IT is still among the five UK sectors struggling with labour shortages

The UK’s tech industry is a dynamic, fast-paced, and continuously growing one. And for businesses to gain a competitive advantage in this field, they must be able to adapt to technological advancements rapidly and effectively. 

The problem is, this is easier said than done. 

Along with every technological advancement come new (and often bigger) recruitment challenges. 

The demand for IT professionals in the UK just keeps on rising over the years, but the supply doesn't seem to be enough. Along with the hospitality, construction, health and social work, and leisure industries, the information and communication sector has struggled with labour shortages in the past year. And this problem has cost the industry billions every year for hiring, training, salaries, and other related costs.

With the emergence of new technologies—Artificial Intelligence (AI), Business Intelligence (BI), and the digitalisation of processes to name a few—this demand for skilled tech talents will continue to increase exponentially. 

In fact, recent research shows that we can expect 142,000 new roles in the UK by 2023. 

“It’s a high growth area, the tech sector specifically, and we’re not producing the right skills domestically.” - Vinous Ali, Head of Policy, techUK 

Some employers depend on international professionals who migrate to the UK to fill positions, but with the government’s cap on Tier 2 visas issued to skilled workers, IT workers from overseas are not able to move to the UK. 

Top challenges when recruiting tech professionals

These are the top challenges businesses face when recruiting IT talents, according to the report, Solving the Skills Shortage (Technology) by Robert Walters, totaljobs, and Jobsite:

• Candidates lacking sufficient experience for the role (56%) 
• Candidates lacking the right technical skills (51%) 
• Candidates lacking the right soft skills (40%) 
• Too many underqualified candidates applying for roles (36%) 
• Recruitment process taking too long once good candidates are sourced (36%) 
• Candidates’ salary expectations being too high (34%)

Tech firms and businesses find the lack of skills, experience, and technical qualifications to be the most significant challenge in recruiting professionals. But other than this, employers and recruiters also have to deal with the fierce competition for candidates as highly skilled candidates often receive multiple job offers. 

Combatting skills shortages

According to the same study, these are the top five strategies companies and businesses currently use to tackle skills shortages:

• Using temporary or contract workers to fill skills gaps (63%) 
• Engaging recruitment agencies (53%) 
• Using internal training to upskill and/or moving internal staff into more senior positions (51%) 
• Using external training to upskill current staff (38%) 
• Advertising for staff through LinkedIn (38%) 

There is a growing number of businesses which choose to transfer work that requires niche technology skill sets. Contractors such as outsourcing companies have become among the preferred choice for tech employers because of their industry knowledge and expertise. Through the help of these IT service vendors with the skills and resources, businesses can deal with their IT needs effectively. 

Low unemployment rate and the rise of labour costs

Reports show that Britain’s jobless rate is now at 4%. Since the early 1970s, this is the closest that it has been to full employment, and yet companies are still struggling to hire the right workers. 

In fact, 70% of businesses in the IT sector have found it more difficult to hire staff in 2018. This has resulted in an average of 10 unfilled roles per business. 

With such fierce competition for tech talents and with a market heavily saturated with employers, businesses often have to up their game and offer more competitive salaries and benefits to secure top-notch professionals. 

The problem is, these surging labour costs can be crippling for startup tech firms and SMEs who may not have the recruitment budget to compete with larger firms. 

In this concern, outsourcing or working with contractors has also been an excellent option for employers who need tech talents at competitive rates. Outsourcing work to offshore countries, in particular, helps businesses cut down on labour and overhead costs while still getting the quality and performance that they need. 

Collaborating with talents from different parts of the world may sound bothersome at first, but aside from its financial and material benefits, engaging talent from around the globe can be beneficial and strategic for companies in the long run. 

Here are some great reads on IT talent recruitment: 

Pros and Cons of Outsourcing Your Software Development

6 Efficient Practices in Hiring Developers for a Startup

IT Outsourcing Trends to Expect this 2019

Is partnering with an IT Outsourcing Service Provider a good business move?

Your Ultimate Guide to Offshore Developer Rates

8 Ways to Reduce Risk When Hiring Developers Offshore