Businesses and the global economies of all scales are experiencing rapid evolution and thus have witnessed lots of unfilled positions and workforce. With the growing innovations and transformations, facing a shortage of talents at great length has serious economic consequences in the world of business. In addition to the Covid-19 pandemic, IT industries are experiencing talent crunch. Reports on demand for talents & the great resignation may hit you hard.
The statistical report by U.S Labour statistics reveals, by the end of 2020, there were 40 million skilled shortages, and the shortage is expected to reach 85.2 million by 2030. With this increasing count of skilled shortages, businesses have foreseen a downturn of $8.4 trillion in revenue. However, businesses are trying to cope with the shortage with technologies and automation, and focused on hiring offshore developers in an attempt to be on track.
Status of the Global Talent shortage
The market and technology trends have played a major part in disrupting most of the organization roles and one quarter of the roles are at risk in the coming 5 years.
According to McKinsey Global Surveys, 87% of organizations are already experiencing a talent shortage or are expecting to face it within a few years. At present, the talent shortages have doubled to what it was decades ago. With almost 54% of companies reporting talent shortages, Nordic is expected to face a scantiness of more than 4000 by 2030. Moving on to Sweden by 2022, 70,000 digital-related competencies are to be managed by them solely. The talent shortage mainly affects the industries like Data Analytics, IT, mobile, or web design business areas, as these industries highly demand potential skilled developers.
The sudden lockdown imposed by the pandemic devastated some talent acquisition teams as interviews had to be virtual. With growing numbers of unfilled positions, virtually recruiting and onboarding a remote workforce became a new norm.
Status of the US Tech Talent shortage
Advancement of technology in the US over a couple of years compelled an unprecedented demand and escalated the count of talent shortage by thousands each month. On the contrary, the Covid-19 pandemic made the situation considerably worse.
The Manpower Group conveys, 69% of US employers are struggling to recruit talents. With the increase in shortages, 92% of businesses are increasing their cloud workloads in the area of Machine Learning. The Bureau of Labor Statistics highlights that by 2026, the shortage of developers will increase to 1.2 Million while 545K developers will have left the market by that time. To tackle the inconvenience of talent shortages, 505 businesses are forced to sacrifice their demands and end up hiring mismatched tech employees.
Why are businesses experiencing Talent shortages and the after-effects?
Let’s look at two major reasons and their consequences in detail,
Lack of Skilled Developers
Over the past few years, big companies prefer skilled software engineering professionals with robust credentials. The increased usage of digital technologies has increased the demand for experts in the area of Blockchain, Artificial Intelligence, Machine Learning for developing custom solutions.
Lack of up-to-date Knowledge
Technologies and languages are evolving every single day and are constantly under development. And not every candidate will possess the qualifying skills, and there is a mild chance of developers skilled in one particular field and lacking in another. With this dilemma, it is hard to hire an individual without putting them to test. This screening process demands a lot of time and cost of involving HR executives.
After – Effects
Due to the undersupply of developers, the current pool of developers are free to demand high salary wages in exchange for their services which businesses aren’t able to afford.
In a recent study that surveyed 5,800 IT professionals across 4 continents, 1 in 3 employers reported having a hard time finding IT talent. There’s a widespread problem, and it’s going to take an international effort to find it. Fortunately, there are ways to hire from offshore that can ease the burden on you. With advances in technology, our dependence on technology has also reached new heights. Almost everything we do involves technology in one way or the other and has become an integral part of the society. With this dependence, the demand for developers has also increased tremendously. Inorder to meet the demand for hiring developers, collaborate with the best offshore recruitment firm like Centizen Talent Hub to stay ahead of your the competitors in acquiring the best technical and cultural fit for your organisation. This will help you mitigate the risk of talent shortage and have the best remote teams, as talented and dedicated as your in house teams.