James Parsons, founder and CEO of Arrows Group Global, shares his advice on what UK tech companies should do to attract talent in a post-Brexit scenario.
As the dust from the UK’s recent EU referendum result begins to settle, one of the lingering uncertainties for the nation’s tech sector surrounds future access to talent.
In fact, a survey by Tech City UK found that access to talent is the biggest concern among UK tech workers. More than half (51%) fear that it will now be harder for them to attract and retain the best people into their business.
Although the scarcity of digital talent is not new, UK-based (and particularly London-based) tech companies have until now benefited from a strong perception of the country as Europe’s tech hub.
About 50% of the recruits that our clients find come from outside the UK, with significant numbers coming from Spain, Italy, Belgium and France. This movement of talent has almost exclusively been a one way street. Now, our tech sector will have to face up to the fact that perceptions of Britain are changing.
Erosion in confidence
Already we are noticing a drop in confidence among European candidates. Worried about the strength of the pound and about the future status of foreign workers in the UK, the individuals who would ordinarily be taking up roles in British technology companies are less positive about this opportunity.
In reality, the only change that has currently taken place is this erosion of confidence. The demand for tech talent will almost certainly remain high enough that visa schemes will be kind to those with digital skillsets. Subsequently, companies must make efforts to boost their employer branding, working to re-establish the attractiveness of a UK technology company.
The digital brand of any company – how it is perceived by potential employees – is critical, particularly when certain skills are in high demand. The main effect of Brexit has been to blur the lines of communication between UK tech companies and international talent.
With this extra hurdle now standing between EU talent and UK tech jobs, businesses must take the time to reassess their hiring proposition as a top priority.
External perception
This begins with a company taking full stock of how their employer brand is perceived externally, but must also involve cultivating a workplace culture that entices European talent to stay.
Failure to do so may result in competitors from other tech hubs such as Amsterdam winning the talent battle, with disastrous effect – this despite the fact that the core attractiveness of the UK tech market remains unchanged.
One response to Brexit must be building the confidence of foreign talent, but a second is to take new steps to engage, nurture and retain domestic talent.
We do not yet know how Brexit will affect movement of talent, but we do know that securing a pipeline of skilled individuals is vital to continuous competitiveness.
With a strong tech talent supply chain within the UK itself, there is a much stronger chance that businesses will have enough skilled workers for the future.
However, many UK tech firms are finding to their frustration that there is a long way to go in creating this pipeline of digital expertise.
On the whole, colleges and universities are not equipping students for the demands of the labour market, leaving domestic talent in need of training and investment which can end up falling on the shoulders of businesses.
Innovative training
As domestic talent increasingly becomes essential to UK tech firms, innovative models for sharing the burden of training will become crucial.
Exploring some of the new ‘hire to train’ options on the market – where staff undergo a 6-12 month training period during which they are supported by a consultancy – allows companies to share the burden of investment whilst improving the health of the UK’s talent pipeline.
Creating a business culture which nurtures employees is vital for engaging and retaining the best staff in the middle of a talent war.
Finally, UK tech companies will need to take a more global approach to talent. Whilst Brexit is creating a dip in confidence among European workers, the impact on global skills markets is likely to be less apparent.
Investing in skills
If tech firms are ambitious, now is the time to invest in global skills; using these, they will gain a significant competitive advantage against less expansive counterparts.
Technology companies in need of digital talent are in a strong position when compared to other sectors facing skills shortages in the UK.
By nature, digital skills are uniquely suited to the opportunities available for building a globalised workforce.
By creating teams that are based in different locations around the world, companies can create a workforce made up of global teams working in collaboration with UK colleagues through virtual technologies.
If European candidates remain uncertain about moving to the UK, the country’s tech businesses should look for positive incentives to attract skilled workers from around the world.