Companies focus on internal training to fill tech skills gaps

As talent recruitment poses challenges for companies, they are switching their focus to the development of existing staff, a new report shows.

Recruitment hurdles have some companies shifting their approach to closing technical skills gaps, with upskilling existing workers at the forefront of the tech agenda for organisations this year.

Management is focused on developing employees to stay ahead of the curve and reap the benefits of emerging technologies, according to a report from The Linux Foundation, an open-source software company.

The 2024 State of Tech Talent Report discovered “a significant shift in organisational priorities toward upskilling and cross-skilling strategies”, with 47% and 43% of respondents, respectively, identifying these approaches as key to technical talent management.

The report used survey responses obtained between December and February from more than 400 professionals in IT recruitment across several regions, including the Americas, Europe, and Asia-Pacific.

Across all technology areas, many professionals said their company’s future plans include prioritising upskilling and cross-skilling instead of hiring new employees or engaging consultants.

Moving away from traditional hiring methods to close talent gaps could help organisations leverage resources by cutting recruitment costs and promoting career development opportunities for existing staff, the report said.

Survey respondents chose the three main benefits of upskilling and cross-skilling employees. First, employees with diverse skillsets can be “redeployed more effectively than a new hire”. Also, the emphasis on skill development can lead to higher job satisfaction; and it can enhance the capabilities of junior staff.

Hiring, as reported by 43% of companies, is a “costly, time-consuming” challenge that often does not lead to the right candidate, the report said. Thirty-eight per cent of organisations said being unable to source the right candidate can also lead to project delays.

— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.

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