Genesis10 has been tracking and reporting on talent shortages and risk since 2009, including the technology talent shortage. The technology talent market continues to evolve—driven by company location strategies, adoption of emerging technologies, and shifting workforce competency requirements. Market factors such as immigration reform and regulatory conditions that affect where work can be performed keep workforce strategists and HR on their toes as they refine workforce planning. Significant hiring upticks from new market entrants such as Amazon or Google also put companies on the defensive, shifting attention to retention and training and prompting stronger employee retention strategies.
Organizations face a widening technology skills gap and shifting workforce dynamics driven by market forces and the entrance of Gen Z. To sustain growth, leaders must redefine talent strategies by upskilling and reskilling existing employees, creating new career paths, and broadening sourcing through diversified locations and partners. Key mitigation tactics include Location Strategy, Training (technical and soft skills), and aligning with the Technology Roadmap. HR must also adapt employer branding and management approaches to engage a multigenerational, purpose-driven workforce.
The skills gap continues to widen—especially the technology skills gap—with nearly 60% of employers struggling to fill job vacancies within 12 weeks, according to LinkedIn, which predicts that the talent gap will grow to 85.2 million by 2030. At the same time, Gen Z is entering the workforce. The demographic is 63 million strong and tech-savvy, operates differently, and is expected to comprise 36% of the workforce in 2020. Corporate recruiters will need to adopt a different approach and message for recruiting Gen Z effectively than they used with Millennials or earlier generations. Gen Z candidates are focused on brand, social mission and responsibility, cultural fit, social media reviews, and the day-to-day experience. Not only will corporate recruiters have to adopt a different approach to attract Gen Z, managers will need to adjust their management style to support unique idiosyncrasies and facilitate building a highly collaborative team.
Redefining talent strategies and understanding digital workforce capabilities and skill gaps is critical to effectively support the business. Growth is a top priority for CEOs and top executives, but consistently they point to the lack of talent and capabilities as stifling growth. In addition to focusing on young talent joining the workforce, a similar focus must be placed on working with existing employees to define new career paths. More and more HR professionals and employers are planning for rising retirement ages and discussing implications in terms of benefits, pensions, accommodations, and so forth. Anticipate new career paths and an increase in training initiatives for upskilling and reskilling to support existing top-caliber talent, as well as opportunities for professional growth not just through traditional promotions but also lateral moves.
Redefining talent strategies needs to include broadening the talent partner ecosystem and evaluating new sourcing channels to help address talent gaps. A recent Gartner Emerging Risks Survey reveals that the global talent shortage is now the top emerging risk facing organizations. The survey of 137 senior executives in 4Q18 shows that concerns about “talent shortages” now outweigh those around “accelerating privacy regulation” and “cloud computing,” which were the top two risks in 3Q18.
Explore diversifying access to talent to increase capability and capacity. The ability to tap into another market to scale the workforce in a flexible manner in a secure environment is an attractive option to traditional staffing onsite or engaging expensive consulting for work efforts that can be outsourced in the U.S.
Gain insight on the strategic direction of the technology roadmap so forward-thinking plans can be developed.
Workforce Strategists and HR have their hands full as they tackle workforce constraints. Not only do strategists have to focus on identifying capability requirements and skills gaps, and developing tactics to close the technology skills gap without overpaying for talent, but they also have to be concerned with the brand image of the company and evolving the company brand purpose to connect with a workforce that spans multiple generations.
Short answer: Because the technology skills gap is widening amid shifting market forces and workforce dynamics. Nearly 60% of employers struggle to fill roles within 12 weeks, and LinkedIn predicts a talent gap of 85.2 million by 2030. Simultaneously, new market entrants (e.g., Amazon, Google), changing regulatory conditions (including where work can be performed), immigration reform, and the rise of Gen Z are intensifying competition and altering expectations. Executives cite talent shortages as a top emerging risk, making it critical to evolve strategies to sustain growth.
Short answer: Tailor messaging and management to Gen Z’s priorities and communication style. Gen Z evaluates brand, social mission and responsibility, cultural fit, social media reviews, and the day-to-day experience. Recruiters need a distinct approach from what worked with Millennials, and managers should adjust styles to support Gen Z’s preferences while fostering collaboration. Complement technical savvy with training in communication and soft skills (e.g., phone etiquette, facilitating discussions, email), using formats like short videos that align with Gen Z habits.
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Short answer: They help retain and elevate existing high-caliber talent while addressing capability shortages. By providing targeted training, organizations preserve institutional knowledge and accelerate readiness for evolving roles. Redesigning careers to include new paths, lateral moves, and accommodations for rising retirement ages broadens growth opportunities beyond traditional promotions and supports long-term workforce resilience.
Short answer: By broadening the talent partner ecosystem and sourcing from diversified locations, companies increase capability and capacity while maintaining security and flexibility. This approach provides alternatives to high-cost consulting or exclusively onsite staffing for work that can be performed elsewhere in the U.S., helping organizations scale efficiently and cost-effectively.