FTSE 100 firms pour billions into tech but neglect workforce skills, Multiverse report finds
A new analysis of FTSE 100 annual reports has found that while investment in technology is increasing, workforce skills development remains a low priority for major UK companies.
The study, conducted by Multiverse in collaboration with data scientist David Abelman, examined ten years' worth of reports using a large-language model (LLM) to extract key themes. Findings indicate that while 69% of FTSE 100 companies list technology as a strategic priority, only 7% do the same for workforce training and development.
Lack of strategic focus on skills development
Despite the growing impact of digital transformation, most companies do not conduct strategic skills reviews for their workforce. Only 17% report undertaking a company-wide assessment of employee skills, compared to 78% that review their Board of Directors’ competencies.
Artificial intelligence training is also underrepresented. While 97% of companies highlight compliance and diversity, equity, and inclusion (DEI) training, just 34% reference AI training, despite its increasing role in business operations.
Euan Blair, CEO of Multiverse, commented:
“Annual reports are a weathervane for the issues that are capturing the boardroom’s attention. What we can see in the data is that investment in technology is skyrocketing but skills and training has stagnated. It’s telling that at the same time, so has UK productivity.”
Apprenticeships gaining traction over graduate schemes
The report also found a shift in how companies approach early-career development. Over the past decade, the number of firms referencing apprenticeship schemes has risen from 48% to 59%, while graduate schemes have grown from 39% to 48%. Internship programs have also increased, with 32% of companies now offering them, compared to 19% ten years ago.
However, investment in training remains limited. The study found that only 10% of companies disclosed their training budgets, with a median spend of £600 per employee. On average, just 0.16% of company revenue and 1% of working hours are allocated to workforce training.
Disconnect between technology growth and workforce preparation
The findings suggest that businesses are investing heavily in technology without a corresponding focus on preparing employees for digital transformation. This aligns with broader trends identified by the Institute for Fiscal Studies (IFS), which has reported a decline in employer investment in training over the past decade.
David Abelman, Data Science Consultant, stated:
“It was clear that whilst technological focus has ramped up, strategic skill development is generally lagging behind. But it’s also promising to see signals of change in the tactical implementation of learning and development initiatives. It will be fascinating to see how this plays out in the coming years as the increasing impact of AI is felt.”
