The Talent Gap Hero

The Talent Gap Hero Image

NARROWING THE TALENT GAP

The Talent Gap Block 1

For all those organisations looking to digitalise, automate and optimise, the shortage of skilled tech professionals is a real blocker to their potential success. Here we look at some ways in which the technology talent gap can be minimised.

The Talent Gap Block 2

BROADENING THE HORIZONS

When facing talent shortages, it's reasonable to expect that employers would explore talent networks beyond their local city, country, or region. However, even with an openness to remote working models, organisations appear hesitant to look beyond borders when it comes to hiring:

If they're recruiting, employers are generally searching in the country they are located…

Recruiting in country

Also recruiting across Europe

Also recruiting across the globe

All Regions
FraBeNeLux
CEE
Southern Europe
Middle East
0
20
40
60
80
100
84%
20%
12%
85%
25%
12%
83%
23%
11%
86%
13%
11%
93%
11%
21%

And with international recruitment, they see more barriers than opportunities:

We don't need to look outside our local market

Legislative and compliance challenges

Just wouldn't consider it

Lack of knowledge in other recruitment markets

All Regions
FraBeNeLux
CEE
Southern Europe
Middle East
0
10
20
30
40
50
30%
29%
23%
12%
42%
22%
13%
15%
28%
38%
26%
8%
26%
24%
35%
13%
14%
27%
5%
13%

*Selected responses. Respondents could choose any that apply or "There are no barriers."

Only employers in the Middle East are significantly increasing international recruitment, in unison with increasing local hiring efforts, in a bid to combat skills shortages:

Increase local hiring efforts

Increase international recruitment

All Regions
FraBeNeLux
CEE
Southern Europe
Middle East
0
10
20
30
40
50
39%
9%
37%
8%
39%
9%
33%
5%
44%
23%

*Respondents could choose any answers that apply from 11 options.

 
 

The Talent Gap Block 3

THINKING SHORTER-TERM

Employers are focusing on recruitment for permanent positions but could look to the flexibility of contractors or freelancers...

Permanent employees

Freelancers and/or contractors

Temporary contract employees

We are not planning to recruit

All Regions
FraBeNeLux
CEE
Southern Europe
Middle East
0
20
40
60
80
100
82%
13%
14%
9%
83%
14%
18%
7%
88%
14%
12%
8%
74%
12%
13%
13%
85%
14%
14%
8%

*Respondents could choose up to 3 or only "not planning to recruit."

The main reasons employers recruit temporary, contract, and freelance staff are:

Covering the periodic increases in demand for our products or services

We have challenges finding suitable candidates for permanent employment

Access to specific skills for one-off projects

Increasing the flexibility of our staffing costs

Increases the agility of our organisation in economic uncertainty

All Regions
FraBeNeLux
CEE
Southern Europe
Middle East
0
10
20
30
40
50
40%
26%
25%
25%
20%
45%
38%
38%
25%
28%
37%
28%
33%
27%
19%
39%
15%
19%
24%
21%
38%
13%
11%
16%
5%

The permanent workforce is paramount for stability in ongoing operations. In tech, positions related to key strategic areas like Cybersecurity, Data Analysis, and Network Infrastructure often require a consistent workforce.

On the other hand, specific development projects and one-time implementations can be handled without much involvement of permanent staff. Indeed, though the majority of hiring companies across EMEA stated that they were primarily focused on permanent headcount, some employers are recognising the value of leveraging contract employment for such projects. Contract-based work allows organisations to access specialised skills that may not be required on a long-term basis. Moreover, it offers flexibility in scaling resources based on project needs.

It's worth noting that certain countries, particularly in Southern Europe, have legislation that may discourage professionals from considering freelancing and restrict organisations in their use of contractors. We touch on this further in the Next Steps.

The Talent Gap Block 4

A SKILLS DISSONANCE

Despite high levels of inflation in much of EMEA, many employers are still putting the talent shortage on par with rising costs as a limiting factor to their growth and success.

Furthermore, there appears to be a disconnect between the skills that organisations believe their current workforce possesses and the skills they predict will be most essential in achieving their goals next year. If we were to attempt to attribute this dissonance to a specific factor, looking through the lens of process optimisation and digitalisation we could suggest three things:

  1. Employers feel they have the skills they need now but they are worried about their ability to retain that talent amidst the fierce competition.
  2. Employers feel they have the skills they need to achieve their current objectives, but in the rapidly changing technology landscape, won't have sufficient talent to keep up in the future.
  3. Employers might still be in the process of identifying how to optimise and digitalise, and so don't yet know the exact skills they will need to fulfil their strategic goals.

Any way you look at it, employers are caught between chronic talent shortages and a potential exodus of their existing tech talent. 42% of all tech professionals in EMEA plan to leave their current job this year, and the figure is even higher in Southern Europe and the Middle East.

The top three factors employers believe will limit their strategic goals are:

Shortage of skilled professionals on the market

Rising costs for businesses

Organisational finances or budgets are limited

All Regions
FraBeNeLux
CEE
Southern Europe
Middle East
0
10
20
30
40
50
24%
24%
18%
31%
20%
16%
24%
25%
19%
20%
30%
15%
16%
17%
28%

Employers generally believe their organisation has the skills to meet their current objectives:

Yes

No

80 60 40 20 0
All tech professionals FraBeNeLux CEE Southern Europe Middle East
82%
18%
81%
19%
81%
19%
82%
18%
83%
17%

When describing their experience of the labour market, employers say they experienced:

A shortage of skilled professionals

An overall candidate shortage

All Regions
FraBeNeLux
CEE
Southern Europe
Middle East
0
20
40
60
80
100
53%
40%
60%
46%
52%
41%
51%
41%
45%
13%

*Selected responses - respondents could identify any answers that that apply from 10 options.

% of tech professionals planning to leave their job in 2023:

42% In All Regions

40% In FraBeNeLux

31% In CEE

49% In Southern Europe

54% In the Middle East

The Talent Gap Block Secondary Nav

SKILLS OF THE FUTURE

Looking for the skills you need in different places and across different contract types could remedy some key challenges, but the skillsets themselves could also be flexible. As the data above shows, there isn't clarity in exactly what is needed from a workforce perspective for companies to achieve their future goals. The technology is advancing and the game is changing. What was talked about before as a 'candidate-driven' market can now be seen as a 'skills-driven market'. The perceived importance of certain profiles might waver as time moves on. Certain skills could be transferred and applied to new positions, and anyone with highly-valued skillsets will have plenty of opportunities.

In the next section, we explore some of the more futureproof tech profiles for which we see a growing demand.

Key Tech Profiles

Hidden Page Footer

© Copyright Hays PLC . The HAYS word, the H devices, 'Hays Working for your tomorrow' and 'Powering the world of work' and associated logos and artwork are trademarks of Hays PLC. The H devices are original designs protected by registration in many countries. All rights are reserved.

Hidden Page Header & Navigation