The digital transformation of companies worldwide is leading to an increase in the demand for qualified personnel.
For this reason, companies are faced with the challenge of not only finding technological talent but also retaining it. Find out more in this post.
The Growing Demand for Skilled Personnel in the Digital Transformation Era
As highlighted in an IT Talent report, the number of recruitments for technology profiles increased by 55% in 2022 compared to the previous year.
This indicates that companies are increasingly aware of the importance of relying on a team specializing in information and communications technology (ICT) to increase their competitiveness and productivity.
In 2019, more than 40% of IT professionals were recruited by companies that didn’t belong to the technology sector, according to the Harvard Business Review.
These profiles are no longer exclusively required by technology companies.
The Imbalance Between Supply and Demand for Technological Professionals
The technological transformation of companies and organizations of all kinds is outpacing the generation of digital talent, resulting in a shortage of professionals to fill the numerous vacancies.
The 2022 Digital Talent Overview, a report compiling data on the lack of technical professionals in 2021, indicates that the demand for digital talent has increased by 43%. The supply of professionals available on the market has risen by only 11% in the last year.
Given this state of affairs, according to the National Institute of Statistics, 47% of companies had difficulties filling ICT positions in 2021.
Another study conducted by DigitalES, the Spanish Association for Digitization, estimated that there were around 120,000 unfilled positions in the technology sector in the initial months of 2022. So, why is there such a shortage of technological talent?
Reasons Behind the Challenge of Finding Technological Talent
There are several reasons why companies struggle to find technological talent, and a significant one is the shortage of such talent.
This shortage affects not only technology companies but also firms in other sectors attempting to implement digital transformation in their production systems.
One of the root causes lies in the traditional education system, which isn’t always prepared to keep pace with the technological advances and digital skills required by organizations.
The 2020 World Economic Forum proposed some theories in this respect, such as the prediction that 50% of all employees will need to be reskilled by 2025.
Large multinational corporations are monopolizing a significant portion of the world’s digital talent. Amazon, for instance, has become the second-largest employer in the United States, publishing over 40,000 job offers for corporate and technological positions in 2021 alone.
Meta, at the end of the same year, announced its intention to create approximately 10,000 vacancies in the European Union over five years.
Additionally, companies in Spain struggle to retain digital talent due to the existence of salary increases in other European countries, such as Germany, France, England, and Ireland.