As businesses struggle to fill their tech vacancies with skilled employees, the daily pain of low unemployment is widely felt. But there is more at stake than just a company’s ability to meet its goals. The U.S. economy also takes on some of the burdens when these positions remain unfilled, spelling larger trouble for those inside and outside the tech sector.
To help understand more about the effect of unfilled tech jobs, here are some of the most notable points to consider.
Money on the Table
Every job in the economy is represented by a paycheck. When a person works in the position, they are rewarded with compensation that is then spent in the local and national economy. These funds are used to buy food, clothing and other household goods, as well as to participate in various investments. In turn, other people receive wages to support the demands of the employee turned consumer, helping to keep the cycle moving.
However, when no one is there to take the job, these funds remain stagnant. And that means the local and larger economy suffer. Often, budgets directed towards IT roles can’t simply be transferred to other areas to support growth, so they simply sit unused until the right candidates are found to take the jobs.
While vacancies hurt a company’s bottom line, they can also slow developments that provide value to the larger population. Instead of creating new software solutions or other product and service innovations, businesses may struggle to maintain their current offerings, causing innovation to be put by the wayside.
While there is no guarantee what a company may develop, not being able to concentrate on creation means some potential developments are simply being shelved until the right employees can be secured. And, when you consider that IT plays a role in such diverse sectors as healthcare, manufacturing, and retail, it is important not to underestimate the impact unfilled positions can have on the population as a whole.
While hiring new tech professionals is often a top concern, additional efforts have to be directed towards retention as well. Since organizations are competing for the same talent, many companies are at risk of losing their employees to stronger offers from competitors. This means the risk of turnover is high, simply because another business may actively pursue another company’s current employees. Higher turnover can lead to increased costs for businesses that lose employees along the way.
The shortage of strong IT candidates isn’t just a short-term issue. In fact, many have concerns that there simply isn’t enough of a supply coming into the field to support growing demand, especially in key areas like software development and security. If the number of available tech pros remains low, the issues being experienced today may not resolve for some time.
If you are a company looking for top IT talent or a tech professional looking for a new position, the experienced team at The Armada Group can help you locate the opportunities you need. Contact us to speak with a member of our professional staff today.