Experts predict that more than 85 million job positions will remain vacant by 2030. Why? Because there might not be enough skilled people to take them. Tech is one of the industries with a huge skill gap, given that technology is evolving rapidly. This is an $8.5 trillion problem that global employers like you must solve.
A tech talent shortage is one of the biggest challenges you might face in the coming year, especially with how widespread digitalization has become across all industries. As a business owner, you must find ways to overcome the tech talent shortage to avoid weakening your company’s IT capabilities.
But first, it helps to understand why there is even an IT talent shortage.
What’s causing the IT talent shortage?
To understand the IT talent shortage, you must return to 2020. It was a pivotal year for many as the COVID-19 pandemic drastically changed businesses’ operations. The global pandemic accelerated tech adoption, and many companies transitioned to digital solutions to keep their operations running during nationwide lockdowns.
Today, even as the world recovers from the virus, tech adoption shows no signs of slowing down.
Remote work, virtual meetings, and cloud computing are now common terms you’ll encounter in many businesses. According to a CompTIA survey of HR leaders, 41% of the participants hired tech staff during the pandemic, while 62% plan to recruit more people for tech roles.
Widescale tech adoption allows companies to stay even more connected than before. It encourages more organizations to improve their digital products and services, raising the demand for IT professionals but, consequently, shrinking the pool of candidates you can hire.
Additionally, technologies are evolving faster than people can upskill, creating an imbalance between the high number of great tools and the low number of people proficient enough to use them.
Industry experts have also proclaimed that the world is facing the “Great Retirement,” where more and more baby boomers are leaving the workforce. Pew Research Center found that roughly 28.6 million baby boomers retired in 2020, further contributing to the talent shortage.
All these events explain the IT skills shortage. Interestingly, while the field of IT is broad, some skills are more in-demand than others.
Top 5 IT Skills Facing Shortages
Your closest competitors will want to hire competent IT professionals as much as you. So, if you’re looking for skilled people to fill your IT positions, expect tight competition. Below are some skills that are in high demand today.
Cloud computing
Statista found that as of 2022, 60% of all corporate data worldwide was stored in the cloud. As more companies move toward a hybrid or fully remote working arrangement, cloud computing is now an irreplaceable aspect of modern businesses. Accordingly, individuals who are skilled in cloud computing are in higher demand.
Cloud computing skills include using cloud computing platforms, including Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure. Cloud expertise also includes knowledge of development and operations (DevOps) practices, network management, and familiarity with popular programming languages like Python and JavaScript.
Cybersecurity
According to IBM’s report titled “Cost of a Data Breach 2022,” about four in five (83%) organizations experienced at least one data breach that year, highlighting just how common cyber threats are. These cyberattacks cost companies an average of $4.35 million, which could be enough to bankrupt your business if you don’t invest in the right cybersecurity solutions.
The ideal candidates to fill your cybersecurity roles must be familiar with cybersecurity analytics, risk analysis, and methods of complying with standard cybersecurity practices to ensure data safety. With these attacks’ prevalence and cost, you can expect stiff competition when looking for cybersecurity experts.
Data science and analytics
Gathering and knowing how to use data are keys to business success. It’s why, according to Ernst and Young, 93% of companies plan to invest more aggressively in data analytics.
Data scientists and analysts allow you to find new ways to collect data about your competitors and customers, then interpret them into actionable plans. It means they need technical skills—including coding, mathematics, and statistical analysis—and non-technical skills—such as clear communication, critical thinking, and business acumen.
Artificial intelligence (AI)
AI can shorten business processes, increase productivity, and enhance company performance. According to The AI Journal, 72% of leaders feel optimistic about AI’s role in the coming years. However, 48% find that a lack of relevant AI skills in the workforce is still a big concern.
Most AI-related skills include familiarity with machine learning, automation, and even data science. It isn’t just your IT department that can benefit from having an AI expert onboard. Gartner suggests that even your marketing, customer service, and finance departments can leverage the skills AI experts bring.
Software engineering
McKinsey & Company found that almost 70% of top economic performers plan to develop and use their own software to differentiate themselves in the market. Hence, it’s evident why software development skills are so sought after.
Software engineers use engineering, science, development, and design principles to create robust programs that benefit you and your customers. It should go without saying that you must offer an enticing employment package to attract highly skilled software engineering professionals.
6 Solutions to Tech Talent Shortage
You don’t have to change the state of the market to create solutions for the tech talent shortage. Below are options you can consider to grow your IT team despite the shrinking pool of potential candidates.
- Upskill your in-house team
When you can’t find suitable candidates to fill your open position, consider training one of your own to take it instead. You can offer training and certification programs that employees can join to expand their skill sets while they’re still on the job. Internal movement programs can also benefit employees who want to switch fields, which helps keep your staff happy with their jobs.
Upskilling your in-house team is also an effective way to future-proof your business. It ensures your staff and business can keep up with the ever-evolving tech landscape.
- Launch internship programs
Jobseekers aren’t the only people you should consider when growing your team.
Paid internship programs are great for recruiting promising and eager high school or college students that can eventually join your business once they graduate. You can delegate them basic responsibilities while your regular staff can focus on more complex and higher-stake projects.
- Reduce time to hire
Your time to hire (TTH) is how long it takes between receiving a candidate’s application for a job posting to them accepting your job offer. The modern-day applicant expects companies to have a simple, efficient, timely, and high-touch hiring process. Roughly 70% of job applicants lose interest in pursuing the role if you don’t get in touch within a week of their first interview.
Reducing your TTH doesn’t mean settling for an inferior process, though. You can still follow technical interview best practices, such as rewriting your job descriptions to be more compelling, giving candidates a better idea of what to expect, and using screening software to identify a candidate’s culture fit quickly.
- Invest in employee retention
High turnovers are one of the top IT recruitment challenges that businesses face. In a market suffering from an IT talent shortage, your competitors will likely advertise remarkable compensation packages to pull not only jobseekers away from you but your employees, too.
It’s in your company’s best interest to keep your staff happy and motivated to stay with you. Talk to them to understand what they’re looking for in a company and how you may adjust compensation packages accordingly. Offer tangible benefits and clear career advancement opportunities to entice them further to stick with your company.
- Augment IT capabilities with the right tools
Overworking your employees could only push them to leave. It’s why you should consider investing in tools and equipment to help reduce your IT staff’s workload and empower them to expand their capabilities.
For instance, if your company lacks the necessary data scientists for your operations, you can use data analytics tools and platforms to simplify—or even automate—basic and repetitive tasks, such as data organization and visualization. These can improve their workflows and boost your company’s performance as a whole.
- Hire a staffing agency
You don’t have to deal with an IT shortage alone. An IT staffing agency like Ledelsea specializes in filling vacant positions with IT professionals from a pre-screened pool of skilled candidates. Ledelsea will collaborate with you to understand your business needs and find the ideal one for you.
By delegating your entire IT recruitment process, from screening to onboarding, you can focus on other pressing issues your company faces because of the IT shortage.
Explore a Surplus of Solutions
A tech talent shortage can slow down your operations or, worse, shut down entirely. It’s a looming problem you must address as soon as possible before it’s too late. Fortunately, you have several options to minimize the impact of an IT skills shortage on your company.
If you can’t find the right candidates outside, you can invest in training and certification programs your employees can join to allow them to upskill. Paid internship programs, higher employee retention efforts, and better tools for your IT staff are other possible solutions you can implement to combat your IT staff shortage.
It’s also vital to be more resourceful when looking for top tech talent, which is why working with an IT recruitment agency can be a viable solution. Ledelsea provides top-notch IT recruitment services to find the best professionals that bring you closer to your business’s goals.
Get in touch with Ledelsea today to find your next IT talent.
