Tech leaders are increasingly preoccupied with a complex array of challenges that keep them up at night. As they strive to stay ahead of technological advancements and market demands, these multifaceted issues not only test their strategic foresight but also their ability to lead effectively in a volatile and high-stakes environment.
Based on our report, here are some of the top challenges facing tech leaders today and how to combat them…
Resource and Budget Constraints
In our study, C-level tech executives cite two challenges as their biggest concerns: resource and budget constraints (31%), as well as workload (31%). These were followed by talent retention (27%) and talent recruitment (26%).
Last year, the same group reported that talent recruitment and talent retention were their biggest challenges. It seems that while C-suite executives are concerned about finding qualified and skilled technical professionals to fill necessary roles, they’re more concerned about not having the budget to open critical positions.
This is one of many reasons we’re seeing tech leaders focus their efforts on upskilling and reskilling their workforce. In fact, 43% of tech leaders are actively investing in training their existing employees.
Why? Because by investing in the development of current employees, companies can fill skill gaps without the lengthy, uncertain, and costly process of recruiting new hires. Not only is this approach more cost-effective when closing gaps, but it also fosters employee loyalty and reduces turnover.
Interested in learning more about the importance of reskilling and upskilling today’s workforce? Check out this blog →
Difficulty Filling Open Positions
It’s not unusual for tech executives to face unfilled positions within their organization, especially in the last 12 months. In this year’s survey, 68% of tech leaders reported having three or more unfilled positions on their teams, and more than half (56%) are having a hard time filling those positions. In comparison to last year, 67% of executives reported having a difficult time filling the openings on their teams.
So, while this is an improvement year over year, it still showcases one of the sticking points for tech leaders, which is the constant struggle to close skill gaps.
Part of the issue tech leaders face when trying to fill open positions is either there are too few candidates on the market, or they're too expensive to hire. What could help here? Leaders and their respective organizations have taken several approaches to either recruit from different parts of the workforce — for example, recent graduates — or by upskilling high-potential employees or reskilling those who show an interest.
Job Security and Satisfaction
From a macro-level, C-level tech leaders feel optimistic about their own job security, with 82% reporting they feel extremely or somewhat good. This figure does, however, represent a 5% drop in confidence from last year. On top of that, while 76% of tech executives still report being satisfied in their current role, that number is down 8% from 2023. To add on, we also saw a slight increase (+2%) in tech executives who are likely to look for a new position in the next 12 months.
So, what’s driving these trends?
It’s likely a combination of factors. For starters, the rapid advancement of generative AI over the last year has created a pressure cooker for tech executives who have to balance deploying this new technology at scale, but doing so in an ethical and responsible way. Check out some of our courses focused on leadership in the age of AI →
Additionally, economic uncertainties and shifting business priorities, exacerbated by recent global events, have also contributed to job insecurity as companies face added budget cuts and restructuring initiatives compared to last year.
