Report: Ageing workforce spells trouble for tech sector

Skills shortage is set to worsen as nearly half of all techies plan early retirement according to recruitment firm Randstad Technologies

The IT industry could witness a mass skills exit in 2020 as a large proportion of senior talent or baby boomers leave the workforce to retire.

This is according to the latest figures from specialist recruitment firm Randstad Technologies, which indicates that more than 80 per cent of tech workers feel under pressure to retire at state pension age.

In addition, the firm said that nearly half (49 per cent) plan to retire early - more than in professional services, finance or sales roles.

According to government figures, the number of people in the workforce aged 50 to state pension age will be 13.8 million by 2022, and the number aged 16 to 49 will have reduced by 700,000.

Randstad claims that the departure of these older workers will worsen the current skills shortage. When asked the reasons for early retirement, 78 per cent said they felt they wouldn't be wanted in the workforce when older, and 12 per cent were concerned about age discrimination in their sector.

According to Randstad, technology specialists feel age pressure more than most, with 83 per cent claiming they felt this stress, compared with 75 per cent of other workers in the UK.

In addition, 36 per cent said the pressure was significant, and just 14 per cent said they felt no pressure.

Ruth Jacobs, managing director of Randstad Technologies, said: "The tech industry is facing an expansive experience exodus. The early retirement of the baby boomer generation could lead to a serious skill shortage in the sector. This generation helped build the technology sector in the 1980s with pioneers like Steve Jobs and Bill Gates leading the way. Companies need this experience if the sector is going to continue to expand. There is already fierce fighting for talent as it is, and early retirements will make it even harder to find the right people for the right jobs."

But all is not lost, according to Randstad. Providing more flexible working hours for older workers would help keep them in positions longer, an option 43 per cent of those surveyed agreed with, as would changing their roles to act more like mentors to junior staff, thus sharing their skills and experience. In total, 41 per cent of respondents agreed with mentoring as an option.

Finally, introducing retraining schemes for older workers so they can keep up with the latest technology was also a popular suggestion, with 34 per cent opting for that as a solution.

Jacobs added: "To avoid the impending tech talent shortage, employers need to make sure that their company's working hours fit with the demands placed on more senior staff. Having the option to work around other responsibilities such as caring for a loved one or treating any health issues would be a big benefit to older workers. As an increasing amount of work in the tech sector can now be done via the cloud, these changes should be easier to introduce. While some tech firms may already have some form of flexible working, it's important to make sure older workers know these schemes are available.

"In an industry which is constantly evolving, providing support to help older workers adapt to the latest developments is vital if employers want to maximise the benefit of their experience. Helping senior employees to learn the latest coding languages or understanding the newest piece of software will have significant benefits for the whole company. In a sector which is often unfairly thought of as ageist, encouraging older workers to stay in their jobs longer could even enhance the entire industry's reputation."