Tech talent shortage set to create annual global losses of $449 billion
Dufrain, the data consultancy, has today released new research from its State of Data report, exposing a significant ‘talent shortage’ in the data and analytics sector that could result in substantial losses for firms worldwide. 60% of data and analytics leaders said the biggest challenge to their business was recruiting individuals with the necessary skills and talents.
The State of Data and Analytics 2023 report, which surveyed senior data leaders in the UK and U.S. across banking, retail, insurance, manufacturing, healthcare and FMCG, sends a clear signal that attracting and retaining top talent will pose a significant challenge to growth and development in multiple industries over the next 12 months.
At the same time, over three quarters (79%) of respondents believed competition from other organisations is the biggest challenge to attracting and retaining talent, making it even more difficult for firms to source the right people for the job at hand. If firms lack the talent to maximise data, then it is likely unavoidable financial losses will occur.
Recruitment difficulties amidst the labour shortage is leaving many firms struggling to find the right tech talent to handle crucial daily activity, such as managing data governance and de-siloing data and assisting with cloud migrations. If these gaps are left unaddressed, the tech talent shortage is projected to reach 4.3 million workers and cost the industry over $449.7 billion globally by 2030.
Joseph George, CEO at Dufrain, comments:
“Our industry depends on the successful recruitment and retention of world-beating talent, and yet so many leaders are struggling to attract the right people to deliver upon growth targets and innovation initiatives. We are on the precipice of a major talent shortage and something must be done.
“That said, recruiting new talent in a highly competitive field can be a challenge for firms. Attracting the right level of expertise is about more than salary. Company culture, employee benefits, and a unified sense of purpose also matter. In the interim, before making that crucial hire, firms should reach out to external advice from recruitment agencies that specialise in this or specialist data consultancies that can really share their learnings and experience to drive the best outcome. An outsider’s perspective combined with decades of sector-specific knowledge can help steer the way while the recruitment process takes its course.”