The rapid acceleration of technology across businesses has intensified a long-standing challenge: the widening gap between the pace of innovation and our ability to adapt our skills.
This tech skills gap, a persistent issue for years, has expanded dramatically over the last decade, pushing us into a race where education and workforce development are struggling to keep up with technological advancements. As each new innovation emerges, we find ourselves scrambling to adjust, often before we’ve fully adapted to the previous change.
This cycle of advancement and adaptation is not new; from the steam engines of the Industrial Revolution to the silicon chips of the Digital Age, technological leaps have always outpaced education and workplace developments. But what sets our current era apart is the dramatically shortened timeframe. The window for educational strategies to evolve and provide flexible learning opportunities is narrowing, creating an urgent need for a shift in how we approach workforce development.
The rapid development of Artificial Intelligence (AI) is the most recent example of this accelerated cycle. The World Economic Forum estimated in January 2024 that 40% of the global workforce will need to reskill in the next three years as a result of AI implementation. Even more staggering, McKinsey projects that between 400 million and 800 million individuals worldwide could be displaced by automation and will need to find new jobs by 2030.
These statistics underscore the magnitude of the challenge we face. The tech skills gap is not just a minor inconvenience – it’s a critical issue that has the potential to become a barrier to innovation, economic growth, and social stability if left unaddressed.
The Current State of Education and Apprenticeships
As we examine the landscape of education and training, it becomes clear that our traditional systems are struggling to keep pace with technological change. Traditional academia is notoriously slow to adapt, with the process of developing new courses and curricula often taking years – a timeframe that’s simply incompatible with the rapid pace of technological change.
There’s an overemphasis on theoretical knowledge at the expense of practical, hands-on skills, creating a significant mismatch between what students learn and what industries actually need. Critical soft skills such as collaboration, communication, and critical thinking are often neglected in formal education, yet these are precisely the skills that are becoming increasingly valuable in a tech-driven workplace.
While apprenticeships offer valuable experiential learning, they’re not consistently successful due to structural issues. In the UK, the apprenticeship levy has been widely criticised, particularly by small businesses. The Chartered Institute of Personnel and Development (CIPD) reports that the number of apprenticeships for 19–24-year-olds has declined from 142,200 per year to 95,300 per annum. Even more concerning, overall employer investment in training has also declined, with employer-funded off-the-job training in England falling by £2.3bn between 2017 and 2019.
The Importance of Customised Training Programs
Given the shortcomings of traditional education and apprenticeship models, it’s clear that organisations need to take a more proactive role in developing their workforce. This is where bespoke training programs become crucial.
Investing in training tailored to the specific needs of an organisation is vital for closing the skills gap, reducing attrition, and aligning with business needs. Custom programs can directly address the specific skills gaps within an organisation, ensuring that employees have the exact competencies needed for their roles. When employees feel invested in and see clear pathways for growth within their organisation, they’re more likely to stay, reducing turnover and its associated costs.
The Hidden Costs of Employee Turnover
While the importance of training is clear, many businesses still underestimate the true cost of employee turnover. It typically takes 6-12 months before a new hire starts adding significant value to the organisation. During this time, productivity is often lower than optimal.
Many companies tend to focus solely on the direct costs of recruitment, such as advertising and agency fees. However, the total cost of replacing an employee can be much higher when considering all factors, including training and onboarding, cultural impact, and knowledge loss. When employees leave, they take their institutional knowledge with them, which can be particularly costly in technical fields.
The Importance of a Balanced Recruitment Strategy
While investing in current employees through robust training programs can significantly improve retention rates and create a more stable, knowledgeable workforce, companies must also focus on external recruitment to fully address the tech skills gap. Bringing in new talent from outside the organisation is vital for innovation and fresh perspectives.
External hires can introduce new ideas, diverse experiences, and different problem-solving approaches that can spark innovation and drive the company forward. This balanced approach not only addresses the immediate skills gap but also positions the organisation for long-term success in the face of ongoing technological change.
Cultivating a Culture of Lifelong Learning
To truly address the tech skills gap, both organisations and individuals need to embrace a culture of lifelong learning. In a world where technological change is constant, continuous learning is the only way to stay relevant. This shift in mindset requires a shared responsibility: while businesses must provide learning opportunities, employees need to take ownership of their personal development.
A culture of lifelong learning creates a more adaptable workforce, better equipped to handle new challenges and technologies as they emerge. By incorporating ongoing learning, companies can develop talent internally, reducing costs and improving retention. Furthermore, a workforce that’s constantly learning and growing is more likely to drive innovation.
Rethinking Talent Strategy
To effectively bridge the tech skills gap in this changing landscape, businesses need to fundamentally rethink their approach to talent acquisition and development. Traditional methods are no longer sufficient to meet the demands of the tech industry. Instead, employers should focus on diverse hiring practices that value soft skills and the ability to learn quickly. In a world where technology is constantly changing, these attributes are often more valuable than specific technical skills.
Effective onboarding is crucial, providing clear direction and alignment materials from day one. This includes communicating the company vision, goals, and key performance indicators. Retention strategies should go beyond just compensation, providing robust learning opportunities and clear career progression paths.
Organisations should ensure that each employee understands how they can be successful within the company over the long term, creating clear career pathways and development opportunities. It’s also crucial to recognise that in the modern world of technology, soft skills are increasingly important. The ability to communicate effectively, work in teams, and adapt to change is often as valuable as technical prowess.
Embracing Change, Empowering Growth
The tech skills gap presents both a challenge and an opportunity for the entire industry. The solutions proposed throughout this article – customised training programs, balanced talent strategies, cultivating a culture of lifelong learning, and rethinking talent acquisition – collectively offer a well-rounded approach to bridging this gap.
However, true success in closing the tech skills gap will come from collaborative efforts across the industry. Educational institutions, training providers, and businesses must work together to create pathways for talent development that are agile, inclusive, and aligned with the pace of technological change. By fostering a culture of continuous learning and embracing innovative talent development models, we can turn the challenge of the skills gap into an opportunity for innovation, growth, and success across the tech industry.
As we continue to race against the pace of technological advancement, it’s clear that our approach to developing and acquiring tech talent must evolve. By working together and embracing new models of talent development, we can build the adaptive, skilled workforce needed to thrive in today’s changing tech landscape.
About the Author
Kieran Cornwall is Transformation Director at Ten10. Organisations do not have enough tech talent to make the most of today’s opportunities. Tech is developing so quickly it’s hard to ensure even your existing teams evolve and adopt the skills they need. At the same time, talented people, with the potential to be great tech hires, don’t have the opportunity to learn and develop those skills. Ten10’s mission is to solve those problems.
Featured image: Adobe Stock
