Scarcity of IT Talent and What It Means for Businesses

Hiring the right IT talent for your business remains one of the biggest challenges facing companies in 2018. And the issue is set to continue, with EU 28 countries likely to suffer a shortfall of 500,000 software engineers by 2020.(1)

In the Netherlands, across all sectors, an average of 13.6% of vacancies were left unfilled in 2014, with that number raising to nigh on 22% for the Information and Communication industry.(2) Hop across the border to Germany and the Cologne Institute for Economic Research reported that 96 job types were facing a shortage of skilled labour in Germany with the tech sector being the most affected.(3)

And it’s not just in Europe where demand for software developers is outstripping the supply: the US Labor Department has indicated that IT job vacancies are set to rise by 25% over the next 8 years.(4)

But we hardly need official figures to tell us what most companies already know. It is hard and getting harder for companies to attract the talent they need, especially in the software development area. A better question may be, “Why?”

pexels-photo-933964.jpeg

Why is it so hard for companies to fill IT positions?

In the countries where Techloop is active, that is the Czech Republic, Slovakia, Hungary, Sweden and the Netherlands, 3 out of 5 (Czech Republic, Slovakia, and The Netherlands) cite a lack of sufficient applications as the main reasons for the inability to fill IT positions.(5) 

In Sweden, the main reason cited is not the supply of applications but instead that the applicants do not possess the requisite level of qualification to be considered for the positions. A shortage of applicants and a lack of work experience were listed at the second most pertinent reasons.  

In Hungary, companies state lack of supply, lack of qualifications, and overly high salary expectations as of equal importance when it comes to hiring tech talent for their businesses. 

So it’s therefore clear that is it not only a question of there not being enough candidates to fill open IT positions but also a problem with quality of applications and finding the right match between company and IT professional. 

pexels-photo-838413.jpeg

The solutions?

Some of these issues can be eased by the existing recruitment solutions on the market. LinkedIn and jobs boards can give companies access to large numbers of uncurated profiles, whereas recruitment agencies can work to align the requirements of both sides (albeit with much smaller numbers of people), sometimes resulting in a good match. 

But there are very few solutions which provide both the scale and volume of LinkedIn and jobs board with the bespoke, personal approach of a recruitment agency. This is where we at Techloop come in. We strive to provide the best of both worlds and make it easier for companies to find the talent they need despite ever increasing competition and stuttering supply. If you’re struggling to hire IT talent for your business, sign up as a company on Techloop and we’ll be in touch to see how we can help you. 

 

A couple of tips...

In order to find the talent you need, we at Techloop have a couple of tips which can help you to be successful in your recruitment.

1.  Move quick. IT professionals often have many offers to choose from, so you need to act decisively if you think someone is a good fit. Good IT professionals often have a host of offers within a week, so try to move as swiftly as possible. 
2. Take a personal approach. IT professionals get enough copied and pasted e-mails from recruiters. Take your time, focus on the most relevant profiles and be as individual and personal as possible in your messages. 
3. Be pragmatic. It's a tough market out there and finding a 100% perfect match for your role might be too ambitious. Work out what you absolutely can't compromise on and then be flexible on the rest. 

 

Sources

(1) https://www.luxinnovation.lu/tradeandinvest/wp-content/uploads/sites/3/2018/05/nexten_software_developers_study_europe.pdf

(2) http://blog.indeed.co.uk/hiring-lab/tech-talent-shortage-europe/

(3) https://www.bls.gov/OOH/computer-and-information-technology/software-developers.htm

(4) http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=isoc_ske_itspvr&lang=en