A look into the obstacles the industry is facing, from intense competition to tech recruiting challenges. Explore new innovative methods and strategies to secure future success.
The technology industry in 2024
Turbulent is one way of describing the UK tech sector. It remains a powerhouse in Europe, driving innovation and attracting investment, but is leaving a gap for competitors to jump ahead. A slightly cautious economic outlook means companies are taking a wait-and-see approach, impacting recruitment and growth.
With a booming demand for specialised skills and an ever-increasing competition for top talent, tech companies are in a constant battle to attract and retain the best minds. This article looks into the multifaceted challenges tech companies face, particularly in recruitment, and the strategies they can employ to overcome the obstacles.
Why is technology so important?
Technology plays a transformative role in our lives and impacts nearly every aspect. We use it daily. Think about messaging, streaming, and shopping. Most of these are now done on devices. Technology is woven into our lives and influences how we work, learn, and interact with the world.
What are some of the latest technological advancements?
It’s easy to understand why we need technology and when we use it. But what are some of the latest additions to technology worldwide?
- Generative artificial intelligence (AI): The number of AI models and tools being released has increased dramatically. Most people have heard of ChatGPT and have probably spoken to some customer service chatbots. We now see photo and video editing, coding, task automation, and more.
- Quantum computing: We are seeing a race to develop quantum computers. They have the potential to assist with materials science, drug discovery, and financial modelling by using the quantum world to solve problems traditional computers struggle with.
- 5G networks: After a big push in the UK for fibre broadband, 5G is now making waves. We will likely see enhanced network slicing and performance improvements as more smart cities and connected vehicles take centre stage.
Which industries require innovative technologies?
In the same way technology affects our daily lives, it also plays a role in every industry you can think of. Here are some of the main examples:
Healthcare/HealthTech:
- AI in diagnostics and treatment: Algorithms assist doctors in analysing medical images and vast amounts of patient data.
- Telemedicine and remote care: Platforms allow for remote consultations and patient monitoring to reach more people quicker.
- Robotics: Robots help in surgeries by offering greater precision and smaller incisions, leading to faster patient recovery.
Finance/FinTech:
- Payments and mobile wallets: Contactless payments, instant payments, and mobile wallets are all increasingly popular methods of payment and storage for our credentials.
- AI and machine learning (ML): These include algorithms that detect fraudulent activity and analyse data to make investment decisions, as well as chatbots and virtual assistants that provide advice and tools to a wider audience.
Telecommunications:
- 5G infrastructure: The rollout of 5G networks and investment in infrastructure are modernising Europe’s connectivity through high-speed connectivity.
- Internet of Things (IoT): Companies are enabling the growth of IoT devices. By offering bundled services, they are blurring the lines between telecoms, media, and tech.
Retail/RetailTech
- Omnichannel experience: A multi-channel approach to give customers a complete and integrated shopping experience, think click-and-collect, in-store pickups, and mobile apps.
- Augmented reality (AR) and virtual reality (VR): They tie into an omnichannel experience but add in online try-ons, placing items in your home with AR, or an immersive shopping experience with VR.
- Automation and robotics: Self-checkouts and other automation offer a faster checkout experience. Robots and drones are increasing in use for warehouses and deliveries.
What are the general challenges for tech companies?
Our ever-changing economy and the lack of stability in recent years pose a big challenge for tech companies. Some of the most common hurdles they are encountering are:
Economic concerns
The UK continues to be the top destination for tech investment in Europe. However, after a slow few years and market volatility, revenue streams and expansion plans have been hindered. This impacts funding and consumer spending and stunts development and innovation.
Competition
Competition is rife in the tech industry. Rivalry among startups and established companies such as Amazon, Apple, Google, and Microsoft drives innovation while simultaneously creating pressure to outpace competitors. Companies must invest in research and development (R&D) and cutting-edge technologies to stay current.
Talent acquisition and retention
A highly skilled workforce is crucial for the success of tech companies. From engineers and developers to data scientists and cybersecurity experts, competition for the top talent is fierce. It’s not only attracting the talent, companies need to retain employees, which can be difficult with turnover rates in the industry.
Cybersecurity threats
Individuals are more reliant on technology and the same goes for companies, especially those in tech. They are a prime target for cyberattacks, including data breaches, ransomware attacks. All these threats would impact customer data, finances, and reputation damage. Companies must have robust measures in place and continuously monitor and upgrade protocols.
To succeed in times like these, tech companies must be agile, innovative, and strategic. If they can address and overcome these challenges, they can position themselves for success.
What are the current hiring challenges for tech companies?
One of the biggest challenges for tech companies is hiring and retaining skilled talent. A digitally focused workforce allows businesses to keep up with changes in the sector. Companies face tough hiring goals and often have a limited candidate pool. Here are some of the main ones we’ve come across:
Shortage of top-quality specialists
Digitisation and technological advancements lead to a higher demand for specialists. If there aren’t enough of those specialists, it’s harder for companies to find the people they need. Some specialist fields are AI, cybersecurity, and blockchain, they are constantly advancing, and demand often exceeds supply.
High competition for talent
A shortage of talent comes with high competition. Tech companies are looking for specific experience and expertise, which narrows the amount of available candidates. There is then a balance of what new graduates are learning paired with industry experience and finding the sweet spot for a role can be difficult.
Technological advancements
We see new technology each day. Advancements happen quicker than ever. It makes it hard for people in the industry and specialist roles to keep up with what they need to know next. Continuous learning and adaptability are key in today’s tech workforce.
Attracting the right candidates
We’ve already mentioned the demand and competition for top candidates, but how do you stand out to the people you want? Companies are offering more lucrative options, looking at new and attractive ways to keep ahead of the competition. Whether you offer high salaries, stock options, or learning opportunities, you must do more than ever.
How to overcome tech recruiting challenges
So, we’ve mentioned many tech recruiting challenges, but the question is, how do you overcome them? There are lots of ways to do this, depending on your particular business and struggles. But we’ll look at some of the common ways you can improve your tech hiring.
Invest in training
With talent shortages and high competition, keep training your current employees. Offer training courses if someone wants to switch fields or learn a new skill. Upskill and reskill your workforce to fill specialist roles you’re struggling with. This also allows staff to grow and develop within the business.
Enhance your employer branding
In a competitive market, you need to stand out. Your company is your selling point. Why should people want to work for you? What does your company stand for? Learn to communicate your culture, mission, and values authentically to attract people who are excited to be a part of everything. Use your employee stories to show how you work and what you are doing.
Competitive benefits packages
Salaries are no longer enough for many candidates. Yes, you need to be competitive and in the right range for the roles, but people expect more nowadays. How can you improve your employees’ work-life balance and make them want to join you and stay with you? Whether it’s a shorter work week or flexible working, training or bonuses, health and wellbeing support, or social events, you have to stand out.
Innovative recruitment strategies
While the tech industry is advancing, the recruitment industry is doing the same. Tech companies are adopting new recruitment practices to address talent shortages. You can use AI and machine learning to streamline your processes or use video software to screen and assess candidates quickly. Alternatively, outsourcing hiring is becoming more popular for specialist roles and larger projects.
Partnerships with tech recruiters
Recruiting for tech roles is never easy. All the challenges make it difficult for talent teams to keep up with the developments and hire for more traditional roles. Partnering with tech specialists can be a game changer. You can look for agencies that will source and manage roles as and when they come in. For larger or consistent hiring, recruiting process outsourcing (RPO) or embedded recruitment could be perfect for you. A team of specialists fill multiple roles and join your internal team. This takes the pressure off your HR and talent teams while finding talent at a fixed monthly rate.
The future of tech recruitment
Considering the turbulence and the challenges, what does the future look like? Nobody can say for sure, but we can predict what we’re likely to see more of.
- Companies building strong employer brands will stay ahead of the competition. Finding people who believe in your company and want to work for you will attract better talent.
- Creating a culture of learning and development will help companies retain their talent. A skilled workforce with career growth and development options is better for the long term.
- Embracing technology in recruiting will help to streamline processes and efficiency. Finding new tools to identify and screen talent.
- Valuing the human touch will make you stand out. Build relationships and personalise candidate experiences to showcase your company. Use tools to assist you, but remember people want to communicate with people.
