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Confronting a leading business challenge: IT talent is in short supply

Confronting a leading business challenge: IT talent is in short supply


Though supply chain disruption is the top concern of 1,400+ CIOs and CTOs surveyed, it only just edges out worries about IT talent being in short supply.

Talent, security and migrating to the cloud lead the way among concerns facing CIOs and other technology decision makers in the coming months, according to Rackspace Technology's latest research of 1,420 technology decision makers (including CIOs and CTOs), across 10 markets such as Australia, India, and Singapore.

As such, the top three business challenges facing CIOs and other technology decision makers are:

  1. Supply chain disruption was the top concern of respondents, with 61% citing supply chain in their list of the top three challenges affecting their business.
  2. Just over half (53%) said they believe the IT talent shortage poses a critical challenge, with the Great Resignation showing no signs of abating after a record number of 2021 employee departures worldwide.
  3. Since inflation is not as short-term a reaction to the pandemic as previously believed, 48% mentioned price inflation as among their top three business challenges. 

This piece dives deeper into the second challenge on the list, i.e. IT talent shortage.

In the survey, the IT talent shortage was among the top challenge being faced, only supply chain issues (61%) were more concerning. Respondents singled out the talent dilemma over other hurdles such as inflated prices (48%), product shortages (36%), wage inflation (25%), and chip shortages (24%). Three in four (77%) of IT decision makers said a talent shortage is holding back adoption of new cloud development methods. 

Understanding the motivations of IT talent

About three in four (74%) IT decision makers say employees prefer working from home. Over two-thirds (69%) say staff works longer hours from home, with 66% citing burnout among IT employees. 

Aside from attracting new IT talent by promoting training and development opportunities (40%), a third of respondents (32%) said they are attracting and retaining talent with "moderate increases in starting salaries" or "hybrid/ flexible/work from home opportunities".

When asked about the top strategies for retaining talent, hybrid/flex/ work from home opportunities rated highest (32%), equal to "increasing training" which also received a 32% response. Another 31% cited "moderate increases in salaries".

The following are the key strategies CISOs and other IT decision makers are using to attract new IT talent to their organisation, which includes sign-on retention agreements, signing bonuses, and more.

rackspace it talent retention strategies  

Lead image / Shutterstock 
Graphic / Rackspace Technology 

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Follow us on Telegram and on Instagram @humanresourcesonline for all the latest HR and manpower news from around the region!

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