London remains the number one city for digital talent

London has retained its number one spot as the most attractive city to move to for work for global digital talent, ahead of Singapore in 2nd place and Amsterdam in 3rd.?The results, highlighted in a new report from Boston Consulting Group (BCG) and The Network, also found that UK companies are the world’s second most attractive (after US companies) for digital talent searching for remote employment opportunities.

Data from the UK tech scene give an indication of why.?Take the fintech market, for example. The UK is by far the most popular destination for fintech investment in Europe, accounting for 49% of total equity funding across the region over the last five years.?The UK’s fintech sector attracted over?$10.9B?in 2021, according to BCG Fintech Control Tower, representing a 95% growth year-on-year. The UK’s position as Europe’s prime destination for capital inflows in areas like fintech, and the digital ecosystem this has created, provides attractive long-term career opportunities for digital talent.

Digital workers are also interested in becoming part of the UK’s blossoming tech sectors without physically moving to the UK. Technology makes it easier for digital talent to collaborate and work effectively with colleagues across borders, breaking down the barriers to remote employment that were strongly entrenched pre-Covid. As a result, remote working is now much more of a potentially viable career choice.

What else have we learned about Digital Talent?

?Analysing responses from over 9,000 respondents from across the world has shown us that:

• ?Digital talents are at the forefront of what’s been called the “Great Resignation” in the US. 73% of digital talents expect to change jobs within the next 2-3 years.?
• A positive work/life balance?remains incredibly important for digital talent, something that has strengthened during the pandemic.
• Good relationships with colleagues?have increased in importance, overtaking learning and skills training as the second most crucial factor.
• Financial compensation?has replaced career development opportunities as the third most important factor. Digital talent understand their scarcity and the value they bring.

Flexibility is also essential in a post-Covid world, with digital talents looking for a choice of where, when, and how they work. Digital talents have strongly embraced flexible working: 95% of digital respondents want to work from home at least once a week; only a small fraction want to be full time in the office.?

However, only a quarter want to work completely remotely all the time.?Most would prefer to come into the office two or three days a week, to collaborate with their teams or meet with their managers.

Lessons for employers

The enduring attraction of the UK to digital talent is excellent news for British businesses that face fierce competition for digital talent and tech skills. The big question is: How can companies ensure that they leverage this advantage?

1. Digital talent strategy:?To recruit and retain digital talent, companies need to conduct strategic workforce planning for the current and future capabilities they need to succeed, focusing in particular on critical digital skills. Armed with this insight, they can develop a robust digital talent strategy, with targeted decisions on what talent to build, buy or borrow?and a clear view of the best locations in which to build up their teams of digital talent.?
2. Articulate their purpose and value proposition more clearly and sharply:?Employers then need to strengthen their value proposition for digital talent. Integral to this is being responsive to the desire of digital workers for greater flexibility in where, when and how they work. Businesses must also have strong social and environmental values that reflect the growing importance employees place on these dimensions.?50% of digital talent would exclude companies from their job search that don't match their beliefs in diversity and inclusion or environmental responsibility.
3. Build capacity and capability internally:?Businesses must maximise the potential of their existing workforce through upskilling and reskilling. In identifying the best talent, employees should encourage interest from those in non-digital roles, with BCG data suggesting that 60% of highly skilled professionals are keen to train and transfer to digital functions. Companies looking to stay ahead are designing innovative reskilling pathways to enable this.

For every organisation, clarity on the digital talent they need, a clear purpose and value proposition for the talent they are looking to attract, and a strong commitment to support their existing employees in developing the skills to take on new digital roles, will all be key in attracting, retaining and building the digital capability they need.?The battle for digital talent is intense – but companies prepared to think creatively and adapt can flip the odds of success in attracting and keeping the talent they need.

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