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
The Talent Gap Hero
NARROWING THE TALENT GAP
The Talent Gap Block 1
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:
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
*Respondents could choose any answers that apply from 11 options.
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
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
*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
*Respondents could choose any answers that apply from 11 options.
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
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
*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
*Respondents could choose any answers that apply from 11 options.
The Talent Gap Block 3
THINKING SHORTER-TERM
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
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
*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
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
*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
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:
- Employers feel they have the skills they need now but they are worried about their ability to retain that talent amidst the fierce competition.
- 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.
- 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.
% 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 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
Employers generally believe their organisation has the skills to meet their current objectives:
Yes
No
When describing their experience of the labour market, employers say they experienced:
A shortage of skilled professionals
An overall candidate shortage
*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 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
Employers generally believe their organisation has the skills to meet their current objectives:
Yes
No
When describing their experience of the labour market, employers say they experienced:
A shortage of skilled professionals
An overall candidate shortage
*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.