The rise of the digital age has created a new landscape for businesses across the globe, and the need for executive search solutions has never been more important. With the ever-changing landscape of technology, it’s become more important than ever for companies to have a solid understanding of the IT talent acquisition process.
However, even with the abundance of information and resources, many IT companies are still facing challenges when it comes to executive search.
In this article, we’ll discuss the top IT talent acquisition challenges and how to overcome them.
The growing demand and shortage of skills
According to recently published reports, the demand for technology will continue to remain high in 2022. By the end of 2022, over 190,00 new positions in the IT sector are expected to open up.
In addition, by 2030, the demand for IT professionals such as QA analysts, testers, and software developers is set to increase by 22 percent.
At the same time, tech companies find it hard to find skilled IT professionals. Per a survey by McKinsey & Company, 44 percent of companies expect the tech talent gap to widen over the next five years. Given that there are about 65 potential candidates per 100 job openings in the sector, the time to hire and the hiring cost are significant.
Layoffs and resignations
The industry has witnessed a higher-than-normal turnover rate in the past few years, particularly during the pandemic. Some IT companies, such as Cloudflare, witnessed the turnover rate peaking in May of 2021.
Another survey of over a thousand IT workers revealed that 72 percent were thinking of leaving their jobs in 2021.
Many are quitting their tech jobs in search of opportunities elsewhere, career progression, lack of flexibility in their working hours, or to find the position that best meets their capabilities or interests.
In addition to an aging workforce, the other challenge facing the IT industry regarding talent acquisition is the mismatch of expectations between the workforce and the companies.
Senior software developers and IT executives have high requirements, including an attractive pay scale, work flexibility, and opportunities to take up interesting projects. Companies, on the other hand, want employees with a long list of technical skills, multiple degrees, and a stellar employment history.
So, how does the talent shortage affect IT businesses?
The business impact of skills shortage
Staffing shortages directly impact productivity and delay the implementation of workplace digital solutions.
A survey by Gartner shows that IT talent shortages are impacting these areas in the industry:
- Computer infrastructure
- IT automation
- Platform services
- Digital workplace,
- Database systems and storage
Over 75 percent of IT executives name talent shortage as the main risk factor for implementing emerging technologies, including Web3, quantum computing, and the metaverse. The lack of skilled IT staff hampers the IT company’s efforts to stay competitive and, according to an estimate, can result in unrealized annual revenues of up to $8.5 trillion by 2030.
Above all, IT companies are spending more each year on recruitment, temporary staffing, and training.
The solution: Partner with a specialized IT executive recruiting expert
Whether you want to grow your IT company or fill senior positions to help manage complex IT systems, it’s important to partner with an executive hiring solutions provider for the IT industry.
As the top executive search expert, we at Arango & Associates, have a team of experienced IT executive recruiters who can help you find the right candidate for your specific needs. We’ll work with you to understand your business and find the best possible candidate for the job.
Contact us today to learn more about our services.