IT Skills Gap: What It Means and How To Respond

Technology is a primary factor in reaching business objectives for 74% of organizations, but companies worldwide are experiencing—and will continue to face—an IT skills gap.

What’s driving this, and how can organizations optimize their technology initiatives during this challenging time?

Here are the latest facts on why the IT skills shortage is happening, the impact it has, and how organizations can respond to ensure the growth of their business and their people despite these difficulties.

Why is There a Skills Gap in IT?

A skills gap happens when the skills employers need from their workforce exceed the actual capabilities of their employees.

In the realm of IT, there’s a shortage of skills at virtually every company. Let’s look at some of the numbers:

75% of IT decision-makers have identified skill gaps within their IT staff. (Skillsoft)
Six out of every 10 large enterprises have reported experiencing a skills gap. (CompTIA)
By 2026, 90% of organizations will be negatively impacted by the IT skills shortage. (IDC)

Also, the skills shortage affects every area of IT. Across the board, workers lack proficiency in nearly every emerging technology, including artificial intelligence. As technological systems grow more complex each year, the IT skills gap is also widening in traditional areas like cybersecurity, cloud computing, and data science.

It’s important to note that the ‘why’ behind the IT skills gap isn’t workers. In fact, there’s no single cause at all. The IT skills shortage is a multifaceted issue, and several factors contribute to its persistence.

Let’s explore some of those factors.

Technology is Advancing—Fast

Technology has been advancing rapidly for centuries, and throughout that time, humans have managed to keep up with the changes. But tech analysts suggest that technology may now be outpacing us.

 In the workforce, this means that new technologies and tools are constantly emerging. Employees may struggle to stay current with the latest developments, leading to a mismatch between the skills they possess and those required by their employers who are trying to stay competitive in an evolving market.

 In education, the rapid pace of technological advancement means that STEM (science, technology, engineering, and math) programs may not be able to adjust their curriculum quickly enough to incorporate the latest innovations, resulting in graduates who are not fully prepared for the industry’s demands.

There Aren’t Enough Skill Development Opportunities

The IT skills gap may also be perpetuated by a lack of accessible skill development opportunities.

D2L, a global learning innovation company, found that 80% of working adults in the U.S. expressed interest in additional skills training, but only 35% had participated in a course, program, or other formal skill development method. Why the divide?

It could be that some full-time workers may not have extra time outside the office to pursue skill development, they don’t have the financial resources to pay for courses, they don’t know where to seek out formal skill development opportunities, or a combination of these factors.

Internal upskilling programs may be the answer (more on this in a later section).

Competition for Tech Talent is High

Another cause of the IT skills shortage is simple supply and demand. The demand for skilled IT professionals is high, but the available talent pool is limited.

Companies who don’t o ffer competitive pay, benefits, and perks may struggle to recruit and retain technical talent.

IT Experiences High Turnover and Burnout

According to a LinkedIn report, the tech industry experiences above-average turnover. High competition for tech talent plays a role, but burnout could also be a contributing factor.

Burnout has been recognized by the World Health Organization as a legitimate occupational phenomenon that can impact someone’s well-being and performance at work, and studies show that it’s on the rise among IT professionals.

When tech employees feel burned out, they may experience decreased motivation and creativity, all of which can impact the development and implementation of IT projects.

They may also choose to leave their jobs or even exit the industry altogether, creating gaps that are difficult to fill given the specialized nature of many IT roles.

Closing the IT Skills Gap

The global IT skills shortage will likely persist for the foreseeable future, but organizations can take steps now to protect their business from experiencing setbacks. This begins with addressing some of the underlying causes of the gap.

1. Consider Internal Upskilling Initiatives

Upskilling occurs when an employee undergoes training to level up an existing skill set.

While employees can upskill on their own, barriers like finances, time constraints, and uncertainty about the most effective skill development opportunities and their relevance in the workplace might make it hard to pursue upskilling outside of the office.

To provide your IT staff with an accessible path to upskilling, consider creating internal training programs that focus on emerging technologies, cybersecurity, data analysis, and other key IT competencies. Focus on areas and skills that align with your organization’s goals to mitigate any future impact of the IT skills gap.

For more tips on how to implement upskilling programs in your business, check out our blog post, “Upskilling within Tech: When and How to Do It.”

2. Make Competitive Job Offers

Like we mentioned earlier, the demand for tech talent is high. If you’re not keeping up with the competition, you might miss out on hiring the best people or have trouble keeping them around, which can negatively impact your long-term technology goals.

Here are our best tips for making a competitive job offer to IT candidates:

Make sure you offer a competitive pay rate. You can look at average salary data from sources like the Bureau of Labor Statistics and Glassdoor. Also consider factors like location, experience level, and what your competitors are paying their employees in similar roles.
Offer competitive non-salary benefits, like upskilling and professional development opportunities, flexible work schedules, relocation assistance, and paid time off.
Explain how their role will make an impact and give them a clear picture of your company culture. When candidates see the difference they can make and feel aligned with your values, they’re more likely to be excited about joining and staying with your company. Highlight success stories and give them a sense of the team dynamics during the hiring process.

3. Create a Positive Workplace for IT Staff

To prevent or alleviate burnout in your IT staff, it’s important to encourage (and take steps to provide) a good work-life balance. This could look like:

Offering flexible work schedules and remote or hybrid work options.
Helping your employees prioritize and manage their workloads.
Being mindful of too-tight deadlines and setting realistic goals.
Distributing tasks evenly to prevent overburdening any single employee.
Formally recognizing and rewarding accomplishments and hard work.
Implementing an open-door policy where employees feel comfortable sharing work or personal stressors.

4. Lean on a Staffing Agency

Finally, the best way to close the IT skills gap at your organization is to work with an experienced IT staffing agency.

Working with a staffing agency gives you access to their existing IT talent pool and dedicated recruiters who are ready to find new talent and put them to work quickly—an invaluable resource when you need a critical role filled fast. And for staffing agencies, recruiting and hiring is their full-time job, while it may only be one part of yours. You can trust them to hire fast without skimping on quality.

Partnering with a staffing agency also helps mitigate some of the risks associated with hiring. Bad hires can cost a lot of money and impact operations. A staffing agency allows you to “test before you invest” by contracting a temporary worker through them. If they perform well and mesh with your team, you can then hire them full-time.

Here are the full benefits of working with an IT staffing agency:

Access to a wide pool of skilled talent
Save valuable time and hire quickly without compromising on quality
Improve employee retention
Reduce the risks associated with hiring

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How Will Your Business Combat the Gap?

The IT skills gap is here to stay a while longer, but how much it impacts your organization depends on the strategies you put in place.

Need tech talent now? Insight Global is the 2^ndlargest IT staffing company in the U.S., with more than 2,000 tech-enabled recruiters ready to connect you with top talent. Get in touch with us today.