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Talent shortage has become a global issue, especially in the tech industry. Numbers say that by 2030, the global talent shortage is expected to reach 85.2 million, with the most profound talent gap in the tech industry.
Although layoffs in the tech industry dominated the second half of 2022, demand for niche talent has continued to rise and topple the headlines with the need for astronomical salaries and hikes.
A survey report from Mckinsey and Company shows that over 44% of well-known organizations expect a significant talent gap in the next five years. Currently, there are only 65 potential candidates for every 100 new job openings, which means a longer time to hire and a higher hiring cost.
Industry experts say that good tech talent is still hard to come by, and skilled workers have no shortage of opportunities, with demand continuing to outpace supply.
To help address this gap, let’s discuss the influencing factors and resources that can help solve the talent shortage crisis in our present blog.
However, let us first understand the factors influencing the talent shortage-
Factors Contributing to Talent Shortage:
1. Tech Talent is expensive:
In-demand tech talent often commands high salaries and benefits, making it a significant company expense. Additionally, recruiting and hiring costs can add up quickly, making it challenging for smaller companies with limited resources to compete for top talents.
2. Great, qualified candidates are hard to find (and reach):
The demand for tech talent is extremely high; for instance, by 2025, there will be more than 3.5 million cybersecurity openings, and the quality of people filling positions will be less. The case for other positions is the same, and attracting qualified candidates is becoming extremely difficult. In addition, some specialized tech roles require specific certifications or experience, further narrowing the pool of qualified candidates and leading to extended recruiting timelines and lost business opportunities.
3. Continuously evolving and changing field:
Technology is an evolving field and requires professionals to learn new skills and regularly adapt to emerging technologies. Keeping up with these changes can be challenging, particularly for companies needing dedicated training and development programs.
4. Fierce competition:
With an increasing demand for tech talent, the competition for qualified candidates can be intense. Large technology companies have the resources to offer generous salaries and benefits packages, making it challenging for smaller companies to compete, which can lead to a talent shortage for other organizations.
5. Tighter recruitment frames and periods:
Time is the ultimate differentiating factor in the present job market. The immense competition for top talent has led to shorter recruiting time frames. Hiring managers must act quickly to secure the right talent before their competitors do, which can be challenging considering the abovementioned factors. Companies must have streamlined recruitment processes to compete in today’s job market.
Now, after analyzing the factors, let us see and consider the solutions.
Partnering with Talent Management Partner
To bridge the gap between talent acquisition and talent shortage, companies need to think outside the box and consider solutions like partnering with a talent partner, as they can make the job easy.
Furthermore, talent management partners like staffing agencies can play a vital role. They can help niche talent, address the gap talent shortage crisis and provide other benefits, like:
1. Provide a vast network of talented professionals:
Staffing agencies have access to an extensive network of qualified professionals, including active and passive job seekers. Partnering with a talent management company like VDart, or others will help you find the right talent quickly and save money and effort.
2. Deep understanding of the job market:
Staffing agencies have a deep understanding of the job market, including current trends, job demands, and skill requirements. This knowledge helps them match companies with the right talent and provide support throughout the recruitment process.
3. Training and development programs:
When you partner with staffing agencies, you can have access to a large data pool, and in case there is a lack of available talent, partnering with staffing agencies can be helpful.
The staffing agencies can provide resources with their training and deploy programs and training resources for a particular skill set. For example, finding a ForgeRock specialist might be difficult, but VDart can help hire fresh and lateral talent and train and develop qualified ForgeRock specialists for you with our special talent train and deploy programs. These programs ensure that candidates are ready to take on new roles and can adapt to changing market demands.
4. Save time, cost, and effort:
Staffing agencies can help streamline hiring, manage administrative tasks, and provide flexibility with temporary and contract staffing solutions. Furthermore, they can expedite the hiring process and do several other essential tasks like -posting job ads, pre-screening resumes, conducting background checks, and scheduling interviews.
5. Support and guidance throughout the recruitment process:
Staffing agencies provide support and guidance throughout the recruitment process, from job posting to onboarding. They help companies navigate the complexities of talent acquisition and ensure they find the right talent for their needs by providing deeper insights about the job market and analysis and conducting screening and assessment.
The tech talent gap is a global issue requiring innovative solutions. Companies must look beyond traditional recruitment methods and consider partnering with talent management partners like staffing agencies can bring significant benefits, as mentioned above.
The Final Word
If you want to hire tech talent for your organization, look no further than VDart We are a premier staffing agency that can help organizations overcome the talent shortage crisis. With our extensive network of qualified professionals, deep understanding of the job market, and innovative training and development programs, we can help companies find the right talent quickly and efficiently.
Contact us today to learn more about how we can help bridge the tech talent gap in your organization!