Tech Skills Gap: Salary Raises Not Enough to Retain Talent
Technology is still facing a major skills gap, and recruitment firm Hays has revealed what employees and employers are looking for in the industry.
“Tech skills gaps are intensifying as we continue to see fewer young people engaging in tech careers each year,” says James Hallahan, Director of Technology at Hays.
94% of employers have experienced skills shortages in the past 12 months, but still, 84% of them are planning on recruiting staff in the coming year.
Three-quarters of businesses have concerns about an insufficient number of suitable applicants, with 70% worried about competition with other employers to attract talent.
According to employers themselves, competition with other businesses is the main reason for their own skills shortage.
Employers have to fight to attract new tech talent from across the globe, as young people’s priorities in their job search continue to transform after the pandemic.
76% of employers surveyed increased salaries last year, and tech jobs have continued to earn salaries higher than the UK average.
The average tech salary increase over the last year was 7%, but niche skills have seen increases of up to 15%.
Digital transformation projects have driven demand for tech skills, and cybersecurity professionals remain in high demand across the UK as data breaches become more complicated and commonplace.
Despite these rises, dissatisfaction in salaries and benefits packages is the top reason employees want to leave their current job. 29% of professionals say they are not satisfied with their current salaries, making them more likely to jump ship.
While attraction is obviously a barrier to address the skills gap, retention is increasingly an issue across the industry.
A lack of future opportunities was one of the reasons employees are looking to change jobs. Further, hybrid and remote working opportunities are some of the most sought after traits employees search for when seeking employment.
Further, employees are not simply comparing salaries, but comparing an organisation’s purpose.
82% of employees consider an organisation’s purpose when applying for a new role, with 75% saying sustainability was important, and 69% saying that demonstrating a culture of diversity and inclusion was vital.
Diversity and inclusion also play a part in retaining employees, which companies may need to focus on in the coming months to compete with rising salaries and deal with a shrinking tech workforce.
“Upskilling, reskilling and training new talent is now critical to an organisation’s growth and should be central to any credible people strategy,” Hallahan said.
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