In today's extremely competitive world, the need for highly skilled and qualified tech professionals has risen to record-breaking levels. As a result, companies across various industries are on the hunt for top tech talent. However, navigating the tech talent shortage isn’t as simple as it seems.
A report from Korn Ferry suggests that by the year 2030, there will be more than 85 million jobs that could go unfilled because there aren’t enough qualified candidates to fill these positions. The lack of skilled employees will have a huge toll on our economies and the way HR departments set a company’s hiring requirements.
However, it is through innovative hiring strategies that HR professionals can navigate through the tech talent shortage and various other contributing factors, such as the “great resignation.”
The great resignation was a period during the pandemic when employees across various industries realized they weren’t satisfied with their jobs. The lack of work-life balance and their existing work culture resulted in a wave of resignations.
What is the Tech Talent Shortage?
As businesses strive to expand and compete within their respective industries, there has been a notable uptick in the demand for qualified professionals. However, the challenge lies in the scarcity of readily available skilled workers to meet these demands.
Contributing Factors
Several contributing factors lead to the tech talent shortage. From the rapid growth of the industry to the evolution of new technologies.
More and more companies are implementing technology as a part of their core business functions. However, in doing so, businesses require the expertise of skilled tech professionals who are well-versed in the latest technology. But, there simply aren’t enough professionals to fill vacant job opportunities. In fact, there were 3.5 million unfilled jobs in 2023, and 750,000 of those vacancies were in the United States.
Businesses that are unable to attract and retain talented professionals face delays in product development and innovation. Their existing workforce faces burnout and stress as a result of being overworked and overwhelmed.
The Impacts of High Demand for Tech Professionals
Companies are offering higher salaries, better benefits, and more perks to compete with other businesses and to attract and retain tech talent. This has created favorable conditions for tech workers, who now have a wider range of opportunities and can command higher salaries or better work conditions. However, this has also made the tech industry one of the most competitive industries, and professionals need to constantly update their qualifications and skills.
Another significant impact of high demand is the rapid growth rate of the tech industry. In 2023, the global market size was $8,508.63 billion and is estimated to grow to $9039 billion in 2024. This is an annual compound growth rate of 6.2%, and with more and more companies relying on technology as a part of their business operations, it will continue to grow. At this rate, we should expect to see a global market that spurs economic growth, driven by the increasing demand for skilled professionals and the subsequent rise in available job opportunities.
The demand for more skilled and qualified tech professionals also impacts the need for more advanced training programs and courses. Universities and other online educational platforms currently provide a wide range of courses and certificates for tech workers and students.
Practical Methods to Source Tech Talent
Leveraging Network Opportunities
Networking is an underestimated tool that expands your reach and connects you with tech professionals who perfectly fit the job description. By attending events, conferences, meetups, and job fairs, HR professionals can advertise the company and scout for potential candidates.
Networking events and conferences provide HR professionals a platform to engage in professional conversations, build relationships, and examine the industry and what potential hires are looking for in tech companies. These insights help HR professionals create comprehensive benefit packages that will make them stand out.
Workshops and hack-a-thons also serve as an excellent networking opportunity. These events bring in passionate individuals who are willing to expand their horizons and find new job opportunities.
Networking opportunities don’t just have to be in-person events, conferences, or job fairs. Online social media platforms and popular forums that cater to the tech industry provide the ideal platform for reaching tech professionals. Platforms such as LinkedIn, GitHub, and Stack Overflow can provide a wealth of networking opportunities where you interact with your ideal candidate, join relevant groups, and participate in discussions.
Partner with educational institutions such as universities and colleges to foster relationships with newly graduated professionals who are trained in STEM (Science, Technology, Engineering, Math) skills. Most recent grads want to kickstart their careers and gain valuable industry experience. Offer paid or unpaid internships to train aspiring tech professionals to fit the requirements of your business. This is a win-win situation for both recent graduates and businesses that cannot offer competitive compensation packages but need access to skilled tech workers.
Upskilling Current Employees
With the ongoing skill shortages present in the technology industry, upskilling current employees is the preferred method for many businesses to stay competitive. According to a 2023 State of Tech Talent report by the Linux Foundation, 58% of organizations seek training for their current employees to fill the tech talent gap.
The process of developing an employee’s existing skill sets and industry knowledge to meet company demands is referred to as upskilling. By upskilling workers, companies invest in their employee's professional development and improve employee engagement while filling any skill gaps.
Upskilling isn’t as simple as hunting for a few online courses for your employees to complete. To effectively upskill, a business's HR team needs to assess the current skills and knowledge of their employees and compare that with the requirements of their business. Interviews, surveys, and performance evaluations are some of the ways you identify potential employees who are interested in evolving their skills to fill vacant positions.
Develop a plan of action involving training with internal and external resources as a next step. At this stage, businesses can partner with educational institutions to provide their employees with specialized training programs or certification programs.
Along with internal and external resources and training programs, provide your employees with opportunities to contribute to ongoing company projects and put their new knowledge into action. This also contributes to a healthier overall company culture, as it creates a supportive environment that encourages continuous learning and growth with regular feedback.
When upskilling your current employees, measure and track the progress of your employees to identify any gaps and areas that need further development.
Foster a Compelling Company Culture
A compelling company culture also helps you source talent. Create programs and implement initiatives that actively involve employees in the various decision-making processes so they contribute their ideas and opinions. This facilitates a sense of ownership and empowerment that will build a culture of collaboration and innovation within your company.
A compelling company culture also promotes work-life balance, provides growth opportunities, and recognizes individual contributions to the company.
Take Advantage of Global Hiring Practices
Global hiring is another practical way of sourcing talent. Access diverse perspectives and ideas while having a global talent pool to choose from.
Hiring international tech professionals allows HR to set salaries independent of location and even hire skilled professionals at a more competitive rate. Hiring international employees also means not having to invest in office supplies and other overhead costs that a local employee would require since most international employees work remotely. The flexibility and work-life balance that remote work provides employees is one way to navigate through the local tech talent shortage since it provides employees and potential candidates an added benefit to working for your business.
Ensure Tech Talent Remains Engaged and Committed
Attracting tech talent simply isn't enough anymore. It's equally important to ensure that while you recruit and hire tech professionals, they remain engaged and committed to the company. Various diversity and inclusivity approaches ensure each employee feels comfortable learning through any setbacks and accomplishments while sharing their unique perspectives.
Create a work culture that lets employees balance their personal and professional lives to keep employees engaged. Microsoft and Google, for example, provide employees with a variety of perks and supplementary benefits such as gym and internet reimbursements, free snacks and lunches, and even family support. This shows their employees and candidates that the company values each employee’s work and contributions.
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