If you are a business owner in Europe or America, you must have faced the problem of lack of qualified workers, and it's probably getting worse. As a new Korn Ferry study predicts, by 2030 we will have a talent shortage equal to the current population of Germany. And that is nearly 85 million people. The same research shows there are not enough people for available jobs in every leading industry all over the globe. It is an especially painful question for IT companies, where technologies are growing faster than people can learn. During the past few years, the digital talent gap has been widening in Spain, France, Germany, and the United Kingdom. A LinkedIn report shows that over 50% of organizations in these countries are suffering from a shortage of tech professionals. Still, the US breaks all these records: 70% of American tech companies are feeling the lack of employees. Without skilled workers, the world's technical leader could lose up to $162 billion of revenues annually. Still, there are few ways to make the tech talent shortage less painful for your business.

1. Teach faster

The situation can be partly explained by aging of the American population. The Korn Ferry Institute says that 10,000 Baby Boomers will retire every day during the next few years, and the following generation are not ready to replace them. Millennials and Generation Z need even more qualifications to keep up with the industry that is changing with light speed. As a result, vacancies remain open because of a shortfall in the number of applicants as well as a lack of candidates’ experience. Some companies choose to hire people with certain soft skills and give them technical knowledge. Amazon, for example, launched an apprenticeship program for former military two years ago. The company is going to prepare over 25,000 veterans for tech jobs by 2022. Also, the Walt Disney Company’s program aims to teach tech skills to non-technical female employees. “Coding is the language of the modern world, and now I can contribute to that language and those conversations.”, says Leilenah Mamea, one of the program’s participants. She was working in finance and is now writing code for websites such as Disney.com and StarWars.com. There are a lot of similar examples. The educational way is more acceptable for big companies that are ready to invest their time and money.

2. Hold longer

If your enterprise was lucky to find the right tech talent, do not hurry to celebrate. Even tech giants such as Google or Amazon can hold skilled workers for no longer than a year on average, said Payscale’s recent report. Most Fortune 500 tech companies have the same problem. Even at a less competitive location than Silicon Valley or New York City, there are more vacancies than tech professionals who can fill them. As a result, candidates have the last word in job offer negotiations. But they hanker after not just a higher salary. Without bonuses, Amazon offers on average $100,000, Google - $113,000, Apple - $121,000. Still, a decent reward does not prevent professionals from turnover. All over the globe, people leave jobs because of mistreatment and toxic work environments, they are looking for opportunities for personal and professional advancement, says LinkedIn report. The research shows over 70% of employees want a flexible life-work balance, flat hierarchy and collaborative physical workspace. The best you can do is to give your employees the space to maneuver even if they choose a different way to achieve goals than you.

3. Look around

To turn attention to the professional market overseas is the best way for companies that don’t have time to educate employees or to compete with the salary level of the biggest market players. Outsourcing can give qualified tech workers and take your business out of a mad race for American employees. 2018 global outsourcing survey found out that 74% of IT companies have remote teams, and even more want to increase their level of outsourcing or outstaffing. As an example, even Skype was created by a remote team of Estonian developers at the beginning. Employees from overseas can reduce project costs in several times. You can choose countries with lowest rates such as India (annual salary of software developers $7,130 on average), or find more demanding professionals in Germany ($55,000) or the UK ($51,400). There is one more option: to pay attention to East European countries, where the average level of rates suits well to the high-quality workers. For example, Ukraine. Stack Overflow counted there over 166,000 qualified developers with a salary of around $24,555 per year. Among the world’s top countries with the best programmers, Ukraine got 8th place. The skills assessment resource SkillValue ranks the country higher than India (35th place), or even higher than the United Kingdom (16th place) and Germany (10th place).

After all,

You can focus on any of these strategies. Still, their combining will bring the best results. There is no place for old strategies in modern business; only development, education, flexibility, and collaboration will move every enterprise forward. This is a time for companies with open minds and open borders. Looking for a perfect outsourcing team? Contact Ralabs here.