Channel Company Survey: 70% Say Talent Drought Will Restrict Growth
Submitted by Matt Brown on
Nearly half of tech firms say they plan to hire staff this year despite the deep uncertainty, lack of talent and skills shortage that just as many firms say will keep them from taking on new staff.
These and other insights are results of a Channel Company hiring survey conducted last month among about 300 IT industry firms, from solution providers, to consultants, MSPs, resellers, ISVs and others.
Respondents' optimism about their growth prospects hides a certain cautiousness, fear and frustration with the current IT jobs environment. The 50 percent of respondents who said they wouldn't hire this year said they expect staffing levels to remain where they are.
Only about 2 percent said they anticipate cutting staff.
More than half the companies surveyed said they were optimistic about their sales and earnings growth. Growing client bases, increased demand and broader offerings are expected to fill pipelines and drive bottom-line growth this year.
Some, like Axispoint, plan to hire right along with their rapidly filling pipelines.
"In essence, we're growing with our clients," said Axispoint president Dan DiSano.
Still, nearly as many said they expect finding talent to be challenging. Firms in the survey need tech talent, but they have trouble finding people with the right certifications and education credentials. Those that do fit the bill often demand salaries beyond what companies are willing to pay.
Firms characterized the search for talent over the last 12 months as "very challenging," and were only slightly more optimistic about the coming year.
Nearly 70 percent of respondents said difficulty finding talent would restrict growth this year.
As the head of a growing solution provider, Cumulus Global CEO Allen Falcon can see this conundrum play out. Cumulus is firmly in the hiring camp, but Falcon says uncertainty about the economy, and the industry, keep many from pulling the trigger on prospective employees who aren't a perfect fit, especially when the success of new initiatives is yet to be seen.
"I see many partners hesitant to grow staff in anticipation of sales," Falcon said in an email to IT Best of Breed.
"It's hard to find quality talent," Falcon said. "For companies changing to be cloud savvy, the challenge is greater because it is harder to know who to hire. Who will be a successful hire?" Also, with so much change in the industry, many partners may not even know what roles they need to fill and what skills they need.