Menu
️️️Welcome to the second episode of our podcast, ‘The ITSM Spotlight’, where we uncover the secrets to thriving in challenging times.
In this episode, we’re exploring the impact of talent shortages, economic uncertainties, and tech advancements on the workforce in 2024. Learn about strategies for attracting top talent and the rise of skills-based hiring, and discover the must-have IT skills for success.
Welcome back to the second episode of “The ITSM Spotlight” podcast. Where we dive into the IT industry’s latest trends, insights and thought leadership topics. I’m your AI host, Anna, and I’m absolutely thrilled to have you join me for today’s episode. And joining me today is my AI colleague, Matt. Matt, how are you doing today?
Hi Anna! I’m doing fantastic, ready to dive into some intriguing topics and share some valuable insights with our amazing listeners.
Fantastic!
So today, we’re tackling a topic that’s more relevant now than ever – investing in people during difficult times. Matt, the economic landscape is rife with uncertainties like job insecurity, talent gaps, and limited budgets. Can you tell us more about how are these challenges impacting organisations in 2024?
Spot on, Anna. Yes, the business world is currently navigating through challenging times.
I recently read some interesting statistics shared by ManpowerGroup. Based on their study around 75% of employers globally are struggling to find talent and fill open positions. And this struggle persists across industries. Over 70% of employers in the technology sector face skills gaps. So there’s that big question, “Why”? Is it because technology is advancing quickly, or are the job market’s needs changing again?
And, the situation is no different here in the UK. We’re currently at a place where the skills gap is widening, particularly in the public sector, where hard-to-fill vacancies are significantly higher than in the private sector. It’s also worth mentioning that all businesses, no matter how big are having trouble hiring and retaining top talent.
These statistics surely paint a clear picture of the challenges organisations are facing. But, let’s set aside these challenges for a moment. Do you believe that investing in people during tough times, is truly a smart decision? Should it be a top priority for organisations today?
That’s a great question, Anna. I’ll put it like this: investing in people isn’t just a smart move; it’s simply essential for long-term success. Research has shown that companies that prioritise employee development and well-being outperform their peers. I came across a Forbes study recently, which said that companies that offer comprehensive training programs have two hundred and eighteen percent higher income per employee than those without formalised training. So, there you have it. Neglecting employee development not only can lead to decreased morale. It also decreases productivity, and ultimately, it hinders organisational growth.
Absolutely. That means that organisations that understand the true value of developing their people can weather these storms time and again. Now, let’s shift our focus a little bit to the future of employee experience. What are some talent and development trends that organisations should be aware of?
Well, one trend that’s rapidly gaining popularity is skills-based hiring. Today, we see companies like LinkedIn, Google, and IBM leading the way in embracing hiring according to skills and culture compatibility.
But what’s very important to add here is that this doesn’t mean that education and degrees are any less important. What this does is widen the talent pools and ensure diversity.
For example, Indeed.com recently shared the top five highest-paid skills within the tech industry. Do you know which ones they are?
Because of the latest technology advancements, it’s no surprise that these skills are in high demand. So many organisations will start focusing on these skills, either by hiring new candidates or highlighting the importance of upskilling and reskilling initiatives.
Could you provide an example of how skills-based hiring might be implemented in a real-world scenario?
Sure! Here’s one simple example.
Let’s say a company is hiring for a customer service professional position. Instead of requiring a four-year bachelor’s degree as a standard. They would prioritise the skills necessary for excelling in that role. So, what they might emphasise are qualities like communication skills, problem-solving abilities, and customer empathy rather than a specific degree.
So, does that mean that skills-based hiring not only encompasses technical skills, but also considers soft skills?
Absolutely. Skills-based hiring isn’t just limited to technical abilities. You know, it’s crucial for companies to take a holistic approach and consider both technical and soft skills when evaluating candidates for a role.
That’s fascinating, Matt. Now, let’s delve into talent acquisition in 2024. With the ongoing talent shortage, how can organisations effectively attract and retain top talent? You already mentioned a shift to skill-based hiring. But are there any other approaches or methods organisations should focus on?
It’s a significant challenge, but there are a few strategies organisations can employ. I mean, we all know that traditional tools like competitive salaries and clear career paths are still motivators for a large portion of the workforce today.
But you know there are some “new” factors that people consider equally important.
One of them is investing in training and development programs to upskill employees, both, existing and future ones! I mean we’re in an era of fast-paced technological change, so staying relevant really is a key.
But, then again the reality is that time for training is often very limited. And, you know, upskilling people can be really challenging. So, what that means is that more focus will be put on micro-lessons and micro-credentials. For example, short and modular training programs that follow the latest technology and trends.
Then, you also have the need for a better work-life balance, particularly through more hybrid or remote work options. For some employees, there is also a need for support with financial planning, or flexible options to deal with shortage of childcare. And let’s not forget about a healthy work culture. I’m talking about the culture that is expected to be characterised by trust, empowerment and respect.
It all rounds up to the employer brand, doesn’t it?
Absolutely. Company reputation is very important. The talent and consumer market observes how companies treat their workers throughout their journey. So, you know building trust and a positive reputation is crucial—not just for attracting but also for retaining top talent.
Now, it’s clear that organisations need to adapt to meet the evolving expectations of the workforce. But, while there’s increasing demand for talent, we are still witnessing layoffs across the IT industry. And that’s really affecting both companies and employees. Why do you think those layoffs are happening, especially in the IT industry?
Well, these layoffs could be related to various factors. Take, for example, over hiring during the pandemic. After the pandemic, as the economy slowed down, many companies found themselves with an excess of employees.
So what’s happening now? To cut costs, they now have to make some tough decisions, which unfortunately often results in layoffs.
Then you have the economic downturn, inflation, higher interest rates, and shifting market demands. And of course, let’s not forget about the advancement in AI – especially Generative AI. The reality is – certain major tech companies are letting employees go as they shift their strategic approach to adapt those technological changes. Take for example SAP. The company announced that 8,000 jobs will be impacted by a shift in priorities toward generative AI. And last year, they laid off more than 3,000 employees!
Yes, it’s also been reported that Amazon laid off 9,000 workers this year already. And last year, they led the numbers with 16,000 layoffs. But, if we look at the data for 2024, 209 tech companies have laid off approximately 50,000 employees so far. Just focusing on those numbers, it can be worrying about what’s to come.
Yes, and that’s understandable! But, I always like to mention here that organisations do have some alternatives they can consider before turning to layoffs. I mean, they can explore options such as offering more unpaid time off, setting up virtual work arrangements, and cutting unnecessary expenses. These choices could help save some jobs and ease financial difficulties.
We recently came across some interesting statistics from DevOps Institute report. Did you know that their Upskilling IT 2023 survey found that 31% of survey respondents said that their IT organisation’s biggest challenge was a lack of skilled resources? They also stated that the main barriers to upskilling or skills development are lack of time, lack of budget, and making upskilling a priority.
And we’re seeing the same concerns in research from other firms, like Gartner, which says that CIOs are also worried about losing IT talent and struggling to find the right people to drive innovation and keep their organisations growing. What’s your take on this?
We know that, people want to learn and grow at work. No matter what’s happening in the economy or the job market. And, this usually means that they’re asking themselves and their managers, ‘How can I do my job better so I can get promoted, get paid more, or land my next dream job?’ So, on the other side, we should have leaders who are asking themselves, ‘How can I make a space for my team to grow and develop?’
What do I mean by that? Well, organisations should not only assess upskilling programs! They should also provide coaching and allocate time for individuals to undergo training and upskilling. It’s also important to note here that IT leaders need to make sure that the existing upskilling and training opportunities cover the right topics or content thoroughly. They can look at it as setting up skill-based learning programs to address their staffing needs.
But learning new technical skills can be quite challenging. Especially when you feel like you’re getting lost in the process. That’s where having a mentor becomes incredibly valuable, right? To guide and support you through your learning journey.
Yes, absolutely. If you are in a situation today where your team is facing a technical talent crunch, it’s clear that traditional hiring methods won’t be enough to solve the problem. So, as an IT leader, you have to realise that it’s time to take a different approach. You gather your team for a meeting and stress the importance of upskilling and reskilling. But keep in mind that it’s not just about filling gaps in the workforce; it’s about investing in the future of your team.
So, you should encourage everyone to be more intentional about expanding their skills, whether it’s through online courses, workshops, or mentorship programs. I know it’s a daunting challenge for both organisations and employees. But remember, although we’re seeing changes in IT practices, the need for human and leadership skills remains constant. And skilled, passionate, and happy employees are are still essential for maintaining adaptability and gaining a competitive edge.
Well, we know that in 2024, most of the training budget is spent on technology training. We also see that when the budget is available, it is first used for training in technology and tool development training, then for developing skills around process frameworks, and finally for developing human skills.
Do you agree with this? And what do you think are the top must-have IT skills today?
You know, it’s not surprising that in 2024, a big chunk of the training budget in the IT industry goes towards technology training, especially with AI charging ahead like there’s no tomorrow. I mean, technology is evolving faster than ever, right?
⚡ But, let’s not forget about the other skills that are super important too. For example, having a solid grasp of process framework skills is pretty important too. Think about it – stuff like Agile and ITIL? They’re the backbone of getting things done smoothly. And let’s not leave out the human side of things. I’m talking about those soft skills – communication, teamwork, problem-solving.
Then you also have the demand for skills in CRM and product management, right? Which highlights the importance of understanding and managing customer relationships and product lifecycles effectively.
Yes, exactly. So you see, today, it’s not just about being a tech whiz; it’s about being a well-rounded professional who can handle anything that comes their way.
But to answer your question. I think some of the hottest IT skills on the market today include: artificial intelligence, technical support, cloud computing, and programming. Then you also have, data science, data analysis and visualisation, and, of course, cybersecurity analytics.
Thank you, Matt. It’s reassuring to know that even when the economic skies are grey, companies continue to invest in their greatest assets – their people. It’s also interesting to see how these shifts in technology and the job market are forcing individuals to continuously update their skills. Or organisations to change their approach to stay agile in order to remain competitive.
It’s been a pleasure discussing this topic with you and our listeners. I just want to add that as the industry continues to evolve and expand, it will be crucial to balance the growing demand for talent with the support needed for workers. As they will be affected by layoffs and other job market challenges. In 2024, we must understand the skills gap, invest in employee development and upskilling, leverage technology, and foster a healthy and positive workplace culture.