The Rise of the Tech Talent Shortage
We have all heard of the Great Resignation - the phrase to describe people leaving their jobs in droves searching for better pay, better benefits, and flexible work options. The phenomenon continues to evolve from its initiation in 2020 through 2022 and has given way to the Great Attrition. Top candidates are prioritizing innovation and culture ahead of even the benefits gained from the shift in expectations set during the digital transformation post-Covid. So, what is the outlook of the tech talent market for companies in need of top tech talent?
The landscape of the hiring market changes with such rapidity that only a few authoritative sources can accurately opine on the state of things and things to come.
Our new white paper, The Rise of the Tech Talent Shortage, is an exploration of the state of the current market, and informed predictions for the future.
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The Demand for Tech Talent Has Changed
- Tech professionals are long-accustomed to being in high demand.
- IT professionals' expectations have risen rapidly since the Covid-19 pandemic exacerbated the supply shortage.
- 65% of IT professionals believe the demand for their skills will continue to increase in the coming months.
- Computer and Information Technology occupations will grow by 13% through 2030.
- Companies had to embrace digital transformation or be left in the dust.
- Employers will need the support of specialist recruitment firms to access the most qualified talent.
6 Key Tech Growth Areas
There is a boom in demand for specific technologies, and companies are struggling to find the talent they need. Technologies in the spotlight include:
- Cloud computing
- Internet of Things (IoT)
- Artificial Intelligence, digital learning, and robotics
- Mobile telecommunications
The Tech Talent Landscape
- The number of jobs in computer and information technology occupations is expected to grow by 667,660 in the next decade.
- 39% of companies report that digital transformation will be a key focus in the coming months.
- 63% of companies expect challenges in finding talent with the increased specialization and skills they need.
- Opportunities for software developers will increase by 22%.
- 28% of employers sought to fill positions in software development.
- While the U.S. is a leader in demand for IT expertise, we are not growing our own supply as other countries are.
- 57% of employers observed a shift to more remote or hybrid working models to entice candidates.
- 39% of employers are planning to introduce more remote or hybrid working in the next 12 months.
Tech Salaries Are On the Rise
- 61% of candidates reported that rate and/or salary and benefits were the most important when looking for a new role.
- Employment in the fields most in demand is expected to grow by 7% through 2030.
- IT professionals receive twice as many LinkedIn InMails as the average LinkedIn member.
- Employers must consider professional experience, independent learning capabilities, and industry certifications when "raising" their own talent.
- 72% of candidates place work-life balance at the top of their priority lists.
- 56% of candidates place most importance on career success.
- 26% of candidates express a desire to find value and purpose in choosing a career that makes a difference in the world.
Career Development in the Spotlight
- Employers must provide clear paths to career development with opportunities, meaningful work, and advancement.
- 45% of candidates left a job because of a lack of opportunity.
- 59% of candidates joined because a new position offered a stronger career path.
- Candidates believe they can afford to wait for another opportunity if the development they desire is not offered.
- 66% of permanent employees and 60% of contract staff globally believe the demand for IT skills will grow in the coming months and the hiring pool will shift accordingly.
Hybrid and Remote Working Models
- Industries that previously placed strong emphasis on physical presence have been forced to embrace virtual and remote working models, and have found benefits in doing so.
- 20% - 25% of tasks analyzed could be done remotely without any loss of productivity.
- There is a large-scale change in the geography of work as both individuals and companies move out of large cities.
- 60% of candidates in the U.S. say they want to work remotely.
- 39% of candidates favor a hybrid working model.
- 2% of candidates want to be purely office-based.
Hiring Contract Workers or Permanent Staff
- The decision to opt for permanent or contract IT specialists depends on the specific needs of each company and each project.
- Hiring permanent employees is the right choice for certain financial models or continuing responsibilities after a project's completion.
- Contractors can provide access to specific skills and expertise, and help overcome gaps within a permanent team's skills.
- 61% of candidates are looking for contract roles or both contract and permanent positions.
- 49% of candidates are interested in contract roles.
Attract Diverse Talent for a Stronger Bottom Line
- Employers must look at the broadest possible candidate pool to fill critical IT roles and add value to their organizations through diversity.
- Marginalized groups in the tech sector offer a largely untapped source of talent.
- Companies need to create an environment and career structure that helps diverse candidates thrive.
- People with the qualities to build a better future will not all think, look, and act exactly the same.
- 16% of candidates considered themselves to be part of a diverse group.
- Women make up only 25% of all those working in IT occupations.
- The focus should be on keeping a diverse pool of candidates in the pipeline at all times.
Five Technology Skills Most In Demand
The highest demand for skilled candidates is in areas with the most growth and rapidly advancing landscapes of applications.
- Salesforce architects and developers
- Mobile app developers
- Adobe Experience Manager professionals
- Data analytics and business intelligence experts
- Software developers
When to Work With a Tech Recruitment Agency
- A STEM specialist recruitment firm has a better understanding of a client's specific needs and the industry.
- Employers cannot be effective experts in every technical discipline.
- Our clients have access to our highly developed network of skilled professionals, already vetted with our proprietary accreditation process.
- A recruitment firm can help inform and educate a client to create a job description that is more accurate to their needs than they had originally prepared.
About Computer Futures
Computer Futures supports the world's largest and most innovative tech companies by providing comprehensive staffing solutions that add value.
We create true partnerships by providing the best talent within their sectors through a consultative approach beyond a traditional recruitment service.
Extensive market knowledge, innovative resourcing techniques, and proprietary networks allow us to develop a strategic campaign tailored to a client's specific needs.