The ineffective use of technology by employees has slowed Canadian businesses' investment in it, according to 63 percent of respondents to KPMG in Canada's productivity survey.
Fifty-three percent reported that their organizations did not invest adequately in employee training, workshops or continuous learning opportunities - even though 89 percent of respondents claimed that they've invested in employee upskilling.
Fifty-six percent of respondents indicated that their organization did not have the internal resources and talent to implement and effectively use technology.
"Investing in new technology tools and platforms can do wonders for an organization’s productivity by streamlining processes, workflows and tasks. The latest Stats Can data shows Canada has made productivity gains in each of the last two quarters, but this increase still trails improvements in the US over the same period," said Stavros Demetriou, partner and national leader of KPMG in Canada’s people and change practice, in a statement.
Demetriou noted that education and training were key.
"Unless Canadian organizations undertake effective employee education and training plans, their people will barely scratch the surface on what the technology can do to make them more productive, and our gap to the US and others will continue to widen," he said.
Seventy-four percent of businesses admitted that they had underestimated digitalization-related challenges like adjustments to processes and working habits. Meanwhile, 88 percent indicated that processes should be improved to include case studies and incentives inspiring employees to utilize technology.
Eighty-six percent of respondents expressed hope that digital-savvy young employees could facilitate the accelerated adoption of technologies like Web3, data and analytics, and quantum and edge computing, bolstering productivity.
"There’s a common belief that digitally transforming your company is primarily a technology upgrade exercise, but the reality is that technology implementation is just one part of a journey – digital transformation is just as much about advancing and elevating the workforce," Demetriou said. "It’s a continuous, iterative process that, if done correctly, leads to higher productivity and innovation, and the ability to navigate the future more confidently."
AI as a solution to productivity problems
Seventy-four percent of respondents believed that artificial intelligence provided a solution to productivity issues. Nonetheless, KPMG in Canada people and change partner Lewis Curley pointed out that engaging all employees early on in the tech adoption process is critical.
"If an organization is looking to implement AI, they must engage the entire workforce right from the beginning. If some employees don’t feel like they are part of the journey, they might disengage from the process, lose trust in AI, or worry that the technology will replace them, which could deter them from using it," he said.
Megan Jones, KPMG in Canada's national HR and workforce transformation lead, added that organizations needed to understand the capabilities of tech investment prior to implementation.
"Often, when organizations implement new tools and technologies, they don’t completely understand or appreciate the full capabilities of these investments. As a result, employees are simply not adequately prepared to maximize the benefits these can bring to their jobs or customers," she said. "In some cases, organizations provide full training, but it’s too technical or poorly delivered. Effective training and upskilling need to be targeted, relevant, engaging, and frequent. Much like exercising consistently to build muscle, technology training must happen regularly to make the workforce stronger and more agile."
Jones recommended conducting regular workshops or setting "days" on which employees are encouraged to tinker with AI and generate new solutions, driving innovations.
"Showcasing wins by employees in one area of the business could help spark new ideas in other parts of the organization," she said.
KPMG in Canada obtained survey responses from 250 Canadian business leaders from May 9 to May 20.