New Research Finds Lack of Data Literacy Undermines Business Performance

Rhea-AI Summary

Tableau's new Forrester research shows significant business benefits from data literacy investments, but organizations are not adequately training employees. Despite 82% of decision-makers expecting basic data skills across all departments, only 39% of companies offer data training. The study highlights that nearly 80% of employees would stay at a company that invests in data training. Furthermore, businesses could see a 96-fold return on data investments, emphasizing data literacy's importance in achieving competitive advantage and improving employee retention.

Positive

• Data literacy investments can yield a 96-fold return.
• 82% of decision-makers expect basic data skills from employees.
• Employees trained in data skills make better and faster decisions.
• Nearly 80% of employees are more likely to stay with companies offering data training.

Negative

• Only 39% of organizations provide data training for all employees.
• Many decision-makers believe employees should self-train, undermining formal training initiatives.

Tableau study finds data literacy investments yield tangible business benefits, yet organizations are not adequately upskilling employees

Data training may be a key element to overcoming the "Great Resignation", with nearly 80% of employees more likely to stay at a company offering data skilling programs

SEATTLE, March 15, 2022 /PRNewswire/ -- Today, Tableau, the world's leading analytics platform (NYSE: CRM), published new commissioned Forrester Consulting research exploring the role data skills play in driving business outcomes. The study, titled 'Building Data Literacy: The Key To Better Decisions, Greater Productivity, And Data-Driven Organizations', found that despite increasing demand for data skills, insufficient training and investments are leaving business leaders with a false sense of security.

For the global study, Forrester surveyed more than 2,000 executives, decision-makers and individual contributors in 10 countries, all working at global companies with 500+ employees.

Data skills are increasingly vital, yet training lags
Survey respondents agree, data and analytics are mission-critical to thriving in rapidly-changing circumstances—informing decisions, seeing opportunities and navigating change. As businesses embrace a digital first environment, data literacy becomes increasingly crucial.

"Data offers a key competitive advantage. Business success depends on training and enabling everyone across an organization to use data to make better decisions. To unlock the power of data, businesses must invest in their most essential resource — their people — by providing opportunities for data training and development beyond traditional data-focused roles," said Mark Nelson, President & CEO, Tableau.

Today, 82 percent of decision-makers surveyed expect basic data literacy from employees in every department — including product, IT, HR and operations. And expectations are only increasing. By 2025, close to 70 percent of employees are expected to use data heavily in their job, up from 40 percent in 2018.

While business leaders and employees agree that data skills are increasingly essential to understand and act on the vast amounts of data their organizations produce, that awareness doesn't translate to investments in data skilling.

In fact, nearly three-quarters of decision-makers believe employees should improve their own data skills through ad-hoc, on-the-job knowledge, usually from coworkers or trial-and-error. Only 39 percent of organizations make data training available to all employees, with the onus to train people usually falling to department heads or team levels.

While the global data literacy skills gap is clear, so is the opportunity
The disconnect between decision-makers' beliefs and the reality employees face may result in steep costs for businesses, but also presents an unprecedented opportunity. As companies rapidly transition to digital-first models, the need for informed insights will only intensify. Data literacy—people's ability to understand and work with data to the appropriate degree—can be a stepping stone or stumbling block to building a data-driven organization.

"We've seen a 96-fold return on our data investments. Data culture is more of a journey than a destination. Celebrate your wins along the way but always look to improve. Data's value is the existential: the existence of your business," said Clive Benford, Data Officer Director, Jaguar Land Rover. "If you don't become a data-driven business, I don't think you'll be here in 20 years. The long-term value is existence."

Even small training investments boost business performance, employee retention and innovation
Forrester found that upskilling initiatives, formal and informal, produce clear benefits for employees and businesses alike including improved performance, customer and employee satisfaction and employee retention.

Across the board, employers highly value data-skilled employees — viewing them as making better and faster decisions while being more productive and innovative. Employees agree: 83 percent believe they make better decisions and 82 percent make faster decisions when they use data.

Nearly 80 percent of employees surveyed say they're more likely to stay at a company that sufficiently trains them with the data skills they need.

About the study
For this study, Forrester surveyed more than 2,000 executives, decision-makers and individual contributors in ten countries including Australia, Brazil, Canada, France, Germany, Japan, Mexico, Singapore, the United Kingdom and the United States. Respondents work at global companies with 500+ employees.

More information

• Read the full study
• In November, Tableau pledged to train 10 million data learners over the next five years. Read more about the pledge.
• Go deeper into Tableau and Forrester's data literacy findings on Tableau Public
• Learn more about workforce trends outlined in Salesforce's Global Digital Skills Index

About Tableau, a Salesforce Company
Tableau helps people see and understand data. As the world's leading analytics platform, Tableau offers visual analytics with powerful AI, data management and collaboration. From individuals to organizations of all sizes, customers around the world love using Tableau's advanced analytics to fuel impactful, data-driven decisions. For more information, please visit www.tableau.com.

About Salesforce
Salesforce, the global CRM leader, empowers companies of every size and industry to digitally transform and create a 360° view of their customers. For more information about Salesforce (NYSE: CRM), visit: www.salesforce.com.

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SOURCE Tableau

FAQ

What does Tableau's new study reveal about data literacy investments?

The study finds that while investing in data literacy has significant business benefits, organizations are not adequately training their employees.

How many companies provide data training according to Tableau's research?

Only 39% of organizations make data training available to all employees.

What percentage of employees are likely to stay at companies that provide data training?

Nearly 80% of employees reported they are more likely to stay with companies that invest in data skills training.

What is the expected return on investment from data literacy according to the study?

The study suggests companies could see a 96-fold return on investments in data literacy.

What expectations do decision-makers have for employees' data skills?

82% of decision-makers believe that basic data literacy should be expected from employees in every department.