In its 2024 report, Tech Nation revealed that the UK’s tech sector is booming, as it boasts 171 ‘unicorns’ and a market valuation of $1.1 trillion.

Although we had the tech boom during the pandemic, which saw many companies demanding IT and technology skills, we later saw things plateau – with mass redundancies at the big five threatening many in the industry. But simultaneously, the rise of AI and technological advancements in general, have meant specialist tech talent is needed and very much in demand.

The UK has established itself as one of the leading tech ecosystems in Europe, and for it to remain that way, we need the best talent. However, according to the IT Skills Gap Report 2023, an overwhelming 93% of UK businesses acknowledge the existence of an IT skills gap.

Out of these businesses, 35% identify competition in the job market as a significant challenge. The scarcity of qualified candidates, combined with the plethora of opportunities in these sectors, makes the recruitment and retention of staff a challenging endeavour.

Hiring laterally may be a strong solution. As Stacey Hayes-Allen, Director of Corporate Partnerships at Arden University, explains: “Businesses are experiencing a significant shortage of technology talent, and there simply aren’t enough qualified people available to fill the needs of companies. As a result, organisations should look to cultivate talent internally to thrive.

“We’ve worked with businesses before that have upskilled their staff to the point where they feel comfortable enough to enter a new industry that they once would never have considered they were knowledgeable enough to work in.”

Hiring laterally and upskilling staff within the business offers several key benefits. A clear benefit is that it retains experienced employees, who already understand the company’s culture and values, reducing onboarding time and costs.

But when you add the possibility of upskilling, you can improve employee engagement and boost personal career growth, which strengthens morale and loyalty. It also addresses skill gaps, enabling a company to respond to new challenges more efficiently.

Kibria Ahmed, Senior Service Desk Analyst at L.E.K. Consulting, is a prime example of how moving laterally and upskilling works well for the IT and technology industry. He explains how he went from working in Facilities Management to IT at L.E.K Consulting, when he was halfway through completing a Level 6 Chartered Manager Degree Apprenticeship, BA (Hons) Business & Management (CMI) apprenticeship.

He tells us: “When I was younger, I went to university but never completed the course, and during the pandemic, I realised I was finally ready to get a degree apprenticeship. It was important that I could still work at the same time and had the flexibility of studying on my own time, as I am also a carer, so doing an online degree apprenticeship was the perfect path for me.

“Funnily enough, I wasn’t planning to change industries, but an opportunity came my way, and I opted to move from Facilities Management to IT. Of course, initially, I felt way over my head – I knew very little about IT, but the skillset I was getting from my Chartered Manager degree apprenticeship helped me navigate through the changes.

“Since finishing my degree apprenticeship and gaining the knowledge I needed, I feel confident enough to work in an industry that was once completely unknown to me just a few years ago.”

Kibria explains how within nine months of moving into IT, he transitioned into a senior management position, and that even though he had to gain his IT knowledge separately from the degree apprenticeship he was doing, the qualification gave him the confidence, skill set and knowledge to upskill into an industry he is more passionate about.

“I was previously on a localised team when I was a Facilities Supervisor. Since completing my degree apprenticeship, I am now working across global teams with up to 500 other people, across different time zones and with people in completely different areas of the business.

“If I hadn’t taken the leap to do a degree apprenticeship, I never would have imagined working in the role I am today,” adds Kibria.

The challenge for many businesses is to continue to upgrade their ability to attract and retain innovative talent in a competitive global landscape.

As Stacey concludes: “Taking the time to get to know your staff and making sure their true passions and strengths lie within the work they’re currently doing is so important. If their skills are better used elsewhere, businesses should certainly take the time and money to train them to fit into another part of the organisation.”