technologies ... Networking skills Big data analytics/Data science Internet of Things Robotic process

Future of Work SkillsResearch Findings

- TURKEY -November 2019

2

Executive Summary

▪ The importance of digital transformation is well understood among organizations in Turkey and only 4% of respondents have not initiated their

DX journey. The majority of organizations in Turkey have already developed a company-wide DX strategy and some 40% of organizations made

significant progress in implementation

▪ Together with internally developed applications, organizations in Turkey are widely using social networks, cloud, mobility and collaboration

applications. The technologies of IoT, big data and analytics, artificial intelligence and robotic process automation are also gaining momentum

in Turkey

▪ Skill availability in digital will remain a huge issue. Positions that require extensive use of digital systems and applications for work are in

particularly high demand

▪ More than half of the organizations in Turkey are facing difficulty in recruiting staff with digital skills. Security-related skills are the hardest to

find and will remain to be the hardest in the near future. Although not very obvious currently, the skill gap for big data analytics/data science

will increase in the near future

▪ Organizations in Turkey find "hiring experienced people from other organizations within respective industries" as the most effective approach

for acquiring digital skills. This approach results in high turnover in digitally skilled employees and an increase in salaries

▪ The majority of the respondents are expecting an increase in headcount due to digital transformation soon. Respondents are aware that

improved digital skills have many benefits for the company. New business opportunities stand out as the main driver of organizations for

improving digital skills

3

Profile

Base (Turkey): 78

19%

81%

100 – 249 employees

250 employees or more

Organization Size

8%

14%

10%

9%

12%

13%

8%

6%

6%

9%

3%

3%

Resource industries, oil & gas, energy, utilities

Manufacturing

Trade (wholesale and retail)

Transportation/Storage/Logistics

Hospitality, accommodation, catering

Banking, insurance, other financial services

Professional/Business services

Media and communications

Education

Healthcare

Government

Agriculture

Verticals

4

State of Digital Transformation

Q1. What is the current state of digital transformation (DX) in your organizations?

▪ The importance of digital transformation is well understood among organizations in Turkey and only 4% of respondents have not initiated their DX journey.

▪ The majority of organizations in Turkey have already developed a company-wide DX strategy and some 40% of organizations made significant progress in implementation.

Base (Turkey): 78

44% 32% 8% 13% 4%

Company-wide DX strategy in place; good progress inimplementing it

Company-wide DX strategy in place, but at an early stage ofimplementing it

Do not have a company-wide DX strategy, but have several DXinitiatives at the department level (functions)

DX not a high priority for us, but have had some limited DXinitiatives

Digitization is not relevant for us, and have not conducted anyDX initiatives

5

Technologies/Solutions Deployed

Q2. Which of the following solutions/technologies is your company currently deployed/using?

▪ Together with internally developed applications, organizations in Turkey are widely using social networks, cloud, mobility and collaboration applications.

▪ The technologies of IoT, big data and analytics, artificial intelligence and robotic process automation are also gaining momentum in Turkey.

▪ Blockchain and 3D printing are nascent with limited deployment among organizations in Turkey.

80%

79%

73%

72%

69%

65%

55%

53%

43%

39%

25%

25%

Internally developed apps

Social networks for business purposes

Cloud

Mobility technology

Collaboration apps (e.g., SharePoint)

Internet-of-Things (IoT) technologies

Big data analytics/Data science

Artificial intelligence (AI)/Machine learning…

Robotic process automation (RPA)

Augmented/Virtual reality (AR/VR) tools

Blockchain

3D printing

Base (Organizations that have DX initiatives in place): 75

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Demand for Positions in Near Future

Q3. Do you expect your company to witness an increase or a decrease in demand for the following position types in the coming 2 or 3 years? Please use a 5-point scale on which 1 = a significant decrease and 5 = a significant increase.

▪ Skill availability in digital will remain a huge issue. Positions that require extensive use of digital systems and applications for work are in particularly high demand.

▪ In the following years, as organizations will progress in their DX journey, basic digital skills will not be enough to address the changing requirements of work.

Base (Turkey): 78

19%

26%

40%

42%

30%

26%

34%

24%

28%

29%

17%

17%

14%

8%

4%

8%

9%

11%

5%

9%

Positions that do not require any digitalor IT skills

Positions that require basic digital skills

Positions that require extensive use ofdigital systems and applications for

work

Positions that required deep technologyskills

(5) Significant increase (4) Slight increase (3) No change (2) Slight decrease (1) Significant decrease

3.359

3.462

4.000

3.833

Mean Scores

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Difficulties and Growing Departmental Challenges

Q4. Is your company facing any difficulty in recruiting staff with digital skills?Q5. Is your company facing any growing challenges as a result of a lack of digital skills among employees in the following departments?

▪ More than half of the organizations in Turkey are facing difficulty in recruiting staff with digital skills.

▪ IT leading the first place, but all the departments from operations to human resources are facing rowing challenges due to the lack of digital skills among employees.

Base (Turkey): 78

Whether Facing Difficulty in Recruiting Staff with Digital Skills

60%

58%

55%

55%

50%

50%

23%

IT

Operations

Marketing

Sales

Finance

Human resources

None

Challenges Faced in Departments Due to Lack of Digital Skills

26%

33%

35%

6%

Yes, across the company

Yes, in some business areas

No, not finding it difficult

Don’t know

59% facing

difficulty

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Currently Lacking and Future Skills Needed

Q6. In which of the following areas is your company currently in need of, but lacking, the necessary talent/skills?Q7. And in which of the following areas will your company likely need (more) talent/skills over the next two years?

▪ Security-related skills are the hardest to find and will remain to be the hardest in the near future.

▪ Although not very obvious currently, the skill gap for big data analytics/data science will increase in the near future.

59%

58%

56%

54%

47%

47%

45%

45%

44%

42%

32%

28%

21%

19%

13%

Security-related and data protection

Mobile technologies

Cloud computing

IT services management

Traditional application development

Collaborative applications

Artificial intelligence/Machine learning

Networking skills


Internet of Things

Robotic process automation

Augmented/Virtual reality

Blockchain

3D printing

None

Currently Needed Lacking Skills Skills Likely to be Needed in Near Future

71%

69%

69%

69%

67%

63%

63%

63%

58%

58%

46%

44%

44%

38%

8%

Security-related and data protection

Mobile technologies



Cloud computing

Internet of Things


Networking skills

Artificial intelligence/Machine learning




Blockchain

3D printing

NoneBase (Turkey): 78

9

Ease of Acquiring Digital Skills

Q8. Based on your experience, and regardless of whether your company requires these skills or not, how easy or difficult do you think it will be for companies to acquire (by recruiting or training existing staff) these skills over the next 2 or 3 years? Please use a 5-point scale on which 1 = extremely difficult and 5 = extremely easy.

▪ Mobile technologies have always been at the top of CIO investment priorities for the last 5 years in Turkey. The projects deployed on mobile technologies have created a certain maturity and knowledge in the market. Therefore, it is much easier to find mobile technology experts than in other fields.

▪ The ranking here also shows us the order in which technology enters our lives. As companies invest in these technologies, either existing resources will be trained, or companies will engage in the recruitment of experts with this knowledge, who have done similar work in another company.

Base (Turkey): 78

Mean Scores

29%

33%

29%

27%

22%

23%

16%

15%

13%

11%

12%

10%

5%

7%

33%

29%

24%

20%

22%

24%

20%

24%

18%

19%

18%

9%

19%

17%

18%

11%

23%

25%

28%

22%

30%

23%

24%

20%

19%

21%

17%

21%

11%

14%

15%

16%

12%

12%

21%

25%

28%

24%

23%

33%

28%

17%

9%

13%

9%

12%

16%

19%

13%

13%

17%

26%

28%

27%

31%

38%

Mobile technologies


Networking skills


Cloud computing



Internet of Things

Security-related tasks and data protection


3D printing

Blockchain

Cognitive and artificial intelligence


(5) Extremely easy (4) (3) Neutral (2) (1) Extremely difficult3.61

83.53

93.49

33.33

83.20

33.20

33.03

93.01

32.81

32.65

32.61

82.41

42.39

22.38

0

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Challenges in Acquiring Digital Skills

Q9. What are the top-three challenges in acquiring the digital skills necessary to execute digital transformation strategies in your company?

▪ Finding the right level of experience, the right skills related to new and emerging technologies and the right business mix of business and technology skills keep being the main challenges in acquiring the digital skills necessary to execute digital transformation.

▪ Especially in new technologies, it is difficult to determine the level of experience required for the project and to find the source in that experience.

Base (Turkey): 78

45%

44%

42%

41%

33%

33%

32%

17%

Finding the right level of experience

Finding the right skills related to new and emergingtechnologies

Finding the right mix of business and technology skills

Skills available but too expensive

Finding the right level of education

Finding people with both technology and soft skills

Attracting talents who are highly adaptable, open minded,and able to learn

Retaining skilled employees once onboard

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Effective Approaches to Acquire Digital Skills

Q10. To what extent do you think the following approaches are effective or ineffective in acquiring employees with digital skills? Please use a 5-point scale on which 1 = a not effective at all and 5 = extremely effective.

▪ Organizations in Turkey find "hiring experienced people from other organizations within respective industries" as the most effective approach for acquiring digital skills. This approach results in high turnover in digitally skilled employees and an increase in salaries.

▪ Training is also found as an effective method for equipping employees with digital skills.

Base (Turkey): 78

22%

18%

38%

15%

36%

23%

32%

23%

22%

26%

27%

32%

29%

20%

18%

32%

22%

23%

8%

17%

14%

18%

9%

9%

9%

22%

8%

9%

6%

13%

Hiring fresh IT graduates fromuniversities/higher education

Hiring other fresh graduates (non-IT) fromuniversities/ higher education and

providing them with digital skills training

Hiring experienced people from otherorganizations within our industry

Hiring experienced people from otherindustries

Retraining/Upskilling existing staff

Hiring external experienced contractorsfrom third parties

(5) Extremely effective (4) (3) Neither (2) (1) Not at all effective

3.500

2.987

3.692

3.205

3.769

3.436

Mean Scores

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Effective Approaches to Acquire Digital Skills

Q11. Does your organization have any retraining or reskilling programs to help align lesser-skilled employees with the demands of digital transformation in this evolving digital age?Q12. How does your organization retrain/reskill your existing employees?

▪ 3 out of 4 organizations in Turkey have retraining/reskilling programs.

▪ Training existing IT staff in new technologies stand out as the main method of reskilling existing employees.

▪ According to survey results, organizations consider more than one method for retraining existing employees. The culture of the organizations determines the combination of these retraining methods.

Base (Turkey): 78

76%

Organizations that Have Retraining/Reskilling Programs

92%

80%

80%

78%

Train existing IT staff in newtechnologies

Develop cross-functional skillsby training staff from other

functions in new technologies

Develop cross-functional skillsby providing IT staff withfunction-specific training

Provide function-specific trainingto department staff

Methods of Retraining/Reskilling Existing Employees

Base (Companies that have retraining/reskilling programs): 59

13

Perceived Effect of Digital Transformation on Headcount

Q13. In your opinion, what impact will digital transformation have on headcount in your company in the near future?

▪ The majority of the respondents are expecting an increase in headcount due to digital transformation soon.

▪ A limited number of organizations expect a decrease in headcount.

▪ As new technologies enter our lives rapidly, it takes a long time to replace traditional technologies with emerging technologies. Therefore, it will take time to retrain employees who are engaged in traditional technologies. This will lead to an increase in new headcounts.

Base (Turkey): 78

More jobs will be cancelled than created

15%

More jobs will be created than

cancelled 53%

The overall net impact will be

neutral24%

Don’t know/Not sure8%

Net

decrease in

headcount

Net increasein headcount

15%

53%

24%

14

Benefits From Improved Digital Skills

Q14. How do you think your company could benefit from the improved digital skills of your employees?

▪ Respondents are aware that improved digital skills have many benefits for the company. New business opportunities stand out as the main driver of organizations for improving digital skills.

▪ Improved customer experience ranked as second mainly due to the need for decreasing customer churn and increasing customer satisfaction.

▪ Profitability is the most common issue for organizations in Turkey. Improved digital skills are expected to create new business opportunities and lead to an increase in profitability.

Base (Turkey): 78

86%

81%

78%

77%

77%

74%

74%

73%

71%

New business opportunities

Improved customer experience

Greater effectiveness of operational and business processes

More profitability

An improved reputation

Revenue growth

Increased competitiveness

Significant contribution to decision-making processes

Higher retention level of skilled employees

15

Organizations That Can Support with Digital Skills

Q15. Which of these organizations do you think should primarily work with companies to help them overcome their difficulties in recruiting digitally skilled employees?

▪ Academia and the education system stand out as the first choice of organizations to overcome these challenges in recruiting digitally skilled employees.

▪ A significant number of surveyed executives see education programs supported by funding from international organizations and industry and professional associations as other options that they can leverage to overcome the lack of digital skills challenges.

▪ Surveyed organizations also stated that they have expectations from government ministries and national policymakers for increasing the number of digitally skilled employees.

Base (Turkey): 78

78%

73%

72%

71%

67%

60%

Academia and the education system as a whole

Education programs supported by funding from the EU,UN, other international organizations

Industry and professional associations

Individual educational institutions

Government ministries

National policy makers

Documents

Future of Work Skills Research Findings - TURKEY · Internet-of-Things (IoT) technologies ... Networking skills Big data analytics/Data science Internet of Things Robotic process