Remote working arrangements and the relaxing of border restrictions will only ease but not solve the talent crisis, according to Korn Ferry VP technology talent solutions APAC Bridget Gray.
Gray, who will deliver the keynote speech about the skills shortage at the upcoming CRN Pipeline conference on the Gold Coast next week, told CRN about where the tech job market is tightening most and why the shortage is costing organisations so much.
She explained how organisations can hire and hang onto talent through data-based workforce planning, upskilling and reskilling and ways of incentivising employee retention through strategies such as clearly defined career development opportunities.
How much is the demand for tech skills growing and the supply shrinking?
“We are continuing to feel the shortage of talent across all disciplines as Australia’s need for innovation drives the need for more and more technically and digitally fluent talent,” Gray said.
CPA Australia reports that 70 percent of Australian organisations surveyed had a digital transformation strategy, and 47 percent planned to increase investment in or upgrade technology in the next twelve months.
“The outlook for information technology staff is worse, with turnover predicted to be closer to 20 percent,” Gray said.
“There is one bright note: IT candidates tend to stick and pick once they take a job, with new-hire turnover rates being amongst the lowest in the country,” Gray said.
Which tech skills are tightening the most?
Gray said, “Software engineering remains the hottest IT skillset in the market, with an ever-increasing demand for full-stack developers,” alongside engineers trained in “data, cyber and cloud.”
This is consistent with a recent CRN survey of over Australia's IT buyers which asked them what skills and services they looked for in an MSP.
The results were security, 33 percent, infrastructure, 28 percent, modern workplace (desktop, software, management print) 17 percent, other miscellaneous skills and services,10 percent, network, 8 percent, and unified communications: 4 percent.
According to CPA’s report, 95 percent of Australian respondents said their organisation was currently using cloud computing.
Based on the responses from 820 employees from organisations across eight South Pacific countries including Australia, the four technologies that businesses expected to invest more in over the next 12 months were:
- Data analytics and visualisation software: 43 percent
- Cloud computing: 39 percent
- Business intelligence software: 34 percent
- Video conferencing and group collaboration tools: 31 percent
How much are on-demand tech skills costing businesses?
Gray said that software, data, cyber and cloud skills were “in an acute state of demand and pay demand continues to ramp up salaries and rates.”
“Many consultancies are having to look at their pricing model as even with the best culture and purpose on offer, previous salary bandings are falling way too short of market demand.”
According to CPA’s research, "financial costs and low return on investment" was the most cited reason an organisation had not invested more in technology, followed by the “shortage of technology talent.”
A report from Human Resources Director Australia has found that “Australian businesses have been feeling the effects of talent shortages and high staff turnover where the cost to hire an employee has increased to an average of $23,000 per candidate – which is up from a typical spend of around $10K over the previous year. And it takes 40 days to fill a typical position.
Relaxing immigration restrictions will help but not solve the tech skills crisis
“Certainly we have a lag in visa approvals and Australia hasn’t bounced back as the destination of choice that it benefited from pre-pandemic,” Gray said.
“Highly publicised extended lockdowns and weather events have left international talent pondering the move more than they perhaps did before.”
“I do however believe that with warmer weather ahead, open borders and better communication of visa options to our the global technology community we should see an influx of new talent by end of the calendar year.”
“I do hazard this though that even with this influx, we will still have a national tech skills crisis with many more jobs than candidates so we can’t just wait for immigration to solve our skills problem. We need to reskill and upskill the nation.”
Remote working isn’t always the answer
“Working with your Digital Nomad colleagues is fast becoming the norm with favourable Digital nomadism growth is being propelled by new visa’s, tax and working arrangements to support this lifestyle and I expect we will continue to see the uptake of this lifestyle in the coming years,” Gray said.
“If candidates have managed to work independently and from anywhere over the past year, coupled with many talents reassessing their priorities, the uptake of this trend is inevitable.”
“We have seen a theme of work from anywhere arrangements and in the majority of cases, this has been mutually beneficial to both employers and candidates to access skills and experience. Many candidates are now expecting parity with regard to rem with their colleagues in Australia. So yes it is a great way to access talent.”
However, Gray said that remote working can also mitigate employee morale and exacerbate salary disparity.
“It may not work commercially in some cases and create further salary disparity inside organisations. This remote working strategy works well if your employee feels engaged with your brand and organisational purpose and is comfortable with being accessible during different time zones.”
Attracting and retaining tech skills
Gray pointed to various tactics organisations could use to address the skills shortage. “Upskilling, reskilling and internal career mobility are must practice strategies for any organisation serious about building future capability.”
Data-based workforce planning is also critical, in her view. "You need to understand where you are and where you need to get to. Less about people and job titles, more about behaviour, skills, learning agility and capability. Then plan how you will get there.”
"Companies doing it best are using a well-thought-out strategy that carefully considers leveraging their existing high-performing subject matter experts with the lens of career and skills development, and then overlay this with a plan on how best to augment this platform most effectively with the capability required and skills attainable in market.”
Earlier this week, CPA Australia said the tech skills shortage is driving work for MSPs, according to a report it published on the digital jobs market.
Bridget Gray will speak at the CRN Pipeline conference on the Gold Coast on August 24. After two extraordinary years of transformation, this event will reconnect Australia’s most influential channel partners to explore new ways of maximising revenues.
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