It's not difficult to come across a multitude of alarming statistics concerning the tech talent shortage. The demand for tech talent consistently outpaces the available supply. Even recent downsizing in major tech companies has failed to alter this trend, as those laid off were primarily in non-tech roles.

The consequences of this imbalance between supply and demand can be potentially disastrous. Businesses frequently find themselves in a holding pattern while searching for individuals capable of executing their ambitious plans. Instead of succumbing to despair in the face of these challenges, forward-thinking companies are pioneering new approaches to discovering and attracting talent on a global scale.

First, let's explore the underlying causes of the global tech talent shortage:

Before delving into potential solutions, it's crucial to comprehend the issues associated with the tech talent shortage. One must first recognize the complexity of the reasons behind the global tech talent shortage. Nowadays, it's rare to find a reasonably sized business that isn't reliant on technology. However, educational systems have not kept up with this transformation, leaving students lacking the skills demanded by the modern workplace.

Additionally, societal shifts such as the widespread adoption of remote work due to the COVID-19 pandemic intensified the need for tech specialists, only to be followed by the Great Resignation, which led to a departure of tech workers from existing businesses.

Not to mention the recent emergence of potentially groundbreaking technologies like generative AI, which necessitate even more specialized expertise. In fact, a recent study revealed that while 93% of organizations in the US and UK consider AI a top business priority, 51% admitted they did not possess the requisite AI talent in-house to implement their strategies.

In summary, it's a multifaceted issue.

How severe is the tech talent shortage for businesses?

According to a recent report, a projected global shortage of more than 85 million skilled professionals by 2030 could result in approximately $8.5 trillion in unrealized annual revenues.

In the current environment, building tech teams is far from straightforward, as talent costs skyrocket due to multiple companies vying for the same candidates.

This situation is indeed concerning. While potential solutions such as upskilling and reskilling exist, as long as the talent shortage persists, businesses must become inventive in how they attract talent. And one of the most effective approaches is to broaden the candidate pool.

So, what's the key to circumventing the tech talent scarcity?

The revolution in distributed workforces has encouraged businesses to recognize that they need not limit themselves to hiring locally. More and more companies are realizing that restricting their talent search to local or even national candidates limits their possibilities.

By going global, companies can tap into tech expertise without the constraints of national borders. However, it's not merely about casting a wider net. Tech professionals are well aware of their high demand, and securing their commitment requires offering them the conditions they desire.

Primarily, these professionals seek greater autonomy, as confirmed by a 2022 report stating that 65% of professionals prefer a fully remote work environment. Therefore, hiring globally achieves two objectives: broadening the search as much as possible while providing tech talent with the desired working conditions.

Recruit Tech Talent Worldwide

Embracing global talent acquisition and being open to diverse talent sources provides businesses with a significant advantage over less flexible competitors. However, adopting global talent acquisition can be daunting, involving dealing with the regulations, laws, and unique aspects of each location where employees reside.

This is where global employment platforms like Remoly come into play. By serving as an employer of record (EOR), such a solution simplifies payroll and contractual processes across borders. It also assists international teams in efficiently managing HR operations, benefits, taxes, social contributions, and local insurance policies—without the need to establish new entities in every location where a company operates.

Think Globally or Stay Local

Remoly offers numerous examples of companies it has assisted in overcoming the tech talent shortage by locating skilled professionals beyond their immediate geographical boundaries