Persistent Talent Shortage May Hinder Hiring Plans of Technology Companies, New Survey by TECNA and Arizona Technology Council Reveals

Survey of 1,500-plus executives offers national, regional views on business conditions, investment plans and policy concerns

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Arizona Technology Council

Dec 09, 2014, 04:28 ET

PHOENIX, Dec. 9, 2014 /PRNewswire/ -- Technology companies across the country intend to hire new staff over the next 12 months but those plans may be sidetracked by a continuing shortage of qualified tech talent, according to a new survey released today by the Technology Councils of North America (TECNA) and the Arizona Technology Council.

The Arizona Technology Council is Arizona's premier trade association for science and technology companies.

The third annual National Survey of Technology, Policy and Strategic Issues reveals the perception of the quality and quantity of tech talent has become worse. A net 74 percent of technology executives said there's a shortage. Nearly a third categorizes the shortage as significant.

By comparison, 69 percent of executives in the 2013 survey said there was a shortage, with 25 percent calling the shortage significant.

The perception of a tech talent shortage comes at a time when 63 percent of executives said their companies intend to hire new staff over the next 12 months. Three-quarters of small firms (10-99 employees) and two-thirds of medium companies (100-499 employees) expect to add staff over the next year. A smaller percentage of micro firms (57 percent) and large companies (52 percent) plan to do so as well.

"The skills shortage issue is one that affects technology companies from coast to coast and border to border," said Steven G. Zylstra, TECNA chairman and president and CEO of the Arizona Technology Council. "We're in the midst of a great phase of ingenuity and innovation, and companies are poised to do even more but the shortage of skilled workers poses a serious threat to their ability to do so."

"TECNA members such as the Arizona Technology Council are committed to doing all they can to ensure there is a sustainable pipeline of skilled new entrants into the nation's technology workforce," said Bob Moore, CAE, TECNA executive director.

Other Key National Findings

Business Sentiment: The survey reveals positive momentum in executives' assessment of business conditions and the economy. Confidence in the U.S. economy made the biggest jump year over year, climbing from 56.4 (on a 100-point scale) in 2013 to 63.2 in 2014. Executives are most confident in their own companies (72.2) followed by the tech sector overall (71.9). At 54.6, the global economy had the lowest mark.

The six-month outlook is generally favorable as well, with 65 percent of firms expecting improvement in their own companies, 47 percent in the tech sector and 41 percent in the U.S. economy. Enterprise software firms, IT services firms, and digital, media, apps and data firms have the highest expectation for improvement in business over the next six months.

Increased Investments: Beyond hiring new workers, a significant number of companies have other business investment plans for the next six months. For example, 62 percent said they'll invest in new products and business lines. Just over half plan more spending on advertising and marketing activities.

Growth Inhibitors: Concerns about the impact of the talent shortage registered the biggest jump when executives were asked about factors that could inhibit growth. But levels of concern about other issues either declined (general lack of confidence, government regulation) or held steady (lower margins, downward pressures on pricing, unexpected shock) from the 2013 survey.

Impact of Government: Executives gave low to middling marks when asked to rate how well the government represents the interests of the technology sector. At the federal level, 45 percent said "poorly" or "very poorly" and 41 percent said "just okay." Both figures are identical to the 2013 survey. At the state and local levels, the 2014 ratings were virtually unchanged from a year ago: 24 percent of executives said poorly or very poorly and 39 percent, just okay.

Policy Priorities: More government support for STEM (science, technology, engineering and math) education at both the K-12 and secondary education levels should be the top policy priority in 2015, according to executives surveyed by TECNA. Following closely behind STEM education as an area for policy action is taxation and regulatory reform, cited by 42 percent of respondents.

Regional Breakdown

The report contains comparisons among geographic regions. The Western region represented a sample size of total of 400 respondents from technology councils or associations in Arizona, California, Colorado, Idaho, New Mexico, Oregon, Utah and Washington.

The findings revealed:

Business sentiment among technology firms in the West continues to trend upward, with 73.7 percent of executives expressing a positive outlook about their company's future prospects.
Looking ahead, 68 percent of technology firms in the West see improvement in their performance over the next six months.
Nearly six in 10 companies in the West plan to increase staffing levels among their technical positions over the next six months. Increases in staffing of non-technical positions are planned by 52 percent of firms.
Forty-four percent of Western executives said state and local governments are doing a poor job of representing the interests of the tech sector. Forty percent said the representation is "just okay."

The 2014 National Survey of Technology, Policy and Strategic Issues is the result of an October 2014 online survey of 1,561 senior (C-level) U.S. IT and business executives belonging to the Arizona Technology Council and other regional technology associations affiliated with TECNA. The survey was conducted in conjunction with CompTIA, the IT industry association. The complete report is available at http://www.technologycouncils.org.

About the Arizona Technology Council

The Arizona Technology Council is Arizona's premier trade association for science and technology companies. Recognized as having a diverse professional business community, Council members work towards furthering the advancement of technology in Arizona through leadership, education, legislation and social action. The Arizona Technology Council offers numerous events, educational forums and business conferences that bring together leaders, managers, employees and visionaries to make an impact on the technology industry. These interactions contribute to the Council's culture of growing member businesses and transforming technology in Arizona. To become a member or to learn more about the Arizona Technology Council, visit http://www.aztechcouncil.org.

About TECNA

The Technology Councils of North America (TECNA) represents 50+ IT and technology trade organizations that, in turn, represent more than 22,000 technology-related companies in North America. TECNA serves its members and the industry through its strong peer-to-peer network and its regional initiatives to raise the visibility and viability of the technology industry. For more information, visit http://www.technologycouncils.org.

For more information, please contact:

Media contact:	Organization contact:
Linda Capcara	Steven G. Zylstra
TechTHiNQ	Arizona Technology Council
[email protected]	[email protected]
(480) 229-7090	(602) 343-8324 x101