64% of tech companies struggle to find qualified employees

Around 64 per cent of global technology companies consider poor skills as the biggest challenge in recruiting employees, says a new report.

Almost 56 per cent of executives at such companies said there is a shortage of candidates, according to the report called ‘New approaches to the tech talent shortage’ conducted by MIT Technology Review, the American digital magazine, in partnership with India’s HCLTech. As many as 31 per cent executives said candidates lack necessary credentials.

Only 17 per cent of them would prefer recruiting a candidate without a college degree. The study proposed early career training or apprenticeship programmes for solving the staffing crisis. “By targeting candidates earlier at the start of their career, including those yet to complete their college education, we identify new talent and create fresh career paths,” said Laurel Ruma, global director at MIT Technology Review.

Around 32 per cent of the companies surveyed have apprenticeship programmes to recruit and train new employees. HCL Tech is one of the early adopters of such a programme in India. The company, through its apprenticeship programme called TechBee, recruits employees in Sri Lanka, Australia, New Zealand, the US, and Canada.

Under the programme, the company hires and trains talent in high schools while the students pursue their education. “Investing in talent as early as high school not only builds entry-level talent, but also nurtures future leaders who can drive long-term innovation and value for customers,” said Jagadeshwar Gattu, president of digital foundation services at HCLTech.

As many as 69 per cent companies said they use on-the-job training for new recruits and another 13 per cent plan to use such a programme in the next two years, said the MIT-HCLTech report.

Around 63 per cent of companies said they are collaborating with educational institutions to train employees hired as part of early career programmes.

In January and February 2023, MIT Technology Review surveyed business leaders about their experience in recruiting employees for information technology (IT). Of the 250 respondents, 83 per cent were C-suite executives, directors, or managers. They represented a broad range of industries, from retail and financial services to manufacturing and health care. The companies surveyed represented ranged from less than $50 million in annual revenue to more than $5 billion. Business Standard