Why is there still a tech talent shortage in 2024?

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Are you wondering why there is still a tech talent shortage in 2024? Are you scratching your head wondering why you can’t find decent talent despite massive layoffs and a recession? Well, let’s explore this topic in more detail below.

Two businesswomen discussing the tech talent shortage in 2023

The tech talent shortage in 2024 continues to be a pressing concern for organizations worldwide. As the demand for digital innovation escalates, businesses scramble to find skilled professionals. They need coders who possess the expertise to develop cutting-edge solutions. Yet, the supply of talent fails to keep pace with this ever-growing hunger for tech-savvy individuals.

The reasons behind the tech talent shortage are multifaceted, a few key factors stand out. Firstly, the rapid evolution of technology means that skill requirements are continuously evolving. Secondly, we need to consider the pervasive gender and diversity gap in the tech industry. This goes hand-in-hand with companies facing challenges in sourcing talent across geographical boundaries. While ensuring cultural compatibility within diverse teams. Lastly, the struggle to pay higher salaries despite tough economic times. So business owners are trying to invest in upskilling while balancing it with hiring new developers.

Join us on this insightful journey as we unravel the enigma of the persisting tech talent shortage in 2024, and explore the promising paths that lie ahead.

Tech talent working in the modern office

Less unfilled employee slots but talent shortage is still a struggle for tech companies

During the plague-ridden times of COVID-19, tech companies along with many other industries saw great resignation. Companies saw tech talent leave in hoards due to poor work culture, poor pay, etc. Most companies in the IT industry struggled to retain talent. Moreover, they struggle to attract the right candidates.

Now, however, due to the 👉 economic downturn 👈, many tech giants have laid off hundreds of workers. Smaller companies have also followed suit and let go of excess workers. Moreover, tech companies have stopped hiring. Many business owners have turned to hiring freezes to find a solution to the crisis. All of this means that there are fewer unfilled employee slots. So if this is the case then why are we still noting a global talent shortage? We’ll explore that below, check it out.

How is a shortage of tech professionals dangerous for business?

When you have a tech skills gap in your organization, this can be dangerous for your business. You may struggle to take on new projects, finish existing ones, remain competitive, and more.

Businesses that have a skills shortage for a long period of time may also find themselves struggling with slowed innovation. Not having the right tech professionals in place can impede development and the implementation of new technologies.

Moreover, with a shortage of skilled tech professionals, the demand for their services tends to exceed the available supply. As a result, businesses may need to offer higher salaries and benefits to attract and retain talent. Increased labor costs can put a strain on the company’s budget. Thus affecting profitability and hindering growth.

Lastly, a talent crunch & IT worker shortage can make it challenging for companies to keep up with emerging technologies and trends. This can result in outdated systems, inefficient processes, and an inability to leverage new opportunities brought about by advancements in technology.

Html and css coding by developer

Reasons why the talent shortage frenzy continues in the tech industry?

Let’s go over some of the reasons why the tech talent shortage still continues in the IT industry despite the current global circumstances.

Struggle to adopt emerging technologies

Many companies are struggling to adopt emerging technologies. But during the era of digital transformation, it is crucial. There are various new and 👉 on-demand technologies 👈. Technologies such as Artificial intelligence, Machine Learning, Automation, IoT, and much more. Companies are struggling to make them part of their service. They are missing developers who can handle such niche markets. Moreover, they don’t have processes and procedures in place to take full advantage of these emerging tech stacks. Therefore, they struggle to slay the business world.

Bossy manager tearing apart business reports in front of his female colleague in the office

Your recruitment process may be blocking out potential software developers

Many hiring managers overcomplicate their recruitment process. They filter out many candidates and sometimes block out someone who would actually be the right fit for their company. One way they limit their candidates is by focusing a great deal on education. They look for college-educated developers. While education is important, so is experience.

Moreover, some companies look to fill their job openings using referrals. This limits their talent supply and blocks the potential for diversity in their teams. When you depend on referrals chances are you will get more of the same type of skilled workers.

Employee turnover in IT is still sky high

It’s no secret that 👉 employee turnover in IT 👈 is sky-high. It is one of the highest among various industries. This is for many reasons. The first one is that software engineers are easily bored and dislike stagnation. They want to constantly be growing, moving forward, and tackling exciting new projects. Also, they want to know that their pay will grow accordingly as well.

Young beautiful businesswoman holding money, sitting on table at workplace debating inflation and raising salary

Employers struggle to balance rising costs due to inflation & giving coders bigger salaries

Currently, many employers are struggling to find a balance between raising costs associated with inflation and giving developers salary increases. Business owners ask themselves the question should I provide salary raises if the cost of keeping an employee and running a business keeps raising?

But if they don’t raise salaries, they may struggle to keep top-notch developers on their payroll. Many studies have shown that employees leave because they haven’t received a raise or their salary is simply too low, to begin with.

Not enough emphasis on professional development & upskilling programmers

Companies fail to provide their employees with adequate professional development to allow them to grow their skills. Unfortunately, some employees see 👉 training and upskilling as an expense 👈 as opposed to an investment. They don’t recognize that when a developer learns something new, they can take that knowledge and put it back into the business. This will allow the business to grow and become more profitable.

Female candidate sitting in queue and receiving cv files, waiting to start job interview about career opportunity. woman getting ready to attend recruitment meeting with hr employee.

Long hiring processes that are discouraging to potential candidates

So we mentioned that companies can unknowingly block out candidates. Another mistake is the long hiring process. Recruitment processes have become longer due to the recession. Hiring managers are elongating these processes to make sure they hire the right developer for the job. But these long hiring processes can be discouraging to potential candidates.

Moreover, with a long recruitment process, you also run the risk of candidates falling off during the process. A really good candidate could get an offer elsewhere simply because the other company was faster. This will narrow down your potential options.

Another problem many developers run into, at a certain point they don’t know where they stand in the recruitment process. There is a communication breakdown on the side of the recruiter, and the coder is left hanging. This shouldn’t happen, even if a company is no longer interested in certain candidates that should be made clear.

How to fix the talent shortage in your tech company?

So no let’s look at how you can fix the talent shortage in your company. Let’s see how you can gain software engineers on demand.

Gain access to a larger talent pool

The first you need to do is gain access to a larger talent pool. You need to look beyond your local markets to fill that talent gap. Try looking at global talent pools to get the skilled workers you need for your team. You can 👉 hire developers using offshore, nearshore 👈, and offsite methods. Remote work makes it easier to fill the talent gap with developers from all locations around the globe.

Moreover, you can try filling open positions using extension models. Models such as IT staff augmentation, managed services, outsourcing, etc. This will also help expand your talent pool.

Two young entrepreneurs working on a computer on an e-learning course

Focus on professional development & reskilling

Give your tech workers the opportunity to grow their tech skills. Many people in tech roles want the opportunity to take part in professional development courses. These courses can be in the form of e-learning courses, workshops, or conferences. You can invest in these professional development courses to help upskill or reskill your workers. Upskilling and reskilling tech talent can help you fill the talent gap as well, without having to hire new workers.

Promote employees when possible

Another way to ensure you have the tech talent you need is to promote your internal employees. If you have an employee that has the experience and the skills, perhaps it’s time to promote them. It may help you retain that employee, plus it will fill a tech role you need. Also, promoting an employee is seen as providing recognition, which may have a positive impact on your company culture. This means there is room for growth and stepping up for those who want it.

People in the office analyzing whether they should use IT staff augmentation to fill the tech talent shortage in 2023

Use IT staff augmentation to hire supplementary software developers

To fill positions and close that IT talent gap, you can try to use 👉 IT staff augmentation 👈. Staff augmentation companies can help you hire tech employees for short-term and long-term projects. IT staff augmentation gives you the opportunity to take advantage of temporary staffing to meet your business needs.

IT staff augmentation can provide you with a wide range of qualified candidates. You are able to hire tech leaders, senior developers, mid/regular developers, and junior developers. You can gain top talent with any tech stack you need for your projects. Moreover, this solution enables you to stay competitive. You can expand and collapse your development teams as needed. Moreover, if you are looking for diversity in your tech talent, IT staff augmentation give help you hire developers from around the world. You hire popular developers such as 👉 Polish programmers to complete projects 👈.

TL;DR: Summary Why is there still a tech talent shortage in 2024

Let’s summarize why there is still a tech talent shortage in 2024.

Despite the recession, many companies are struggling to find the right candidates for the job. This is for numerous reasons such as:

  • Struggle to adopt emerging technologies
  • Your recruitment process may be blocking out potential software developers
  • Employee turnover in IT is still sky high
  • Employers struggle to balance rising costs due to inflation & giving coders bigger salaries
  • Not enough emphasis on professional development & upskilling programmers
  • Long hiring processes that are discouraging to potential candidates

Now if you are a business owner, there are some things that you can do, to try and minimize this problem. Some solutions to help bridge the gap that is created by the tech talent shortage include:

  • Gain access to a larger talent pool
  • Focus on professional development & reskilling
  • Promote employees when possible
  • Use IT staff augmentation to hire supplementary software developers

So why do you think there is such a tech talent shortage in 2024? Did we miss any solutions that you tried in your company? 👉 Drop us a line 👈 and let’s chat about it. We can provide you with a free no-obligation consultation on how to remedy the talent shortage that exists in the IT world.

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