There was good news on the tech front for the UK this week. It is now officially the ‘digital tech capital of Europe’ according to Tech Nation’s third annual report[1].

The highlights of the report include:-

• In 2016, digital tech investment reached £6.8 billion in the UK, 50% higher than any other European country.
• UK digital tech turnover has reached nearly £100 billion, an increase of 10% in the past five years.
• There are 1.64 million digital tech jobs in the UK and the creation of new jobs in the sector outpaces non-digital.
• Productivity levels are also higher among digital tech workers. The GVA (gross value added) of a digital tech worker is double that of a non-tech employee. 

The report encompasses talent, investment, skills and collaboration opportunities.

That’s positive news for now but a tech talent crisis is still a very real issue for UK businesses. 

The Recruitment and Employment Confederation’s (REC) latest Jobs Outlook survey found that over half of employers expect a shortage of candidates for permanent jobs. The shortage in tech, together with sectors such as engineering and healthcare, is expected to be particularly acute. The continuing uncertainty over the status of migrant workers is also expected to exacerbate this situation.

HR now faces the dual challenges of attracting new talent while holding on to existing employees with essential tech skills. Two recent reports highlight some of the issues it faces:-

• Jobs board Hired found that UK tech workers are twice as likely to want to leave their job compared those in the US or Australia. The main reasons include a lack of career progression and salaries which fail to meet expectations. Half of all tech workers also cited their boss or co-workers as a problem. On the job search front, UK tech professionals were found to be more pessimistic and more likely to be looking for a new job (41%) than their American counterparts (30%).
• Those statistics don’t apply to all tech employees. Stack Overflow’s latest Developer Hiring Landscape Report found that less than 10% of developers are looking for new jobs and 60% spend just one hour or less each week on their job search.

To add to this dilemma, the UK also faces an existing digital skills shortage crisis. An estimated 745,000 workers are needed in the workforce this year but companies are failing to invest in key digital skills.

As the triggering of Article 50 is now less than one week away employers must pay attention to talent management strategies. We’ve covered this issue in detail in previous articles and in our sector report into tech talent. The additional steps below are also essential to attract and retain talent and for the UK to retain its position in the digital tech market.

Always be hiring : The good news from Stack Overflow is that over half (59%) of developers, while not actively looking, are open to new opportunities. The onus is on HR to promote positive stories around your employer brand to attract the attention of ‘passive’ tech talent who will explore a potential job opening. Support your strategy with recruitment software which allows passing talent to register their interest in new opportunities with your company.

Be salary savvy : Despite low unemployment levels, pay rises are being squeezed. UK employers are not expecting to offer pay rises in excess of 2% in 2017 but to retain tech talent they may have to make an exception. Average pay for developers stand at around £44,000, 45% higher than the national average salary.

Offer career progression : Clear career development opportunities, flexible working and a positive employer brand are all essential to hold on to your tech talent. Our previous article outlines essential tips to improve your employer brand in order to attract qualified applicants to your job posts.

Innovate to attract graduate talent : Online simulation, hackathons and gamification have all been introduced into recruitment processes in an attempt to identify and engage with the best graduate talent. Faster hiring processes are also needed in this competitive market.

Invest in HR technology : A successful hiring strategy is impossible to achieve without the support of HR technology. Sophisticated recruitment software delivered through the cloud automates the basic functions of the recruitment process, ensuring timely communication with qualified tech candidates and the ability to fast track employee referrals and outstanding applicants through your applicant tracking software. Without accurate recruitment data, it also impossible to accurately predict the type of skills your business needs or focus your recruitment marketing efforts effectively.

Act now to enable your business to attract, hire and retain the tech talent it needs. Advorto’s world class software is used by leading organisations to hire better people faster. Start your 30 day free trial today.  

You might also like to read:-

10 Ways To Attract More Women Into Tech Jobs

How Your Disengaged Workforce Affects Your Hiring Success

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[1] http://technation.techcityuk.com/