What’s the Deal with the Talent Shortage in the Tech Industry?
Posted April 28, 2022 in Trends by Jen Lyons
There’s no doubt about it—there is a serious talent shortage in the tech industry, and companies are competing to attract top-tier employees. With so many jobs open for a wide variety of roles in this thriving industry, qualified candidates have their pick, which is driving employers to find creative ways to become prospective employees’ first choice.
A quick look at the numbers
The tech industry as a whole is experiencing a massive boom, which has dramatically increased the number of job openings. Tech companies are prospering and looking to expand. As new tech skills emerge, employers are eager to engage employees who have honed those skills. CompTIA’s monthly Tech Jobs Report notes job listings for tech positions have been trending up. In March 2022, there were over 400,000 tech job postings in the US.
Additionally, there is speculation Boomers who lost their jobs during the COVID-19 recession decided to retire earlier than planned, since the pandemic correlated with an increase in retirements among this generation. According to Pew Research Center, 40% of the Baby Boomer generation retired by September 2020. As Boomers exited the workforce en masse, the tech talent shortage across roles grew.
Meanwhile, the workforce in India and Eastern Europe, which tech companies have long relied on, no longer yields a surplus of job seekers. Like tech employees in the US, foreign workers have capitalized on the plethora of open positions and there aren’t nearly as many job seekers as there used to be.
Why are tech jobs so highly prioritized?
Tech jobs are in demand, and for good reason. Dice found the average salary for a tech job in 2021 was $104,566—a 6.9% increase from 2020.
Tech jobs are in demand, and for good reason. Dice found the average salary for a tech job in 2021 was $104,566—a 6.9% increase from 2020. Web developers, database administrators, and technical support engineers in particular are seeing impressive salary growth each year, but roles all across the tech industry, including sales, marketing, and customer support, are yielding higher and higher salaries. With tempting compensation, tech jobs are extremely attractive to the Millennial- and Gen Z-dominated workforce.
How can employers attract the talent they’re seeking?
Companies that advertise an inclusive and supportive culture are popular among job seekers. As we mentioned in a recent blog post, prioritizing diversity, equity, and inclusion (DEI) initiatives in the workplace increases employee satisfaction. Many prospective tech employees are looking for a company that shares their values, and today’s workforce cares about DEI.
Competitive benefits are also key. These can range from generous vacation time to stipends for everything from new tools to investments. Many candidates are looking for a vibe that proves companies really care about them. Learning about company meditation retreats, barbeques, and dog-friendly offices can sway a job seeker who is choosing between two offers.
Many candidates are also looking for a position that can be done remotely, even when working from an office is no longer a safety concern. Employers who offer flexible work hours and location are very popular with today’s job seekers.
Exploring alternative avenues to a tech career
A recent Fortune article suggested that leadership at tech companies needs to be more open-minded about candidates without a traditional tech background. With far more jobs than candidates to fill them, it stands to reason that rethinking the path to a tech job would benefit employers who are desperate to keep positions filled.
Many candidates have the soft skills required to thrive in a tech position, even if they don’t have a tech-related degree or career history. With comprehensive on-the-job training and support from leadership, these candidates can gain tech-specific skills once they’ve been hired.
Coaching from co-workers and leadership is important to the Millenial and Gen Z workforce, according to Harvard Business Review. This is true even for employees who do have a degree in the tech field—employee development matters to job seekers.
Staying nimble in unprecedented times
The tech industry is witnessing massive changes, and the key to weathering the storm for both job seekers and employers is to stay nimble and think outside the box. The push for company culture informed by employee values promises a bright future for tech.
To learn more about the tech talent shortage and innovative solutions, reach out to us directly.
If you’re interested in helping your network break into a career in tech, signup to be a referrer today and help your connections find their next great role.