Is there a shortage of IT workers? Yes, and it’s projected to get much worse.
It’s not just idle chatter – there is a shortage of skilled tech workers in the U.S. and worldwide. And no amount of hand-wringing or pleading to our elected officials will solve it. Perhaps counter-intuitively, the COVID-19 lockdowns and commerce restrictions have only made the situation worse. By reducing demand across the board for all products and services (including technology), existing career paths were disrupted by layoffs, and many future career plans in tech were likely swapped for anything that could be found paying a decent wage today. In order to assure robust economic growth going forward, business will have to crack the code on how to fill these vacancies. So gather ’round – we have an idea.
Beware of 2030
Some authors try to scare people into their way of thinking by quoting some horrible statistic predicted for decades in the future. But this is the real world and stuff happens. Much faster. A couple years ago, Korn Ferry published an exhaustive study examining demand for workers in three key industries – finance, technology and manufacturing. After a country-by-country analysis across 20 economies, the prediction was stark. Given current trends, by 2030 the global workforce was predicted to be 85 million people shy of the number needed. This would leave an estimated $8.5 trillion in GDP on the table.
Demographics and the Internet
The question always comes up – how could we be trending in such a bad direction? Simple demographics are partly to blame. Fertility rates have dropped by almost half since 1950, shrinking the pipeline of potential tech workers. This is of concern for the tech industry because the average age of workers trends younger. In fact, 65% of CIOs say this shortage is hurting the industry. There are three leading theories on why this phenomenon occurs – first, the skills of the trade are evolving rapidly and younger people are most likely to have experience with (or trained on) the latest platforms and tools. Second, (as reported by Indeed.com) non-tech companies are now stepping up their hiring of tech talent, adding to the shortage (estimated at one million unfilled positions). And third, many complain that the industry practices subtle ageism in hiring, exacerbating the skew. In any event, the creep of the internet into virtually all areas of modern life guarantee continuing and growing demand for tech workers at the same time fewer are being created. Recent DOL data bear this out, with demand for software developers projected to rise over 20% this decade – four times the rate of all other occupations. New hires are in such demand that 26% leave for greener pastures the first year. Given the long recruitment process and expense (up to 25% of salary), there has to be another way to fill this unmet demand.
How to Hire Tech Talent
The old IT recruitment model is broken, and has been broken for years. Because the issues (long hiring process, expensive fees, inconsistent knowledge, unreliability, etc.) are well known, some companies (either due to intelligence or desperation) have taken matters into their own hands by committing to in-house development. Some have even hired promising talent right out of school. Obviously, this is a major undertaking (both in time and money), and most companies do not have the staff (for oversight and training) or resources for such a risky endeavor. Yes, this is a big risk. Young people are mobile and not likely to stick around post-training for the years needed to make such a corporate investment pay off. They might get married and move away, or become parents, or jump to a competitor once training is complete. The answer for companies is to let someone else take the risk, have the training conducted according to company requirements, then hire whoever is the best fit. Fortunately, this is what you get from Techtonic.
Risk-Free Tech on Spec from Techtonic
Tech talent training and placement is our business. Approximately 10% of our Apprenticeship Training Program applicants are accepted. Then, this carefully screened cohort receives 12 weeks of intensive, instructor-led technical training, followed by 40 weeks of paid on-the-job training with our in-house senior software developers, solving real tech issues for actual customers.
After this rigorous, year-long program, graduates have both the technical and professional chops needed to thrive in the software development arena (either with us or client companies). We offer three models for clients. The Project Model is a more traditional arrangement providing immediate, short-term assistance with a specific project or for general staff augmentation needs. Basically, you hand over your project brief and we take care of it. Second is the Talent Pipeline Model. This is for longer term, more complex projects. We serve as your talent pipeline by offering a pod of developers to work in tandem with (or independent from) your existing staff. The third model is the most beneficial for companies seeking to hire an entire department of custom-trained software developers with one click. We screen our Apprentice Program applicants, select the best and train them to your specifications. After three months in the classroom and nine months solving your software development issues with mentors (on- or off-site), you will be delighted with the results.
It is the only risk-free solution in the tech space. We are so confident in the quality of our developers that we make this pledge: If not satisfied within the first two weeks of placement, we will replace any talent (no questions asked) or refund your money.
It’s your move.