How is the tech skills gap affecting employers in 2024?

With the changes coming into the world of work, the technology skills gap is becoming a bigger challenge for many employers, according to a recent report.

Currently, more than half (52%) of technology leaders say they have a skills gap within their department, reports Robert Half.

And nearly half (48%) of them feel the impact of skills gaps is more apparent today compared to a year ago.

Also, 92% tech leaders report challenges finding skilled talent, and nearly six in 10 (58%) predict a significant hiring challenge will be the lack of applicants with the skill sets needed to support essential initiatives.

One reason many Canadians are struggling with finances these days is the labour shortage that numerous sectors are experiencing, according to a previous report.

Impact of skills gap

The top priorities for technology leaders this year include, according to Robert Half:

1. Security of IT systems and information
2. AI, machine learning and automation initiatives
3. Cloud projects
4. Digital transformation projects
5. Remote/hybrid work programs and technologies, and ERP/CRM system implementation or improvements

But a limited pool of available talent and significant technology skills gaps could place these projects in peril and risk negatively impacting business needs, said Robert Half.

For instance, 79% of tech leaders plan to implement initiatives involving AI this year, and 47% cite a lack of staff with AI skills as the biggest barrier to success.

AI and machine learning topped the list of skills where tech managers said gaps are most evident, with more than half (52 per cent) reporting this for their department, according to the survey of more than 180 technology hiring managers in Canada, conducted between October and November 2023.

"Having a vision and talent strategy in place to ensure you can meet long-term business needs is critical", said Deborah Bottineau, managing director for technology talent solutions at Robert Half. "Businesses require thoughtful and deliberate hiring and retention strategies to achieve goals amid ongoing technology skills gaps."

Salesforce data previously revealed that 82% of people leaders believe that skills-based experience is highly important when evaluating candidates.

How do you address skill gaps in the workplace?

Here are five strategies that can help employers address the skills gap in 2024, according to virtual employee management solution provider Move:

1. Thoroughly examine your present talent set, match it to strategic objectives and spot any possible gaps.
2. Work with academic institutions to mold educational programs to match industry needs.
3. Use technology to develop skills.
4. Match seasoned workers with individuals pursuing skill enhancement for mentorship.

More than 70% of HR teams are using or planning to use AI in their functions, according to a previous report.

Meanwhile, to help hire, retain and advance high-performing tech teams, Robert Half recommends the following strategies:

1. Implement programs that encourage innovative thinking and ongoing learning, such as cross-training initiatives and specialized training workshops, to help prepare your employees and organization for the future.
2. Focus on recruiting technology candidates who have an eagerness to learn new skills that support business priorities and offer training to promising candidates with high potential even if they don't currently meet all your desired criteria.
3. Embrace a scalable talent model. Adopting a mix of permanent, contract and consulting professionals can help bridge skills gaps quickly and efficiently, allowing your team to access professionals with specialized expertise, keep projects moving forward and stay agile.