The tech talent shortage is holding back the operations and success of many businesses, and there are several reasons for this. One major cause is that the speed of technological growth is creating skill gaps, with education systems struggling to equip young people with the knowledge needed to keep up with the latest technologies.
Fortunately, there are several solutions to address this shortage, including upskilling current employees, driving diversity to tap into a broader talent pool, and updating educational curriculums to better prepare future workers.
Our guide dives into the causes of the tech talent shortage and explores actionable solutions to help you avoid being held back. Is your business taking the right steps to secure the tech talent it needs for the future?
What’s Causing the Tech Talent Shortage?
Before finding effective solutions, it’s important to understand the causes of problems. Typically, there’s seldom one sole catalyst but several reasons that need remedying. Here’s an overview of the main causes:
Rapidly Evolving Technological Developments
Tech’s evolution has many benefits. However, the rate of its development is so fast that it’s hampering tech jobs because professionals can’t be trained at the same pace. Let’s look at this problem in more detail:
Artificial Intelligence and Machine Learning (AI and ML)
From healthcare to finance and many other industries, AI and ML have transformed the way many institutions and businesses operate. This has increased the need for certain roles, such as Data Scientists and Machine Learning Engineers. Substantiating this, the World Economic Forum projects that the demand for AI and ML specialists will soar by 40% in 2027, while the need for Data Analysts will increase by 30-35%.
Cybersecurity
Another negative is that opportunists can use technological advancements to be more sophisticated with their methods when creating malicious attacks on businesses or individuals. Demonstrating the gravity of this, in the past year, more than 1.5 million UK businesses were subject to a cyber attack. In the first quarter of 2024, companies fell victim to an attack every 43 seconds. As cyber threats evolve, the need for cyber security professionals proficient with the latest tech to defend against new attacks increases. Examples of the skills businesses need to keep their company safe include:
- Networking - Gaining expertise in networking is essential for understanding the technical aspects of data transmission, which plays a crucial role in securing data. Pursuing networking certifications such as CompTIA Security+ and Cisco CCNA is highly recommended to enhance one’s knowledge and skill set in this area.
- Rick Analysis - Cybersecurity professionals are responsible for identifying, managing, and mitigating risks. As threats continue to evolve, expertise in risk management and mitigation will become an increasingly valuable skill set in the years ahead.
- Security Incident Management - Professionals must identify, manage, document, and analyse security threats in real time. Additionally, security practitioners are responsible for overseeing and analysing Security Information and Event Management (SIEM) tools and services to effectively monitor and respond to potential risks.
Cloud Computing and DevOps
Many organisations have shifted to cloud-based infrastructures, allowing rapid scaling, reduced costs, and greater accessibility. Testament to its popularity, the market is predicted to reach $832.1 billion by 2025. This rapid transition has meant that there’s a skills gap that’s illustrated by a demand for Cloud Engineers and Architects. Cloud computing-related jobs have grown exponentially, with a 30% year-over-year increase, rendering it one of the fastest-growing tech jobs in the industry.
Internet of Things (IoT)
As a result of IoT, more and more people are connected to the internet through an array of devices, which has allowed for data collection throughout several sectors. IoT’s prevalence has generated a demand for tech professionals with specialised skills, such as:
- Embedded Systems: IoT systems depend on embedded systems, which depend on skilled engineers proficient with hardware and software. Engineers adept with microcontrollers and sensors are limited but a necessity.
- Network Expertise: Low-latency connectivity requires skilled tech professionals who can optimise these networks - and newer ones like 5G. However, there is a dearth of capable individuals.
- Data Science and Analytics: As we mentioned, data collection is pivotal for a company’s progression. Therefore, the demand for Data Scientists and Analysts who can transform data into actionable insights is surging.
Poor Education Systems
Many institutions have outdated curricula that fail to cover the latest tech skills and tools required for today’s tech jobs. Demonstrating this, a survey found that 42% of the British public felt that a lack of IT and tech education at primary and secondary levels deterred them from pursuing a career in tech.
Furthermore, those who do study tech-focused subjects might find that programs centre around the theoretical aspect instead of its practical application, meaning that graduates do not have the hands-on experience that employers seek.
Lack of Interest
Compounding the outdated curricula is the issue of a decline in interest in tech-related subjects among young students. What are the reasons for this? Let’s take a look:
- A Driving Digital Diversity survey found that 49% of respondents believe a tech career requires a specialised IT degree, and 29% felt pursuing a tech career would be expensive.
- The same survey revealed that 41% of those asked cited that tech isn’t portrayed as an attractive career path at school.
- Gender appears to play a role. Only 63% of female Gen Z students are interested in STEM subjects, compared with 85% of males.
What are the Solutions to the Tech Talent Shortage?
It’s predicted that by 2026, over 90% of businesses will be affected by the IT skills crisis, resulting in up to $5.5 trillion in losses due to product delays. Globally, by 2030, more than 85 million tech jobs could go unfilled because of a lack of skilled workers. What can be done to curtail these projections? Here are some examples:
Upskilling and Reskilling
Companies could invest in programs that help existing employees with their tech skills. Many companies already have, for example:
Amazon
Amazon recognised the importance of upskilling its workforce and launched a program that had a $1.2 billion investment to give access to training and resources. This includes:
- Amazon Technical Academy: A free learning program that helps employees move into Software Engineering roles.
- AWS Training Programs: Extensive training and job opportunities in cloud computing.
- Machine Learning University: A 6-week course that teaches the basics of machine learning.
This initiative has been a success. Roughly three-quarters of participants advanced in their careers and saw an average salary increase of up to 8.6%.
AT&T
In response to the decline in demand for traditional telecommunication skills, AT&T implemented a reskilling effort called ‘Future Ready.’ This program concentrates on:
- Giving employees training on technologies like AI and cloud computing.
- Helping employees transition to roles that focus on software development and data analytics.
- $1 billion investment in reskilling over five years.
Microsoft
In 2020, Microsoft released a digital skills retraining program anticipating 150 million new tech jobs in data science and software development. The program hopes to:
- Deliver digital skills training to 25 million people globally.
- Provide access to free learning resources and affordable certification programs.
Google has a range of apprenticeship programs that give employees resources for upskilling. Their initiatives aim to:
- Offering paid apprenticeships in key areas such as digital marketing, data analytics and software engineering.
- Ensuring these programs are accessible worldwide.
- Offering participants career paths for in-demand tech jobs.
Educational Reform
As discussed, the curriculum currently does not adequately accommodate tech-related subjects. For example, according to the Royal Society’s Computing Education in Schools report, 54% of schools in England do not offer a computer science GCSE.
To begin tackling the tech talent shortage, foundational skills must be taught at an early level. This can be done through programs like Scratch, a visual programming language designed for children. In addition, schools should not treat technology as a standalone subject. Instead, digital tools should be integrated across suitable subjects to demonstrate their real-world application.
Schools could benefit from developing relationships with major tech companies to challenge negative perceptions of tech jobs. Nearly half of teenagers fear that tech careers could be isolating due to long periods of sitting at a computer alone.
Improving Work Conditions
Linking to the previous point, sitting at a computer for lengthy stints might cause professionals to leave their positions. Therefore, companies must try to make working conditions as desirable as possible. This could be done through hybrid working or offering remote tech jobs. Working from home is prevalent in the tech industry:
- The Office for National Statistics (ONS) found that 79% of tech workers want to work from home.
- By 2030, the number of tech jobs that can be performed remotely is forecast to increase by 25% to about 90 million.
Improving Diversity
In the U.S., despite making up 47% of the workforce, women only represent 28-29% of the tech workforce, and only 22% of senior tech roles are held by women. There are also retention issues. Half of women with tech jobs leave by age 35 - and do so because of a lack of inclusivity.
Black representation is also low. Black employees comprise around 4-6% of the tech workforce, which is lower than their share of the workforce of 13%. It’s a similar trend for the Hispanic community. They comprise 18% of the U.S. workforce but only 8% of tech jobs.
Employers can implement strategies to ensure DEI quotas are met. For example:
- Prioritise Equal Pay - Creating a fair and inclusive workplace starts with pay equity. Regular pay audits help identify and address any disparities, ensuring that all employees are recognised and rewarded fairly for their contributions. When businesses commit to equal pay and transparent promotion opportunities, they foster a culture where employees feel valued, motivated, and invested in the company's success.
- Rethink Job Descriptions - Job descriptions shape the talent you attract, so it's important to ensure they're inclusive. Using fair, unbiased language and focusing on essential skills rather than overly specific experiences creates a more accessible hiring process. A skills-based approach broadens your applicant pool, giving more diverse talent the opportunity to succeed.
- Use Diverse Interview Panels - A diverse interview panel brings multiple perspectives into the hiring process, helping to minimise unconscious bias and ensure candidates are assessed purely on merit. Not only does this lead to better hiring decisions, but it also reinforces the company’s commitment to diversity, equity, and inclusion, making it a more attractive place to work.
- Adapt Compensation and Benefits - A truly inclusive workplace recognises that employees have different needs at different stages of life. Offering flexible working hours, comprehensive parental leave, and health benefits that support a diverse workforce helps create an environment where everyone can succeed. Regularly reviewing and adjusting compensation packages ensures they remain relevant and fair for all employees.
Use an Expert Technology Recruitment Agency
We understand how tough it is out there to hire the tech talent you need to stay ahead of the competition. However, there is a solution - utilising a technology recruitment agency. Agencies (like W Talent), provide businesses with access to expert industry knowledge, extensive talent networks, and deep market insights that help bridge the tech skills gaps. Here are the key benefits:
- Access to Niche Talent - Technology recruitment agencies have vast networks and databases built up over many years of specialising in tech hiring. This gives your organisation access to candidates with niche skill sets, from data analytics to DevOps to IoT expertise, who may not be actively on the market but are a perfect fit for your roles.
- Save Time and Resources - Sourcing, screening, and shortlisting candidates is resource-intensive. Agencies streamline the entire process by presenting a curated shortlist of qualified candidates. This allows your internal HR and talent acquisition teams to focus on strategic priorities rather than sifting through resumes.
- Industry Expertise and Market Insights - Technology recruiters stay updated on salary trends, in-demand skills, and hiring challenges, offering organisations strategic advice that aligns with their long-term goals.
- Tailored Recruitment Strategies - Agencies provide tailored solutions based on the needs of your business when you are hiring for a permanent role or need a contractor as soon as possible for an upcoming short-term project.
- Mitigate Common Recruitment Pitfalls - With their ability to assess candidates thoroughly, agencies reduce risks like skills mismatches or high turnover. They align your search to your organisation’s technical needs, culture, and values to ensure stronger, longer-lasting hires.
By using the expertise of technology recruitment agencies, your business can close the skills gap and position itself for sustained growth and innovation. Want to discover how our dedicated technology team can support? Discover our technology recruitment page for more details.
What have we Learned?
Tackling the tech talent shortage requires a proactive approach, from upskilling existing employees to improving diversity and updating hiring practices. With the demand for specialised tech skills continuing to rise, businesses that invest in skills development, inclusive hiring, and strategic partnerships will be better positioned to attract and retain top talent. By addressing the root causes of the shortage, companies can build resilient, future-ready teams capable of driving long-term success.
Working with a specialist technology recruitment agency can also make a significant difference. With access to industry insights, niche talent networks, and tailored hiring strategies, expert recruiters help businesses secure the skilled professionals they need to stay competitive. As technology continues to evolve, securing the right talent today is key to staying ahead tomorrow. If your business is ready to strengthen its tech workforce, now is the time to take action!
Identifying Key Talent in the Tech Industry
Technology recruitment can be tough. We have the flexibility of a startup but with the backing of a large group. This unique combination allows our expert consultants to provide innovative and effective solutions to resolve your technology recruitment needs. Whether you’re an emerging startup or an established company, we can support you on your journey to success.
Visit our technology recruitment page to learn more, or contact us today to connect with a member of W Talent.
