IT Talent Shortage in the Nordics - What can you do?

Buckle up for a journey into the heart of the Nordic tech landscape, where the demand for IT talent is like a whirlwind. Over the last decade, the global shortage of skilled professionals has taken a double spin, leaving companies worldwide grappling with the challenge of finding the right talent. The Nordics, renowned for their tech prowess, are right in the path of this talent storm.

Picture this: The Scandinavian countries are home to tech giants like Skype, Klarna, Spotify, and Mojang. Yet, here's the twist – as these digital pioneers soar to new heights, they're hitting a snag. The talent pool isn't keeping pace with their aspirations and though some have experienced massive tech lay-offs you can rest assured they are not getting rid of their best performers.

In this article, we dive into the dynamics of the software developer shortage in the Nordics, unravel the factors driving this phenomenon, and uncover the strategies Scandinavian companies are employing to bridge the skills gap.

Tech Talent: Riding the Wave

The digital revolution is an ongoing saga, driven by advancements like generative AI. This represents a need for IT professionals who can do more than just code. We're talking about individuals who understand the broader implications of technology for innovation – and the demand is skyrocketing.

Here's the kicker: globally, an insane 40 million technical jobs are vacant due to a shortage of skilled candidates. Even more insane, this number could more than double to a staggering 85.2 million in the next decade. The race for talent is on, and the stakes couldn't be higher.

Unveiling the Nordic Dilemma

In the midst of the breathtaking landscapes and Nordic innovation lies a reality check. Yes, the region boasts tech titans, but the struggle to secure skilled IT experts is real.

Take a closer look: Finnish companies are contending with shortages ranging from 66% to a staggering 90%. In Sweden, it's a similar story – 56% to 65% of businesses are in dire need of seasoned professionals. Over in Norway, 15% to 40% of organisations are feeling the crunch.

Decoding the Conundrum: The Underlying Forces

The reasons behind this talent tug-of-war are as diverse as the Nordic landscape itself. Yet, amid the complexity, some patterns emerge:

Education Evolution: The Nordic education system is playing catch-up. It's struggling to keep up with the breakneck pace of the tech world, leading to a gap between what graduates know and what industries need.

Demographic Dilemma: Aging populations and dwindling birth rates are turning the workforce pipeline into a trickle.

The Candidate's Court: With the rise of remote and hybrid work combined with the shortage of skilled workers, IT professionals are calling the shots. They're seeking employers who offer not just great pay, but also a sense of purpose, interesting tech and personal growth potential.

Global Realignment: The Russian and Belarus software outsourcing scene, once a treasure trove of tech talent, is experiencing a seismic shift due to geopolitical tensions, causing ripple effects in the global talent pool.

Geopolitical Quandaries: Ongoing events, like the war in Ukraine, are causing governments to shift priorities. This is impacting investments in the tech sector, making the talent hunt even trickier.

Strategies to Navigate the Storm:

The IT talent crunch is a wakeup call for Nordic companies, urging them to chart a new course. While the journey is intricate, a few strategies shine:

Nurturing Local Heroes: Initiatives to inspire students to pursue computer science, partnerships with universities, internships, and up-skilling efforts are nurturing a homegrown talent pipeline.

Embracing Global Talent: Nordic companies are broadening their horizons, tapping into talent pools worldwide. While grappling with the challenges of hiring abroad, they're increasingly open to recruiting professionals from diverse backgrounds.

Work From Home Revolution: Hiring skilled software developers remotely/hybrid is gaining traction. Though some companies succeed in driving a remote first act, still most Nordic countries prefer their employees to be at the office now and then. With recent developments, many companies are however making remote or hybrid work a possibility.

Supercharge with Partnerships: Teaming up with tech talent wizards who know the ropes seems to be a much better approach to 'Doing it yourselves'.

Partnering with tech talent specialists streamlines the process, offering benefits like expert sourcing, screening, recruitment, and direct headhunting of the passive talents needed, while the companies can focus on their core-business. They will also be able to act on your behalf and attract the best matching performers.

As the Nordic tech saga unfolds, these strategies paint a hopeful picture. While the talent gap remains a challenge, the region's proactive stance shows its determination to navigate rough waters and emerge stronger.