Despite remaining relatively unscathed by the pandemic in comparison to other industries, the past year has seen uncertainty for the tech industry. As Big Tech businesses continue to be shaken by major layoffs, organisations are navigating the so-called new normal of hybrid working and the cost-of-living crisis meaning job security is more important to employees than ever. The landscape of the sector is changing at a rapid pace.
With a number of tech clients on our books, based in Greater Manchester and beyond, we attended the Manchester Digital Skills Conference Day as the results of the Digital Skills Audit 2023 were unveiled for the first time. Manchester Digital audited over 250 digital and technology businesses across the region with the goal of gathering important information that helps us to better understand the digital and tech sector, the people working in it, and the future skill demands that are emerging.
The general consensus from the audit is that things are generally looking positive for the sector this year and that tech businesses are optimistic for the future. We’ve summarised some of the key takeaways from the audit and what they could mean for the future of the tech industry…
Business performance and confidence
Starting on a positive note, despite the uncertainty the tech industry has faced over the last year, a whopping 78% saw their revenue expand over the last 12 months and 72% saw their staffing levels increase during the same period. Not bad at all.
The last year has also clearly given businesses confidence for the future, as over half (53%) of businesses are not expecting the current economic condition to impact their performance going forward. However, of those that are expecting their performance to take a hit, it looks like recruitment activity will be the first thing to be sacrificed as a result. A total of 46% of employers citied that recruitment would be the number one thing they would stop doing or reduce if they were negatively affected by economic conditions – either experienced or early talent recruitment specifically.
Productivity and ways of working
Over recent years, there’s been no escaping the concept of hybrid working. The audit found that 78% of the tech workforce is now hybrid, far surpassing the estimations from the previous year that this would be just 60%. In fact, the 2023 audit shows that 0% of the tech workforce is currently entirely office based, confirming that hybrid working definitely deserves its unofficial title as the ‘new normal’ and is likely here to stay.
As a result, businesses have been making changes to their policies in an attempt to adapt to this new way of working (75%), including updates to flexible working policies, mandated office days and changes to other policies such as maternity sickness and travel. It is worth noting though, that smaller businesses are slightly slower on the uptake, with 31% of businesses with up to 50 employees having not made any additions or changes so far.
However, despite so many businesses converting to a hybrid model, they have also stated that hybrid/remote demand and expectations are one of the top three challenges affecting business productivity levels, beaten only by there not being enough experienced or ‘quality’ talent available across the sector in general. If hybrid and remote working aren’t going anywhere soon, then businesses will need to find a way of combating the productivity issues that come with it.
Attraction and Retention
With a lack of talent being a common theme across the challenges the tech industry is facing right now, it has never been more important to understand what it is that attracts and keeps quality talent within your organisations.
As you would much expect, salary remains an important factor in attracting and keeping talent, especially as nearly all employees are all feeling the strain of the cost-of-living crisis. However, perhaps somewhat unexpectedly (although given the stats we’ve already seen, maybe not) the ability to work flexibly surpasses salary as the benefit that both employers and employees deem as the most important. From an employees’ perspective, it has become so important that 85% of employees said that they would be more likely to leave their current job if flexible working arrangements were no longer available.
Overall, the results of the audit serve to reinforce the feelings of confidence and optimism that filled the room at the Manchester Digital Skills Festival Conference Day. The region’s digital and tech businesses continue to see growth through uncertain times in a post-pandemic world and aren’t expected to stop any time soon. It is also clear that the way in which employees work has been revolutionised over the past year and over the next 12 months we will no doubt see further adaptation to this from businesses of all sizes, driving both productivity and employee satisfaction even further. It’s going to be an exciting year for the sector!
Read the full Digital Skills Audit 2023 here.
Interested in hearing more? Get in touch via info@refresh.co.uk or check out our case studies here.