The UK’s technology sector is itching for growth. The UK Government demonstrated its alignment to this mindset by recently establishing the Department for Science, Innovation and Technology, the first of its kind. The department will accelerate the development of many technologies, ranging from AI to quantum computing, in an effort to make the UK a global leader in both scientific and technological innovation.

However, if the UK is to reach its goals, it will need sufficient amounts of highly skilled labour, and this remains a concern for many businesses looking to use technology to drive them forward. According to data*, it is harder to source candidates for specialist IT roles than any other position across all industries. Clearly, if the UK is to push forward and become a technology superpower, businesses need to overcome these skills shortages to put them in the best position to grow.

Appetite for growth, not enough talent to feed it
Seemingly, technology has never had more momentum. The news is perpetually dominated by stories of innovations such as chatbots, the metaverse, VR and more. However, on closer inspection this momentum could be in danger of waning as businesses scramble to find the talent they need.

Although technology is becoming more and more advanced, and, in many ways, self-sufficient, the industries it propels still need talented people to drive change. Therefore, if its continued adoption and advancement is to carry on, the industry as a whole need to re-evaluate its approach to sourcing talent. To give context, four out of five of the UK’s most in-demand roles, no matter which sector you look at, are in technology, in fields such as cloud computing engineering and AI solutions architecture. If this trend continues, then the rate of progress will inevitably stall. Consequently, more effort has to be made in both attracting and retaining the right talent needed to drive forward.

Money is not enough to ensure high retention
Typically, technology-based jobs are well paid – the average annual salary for IT jobs for example sits at around £47,500. It is generally well-established that these highly skilled roles, that require a lot of training, will be rewarded with attractive pay packets. However, increasingly, this is not enough, and firms should look to think beyond money if they are to attract top talent.

Attitudes are changing throughout the workforce, and although money is important, and always will be, increasingly workers have other priorities when looking at job and career opportunities. Many employees are now seeking purpose and also developmental opportunities within their roles and as such those companies that put an emphasis on learning and development can benefit hugely. This is especially relevant in the technology sector, as knowledge can quickly become outdated and expertise obsolete. Furthermore, as this sector has traditionally lacked female representation, diversity, equity and inclusion initiatives, such as women’s networks, are an increasingly popular offering.

This is where it is crucial for businesses to understand their workforces by leveraging talent intelligence software. In the form of surveys, or other ways of gathering feedback, firms can gain insight into the needs and desires of their workers, as well as changes in cultures and outlooks, therefore improving overall employee experience. The ultimate effect this can have on employee satisfaction and retention can be hugely valuable.

Always be on the lookout for new sources of talent
Employee retention is pivotal to business success. However, high retention is not necessarily enough, and significant skill gaps can still exist in those companies that have high retention rates. If traditional routes of sourcing talent are proving difficult, it is becoming crucial, particularly in the technology industry, to leverage new types of talent to fill vacancies. This can involve bringing in a range of contingent workers into existing workforces such as independent contractors, temporary agency workers, consultants, or a range of other ‘gig’ workers. This model is particularly suited to the technology industry, as often business require very specific skills for a certain project or initiative. Furthermore, especially in a post-lockdown context, the technology sector is well-suited to remote working, something that allows these contingent workers to slot more easily into a company’s structure than in other industries. When this approach is implemented to effectively complement a strong retention strategy, the effects can be immense, providing a solid base of skills throughout an organisation to drive business innovation.

The technology sector’s thirst for talent will not be quenched anytime soon. The exponential growth of this sector will demand workers to help drive it forward and this requires a well-thought-out strategy including both retention of current employees and attracting new ones. Firms must think holistically, and not merely financially, to ensure that they attract and retain a dynamic and flexible workforce capable of thriving in the modern working world. Only this way can the UK achieve its goal of being at the pinnacle of technological change, now and in the future.

*Magnit’s internal data