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The UK is experiencing some of the lowest overall workforce participation rates in nearly 30 years, and its tech sector is taking much of the brunt.
Although the country is in the grips of a recession and inflation is at an all-time high, tech talent is still in demand as the sector is preparing for continued market growth. New and innovative technologies are highly sought after, as are those who can develop and manage them. While businesses may be tightening their belts in other areas, there’s more concern over skills hiring and finding the right talent for future-proofing than there is over the current economic climate.
There’s a good reason for this concern. According to a Hays survey, almost 95% of employers in 2022 seeking tech talent have encountered shortage issues.
This is up a whopping 89% since 2021.
Considering how much the world relies on tech skills to survive, this shortage of talent in the UK raises some important questions. What is causing the tech skill shortage in this country, and what can be done to fill it? One solution is an EOR.
Keep reading as we take a look at what an EOR is and how it could be the answer to these questions.
There are a number of reasons why the UK is experiencing a shortage of tech talent in the 2020s. The first has to do with a lack of provided digital skills training.
A recent report found that 36% of UK contractors claim that their employer rarely (if at all) provides them with basic digital training or upskilling opportunities. Tech skills cannot be obtained without sufficient tech tools and educational structure, neither of which are being delivered by employers.
This is partially due to the government failing to invest enough in the Apprenticeship Levy so that organisations can allocate sufficient funds towards upskilling programs such as this. But it also comes down to employers making upskilling a priority, especially in the digital skills sector.
Another reason for the tech talent shortage is the untapped—and often blatantly ignored—talent pool in underrepresented communities.
Those who struggle to access employment opportunities are simply not provided with the social and economic leg-up they need to pursue well-paying jobs.
And finally, the UK is simply not competing with the other countries around the world that prioritise tech job opportunities and employment packages. A vast percentage of the top tech talent within the UK is outsourced to global organisations that offer better benefits, packages, and employment options.
EOR is an acronym for Employer of Record. It’s a professional position ascribed to someone who manages the process of legally employing people in other countries.
A business that wants to branch out its employment positions to those outside of its home country will hire an EOR to manage this aspect of business. EORs perform a number of important duties on behalf of businesses, some of which include:
Essentially, an EOR takes responsibility for the administrative, legal, and management components of hiring global employees. This makes it much easier for businesses to continue focusing on their growth and mission while still maintaining active, healthy relationships with their various international workers.
One of the simplest, most effective, and most accessible ways for UK businesses to bridge the tech talent gap is to hire an EOR. This makes the process of hiring talent from all over the world much easier and allows UK companies to gain strength before implementing local, internal tech skill programs.
EORs are essential for any business wanting to hire global employees. Without an EOR, the administrative, legal, and logistical aspects of hiring international contractors can quickly turn chaotic.
Here are eight of the biggest benefits of hiring an EOR to boost the availability of tech talent in the UK:
EORs are typically responsible for creating and managing international onboarding processes. They also ensure that employees receive adequate instruction on all matters relating to operation, compliance, and any other training that’s relevant to their role. This may include health and safety or first aid training for working on site.
With proper onboarding processes in place, it makes it easier for new employees to adjust, and creates a smoother, faster transition for all.
With the skills and experience it takes to be a great EOR, these professionals can create more comprehensive and attractive benefits packages for global tech workers, making it easier for UK businesses to obtain high-performing talent.
They know exactly what the industry standard looks like, and how to compile packages in a way that appeals most to top talent.
Naturally, the global tech skills talent pool is much bigger than the UK one alone. This means UK companies get to reach a significantly wider audience of potential employees and find workers that meet their exact needs and requirements.
Although a local entity set up may enable you to employ local talent and expand into the global market, it can be a costly and exhaustive process.
However, when you hire an EOR, you can receive intermediary support for this process, cutting down on costs and saving resources for other important areas. They can also provide necessary insights and reports on the current market, and accelerate progress with their professional experience.
The more secure and supported global contractors feel, the more productive and satisfied they will be in their positions. Having an EOR on board ensures that their needs are better met, and they feel more fulfilled in their role. This also produces higher retention rates for the company.
Giving your business a global presence can be hugely beneficial, and one way to accomplish that is to hire international workers. An EOR can facilitate this in a methodical, legally compliant way, allowing your company the platform it needs to grow and gain momentum all over the world.
The UK tech sector is struggling to find local talent. From a lack of digital upskilling resources to the competitive packages being offered by international organisations, the UK needs to find new ways of engaging top tech talent for its businesses.
Hiring an EOR to manage the onboarding, payroll, management, and compliance is one of the best ways for UK organisations to stay in the global tech race.
We’re here to help you on your global hiring journey.