According to a recent report released by KPMG and Markit, IT job creation in the United Kingdom is leading the pack in terms of employment development. Compared to other areas of the private sector, the tech industry has been booming over the last 10 years, creating new positions at a much faster rate than any other business group.
Since the recession, companies within the IT sector have been not only stable, but also steadily trending upward. This progression has come from tech companies of varying sizes, though larger corporations have contributed most to the industry’s success.
IT industry growth dominates UK private sector
While these enterprises have been experiencing expansion, other industries throughout the country have been slower on the uptake. The rest of the private sector has yet to bounce back to any significant degree following the global economic dip.
The International Business Times explained that over the course of the first half of this year, the number of IT jobs increased by 4.3 percent, which differs greatly from the 0.9 percent rise in overall private sector employment.
“The UK technology sector has generated solid rates of job creation over the last four years and that it has consistently outpaced other UK private sectors in creating jobs since the global financial crisis in 2008-09,” stated Tudor Aw, head of technology at KPMG, according to the news source.
As the need for more and more technological advancements continues, the IT industry is only expected to develop even further. With a constantly increasing consumer demand for innovative tools, companies within this field are anticipated to expand their operations and boost their production.
Tech companies will have to grow in order to accommodate the country’s call for more progress in terms of technological development. To accomplish this, they will have to increase their labor sources, hiring more IT professionals and continuing to contribute to the UK’s overall economic growth as a result.
“Optimism is at one of the highest levels since data was first recorded in late 2009 and also continues the trend that technology companies are consistently more upbeat regarding hiring intentions than other UK sectors,” Aw added.
A recent Tech Monitor UK report revealed that this past year, the IT sector had an average performance monitoring index of 54.4, the Financial Times cited. When compared to the entire UK private sector, which has a PMI of 51.3, this is a clear indicator that though the nation’s economy is making improvements in general, the tech industry is doing so at a more rapid pace. In fact, this figure shows that employment with British IT companies is growing at the fastest rate it has since May 2010.
Increase expected in employment and staff retention
While the UK technology industry continues to expand, it is going to become a top priority for businesses within this sector to not only recruit, but also retain professionals throughout their IT departments. With more tech employees to manage, the more money companies will be putting on the line if they fail to keep their staff members content with their employment.
According to CIO.com, the expenses associated with having to find and train new tech personnel are hefty. This is especially true the higher up the IT positions are that are being turned over. To put that cost into perspective, the news source explained that CIOs can expect to spend approximately one-fifth of a staff member’s yearly income as they use the resources needed to hire a new worker.
If IT departments are looking to cut costs, in addition to better guaranteeing that things will pan out well with new tech hires, then they should first look to perfect their onboarding procedures. CIOs have to think of this training process as the building blocks that will dictate the future of any IT professional’s career path throughout their companies.
“Onboarding is like a first impression – it leads someone to trust a company as a new hire and have great thoughts about them – or not,” said IT staffing researcher Rachel Russell, as cited by the news source.
Essentially, the preliminary training may have the ability to make or break an IT professional’s job with a certain firm.
“Onboarding is essential so that the expectations between the employee and employer are very clear.” Russell added. “The employee becomes empowered because they know what resources are available and what relationships they need to start forging. It tells them they are going to have the resources they need to get the job done.”
By focusing on this introductory phase of a staff member’s employment, IT departments can ensure that they are starting newcomers off on the right foot. As consumers place more pressure on tech companies, such as those in the UK, they will find it increasingly more important for them to retain their existing employees, as well as take on new hires.