In 2023, over 160,000 people lost their jobs at tech companies in the United States. Many businesses stopped hiring new tech employees because of tough economic times. But, there's still not enough tech workers. There are more job openings than there are people to fill them, and this is happening in many parts of the United States.
It's not just a problem in the U.S. It's happening worldwide, too. Many companies need tech experts, but there aren't enough of them. This affects all kinds of tech jobs, from computer systems to security. It also makes it hard for businesses to grow and compete with each other. Even though most companies want to use new technology, they can't find the right people for the job. In fact, 64% of them have this problem, which is a big jump from just 4% in 2020. The shortage of tech workers is predicted to be even worse by 2030, affecting many industries and costing a lot of money.
So, why is there such a high demand for tech workers, and how can businesses find the right people to help them grow and stay competitive?
Tech jobs were steadily increasing in the five years before the pandemic, adding 1.3 million new workers. In 2020, when the pandemic hit, many tech workers lost their jobs, and the unemployment rate in the tech industry was at its highest, reaching 4.6%.
But then, in the fall of 2020, tech companies started hiring more people because they needed to meet the growing demand from customers. They also needed to use more technology to solve problems and work better. Many employees who had been with the tech giants like Google and Amazon for a long time saw new employees being paid more, which caused tension in the teams and made many people quit their jobs.
In response to the surge in hiring and the uncertain economic situation, some big tech companies laid off employees at the end of 2022 and the start of 2023. However, these layoffs only affected 10% of the jobs these companies created. 79% of the tech workers who lost their jobs found new ones within three months. But in 2023, the job opportunities have moved from big tech companies to smaller ones and non-profit organizations.
Even though there's a big need for people with tech skills, there aren't enough of them. In fact, 86% of tech managers have a hard time finding people who are skilled in software development, technology automation, and cloud systems. Working in tech needs a lot of training, and it's tough for companies to keep up with all the new tech skills and tools that keep coming out. Cloud and automation skills are especially important now.
As the need for tech workers keeps growing, companies will face more challenges when trying to hire new employees. With more job openings than there are people to fill them, companies need to focus on not just finding new talent but also keeping the employees they already have. Why? If employees keep leaving, the skills gap gets bigger, and companies have more open positions to fill. They also put extra pressure on the people who are still there. So, what should companies do?
To attract and hire the best tech talent, it's important to know who you're looking for. Use your job ads to show potential candidates why your company is a great place to work. You should understand how your ideal employee usually finds job openings, what makes them want to change jobs, and what they gain from working with your company.
A smooth hiring process makes it less likely for candidates to drop out. You can use self-scheduling, video interviews, and chatbots to make the hiring process easier. Send automated emails, explain the timeline and expectations, and set a date for candidates to follow up and check on their application status.
Giving employees the option to work flexibly is important. It's a big factor in the decision for 65% of tech workers to stay at a company. Many tech workers are younger and want perks that matter to them, like having the freedom to work when and where they want and time to work on projects they care about.
To keep tech professionals happy and engaged, you should provide them with challenging projects that match their skills and encourage problem-solving and creativity. Offer them opportunities for career growth through promotions, mentorship, and skill-building.
Help your employees learn new skills through training and workshops. This not only helps them stay with your company but also helps them move up in their careers. Talk to your employees about their interests and your company's goals, and provide resources and opportunities to help them grow. This could include in-house training programs or financial support for technology courses, which benefit both your employees and your business.
The severe shortage of tech workers is a growing concern, both in the United States and worldwide, and it is expected to worsen by 2030, impacting various industries and costing companies significantly. To address this challenge, businesses need to adapt and adopt innovative strategies to find and retain the right tech talent.
TriOptus can play a crucial role in helping businesses navigate this skills shortage by offering tailored solutions. By understanding the changing dynamics in the tech job market, TriOptus can assist companies in identifying the ideal candidates and improving their hiring processes. Additionally, offering flexible work options, providing opportunities for skill development, and keeping employees engaged will be essential to retaining tech professionals and bridging the skills gap.
In this competitive landscape, TriOptus can serve as a strategic partner to enable companies to access the right tech talent and, ultimately, foster growth and competitiveness in the tech industry.
Check out what our clients say about our expertise in this domain at https://www.clearlyrated.com/rpo/md-usa/clarksburg-md/trioptus-clarksburg-md