You don’t have to look too hard to find any number of doom-laden statistics about the tech talent shortage. Demand for tech talent still stubbornly exceeds the supply. Even recent Big Tech layoffs have been unable to change the trend, with those let go chiefly occupying non-tech roles.
The effects of that mismatch in supply and demand are potentially catastrophic. Businesses increasingly find themselves in holding patterns while they search for the people capable of carrying out their grand plans. Instead of despairing in the face of these challenges, however, forward-thinking companies are pioneering new methods of uncovering and attracting talent by thinking globally.
First up: What’s behind the global tech talent shortage?
However, before we look at the cure, let’s ensure we understand the problems associated with the tech talent shortage. The first thing to realize is just how complex the causes of the global tech talent shortage are. It’s rare to find a business of any reasonable size these days that isn’t powered by technology, but education systems haven’t kept pace with this transformation—meaning students lack the skills required in the modern workplace.
At the same time, societal trends such as the massive switch to remote working spurred on by the COVID-19 pandemic supercharged the need for tech specialists, only for the Great Resignation to lead to an exodus of tech workers already within businesses.
That’s without mentioning the recent emergence of potentially revolutionary technologies like generative AI, which require even more specific expertise. Indeed, one recent study found that while 93% of US and UK organizations consider AI a business priority, 51% said they didn’t have the right AI talent in-house to implement their strategies.
In short: it’s complicated.
Just how painful is the talent shortage in tech for businesses?
According to one recent report, a projected global human talent shortage of more than 85 million people by 2030 would result in a loss of about $8.5 trillion in unrealized annual revenues.
In the current environment, building tech teams is far from a simple process, with costs for talent spiraling as multiple companies compete to attract the same candidates.
Scary, right? While there might be solutions in the form of up- and re-skilling, as long as the shortage exists, businesses are forced to get creative about the ways they attract talent. And one of the best places to start is broadening the pool they are hiring from.
So what’s the secret to avoiding the tech talent crunch?
The distributed workforce revolution has helped businesses become more comfortable with the idea that they needn’t be confined to hiring nearby talent. More and more companies are realizing that simply recruiting locally or even nationally limits their talent prospects.
By going global, brands can benefit from tech expertise unconstrained by national borders. But it’s about more than just fishing from a bigger lake. With talented tech workers being fully aware of how in demand they are, securing their signature requires companies to offer them the conditions they want.
Chiefly, those workers want more freedom, with a 2022 report confirming that 65% of professionals would prefer a fully remote work environment. Hiring globally, then, kills two birds with one stone, ensuring the search is as broad as possible while offering tech talent the working conditions they crave.
Hire tech talent everywhere
Hiring globally and being open to every possible source of talent gives businesses a clear advantage over less open-minded competitors. However, embracing global talent acquisition can be daunting, requiring businesses to deal with the rules, regulations, and general quirks of the places their employees call home.
That’s where global employment platforms like Multiplier come in. By serving as an employer of record (EOR), such a solution can simplify payroll and contract processes across borders while also helping international teams seamlessly handle everything from HR operations to benefits, taxes, social contributions, and local insurance policies—all without requiring the hassle of incorporating new entities in every location a company operates.
Go global or go home
Multiplier isn’t short of examples of companies it has helped overcome the talent shortage in tech to find vital skilled workers beyond their immediate borders, as shown in this case study with Singapore-based fintech company, Aspire.
As Multiplier co-founder and CEO Sagar Khatri said recently on the SaaSBOOMi podcast, “We live in a world where talent crunch is so prevalent. It’s very clear that the world is going to go global because a country like the US does not have enough talent—and they need talent.”
Feeling the tech talent shortage 2023 blues? Want to take advantage of the exceptional global talent that’s out there waiting but unsure where to begin? Talk to our experts.
