Steer through the tech talent shortage

In the next decade, the US tech workforce is expected to grow twice as fast as the overall workforce, reaching an estimated 7.1 million jobs by 2034. This growing demand has intensified competition and created a challenging cycle: organisations acknowledge the importance of future-focused skills but often fall back on outdated practices, prioritising legacy systems over innovation. This is compounded by the fact that, despite high-profile tech sector layoffs in 2023, the unemployment rate among tech workers remains significantly below that of the general workforce. This short-sighted approach hampers their ability to achieve long-term goals, as talent remains focused on immediate needs rather than future growth.

A recent article from the Deloitte Center for Integrated Growth highlights the critical need to reshape how organisations plan, attract, and engage tech talent to navigate the current shortage successfully. Let’s unfold some of the findings.

Google’s proactive workforce planning

Google is a leading innovator in various key areas of technology, from its dominance in search engines to its pioneering work in machine learning and artificial intelligence. The company consistently meets its growth targets in the tech talent sector by combining internal workforce data with external market trends.

This strategy allows them to identify skill gaps and staffing needs, whether that means pinpointing areas where they are short-staffed or where they may have an excess of employees. Ultimately, this proactive approach ensures that their talent management aligns seamlessly with the organisation’s overall goals.

Organisations should consider adopting continuous and strategic workforce planning, moving away from traditional annual hiring models. As tech talent demand grows, and skill-requirements evolve – especially with advances in AI, cloud computing, and edge computing – planning becomes increasingly complex. Embracing this proactive approach is essential for a broader strategic framework.

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Cultural and skill development shifts

As the tech landscape rapidly changes, new skills are increasingly important and not confined to the tech sector. Deloitte’s studies reveal that human capabilities, like leadership, problem-solving, and creativity, are crucial. However, many organisations struggle to align these skills with technological progress. The half-life of some tech skills is as low as 2.5 years, necessitating forward-looking workforce planning efforts.

Leaders can bridge this gap by creating opportunities for skill development through agile teams and digital “playgrounds” for experimentation and learning. This strategy helps build a more adaptable, skilled workforce, ready for ever-changing industry challenges.

The C-suite must collaborate to foster microcultures that support adaptability and collaboration. They should partner closely to identify and nurture talent that are eager to develop skills and grow within the company.

Research shows that over a third of developers aren’t interested in managerial roles. Organisations can accommodate this by providing engineers with rotational opportunities on special projects, enhancing their skills while respecting career preferences.