Talent crisis in the tech industry – Why is it happening?
The limited supply of tech workers is nothing new. For a long time, the global technology industry has been trying to justify a lack of talent, and the mismatch between supply and demand has resulted in IT professionals receiving quite generous paychecks.
Almost every aspect of 21st-century life is influenced by technology, from interactions, security, food access, wealth, socialization, and productivity. The technological innovations and engineering disciplines used within societies to perform specific tasks are now required for societies to thrive and evolve.
However, according to industry forecasts, the job market has tightened in recent years and is expected to worsen in the coming future.
The shortage of tech talent that businesses are facing isn't only about developers and data scientists, but also employees from all across the IT sector with hardware engineering skills particularly experienced firmware engineers, and computer infrastructure.
According to research, businesses believe that a lack of talent is the most significant obstacle to the development of new technologies. This means that, in most cases, IT leaders who want to deploy a new tool to improve business, anticipate a shortage of qualified workers will be a problem at some point.
Foundational technology skills programs in schools will go a long way toward developing tech talent and becoming a leader in innovation.
What is the reason behind the talent crisis in the tech industry?
Unfortunately, the massive increase in demand for tech employees comes at a time when there is already a severe talent shortage. Companies that do not find a way to attract top talent will soon find themselves unable to compete with companies that can deploy new technologies more quickly.
More than half of tech employees have concealed a plan to leave their jobs within the next year. A large number of them believe that limited opportunities for growth or promotion play a big role.
Non-flexible work hours, a lack of remote working options, feeling underappreciated, and a toxic work environment are also common reasons.
The rest of the employees feel like the company is prioritized attracting new talent over investing in existing employees. Perhaps unsurprisingly, the majority also reported suffering from mental burnout but also physical.
The challenges of talent shortages are exacerbated in countries with low unemployment because employed workers are less motivated to retrain, reskill, or change fields.
The current workforce and talent pipeline crisis comes from several factors like:
- Older generations are retiring from the tech industry
- The younger generations are not ready to take over
- Changing Expectations and Needs of employers
As a result, businesses either fail to adopt new technologies or adopt them slowly. However, companies that want to survive are required to get creative when it comes to attracting and retaining talent!
Here are a few things businesses can do to address the tech talent crisis:
There are solutions to the tech talent shortage, and they may simply consist of giving people what they want rather than what employers believe they should want.
Employee Reskilling and Upskilling
Upskilling the existing workforce, both with technical capabilities and competencies such as learning agility or collaboration, will be just as important as hiring for new roles. It is much easier and less expensive to reskill or upskill current employees than it is to hire new talent to fill a skills gap.
You can nurture this growth by identifying and developing the skills required for your business model, launching training programs, utilizing peer mentoring, and encouraging continuous learning in your company culture.
Change the way you measure productivity
Employees prefer to be measured by the quality of their work rather than the quantity. Allow your qualified employees the space, trust, and flexibility they require to produce high-quality work whenever possible.
Provide Your Employees with What They Want
What do your employees want? Flexibility, increased wages, and remote work! Many studies show that pleased employees are 13% more productive and engaged, so find ways to give employees things that matter to them to attract and retain them.
Employ young people
Some companies, including Intel, are hiring college students to fill labor shortages in the face of rising demand for their products.
Rethinking what it takes to get a job in technology could be the way of the future. The majority of human resource professionals support removing the four-year degree requirement from many positions, opening the way for tech apprenticeships as a more efficient way of delivering training.
Most tech companies are taking on the responsibility of training their talent increasingly hiring people straight out of high school or other non-traditional hiring methods such as coding boot camps, low-code training, and focusing on population areas outside of the norm.
These companies are also attempting to foster a culture of continuous learning and training. Whether providing more flexible working hours or restructuring your employee benefits, taking action to find and keep the top talent your company needs will free up time and allow you to recenter and recalibrate your staff to the core business at hand.
You'll spend less time on administrative tasks like support and a lot more time on the creative revenue-generating activities your company requires to thrive rather than just survive!