4 practical ways tech companies can succeed in the new era of innovation

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Contents

  1. 1. Overcome the skills shortage with on-the-job training
  2. 2. Update your benefits to give employees what they really want
  3. 3. Improve diversity by embracing the "new-collar" workforce
  4. 4. Scale skills training to unlock organizational innovation
  5. Prepare for the next era of tech with Multiverse

It’s no secret the tech hiring bubble of the past decade has officially burst.

Perks and flashy features are being replaced by performance mandates and budget cuts as the tech industry sees layoffs to the tune of more than 160,000 employees(opens new window) this year alone. However, with a steady release of cutting edge digital products and services, 2023 also marks the start of a new era in tech industry innovation.

The question is, how will you harness it?

Robotics, generative AI, data security, and automation are just a few of the latest developments that will take a front seat in the future of tech. Yet each of these areas requires new skills to transform emerging opportunities into real revenue for the business.

To remain competitive, leaders in the tech industry must adopt a different approach to finding and developing skilled talent. In this article, we’ll examine four ways tech leaders can turn their biggest challenges into new opportunities.

1. Overcome the skills shortage with on-the-job training

Despite the wave of layoffs, demand for tech skills still surpasses supply. By March 2023, there were almost 316,000(opens new window) open tech positions across the US.

Today 58% of technology leaders(opens new window) say they find it difficult to recruit skilled talent. With $162 billion(opens new window) in unrealized revenues at stake, now is the time to solve this challenge.

As a renewed focus on right-sizing and “right-skilling” emerges, leaders in tech are beginning to embrace the importance of applied learning in talent development. And they’re not alone.

Our research at Multiverse has found that 70% of business leaders consider on-the-job learning the best way to develop the in-demand skills of the future. Our research also found that 62% of individuals with college degrees agree that real workforce training or experience is the most important factor in preparing for success in the workplace.

The truth is, today’s higher education system simply does not equip new graduates with the necessary skills to thrive in the working world. That’s where professional apprenticeships can make a tangible difference.

Professional apprenticeships combine foundational knowledge with real on-the-job application, giving individuals the ability to acquire job-specific skills, while making meaningful contributions to the business.

New challenges require new approaches. By expanding your recruitment channels beyond the traditional, you can put an end to the era of  “breaking into tech” and take an active role in building the tech talent of the future.

2. Update your benefits to give employees what they really want

In what’s become known as “The Great Renegotiation”, many still-employed tech workers are choosing to leave their jobs.

The voluntary quit rate has risen by 25%(opens new window) compared to pre-pandemic levels, with 48% of tech decision-makers(opens new window) saying they struggle to retain talent.

Widespread digitization means companies in various non-tech industries are snatching up tech talent. With greater competition and fewer inhibitions to changing employers(opens new window), it’s time to re-evaluate your employee value proposition to give modern workers what they really want.

According to research from McKinsey, workplace flexibility, career advancement opportunities, and meaningful work are the most valued benefits today. 54% of workers aged 18 to 34(opens new window) now rank career development and the potential for advancement as top reasons for staying with their employer.

Upskilling programs, which are designed to teach the advanced skills required for an employee to become more effective in their current role or department, are proven ways to give employees the opportunities they seek, while training for the in-demand skills of tomorrow..

By investing in your current employees, you can contribute to their long-term career growth  while building engaged, loyal teams across the organization. The right workforce transformation partner will help you pinpoint your biggest skills gaps and tailor your upskilling programs for maximum impact.

3. Improve diversity by embracing the "new-collar" workforce

Over 83% of employers(opens new window) have some kind of diversity, equity and inclusion (DEI) initiative. In 2021, DEI spending was estimated at $3.8 billion(opens new window) in the US alone.

So why does workforce representation remain out of reach in the progressive tech sector?

Men currently hold 73.3% of jobs(opens new window) in the tech industry, while women hold just 26.7%. Compared to the wider private industry, the tech industry employs more(opens new window) white and Asian American individuals, and fewer individuals from African American and Hispanic communities. Diversity drops even lower at the executive level, with 80% of executive roles(opens new window) held by men.

Exclusionary hiring practices are largely to blame for these gaps in representation. Employee referrals and a small group of prestigious schools remain major routes into a tech company, resulting in extremely high barriers for individuals from backgrounds with less access to mentors or Ivy League degrees.

Higher education is not the only source of high-potential tech talent.

With a growing number of employers removing unnecessary job requirements(opens new window) and embracing the “new-collar” workforce(opens new window), now is the time for leaders in tech to build new recruitment pathways.

Here are some actionable ways to start building a more inclusive workforce:

  1. Eliminate degree requirements where possible
  2. Create clear progression pathways for existing employees
  3. Use on-the-job training to build a pipeline of diverse future talent

In the future of tech, diverse perspectives are critical to unlocking innovation and driving digital experiences that resonate with every member of your customer community. Don’t overlook this step.

4. Scale skills training to unlock organizational innovation

With extensive computing power, access to vast data sets, and a huge leap in bandwidth, it will become increasingly easier to test, launch, and scale tech innovations.

Companies that are able to adopt new technologies at scale are best placed to withstand disruption and come out ahead. Yet over 60% of tech leaders report expensive delays to their data and analytics projects, resulting in missed profit opportunities and high turnover among senior talent who prioritize meaningful work.

Moving forward, leaders in tech cannot rely on data insights from a handful of internal specialists. You need data literacy at every level to drive long-term results.

The good news is, 74% of employees(opens new window) are willing to learn new skills. By introducing employee upskilling and reskilling opportunities, you can close urgent skills gaps while building a thriving, data-empowered culture that is ready for whatever comes next.

In an age defined by innovation, the future of tech is abundant with opportunity. The real question is how you plan to capture that opportunity on the ground.

Prepare for the next era of tech with Multiverse

Multiverse's professional apprenticeships combine foundational and practical learning to deliver future-proof technical skills at scale.

Unlock the power of early talent apprenticeships to discover and nurture future talent, embrace employee upskilling to close critical skills gaps, or discover how reskilling can help you transition employees into completely new roles.

Take the first step toward a future-ready workforce. Reach out to our expert team today.

Team Multiverse

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