Skills shortage in tech

There is an ever-increasing skills shortage across the tech industry. In fact, skills shortages are at an all-time high since 2008. According to the 2019 Harvey Nash/KPMG CIO survey, two thirds of organisations surveyed are hampered by a skills shortage which inevitably acts as a major bottleneck for growth.

The reality for businesses in the most brutal sense is that they are prevented from keeping up with the pace of change across the tech industry.  The issue deepens when you consider that only 26% of larger (£250million+ budgets) firms actually retain their staff for as long as they would like, which poses further issues due to larger businesses being the ones who would genuinely benefit from transformation, but simply don’t have the skills to support their plans.

Contractors remain the most effective way to fill this evidently large skills gap, but this is of course a short-term solution rather than a long term strategy. Companies need hands on deck and contractors, although useful in bringing a particular skill-set for business critical projects, do not offer a long term solution to bring on larger scale transformations that will change and revolutionise leading businesses and technology as a whole. So, to eradicate and neutralise these issues, companies need to work on forming key business strategies around not just recruitment, but also employee retention.

As a recruiter, it’s hard to believe that companies would pay thousands of pounds in recruitment fees to then show such a disregard in keeping these employees who play such a vital role in growing their business. More research provided by the Harvey Nash/KPMG report shows that technology professionals value innovative projects and learning new skills above anything else, including salary and job security.

So perhaps this is the way forward in employee retention within the technology field, and more money should be invested in creating opportunity for employees to develop their skill set and be exposed to be more varied, innovative projects.