Why are startups experiencing a tech talent shortage?

UK startups are finding it increasingly difficult to attract and hire the tech talent they need, according to recent industry reports. They identify a shortage of qualified candidates and highlights the competition from established companies such as Google and Amazon as two significant factors behind the struggle. It also shares frustrations from hiring managers because of drawn out lead times due to candidates failing to turn up, or declining offers at final stages.

So, what are the improvement recommendations for startups? We have shared a handful…

Establish a stand-out company culture

One approach the report recommends is for startups to focus on building a strong company culture. By creating a positive work environment and offering attractive benefits and perks, startups can differentiate themselves from larger companies and attract candidates who prioritise work-life balance, flexibility, and a sense of purpose.

Explore different hiring channels

Alternative hiring channels, such as collaborating with educational institutions and offering apprenticeships or internships to students and recent graduates, can also be explored to build relationships with talented individuals early on and provide valuable learning opportunities for both the startup and the candidate.

Specialist recruitment agencies are effective at identifying top talent, and have access to a wider talent pool, making them an ideal choice for companies searching for hard-to-find skills. They have a deep understanding of the industry, extensive networks, and can save valuable time and resources, whilst offering valuable advice and support throughout the hiring process, such as creating job descriptions and advising on salary and benefits.

Using a specialist agency can increase the chances of finding the right candidate and reduce the risk of a failed hire.

Offer consistent training and development

Employee training and development programs are another key recommendation. By offering ongoing learning opportunities, startups can help employees build new skills and advance their careers, leading to better retention rates and establishing the startup as a desirable employer.

Be open to remote opportunities

A recent LinkedIn article has shared that demand for ‘work from anywhere’ roles has risen by 21% from January 2023 to March 2023. Seasonal demands are changing quickly; therefore, startups should be offering flexible working opportunities in order to keep up with larger, more established tech companies and attract a more diverse workforce.

Need more help?

There is nothing wrong with asking for help! At ITR Partners , we are here to help startups overcome the hiring challenges and find the right tech talent for their teams. Get in touch with us today to learn more about our services and how we can support your startup's growth.