UK 
United States
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.
Secondly, economic inequality is at record levels. So, young people from disadvantaged backgrounds don’t have access to the resources to develop these skills. For example, 37% of businesses said that the workforce lacks software development and cybersecurity skills. However, these skills are not currently being taught in schools, so young people would have to have the means to develop them in their own time.
Innovative upskilling strategies
To promote development within the workforce, HR professionals must find ways to ensure their employees are prepared for the ever-changing nature of the tech industry. This both supports organisational goals and supports employee satisfaction and retention efforts.
Microlearning and online platforms
Microlearning involves breaking down complex topics into bite-sized modules. Employees can then complete these modules at their own pace. This method is particularly effective for busy professionals with unpredictable schedules. Platforms like LinkedIn Learning and Attensi offer courses in specific skills for a variety of industries. So, you can tailor each employee’s experience to their needs. This cuts out unnecessary modules and promotes efficient upskilling.
Mentoring and peer learning
The best resource you already have at your fingertips is your staff. They understand what it takes to keep your organisation running. So, who better to develop lower-skilled employees than their more senior counterparts? Mentoring schemes also promote a culture of continuous learning, creating the foundations of an agile team in an ever-evolving industry.
Retention and the skills gap
When faced with an industry-wide skills shortage, the most economical solution is to upskill your current team. Although this can pose a significant initial cost, it side-steps the pitfalls of large recruitment drives. With a high staff turnover, feelings of instability can grow within the remaining workforce. This approach also provides longevity to your initiatives focusing on employees with a strong core skillset and an ability to adapt rather than those with specific skills.
Offering competitive benefits to top talent
Offering competitive salaries and benefits packages is crucial for retaining top tech talent. They are valuable assets for their ability to evolve with technological advancements and mentor less able employees. So, it is important to treat them as such and reward their loyalty. But, almost a third (32%) of tech professionals say they are unsatisfied with the work-life balance on offer in the industry. So, it is clear that this goes beyond financial compensation, with perks like flexible and remote working becoming ever more popular.
Providing career advancement opportunities
Internal mobility is a great way for employees to both develop their skills and move higher up the corporate ladder. By identifying employees with potential and providing them with the necessary training to transition into tech roles, organisations can fill skill gaps whilst keeping staff motivated and committed.
Engaging and challenging work
Tech professionals thrive on solving complex problems and working on cutting-edge projects. Providing them with challenging and engaging work that leverages their skills and allows them to innovate can enhance job satisfaction and retention.
The role of HR professionals in solving the tech shortage
HR professionals are vital in tackling the tech skills shortage. They can keep their organisations competitive by adopting new methods for upskilling and retention. This means staying updated on industry trends, investing in employee development, and fostering a supportive and dynamic workplace.
The tech skills shortage is a severe issue that requirescreative solutions. By using modern training methods, promoting continuous learning, and applying effective retention strategies, HR professionals can bridge the skills gap. These innovative approaches not only address the immediate shortage but also prepare the company for long-term success in the digital age.
