Using Data to Close Workforce Gaps in Technology Companies

Using Data to Close Workforce Gaps in Technology Companies
Workforce Resilience

03 of 09

This insight is part 03 of 09 in this Collection.

December 4, 2023 7 mins

Using Data to Close Workforce Gaps in Technology Companies

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Our research shows three workforce challenges specific to technology companies. We highlight ways to close these gaps — which is key to future industry success.

Key Takeaways
  1. Technology firms must continue to strengthen their workforce engagement by improving a sense of belonging. 
  2. Building both physical and mental health is critical, as burnout is higher than in other industries.
  3. Technology companies must develop employees’ ability to navigate change and become more agile. 

Every industry has its own human capital challenges unique to its specific circumstances. Analyzing data from three Aon research programs, we identified workforce risks for specific industries that are facing organizations today.  

Our research shows that there are three pressing workforce challenges for technology companies: creating a sense of belonging, focusing on employees’ physical and mental health and developing their ability to navigate change. How can companies tackle these big issues? With the right data and expertise, organizations will be fully prepared to make better decisions. Below are recommended tips to consider for each workforce area.

  • 3,000

    We analyzed holistic HR data from over 3,000 organizations around the world.

    Workforce Resilience Diagnostic Insights

  • 1,700

    1,700 organizations completed a workforce resilience risk assessment.

    2022 Aon Workforce Resilience Risk Benchmark

  • 1,300

    1,300 organizations told us their workforce wellbeing priorities.

    2022-23 Aon Global Wellbeing Survey

Strengthen Workforce Engagement Through a Sense of Belonging

The technology industry has traditionally struggled to create a sense of belonging for its employees. Our research finds only 52 percent of technology companies feel that they can do a “very good” or “excellent” job of this. This is a concerning trend, as our data also finds a lack of belonging can lead to low morale, higher turnover rates and less innovation.

Mitigating the risks associated with not fostering a sense of belonging in the technology industry begins with progressive and inclusive leadership. This involves promoting a leadership style that values diversity, actively listens to employees' concerns and encourages open dialogue. Leaders should create an inclusive work environment where all employees feel valued and respected regardless of their background or position.

The development of a workforce skills framework will also encourage a shared purpose and belonging among employees. This is a structure that allows organizations identify, develop and acquire the skills needed for the workforce of the future. As technology companies increasingly rely on new digital tools, such as automation and artificial intelligence, they are competing across industries for talent. A robust skills framework will help attract and retain the talent they need and provide ample reskilling and upskilling opportunities for existing employees.  

Improving the Physical and Mental Health of Employees

Employee burnout in the technology industry ranks higher than in other industries at 46 percent versus 34 percent for all industries. The fast-paced nature of the industry, coupled with demanding workloads and high expectations, often leads to increased stress levels and burnout among technology professionals. Today, technology companies are no longer adding headcount at the same rate — which means now is the time for them to reposition their workforce for greater operational resilience. Given this gap, the industry should spend more time on refining employee wellbeing programs, improving employee engagement and decreasing healthcare cost pressures. 

The right wellbeing program will target micro-stresses that occur in the workplace to prevent burnout. Furthermore, our 2022 Health Survey found 47 percent of employees in the United States live in areas with limited access to mental health services. With mental health an acute concern among technology firms, employers should ensure increased access within healthcare plans.

Technology companies should also focus on ways to reduce healthcare cost pressures, particularly in the U.S., where cost and affordability of healthcare is a huge concern for both employees and employers. Value-led healthcare strategies allow employers to lower costs while improving affordability and quality of care. Even more, they don’t require major changes to healthcare plans. These include advising employees on optimal providers, reducing cost uncertainty with predictive analytics and integrating support by bringing different vendors together. 

52%

Fifty-two percent of technology companies say they are “very good” or “excellent” at creating a sense of belonging for their employees.

Source: Aon’s workforce resilience data

Quote icon

Generative AI has the potential to create, change and even make some tech jobs obsolete. That’s why I’m seeing so many of our clients emphasize reskilling and upskilling. It’s going to become really important to this industry in the coming years.

Olivier Maudiere
Partner and Technology Vertical Lead, Human Capital Solutions, North America


Developing Employees' Ability to Navigate Change and Become More Agile

The constant need to adapt to rapidly evolving technologies and meet tight deadlines can further contribute to a lack of work/life balance. Improving workforce agility can be tackled by first auditing your working model to make informed decisions about location strategy. This will help identify gaps in your workforce skillset, and ensure accuracy, reliability and compliance with established standards. Additionally, boosting employee mobility by prioritizing and investing in adaptability enables employees to gain exposure to new technologies and develop future-focused skills.

“The recent explosive growth of AI with tools like ChatGPT may transform many industries, but the tech industry in particular, may experience a complete overhaul,” noted Sheena Singh, senior vice president of the healthcare vertical at Aon, in a recent On Aon podcast.

This will mean workforce resilience becomes more important than ever, says Ishita Goel, director of innovation in Aon’s Talent Solutions: “Simple coding will now be done by AI. We'll start to see upskilling and reskilling of the workforce becoming extremely important.”

How Aon Can Help

Ready to get started? Download our Measuring Workforce Resilience for Better Business Outcomes Guide or get in touch with one of our technology experts to discuss how to help your organization improve workforce resilience. 

 

+12%

Forty-six percent of technology professionals surveyed across our research programs report feeling burnout vs. 34 percent for all industries.

Source: Aon's workforce resilience data

General Disclaimer

This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.

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