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The ongoing tech talent crunch continues to wreak havoc on the recruitment industry, leading to more and more job openings staying open for longer periods and companies hiring less-than-ideal candidates just to fill roles. The problem isn’t just getting worse; it’s hitting an all-time high.
Companies are having a hard time filling tech roles, often leaving job openings open for months at a time. Meanwhile, candidates are getting tired of waiting around for companies to finally make a decision. The talent crunch has also led to more eCommerce companies moving into the tech space, which is only exacerbating the issue. Developers are in high demand, and there just aren’t enough of them to go around. This has led to less-than-ideal candidates being hired just to fill roles, resulting in even more frustration down the line. It’s a vicious cycle that doesn’t seem to have an end in sight.
10% Of All Startups Are Failing To Find Talent
A recent report from PwC and CB Insights has shown that over 10% of all startups are having difficulty finding talent, making it harder for them to find enough workers at all skill levels. In addition, around 20% of all startups with revenue under $5 million are reporting that they have difficulties finding talent. The most common positions needing assistance in these cases are engineering roles, followed by sales and marketing roles. A little background on why tech companies are struggling to find talent: The problem can be traced back to a growing demand for skilled employees in Silicon Valley and other startup hotspots. This data comes from an annual survey called Startup Outlook conducted by PwC and CB Insights. This year’s report was based on responses from more than 2,000 executives in North America.
78% Of Companies Agree
A recent study by the Global Council of Technology (GCT) surveyed a total of 5,123 companies from all around the world. The responses showed a marked increase in shortage rates across all industries, with the eCommerce industry topping 78% – meaning that three out of every four eCommerce companies are feeling the pinch. Even in fields like design and development, tech companies are struggling to find talent at an affordable price point.
63% Of Small Businesses Report Having Trouble Hiring
While it seems like every business owner in America is complaining about a shortage of qualified talent, a new report from Invoice2go shows that there may be more truth to their claims than previously thought. According to data collected from 5,000 companies across the United States, 63% of those surveyed report having trouble hiring tech talent. On top of that, over 80% say that finding qualified candidates has gotten harder over time.
Why Can’t Companies Hire?
In addition to talent shortages, companies are struggling to retain employees. According to a recent survey, 90% of workers under 30 years old say they plan on changing jobs in less than two years. With more and more companies vying for talented workers—and offering perks like free lunches and yoga classes—employees have all sorts of options that simply didn’t exist even five years ago. This competitive environment means employers have to work hard to recruit top talent, but it also makes it tough for them to keep that talent around. It’s a double-edged sword for employers who are eager to fill their open roles with great people but find themselves stuck in a constant cycle of recruitment and attrition.
What’s Being Done?
So what’s being done to alleviate this talent shortage? Many companies are working to make themselves attractive candidates for new grads. For example, 86% of tech companies said they were willing to pay above-average starting salaries in a recent survey. And while it’s tempting to want (and expect) engineers with several years of experience to come on board right away, many firms are going out of their way to hire young candidates who can be trained in-house. In fact, in that same survey, 41% of employers said they were willing to dole out above-average starting salaries just for that reason. It makes sense: Why not train someone from scratch rather than bring someone on who might have different job requirements?
Where Do We Go From Here?
The tech talent crunch is expected to continue to impact the tech community in the coming years. In fact, there are predictions that it will only worsen as technology companies race ahead of everyone else. However, we aren’t quite at the point where this shortage will truly impede the creation of new products and technology innovations. If a company can’t fill a job right now, they should consider hiring someone with experience who is familiar with their work style and willing to learn on the job.