Businesses want to provide innovative technology to their users. The challenge is finding the right IT talent amidst the current talent shortage. Why are tech developers so hard to find? Let’s discuss.
The IT talent shortage is an ongoing challenge where 97% of top-level IT leaders agree to work closely with their respective hiring managers. The goal is to hire qualified developers, but they are challenging to find.
The main hurdle in hiring these developers involves these two reasons:
- They are currently engaged with a current project or
- They do not have the necessary skills to fill the role.
Tech experts predicted that the demand and usage of applications would continue to grow. It is also projected to generate $808 billion in revenue by 2022. With such exponential growth, it could be challenging for some companies to keep up with the demand.
It is now imperative that businesses train and upskill their employees to address the current IT talent shortage. Additionally, they must propel operational efficiency, upgrade legacy systems, and delight clients with breakthrough solutions today.
Today’s article will detail some vital stats that demonstrate the effects brought by the lack of software developers.
Helpful Stats on Software Developer Talent Shortage
The pandemic caused massive disruption to global economies. While other industries are still recovering, the IT industry managed to survive. There is an increasing software demand in retail, education, and even healthcare. Hence, the IT industry is flourishing amid the pandemic.
We can also expect that there will be a high demand for software developers. There will also be requirements for specialized skills needed to do more sophisticated tasks. But is there a talent shortage? Let’s take a look at some helpful facts.
Current Data on IT Talent Shortage
- According to the U.S. Labor Statistics, IT jobs will grow 13 percent from 2020 until 2030. This is faster than the average growth rate for all occupations in any industry. There will be an addition of 667,600 new jobs in IT. With this, we can expect that job requirements will include cloud computing, information security, and big data.
- Access Report data revealed that only 47% of high schools in the US teach foundational computer science. Though computer science is a significant driver for innovation, this remains marginalized throughout the K-12 education system. The good thing is that states are passing policies to integrate computer science learning.
- About 58% of all STEM (Science, Technology, Engineering, Mathematics) are in computing. However, only 10% of STEM graduates have a degree in Computer Science. Currently, the US primary and secondary education systems do not include the technical skills needed to meet this demand.
- Artificial intelligence, automation, and robotics still need human effort to build and maintain functionality. Cognizant released a report stating a 28% increase in jobs, specifically in AI, algorithms, and automation.
- 61% of HR professionals are convinced that the biggest challenge starting in 2020 is to hire qualified developers. More companies are scrambling to find candidates that will be qualified to fill tech roles. CodinGame also found that many recruiters are considering hiring self-taught developers or those who attended training boot camps in coding. They found that only 20% of hiring professionals said they would not consider such candidates in their talent pool.
As you can see, there are a lot of factors that contribute to the IT talent shortage. From education to work opportunities, there is a massive gap in satisfying the workforce demands in the industry.
How are We Addressing IT Talent Shortage
With the recent tech advancements, companies get excited about utilizing new things and applying them in their businesses. However, there is a growing concern about workforce shortage in the tech industry. In effect, legislation has also taken action to grow the future workforce.
Tech companies are looking for alternative ways to remedy the situation. Companies are encouraged to partner up with state workforce boards and universities to guide them in preparing their students.
Hiring has become more lenient in recruitment as more coding boot camps thrive on training new software developers. Companies are considering hiring those who didn’t earn a college degree for entry-level positions.
Big companies like Apple and Google have been making big moves to push IT education in the academic industry. They have launched programs that aim to educate and teach coding to students and adults.
These companies expressed that some specific jobs might not require a college degree. They share the same sentiments that not having a four-year degree in college might not be a deal-breaker after all.
There is a possibility that these big brands might influence hiring decisions in the future. Experts, though, still highly recommend hiring software developers with degrees, which is critical for most roles.
How to Solve the Problem of Talent Shortage
Some companies organize training programs for employees with less technical backgrounds to address the IT talent shortage. In this way, they can teach them their methodologies and achieve better productivity outcomes.
Additionally, companies are leveraging low-code or no-code platforms to expedite application delivery. This allows analysts in the line of business to create enterprise-grade applications with minimal coding knowledge. Development managers can look beyond their teams, skills, and experience to answer demands and deliver quickly and iteratively.
Innovation and productivity of the software team grow when business analysts collaborate with them. Through this, they can develop, iterate, and meet their goals faster.
Therefore, incorporating these non-mainstream resources into the development process benefits software developers and business stakeholders.
The quality of applications becomes more easily achievable. Why? Innovative development teams provide tools and best practices and establish standards for data and design.
Moreover, sharing ideas, hands-on development, and interactive problem-solving empower organizations to stay creative and resourceful. Hence, this results in high-quality applications that address the customer’s wants.
As the developers realize the true impact of their work on the company, this helps increase morale. It improves employee retention and overall productivity returns in the long term. And as we know, employee retention frees you from having to look for new developers.
How Offshoring Can Help Solve Talent Shortage Today
Besides providing organizational solutions to how your current employees work, you can also hire offshore developers. How can offshoring help solve IT talent shortages?
Medium to large businesses use offshoring as a hiring solution. They utilize it to generate more output, decrease costs, and create a more productive and efficient team.
There is still a lot of work to be done to satisfy the hiring demands of the industry today. With offshoring, you access a wider talent pool of developers with the suitable skill set you require.
Founders Matt DeCoursey and Matt Watson built Full Scale to address the talent shortage for each of their businesses. They found that many qualified software developers in the Philippines are just waiting for projects they can work on.
You don’t need to create your own offshoring company to reap the rewards of hiring offshore. There are a lot of companies like Full Scale, with a database of qualified candidates. Ensure that the offshoring partner you choose to work with fosters quality candidates with the right expertise and experience.
Tips on Hiring and Retaining Quality Developers Today
How can you attract the right candidate for the job? What qualifications do you need for them to work effectively? Here are some tips you can consider:
1. Hiring strategically
Before you sift through resumes to look for the right candidate, you must answer the following questions:
- What is the business objective?
- What are the job requirements?
- Where can I find them?
- How can I assess their skills?
- When can they start?
Defining the business objective helps you create the goals for your business. Whether serving your clients or using software in your business, you have to specify what you need to build.
Determine your timelines, programming language, and platform. Once done, you can look for someone who has the right skill set considering all requirements.
Finding the right employee might take some time. You have to be very patient and include the hiring process in your timelines. Having targets helps you organize your hiring priorities. This allows you to save time and resources.
That’s also why many companies use offshoring. If you work with an offshoring company, you don’t have to go through the hassle of looking for a software developer yourself. All you need to do is give the specifics and requirements to your offshore partner, and they will choose the candidates for you. It’s that simple.
Offshore companies make sure that they assess the skills of their candidates before onboarding. You no longer need to do the assessments yourself. Talk about efficiency!
2. Retaining the right talent
Now that you have attracted suitable candidates, it’s time to make sure that they grow within the company. The average employee turnover in tech is 13.2 percent, the highest compared to other industries.
The scarcity and high demand for software engineers might be one of the reasons. How can you retain your top talent? Take a look at the following tips.
Work on having a strong company culture with excellent benefits.
Everyone that’s hiring software developers knows this for a fact. As salaries increase over time, employers are getting more competitive with offers and benefits. Due to demotivation, it would be very inconvenient if your developer quits in the middle of a sprint.
Make sure that your company benefits and compensation remain competitive. Learning opportunities also help keep your software developers up-to-date with trends. You could also offer work flexibility options. Give room for growth to keep them motivated.
Build a trusting work environment.
Empower your employees by including them in the decision-making process. Allow for new ideas to engage your employees. In effect, your software development team becomes more productive and eager to share innovative work strategies for better collaboration.
Offer a clear career path to follow.
To contribute to fixing the IT talent shortage, you must allow your team to expand and venture into new opportunities available to them. Humans innately want growth or change; that is part of our psyche. As an organization, you want to make sure that your employees’ skills stay relevant in the industry as much as possible.
Create a clear communication plan where your software developers can share what they want to do with their careers. Be their guide or ask someone to become their mentor.
Increasing their skills, knowledge, and capabilities will also help you in the long run. Ensure that you are not making false promises and be clear about what can and cannot be done.
Why Offshoring Software Developers Work
With the current challenges faced in recruiting software developers, the quality of candidates has never been more critical. Having a 4-year computer science degree might not be enough anymore; software developers must also know and understand the business.
In addition, software developers should know how to code, but they must also learn how to develop reliable IT-related solutions. As you look around and see the growing ubiquity of smart devices and artificial intelligence, there’s no doubt the future is bright for software developers.
The tech industry is seeing so many growth opportunities. With Full Scale being a part of it, we have a moral responsibility to help fix or find solutions to the IT talent shortage problem.
There is no quick solution to talent shortage, as many factors contribute to it. We see growing support from government offices and educational institutions. There is also a growing interest in learning how to code. We just have to make these opportunities available to them.
In conclusion, there will always be a strong demand for software developers. This ensures that these advanced technologies will provide innovative solutions to meet the current market needs. We’ve only just begun, and there will surely be more room for innovation.
At Full Scale, we help organizations match the right software development professionals. We understand that every software developer has distinct skill sets. Organizations require specific skills and experience to help mobilize their operations.
The future in software development looks promising for both the companies hiring and job applicants searching for a great career path. To get started, contact us to get your free consultation.