The tech skills shortage | Innovative approaches to upskilling and retention in a competitive market

Skills shortages can have a detrimental effect on businesses, regardless of their size. They hinder agility and development, even affecting day-to-day productivity. A 2023 report from digital talent platform Gigged.AI found that 34% of UK businesses are experiencing a significant tech skills shortage. When focusing on the IT sector, this number rises to 49%. So, what can HR professionals do to close this skills gap and improve staff retention?

Understanding the skills gap

A skills gap refers to the disparity between the skills that an industry or role requires and the skills of those working in it. In the tech industry, this has happened for two key reasons.

Increased digitalisation

It’s a well-known fact that technology is advancing at an alarming rate. This can be seen as a positive for businesses, providing even more ways to improve and upscale. But, for the workers within, these rapid changes can leave them feeling left behind.

Socio-economic factors

For this generation of employees, there are a few outside factors that affect their ability to adapt to new and advanced technologies. Firstly, the recent COVID-19 pandemic has put pressure on businesses to survive. This meant that upskilling and developing their employees became less of a priority.