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The technology sector is a vibrant, ever-changing environment that continuously pushes the limits of what is possible. Nevertheless, despite the industry's high speed of innovation, many people still need to realize their full potential and make a meaningful contribution to the expansion of their businesses. These gaps, which exist between employees' skills and the skills needed in the workplace, can significantly impact companies' growth and success.
The global skills shortage is real and certainly no secret.
What exactly is causing these skill gaps? Let us take a closer look;
According to a report by the World Economic Forum, more than half of all workers will need reskilling by 2025 to keep up with technological advancements.
Employees are anxious about the widening skills gap, with 46 percent of those surveyed believing their current skill set will become irrelevant by 2024.
It is due to technological change that is creating a skills gap and causing wages to stagnate, according to Hays' Global Skills Index 2019/20. With new tools and technologies being created often, the technology sector is moving more quickly than ever. According to a LinkedIn Report, 64% of L&D professionals said that reskilling the current workforce to fill skills gaps is a priority. So, employees attempting to retain their abilities and remain on top of the latest trends facing a massive hurdle.
The Skills Gap Crisis in the Technology Sector – Inadequate Training and Education:
A study by LinkedIn found that 63% of workers believe they need to develop new skills to advance their careers, but only 36% have access to the training they need.
Many workers in the technology sector face serious difficulty as a result of the issue of restricted access to education and training. Employees must constantly upskill and get new expertise to be relevant in the business since new technologies and tools are developed at a rapid rate. However, the truth is that many employees need more skills or assistance to do this. The effects of this access restriction are felt by more than just employees. The repercussions are also being felt by businesses, who need help recruiting employees with the necessary training and expertise to fill their positions. According to McKinsey Global Survey, 9 in 10 respondents say their organizations either face skill gaps already or expect gaps to develop within the next five years. The inability to give employees the education and training they require to grow and prosper is a massive disadvantage for businesses in a competitive employment market where they seek to recruit and keep the finest personnel.
Skills Shortages Can Lead to a Siloed Workplace and Lack of Adaptability:
By 2030, an estimated 85 million jobs will go unfilled globally due to skills shortages.
Although this recruiting procedure may appear effective in the short term, it may cause many issues in the long run. Companies risk losing out on people who can offer diverse perspectives and experiences by limiting their recruiting to those with narrow skills. The inability of a corporation to adapt to new technologies and trends can be caused by this lack of variety in skill sets, which can lead to a skill gap in areas that are not in high demand. This strategy can also result in a siloed workplace where workers solely concentrate on their areas of expertise rather than cooperating and sharing information with others. 70% of professionals say skill gaps impede productivity at work -SCIKEY Market Network Study.
Baby Boomers retirement causing Skills and Experience Gap:
According to a National Bureau of Labor Statistics estimate, by 2024, the US labor force is expected to be 25% older, making it more crucial than ever for IT businesses to engage in training and development opportunities for workers of all ages.
The age and experience gap in the technology sector may also factor in skills shortages. Experienced employees close to retiring might not have the knowledge and expertise necessary to stay current with emerging technology and trends. Therefore, this is a significant concern for many companies in the tech industry, as the retirement of baby boomers is likely to result in a shortage of skilled workers. With many experienced workers leaving the workforce daily, companies are facing the challenge of finding individuals with the necessary skills and experience to fill their roles. This can result in increased competition for top talent and a widening skills gap as companies need help finding employees with the right mix of technical expertise and business acumen.
The Diversity and Inclusion: How the Lack of Representation in Tech Contributes to the Skills Gap and Hampers Industry Progress:
The tech industry has long been criticized for its lack of diversity and inclusion, which has important implications for the skills gap in the sector.
The National Centre for Women & Information Technology (NCWIT) has found that just 26% of computing jobs in the US are held by women, highlighting the need for greater diversity and inclusion in the tech industry.
Women, as well as other underrepresented groups such as people of color and those with disabilities, bring unique perspectives and experiences that can help drive innovation and progress in the tech industry. When these perspectives are excluded, the industry misses the benefits they bring, and it suffers financially as well in the long run.
As per Korn Ferry's Study, The skills gap could create an $8.5 trillion deficit in revenue over the next decade.
REDUCING THE SKILL GAP IN THE TECH INDUSTRY:
The tech industry is facing a major challenge of a shortage of skilled personnel, which has been reported as the second most concerning external problem by CEOs in a 2022 Deloitte study.
However, there are several effective ways to tackle this skill gap and ensure that organizations have access to the talent they need to succeed;
Recruitment of Diverse Talent:
Organizations may access a previously untapped pool of bright people and boost diversity in the workplace by focusing on underrepresented groups in technology, such as women, people of race, and people with disabilities. Research shows that diverse teams produce greater creativity and better commercial results. This strategy can also result in higher employee satisfaction and retention rates and a more inclusive workplace. According to different studies, organizations focusing on diversity and inclusion in their hiring practices are more likely to have a workforce with higher levels of expertise.
A Deloitte study found that businesses with executive teams that are gender diverse were 21% more likely to have above-average profitability. A different McKinsey study discovered that businesses with the highest levels of racial and cultural diversity were 33% more likely to have above-average financial results.
Encouraging Continuous Learning:
Companies may make sure their workforce has the most up-to-date skills and knowledge to stay ahead of the curve by supporting continuing education and development.
LinkedIn research found that 94% of workers would stay with a firm longer if it supported their professional growth.
This can be accomplished through internal training initiatives, seminars, online courses, and other techniques. By making these tools available, a firm may benefit from increased job satisfaction and productivity as well as the ability to recruit and retain top people.
Adopting Emerging Technology:
By leveraging emerging technologies like AI & ML, organizations can automate repetitive and time-consuming tasks, allowing their employees to focus on higher-value activities that require specialized skills and expertise. This can help bridge the skill gap and increase efficiency, productivity, and cost savings for the organization.
According to a study by Accenture, companies that adopt AI and ML can increase their productivity by 40% and boost their profits by up to 34%.
Collaboration with Educational Institutions:
Companies may provide students with practical experience and instruction in the most recent technology and business processes by providing them with internships, apprenticeships, and co-op programs. Students' chances of finding employment in the IT sector may increase because of helping them get real-world experience. Access to a talent pipeline and prospective employees might be advantageous for businesses.
According to studies, businesses that take part in these initiatives typically have greater employee engagement levels, reduced attrition rates, and closer ties to the academic community.
Outsourcing to Remote MSP:
A common approach used by corporations to overcome specific skill gaps and gain access to specialized skills and experience without having to spend money on recruiting and training new workers is outsourcing projects to remotely managed service providers. The fact that service providers frequently have simplified operations also helps firms save money and operate more efficiently.
According to a Deloitte survey, 63% of businesses utilize outsourcing to access fresh talent and capabilities, while a KPMG study revealed that outsourcing may help certain businesses save up to 50% on costs.
More than ever, there is a pressing need to address the skills gap since it is indeed a complex issue with multiple contributing factors. However, with the right strategies and a commitment to diversity and inclusion, companies can help bridge the skills gap and ensure that the tech industry remains vibrant, innovative, and inclusive. This can build a strong and diverse talent pipeline that will drive the future growth and success of the industry.
Yottabyte is a recognized remotely managed service provider, acknowledges the value of the rapidly changing IT industry and its drawbacks. We put a lot of effort into helping our team learn more so they can provide clients with excellent results. Our teams can keep on top of the most recent technical developments and close the skills gap by investing in ongoing learning and development.
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