The technology talent shortage continues to challenge multiple fields and industries, particularly within organizations that need to hire and retain professionals skilled in AI, machine learning and data science.According to research from Robert Half, 58% of technology managers plan to recruit for new positions in the first half of 2025, while 39% plan to hire for vacated positions only. However, 87% of technology managers say it’s challenging to find skilled professionals today. This talent gap could impact companies' ability to tackle technical debt and pursue growth opportunities.
The top areas where tech employers struggle to find talent are:
- - AI, machine learning and data science
- - Security, privacy and compliance
- - Technology process automation
- - Software and applications development
- - Cloud architecture and operation
Digital transformation is driving demand for these skills, alongside other competencies like data analytics, business intelligence and reporting, and database administration. With global digital transformation spending projected to reach $4 trillion by 2027 according to IDC, companies are focusing on getting ahead rather than catching up. While many firms accelerated digital initiatives during the pandemic, which was more about quickly implementing basic digital infrastructure that was suddenly critical for business continuity during lockdowns, the focus now is on future-readiness, particularly for AI integration.
As AI and automation reshape job roles, 55% of tech hiring managers are updating their required skill sets to include AI-related competencies. This technological shift is creating new types of positions and changing existing ones. To effectively manage technology skills gaps, organizations need strategic action plans aligned with their business objectives and resources. Consider the following approaches to strengthen your talent bench.
Develop the Talent Within
Employers must balance recruiting new talent with developing their existing workforce. Our research shows 35% of U.S. tech professionals are actively job searching or planning to within six months, while 40% are open to new opportunities despite not actively looking. This significant potential turnover risk necessitates strategic retention efforts.
Organizations can enhance retention by investing in professional development that benefits both employees and the business. For instance, training team members in AI-fundamental languages like Python, R, Java, and C++ creates mutual value.
Additionally, recruiting high-potential candidates and providing comprehensive training and mentoring helps build a strong bench of talent while establishing a reputation as an employer of choice.
Promote a Continuous Cycle of Learning
Integrating ample learning opportunities into their schedules can help employees grow skills needed to support priority projects. You can encourage knowledge sharing by creating forums, communities of practice or internal social platforms where employees can exchange ideas and lessons learned, supplemented with external resources like online courses and workshops.
Increase Salaries for In-Demand Skills
Competitive compensation remains essential for attracting and retaining top tech talent, and our research shows employers are prepared to increase starting salaries for candidates with specific specialized skills:
- - 44% would raise salaries for AI, machine learning, and data science expertise
- - 37% would increase offers for cybersecurity professionals
- - 30% would boost compensation for cloud computing skills
Embrace a Scalable Staffing Model
Another effective talent strategy is adopting a scalable staffing model that creates a mix of permanent employees and specialized contract professionals. This is a popular approach, with 47% of technology hiring managers deploying contract professionals in their departments. It helps maintain project momentum while you search for permanent hires or develop existing staff capabilities.
Many experienced tech professionals prefer contract work for its diverse opportunities. Once they’re able, over time, to showcase their abilities, individuals in contract roles are often asked to transition to permanent employment.
As organizations navigate the growing technology skills gap, success depends on implementing a multi-faceted talent strategy that combines competitive compensation, continuous learning and flexible staffing solutions. By taking a proactive approach to both attracting new talent and nurturing existing teams, companies can build the capabilities needed to drive innovation in an increasingly AI-driven future.
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Ryan Sutton is executive director of the technology practice at global talent solutions firm Robert Half.
