IT Talent Shortages in 2022- What SMBs Need to Know

Part 1 of a 2-Part Series

Advanced Technology Increases the Demand for Qualified IT Talent

The current era is all about technology. Increasingly, organizations are using technology for just about everything from connectivity and productivity to security. Adopting advanced technology is helping many SMBs (small-to-midsize organizations) compete on a more even playing field with their larger counterparts.

As organizations incorporate more technology-enabled functionality into their business model, the need for qualified IT talent also grows. But, many SMBs are having difficulty finding and keeping skilled IT talent.

It’s not just small and medium size organizations suffering from the shortage of qualified IT staff. A report by McKinsey & Company states that almost 87% of organizations of all sizes are experiencing a skills gap currently or expect it within a few years.

For SMBs, this shortage of IT talent can be even more disruptive to operations. While the continued work-from-home shift in the business model and the Great Resignation have given rise to new challenges, some benefits also come with the change.

This article will discuss a few difficulties SMBs face and measures they can take to keep their company moving forward.

Tech Labor Harder to Attract

The economic aftermath of the pandemic is hard enough for most businesses. But it only compounded the challenges of attracting and hiring qualified tech and IT talent. But why did this happen?

According to Inc, About 40% of the tech workforce has already resigned or plans to resign from their position during 2022.

One of the primary reasons cited for leaving is money. Qualified tech employees know their talents are needed and understand companies are willing to pay. And let’s face it -companies with deeper pockets have more resources to package higher salaries with enticing financial and lifestyle perks. Many organizations are getting very creative with perk packages.

Another reason often cited by departing employees is the interest in starting their own business. According to Entrepreneur.com, addressing burnout and leaving stressful conditions behind are a few reasons for the “Great Resignation.”

The pandemic influence on remote work is yet another contributing factor to the difficulty in finding qualified tech talent. During the pandemic, many workers enjoyed the flexibility and conditions while working from home. And they don’t want to return to the office. This shift in attitude has required many businesses to offer more flexible and hybrid options to retain valued employees.

Consequences of The IT Talent Shortage

Fast-paced technology advancements and a rapidly evolving business landscape require highly skilled professionals to manage. The ESG research report about The Life and Times of Cybersecurity Professionals 2021 shows that 62% of the cybersecurity personnel have increased workload and 38% have high burnout.

IT staffing challenges for the cybersecurity department have become more complex. Many in the current workforce are not equipped with the advanced cybersecurity knowledge required to protect critical business assets.

Top Challenges for SMBs when Recruiting Tech Talent

When it comes to SMBs, it is crucial to recruit the right talent. Candidates with skills that match the organization’s needs can help the business grow and capture market share. However, there are a few difficulties that SMBs generally face due to technology labor shortages. A few of the main pain points are:

1) Shortage of Qualified Talent
Finding well-qualified candidates for the specific skills needed for today’s rapidly evolving technology and market trends is no small feat. Digital transformation, accelerated by the pandemic, created an immense demand for technical staff that can build and maintain the infrastructure. And, if your organization is looking for candidates with particular, hard-to-find skill sets, the pool of candidates shrinks even more as training for these advanced technology positions is complex and lengthy.

2) Big Competition
Larger, deep-pocket companies may be better positioned to provide higher salaries, countless benefits, and bonuses that appeal to most candidates. Well-qualified IT professionals may prefer working with larger companies due to the perceived higher salary benefits. And candidates may also believe that a larger company will have more IT staff to help share the workload, which is not necessarily the case, as reported by Forbes.

3) Salary & Skills Mismatch
For many small to medium-sized businesses, the hiring dollar doesn’t go as far when hiring IT talent in the current landscape. In other words, there is a sort of inflation on IT talent, which translates into getting fewer skills for the same salary you would have paid before the pandemic and tech talent shortage. In markets with a low supply and high demand for qualified talent, the gap between skills and the salary required can leave organizations without the talent needed to compete in a technology-driven marketplace.

One way to level this is to provide added training for recruits to bring their skill levels up to the requirements. But this extra training requires an investment of resources which can take time away from core project work and add unplanned expenses. Additionally, the retention rate for many ‘up-and-coming’ recruits can be disheartening as you watch your groomed employees being whisked away by competitors with better benefits.

4) Internal Lack of Recruiting & Hiring Expertise
SMBs may also have difficulty selecting the right candidate due to a lack of internal hiring experience and critical knowledge in recruiting tactics. Along with the immense shifts in technology, cloud, and cybersecurity, also come significant changes in how companies attract and sign talent. Suppose your internal hiring staff isn’t in the full-time business of recruiting and hiring technology talent. In that case, it becomes challenging to keep up with the changes and compete successfully for top talent.

So, we all know there is a growing shortage of tech talent facing organizations across the globe, in the United States, and in the Dallas-Fort Worth area. But what can SMBs do about it?

Keep reading in Part II of this series to find options available to your organization to overcome the tech talent shortage– and 7 ways you can capitalize on advanced technology to grow your business now, despite current market obstacles.