Closing the Gap: Key Solutions to the Technology Skills Gap

Fixing the Tech Skills Shortage

We’ve got a big problem: a lack of folks with the right tech skills. This isn’t just some abstract issue either; it’s hitting businesses where it hurts. Knowing what this means for different parts of the industry helps us figure out how to fix it.

How It Hits Employers and Job Hunting

A recent survey called the Future Of Work 2022 done by Monster shows that one-third of employers see the IT skills shortage getting worse. Nearly 87% of them are having a hard time finding the right people for the job (HackerEarth). When companies can’t find skilled workers, projects stall, productivity drops, and costs skyrocket.

Impact on Employers:

Even areas like retail and hospitality, which rely on lots of frontline workers, are feeling the pinch. They are still catching up from skill gaps that got wider during the COVID-19 pandemic. Many of these workers don’t have the tech skills, training, or access they need to move forward in their jobs.

Tackling the Skills Shortage

To really tackle this problem, we need a broad, big-picture approach. Companies should build a culture where learning never stops and make sure workers have what they need to keep up with new tech. According to Gartner, the skills needed for most jobs have gone up by 10% each year since 2017. They also think 58% of workers will need to learn new skills to stay relevant (InStride).

Challenges to Tackle:

• Tech evolves fast, so skills need constant updating.
• Lots of workers want to learn new skills but can’t get the training they need.
• Frontline workers often hit roadblocks when trying to boost their tech skills.

Upskilling and reskilling programs are key. Over half of the workforce wants to learn new skills, and nearly half are willing to switch jobs to get that chance. Companies should put resources into training programs and help workers continue their education to stay competitive.

For more ideas on handling workforce issues and closing the tech skills gap, check out our articles on skills gap analysis and closing the skills gap.

Why There’s a Tech Skills Gap and How to Fix It

Feeling like you’re always one step behind the latest tech trends? You’re not alone. The gap between the skills employers need and what workers bring to the table is widening by the day. Let’s break down what’s causing it and what can be done.

The Tech is Moving Too Fast

The tech industry doesn’t slow down for anyone. Every year, there are new tools, languages, and ways of doing things. It’s like trying to hit a moving target. Even seasoned pros have to keep learning to avoid becoming outdated. According to HackerEarth, many experienced employees find their skills losing relevance if they don’t keep updating them.

Research from Gartner shows the skills needed for a job have increased by 10% each year since 2017. This means more than half of the workforce has to constantly learn new skills to stay in the game (InStride). The growing need for fresh abilities creates a gap that many companies struggle to fill.

Changing Job Market

It’s not just the tech itself that’s changing – the whole job market is too. According to the Future Of Work 2022 report by Monster, nearly one-third of employers say the IT skills gap has grown over the past year. A whopping 87% of employers find it hard to hire people with the right tech skills (HackerEarth). The gap isn’t just about tech skills; it includes basic digital know-how and online safety (Kilpatrick Executive).

Industries like retail and hospitality, where many jobs are on the frontlines, are feeling this hard. COVID-19 only made things worse. Many frontline workers don’t have access to the tech tools or training they need to move up in their jobs (InStride).

Today’s employees need to be ready to learn new skills all the time. Over half of workers want to upgrade their skills, and nearly half are willing to switch jobs to do it.

Want to know how this impacts your business? Check out our skills gap analysis and find out how to start closing the skills gap. Learn more about the current situation with our skills gap definition and skills gap statistics pages.

It’s a lot to take in, but breaking it down makes it manageable. Ready to keep up? Let’s do this!

Close the Skills Gap

Companies need strong strategies to tackle the tech skills gap. Two effective approaches are focused on upskilling and reskilling, paired with continuous learning programs.

Upskilling and Reskilling

With tech evolving rapidly, job roles demand new skills. Monster reports that 87% of employers can’t find qualified talent, highlighting the need for solid upskilling and reskilling programs (HackerEarth).

Upskilling

Upskilling simply means boosting employees’ existing skills. This way, they can take on more complex tasks or higher responsibilities in their current roles. According to Springboard, 63% of business leaders see upskilling as a top solution to the skills gap.

Reskilling

Reskilling is about teaching folks new skills to shift into different roles within the company. This is key as job demands change. For example, the predicted global shortage of 85.2 million software engineers by 2030 makes reskilling programs crucial (Springboard).

Continuous Learning

Continuous learning helps employees stay updated with new tech. Gartner’s research shows that the skills needed for jobs have increased by 10% yearly since 2017 (InStride). A culture of continuous learning keeps employees agile.

Why Continuous Learning Rocks

1. Employee Retention: 57% of workers want to update their skills. Continuous learning programs keep them happy and loyal.
2. Competitive Edge: Firms that invest in learning stay ahead by filling roles internally and staying competitive.
3. Adaptability: Regular learning helps employees keep up with tech advancements and changing job requirements.

Organizations can roll out continuous learning through:

• E-Learning Platforms: Flexible courses and certifications.
• Workshops and Seminars: Hands-on learning for specific skills.
• Mentorship Programs: Guidance from experienced pros.

To bridge the tech skills gap, combine upskilling, reskilling, and continuous learning. This multi-faceted approach ensures your workforce is ready for current and future tech challenges.

For more tips, check out our articles on closing the skills gap and skills gap stats.

Where Are We Falling Behind? Industry Skills Gap Trends

If you’re running a business, keeping an eye on skill gaps in your industry could be the difference between growth and stagnation. Here’s the skinny on where we’re hurting most: tech and financial services, healthcare, and manufacturing.

Tech and Financial Services: The Missing Links

In the tech and financial services sectors, there’s a glaring skills gap that’s throwing a wrench into the works. More than 75% of leaders in financial services and 73% in tech are waving red flags about missing skills in their teams. This ain’t a small problem—it’s wreaking havoc on productivity and innovation.

Big-time skills in demand? Think data analysis, project management, AI/machine learning, and software engineering. Tech keeps morphing, so even the old pros need a refresher now and then. With new tools and languages popping up like mushrooms, staying up-to-date is a full-time job itself.

Got employees grumbling that management just doesn’t get their skills? They’re not alone. A lot of workers are stuck with terrible training programs or, worse, no training at all. What’s the fix? Companies need to roll out skills gap analyses and cook up continuous learning plans that actually make sense for their employees.

Healthcare and Manufacturing: Playing Catch-Up

In healthcare, the main issue is keeping up with new medical technologies. Doctors and nurses are expected to juggle advanced tech while performing their usual wizardry. Trouble is, there’s a serious lack of qualified healthcare IT pros to back them up. Investing in targeted training programs is key here, or else the whole system’s gonna crack under pressure.

Manufacturing isn’t faring much better. Here, the shift to Industry 4.0—with its robots and cyber-physical systems—is leaving many workers in the dust. Frontline folks need to pick up skills in robotics, data analysis, and digital literacy, but the training isn’t always available, especially for the people on the factory floor.

These industries need to start serious upskilling and reskilling programs pronto.

Want to dig deeper into how different industries are dealing with these gaps? Check out our full guide on skills gap statistics. It’s packed with tips and tricks to get your team up to speed and ahead of the curve.

How Remote Work and Upskilling are Changing the Game

Switching to Remote Work

Imagine this: You’re snuggled in your comfy pajamas with a cup of coffee, and your office is just a few steps away. With more than half of business leaders (54%) planning to keep remote work as a permanent thing for those who can, this cozy scenario is becoming today’s new normal. But it’s not all about the comfort—working from home demands some serious tech skills. Think about mastering collaboration tools, becoming best friends with cybersecurity protocols, and acing virtual communications.

This shift is causing companies to rethink their training styles. About 40% of businesses have transitioned their in-person sessions into virtual training programs, with around 68% expecting their top brass to join these online leadership boot camps. This change makes learning accessible for everyone, making it easier to bridge those pesky skills gaps.

Investing in Employee Skills

Closing the tech skills gap isn’t cheap, but it’s worth it. Take Amazon, for example—they’re putting $700 million into training nearly a third of their U.S. workforce by 2025. That’s a huge bet on the future.

Forking out cash for training programs or apprenticeships moves the needle significantly in filling those tech roles (ECI Solutions). Plus, when businesses use management software, they save time on manual tasks, making it easier to grow and adapt.

Reskilling runs about $24,800 per person in the U.S. Compare that to the cost of hiring skilled folks—around six times more—and you see why upskilling your current employees makes financial sense.

For business leaders, prioritizing upskilling and reskilling isn’t just a smart move—it’s essential. These efforts not only fill the skills gap but also foster a culture of learning and adaptability. Dive deeper into how to close the skills gap with our detailed guide on closing the skills gap.

Future Outlook and Economic Implications

What’s Next for Jobs?

Job markets keep changing, and the tech skills gap is a big deal. Research from Gartner says that every year since 2017, the skills needed for jobs have jumped by 10%. Now, 58% of workers need to learn new tricks to stay in the game.

The demand for certain skills isn’t the same everywhere. In Financial Services and Tech, more than 75% of leaders in Finance and 73% in Tech say they lack crucial skills in their teams (Springboard).

Then there’s the looming shortage of coders. By 2030, there could be 85.2 million fewer software engineers than needed, which means reskilling programs aren’t just useful—they’re essential (Springboard).

What Happens If We Ignore It?

Ignoring skill gaps isn’t just bad for business; it hurts the economy too. The McKinsey Global Institute says that without action, companies will stumble. They won’t run at full speed, stifling innovation and losing their edge (Softworks).

Stats show U.S. business leaders are feeling this pinch. About 70% of them see a serious skills gap in their shops.

As jobs demand new skills, workers themselves are itching to learn. Currently, 57% want to pick up new skills, and 48% would consider switching jobs for that chance (InStride). This shows companies need to put more chips into learning and reskilling.

If you’re curious about the economic effects of the skills gap or want to know how we can start closing the skills gap, check out our pages dedicated to these issues.