Skill Shortage impacts Technology Growth in the UK

Cloud computing, DevOps and Python talent in demand 

New research conducted by global talent services company Morgan McKinley as part of its 2024 Salary Guide has revealed that 76% of technology hiring managers found recruitment ‘very’ or ‘quite’ competitive in 2023 across the UK.

The Guide identified key challenges for 2024, with 25% of hiring managers citing shortage of skilled candidates as their primary obstacle. Other challenges included difficulties in competing on pay and benefits (22%) and a lack of approval for new headcount (19%).

Despite the challenging market, things are looking brighter in 2024 with half of technology hiring managers revealing that they are increasing headcount in the first half of the year and 46% of technology workers are looking for new roles in that same period, with a further 31% considering a move.

Three quarters of technology professionals chose to stay in their current roles throughout the year, indicating a reluctance to change jobs due to concerns about being last in, first out. Nearly half (46%) expressed feelings of indifference, insecurity, or significant insecurity in their current positions.

When looking to move roles, technology workers value a higher salary (40%) the most, followed by career growth and development opportunities (14%), and ability to work fully remote (13%). Flexibility continues to be important with work from home and flexible working hours placing first and third respectively in technology professionals’ top five valued benefits - alongside bonus (second), health insurance (fourth) and pension (fifth). Technology had the greatest proportion of people who placed 'work from home' as one of their most valued benefits (71% picked it in their top five).

42% of technology professionals would prefer to be in the office 1-2 days a week, whilst 8% want to be on-site 5 days a week. Over half (53%) would skip a pay rise if it meant they got the flexibility they desire. 69% of employers expect their salary offers to increase for certain hard-to-fill roles across technology, and a further 20% plan to increase salary offers for all technology teams.

Kieran Scully, Senior Manager of Technology recruitment, Morgan McKinley UK, commented: “The hot new trends and demand for talent are around Artificial Intelligence and Machine Learning, where most companies continue to struggle with a shortage of skilled talent. We’re seeing that the most in demand roles and skills for 2024 will be across the areas of Data, AI, Cyber and Cloud. This will come as companies continue to build out their strength in these ever-evolving fields to make sure they are protected from any potential threats and adequately equipped to deal with whatever new progressions develop.”

“However, the lack of skilled professionals in these fields will make hiring competitive. The shortage of talent in some markets will see salaries continually increase, particularly across the areas mentioned earlier, whilst we expect them to stabilise more in Software Development.”

Key jobs and skills in demand for 2024 across areas of Technology:

The Morgan McKinley 2024 Salary Guide presents up-to-date and accurate salary data for a wide range of Technology roles across the UK, providing hiring managers with industry benchmarks when they are working out what to pay employees and giving professionals more visibility over what they can earn.

Research from 650 businesses and 3,400 professionals was conducted to find out what companies’ hiring intentions are for 2024, what the key motivators are for changing jobs, and what the expectations are for movement on salaries.

For the Morgan McKinley UK 2024 Salary Guide, visit:

https://www.morganmckinley.com/uk/salary-guide

About Morgan McKinley

Morgan McKinley is a global talent services expert, offering the full spectrum of solutions to meet employers’ and jobseekers’ needs. With 19 offices in 10 countries and nearly 1000 employees, it provides 3 distinct solutions for customers. Morgan McKinley Recruitment Solutions encompassing deep expertise across 10 professional disciplines offering temporary, contract and permanent recruitment; Morgan McKinley Executive Search for targeted C-Suite talent searches; and Morgan McKinley Talent Solutions including RPO, MSP, Project Recruitment and more.

Morgan McKinley is part of Org, a more human kind of professional services company that harnesses the power of talent to bring better business outcomes for clients across the world through advisory, managed services and talent services.

https://www.morganmckinley.com