The Cost of Tech Skills | Silicon UK Tech News

The rising demand for tech skills is reshaping industries, but at what cost? From financial investment and time pressures to diversity challenges and skill misalignment, the UK’s tech ecosystem faces critical hurdles in building a resilient, inclusive, and future-ready workforce.

In today’s rapidly evolving technological landscape, the cost of acquiring and maintaining tech skills has become a critical issue for individuals, businesses, and the broader economy. Beyond the financial expense of training, the true cost encompasses time investment, workload pressures, diversity challenges, and misalignment between skill supply and demand. Insights from industry experts and recent research reveal a multifaceted problem that requires urgent attention.

Upskilling in tech has increasingly become a financial and professional necessity. Many aspiring tech workers see it as a direct pathway to higher salaries, with up to 50% expecting to boost their earnings by £10,000 to £20,000 through acquiring new skills, according to a Pluralsight survey. However, there is often a misalignment in focus.

Aspiring professionals tend to prioritise skills in artificial intelligence and machine learning, reflecting the growing prominence of these technologies. Yet only 15% of existing tech workers believe these areas are the most critical. Instead, fundamentals like software engineering and cybersecurity are cited as higher priorities by industry veterans. Chris Herbert, Chief Content Officer at Pluralsight, warns, “While AI skills will remain crucial, learners shouldn’t lose sight of fundamental skills like software development and cybersecurity.”

This misalignment has significant economic implications, with the UK’s digital skills gap costing the economy an estimated £63 billion annually. Herbert’s comments reflect a broader challenge: equipping workers with the right skills to meet industry demand while avoiding an overemphasis on trends that may not deliver immediate value to businesses.

The financial burden of upskilling can vary dramatically. Traditional university degrees remain a popular choice, with nearly half of UK technologists entering the industry through academic qualifications. But these routes are often inaccessible to underrepresented groups due to their cost and the time they require. Dr Andrea Cullen, CEO of the cybersecurity reskilling programme CAPSLOCK, explains, “Even at entry-level, individuals without the right educational background face significant barriers, contributing to the lack of diversity in tech.”

Alternative training models are helping to bridge this gap. Snowflake’s “Get Cloud Certified This Autumn” initiative, for instance, offers free training to 150 civil servants, empowering them with essential data and cloud skills. This programme not only addresses the cost barrier but also aims to meet the public sector’s urgent need for qualified professionals. Cullen argues that expanding access to such programmes is crucial, particularly for breaking down the barriers that disproportionately impact women, ethnic minorities, and those from lower-income backgrounds.

Martin Turner, Senior Change Delivery Manager at CDDO (Central Digital and Data Office) added, “It’s great to have Snowflake onboard this crucial CDDO initiative, which we hope will be very influential to advancing the public sector. As part of a wider digital upskilling initiative, Snowflake’s training will be key to accelerating data use in government and enabling our organisations to derive value from data rapidly, securely and safely.”

The Strain of Keeping Up

Time, as much as money, is a significant cost for those pursuing tech skills. Many workers prefer hands-on, immersive learning environments, which, while effective, require substantial time investment. For professionals already balancing heavy workloads, this adds to the pressure. A recent survey highlighted that workloads have increased for 54% of UK tech workers over the past year, with 50% considering leaving their roles due to burnout, according to the Harvey Nash Global Tech Talent and Salary Report.

The relentless pace of technological advancement exacerbates these challenges. Charlotte Webb, Operations Director at Hyve Managed Hosting, notes that the speed at which new technologies emerge often outpaces the training pipeline. “Technological advancement is driving costs and workloads higher,” she observes, creating a cycle where professionals must constantly update their skills to stay relevant, even as they struggle to manage existing demands.

Diversity Challenges in Tech

Diversity, or the lack thereof, presents another hidden cost. Women represent just 36% of cybersecurity professionals, and ethnic minorities remain significantly underrepresented in tech. Experts like Cullen point to systemic issues in education as a key barrier. STEM subjects are often taught in a way that fails to inspire a broad demographic of students. “Even as early as primary school, education systems must break down STEM into distinctive fields,” Cullen argues, “and at secondary school, ensure career advice includes broader recommendations.”

The industry’s diversity deficit has practical consequences. Andy Heyes, Managing Director at Harvey Nash, highlights that diverse teams foster innovative thinking and creative problem-solving, qualities that are essential for tackling the complex challenges in today’s tech landscape. Yet without targeted outreach, inclusive hiring practices, and skills-based recruitment approaches, businesses risk perpetuating a cycle of exclusion.

“After pay, satisfaction in flexible work environments, work-life balance, and positive corporate culture feature high on their list of demands,” says Hayes. “Even with tech talent availability returning to pre-pandemic norms, UK businesses must adapt to these evolving needs to attract and retain top tech talent effectively.”

Educational institutions bear a significant share of responsibility for equipping students with industry-relevant skills. However, as Zain Ali, CEO of Centuro Global, explains, “Graduates frequently enter the job market with a knowledge base already a few years out of date.” Many universities and colleges struggle to adapt their curricula at the speed demanded by the industry, leaving a gap that businesses must often fill through on-the-job training.

Some businesses are taking proactive steps to address the skills gap. Structured upskilling programmes, partnerships with managed service providers (MSPs), and the integration of generative AI into training initiatives are increasingly common strategies. Suzanne Button, EMEA Field CTO at Elastic, highlights the role of AI in bridging the experience gap. “Generative AI can automate routine tasks, offering on-demand guidance and freeing up time for strategic projects,” she explains. This approach not only accelerates skill acquisition but also helps businesses optimise resources, ensuring that their teams are prepared to tackle emerging challenges.

Building a Resilient Tech Ecosystem

Addressing the cost of tech skills requires a coordinated effort across multiple sectors. Policymakers, educational institutions, and businesses must work together to create a sustainable talent pipeline. Key recommendations include integrating industry partnerships into educational curricula, expanding access to affordable training programmes, and promoting lifelong learning as a core value for employees and employers alike.

Diversity must also remain a central focus. Outreach initiatives that target underrepresented groups, along with inclusive hiring practices and skills-based recruitment, can help broaden the talent pool and foster innovation. As Cullen argues, “Creating more opportunities for nurturing talent can pave the way for long-term solutions to the skills gap.”

The cost of tech skills is not just about money. It encompasses the time and effort required to develop expertise, the societal challenges of diversity, and the broader implications for businesses struggling to keep pace with change. Addressing these issues will not only create a more equitable and inclusive industry but also ensure that the UK remains competitive in a rapidly evolving global economy.

The stakes are high, but so are the potential rewards. With the right investments in education, training, and diversity, the tech industry can become a powerful driver of innovation and growth. As Heyes concludes, “Winning on talent could be the difference between business success and failure.”

Elliot Gowans, general manager of Access Learning, part of The Access Group.

What are the main factors contributing to the continued tech skills gap in the UK?

“The tech skills gap in the UK is a complex issue shaped by several key factors. One of the main challenges is the rapid pace of technological advancement, which often outstrips the ability of educational institutions to update their curricula. 

“Fields such as artificial intelligence and data science are evolving quickly, yet many academic programmes remain anchored in outdated content that fails to meet current industry demands. This has led to 70% of organisations around the world experiencing difficulty in finding the right talent to keep up with the pace of change, when it comes to IT skills.

“Furthermore, there is a significant disconnect between the skills taught in educational settings and those sought by employers. As a result, graduates frequently lack the practical experience necessary for the job market, leading to a mismatch that not only affects their employability but also hampers business growth across various sectors.”

How does the tech skills shortage impact businesses of different sizes and industries across the UK?

“The tech skills shortage affects businesses across the UK in various ways, depending on their size and industry. Large corporations, while generally better equipped to navigate these challenges, still struggle to maintain their competitiveness. They often find themselves in bidding wars for top talent, leading to inflated salaries that can strain their financial resources.

“In contrast, small and medium-sized enterprises (SMEs) face even more significant obstacles. With limited resources, SMEs find it difficult to compete with the attractive compensation packages offered by larger firms, which can hinder their innovation and growth. 

“Additionally, industries that rely heavily on technology – such as finance, healthcare, and the tech sector itself – are particularly vulnerable to this skills shortage, as they require specialised skills that are increasingly scarce. It has been reported that an estimated 160,000 workers in the financial services sector require upskilling, which is approximately 16% of the entire UK finance workforce.”

What role do UK educational institutions play in addressing the skills gap, and are they keeping pace with the evolving tech landscape?

“UK educational institutions play a crucial role in addressing the tech skills gap, but many are struggling to keep up with the rapidly evolving tech landscape and how to then action this in the classroom. Although there are commendable efforts to modernise curricula, the pace of change often remains inadequate. To better prepare students for the job market, institutions must engage more closely with industry to ensure that the skills taught align with current demands. 

“There is an urgent need to enhance practical experience through internships, co-op programmes, and partnerships with tech companies. These initiatives would provide students with valuable hands-on learning opportunities, better equipping them for future careers in technology.”

What effective strategies can businesses adopt to bridge the tech skills gap?

“To bridge the tech skills gap, businesses must implement proactive strategies. One crucial approach is investing in comprehensive training and development programmes aimed at upskilling and reskilling the current workforce. Research shows that companies that continuously invest in reskilling and upskilling programmes see strong results. Among employees who complete these training programmes, 41% successfully bridge their skill gaps, demonstrating that this approach is an effective one.

“Additionally, mentorship initiatives can play a vital role in facilitating knowledge transfer and creating a more skilled workforce. Collaborating with educational institutions to create tailored training programmes can further help address specific skill shortages, ensuring that employees are equipped with the necessary competencies to thrive in an evolving technological landscape.”

Is attracting the right tech talent always about offering higher salaries, or are there other factors that influence candidates’ decisions?

“While competitive salaries are important, they are not the only factors influencing tech talent’s decisions. Today’s workforce places a high value on workplace culture, career development opportunities, and work-life balance. Companies that create a supportive and inclusive environment, where employees feel valued and have opportunities for growth, are more likely to attract and retain top talent. 

“Flexibility in working arrangements, such as remote work options, also serves as a significant draw for prospective employees, further enhancing a company’s appeal in the competitive tech landscape. According to one survey of tech employees and 230 enterprise technology organisations globally, the top reasons that employees start looking for a new job are a lack of learning and growth opportunities, lack of flexibility, and insufficient rewards and recognition for their work, demonstrating that salary is not the only factor which influences candidates’ decisions.”

How can businesses improve their internal training and development programmes to retain and upskill their current workforce?

“Enhancing internal training and development programmes requires a strong focus on personalised learning experiences. Businesses should assess employees’ skills and career goals to create tailored development paths that not only boost engagement but also align individual growth with organisational objectives. To achieve this, providing effective, scalable digital learning solutions that deliver targeted training are a great advantage.

“For example, e-learning courses delivered through a Learning Management System – can make learning easier to manage, but also more accessible and flexible for employees, allowing them to progress at their own pace and better meet their professional development needs. 

“An impressive 87% of millennials consider learning opportunities in the workplace essential, highlighting the strong value placed on personal and professional development. This investment not only boosts job satisfaction but is also crucial for employee retention; in fact, 94% of employees state they would remain longer with companies that prioritise their growth.”

What role does diversity and inclusion play in addressing the tech talent shortage, and how can businesses cultivate a more diverse talent pool?

“Diversity and inclusion are essential for addressing the tech talent shortage. A diverse workforce brings a wealth of perspectives, driving innovation and creativity. To harness this potential, businesses must actively engage in outreach to underrepresented communities and implement inclusive hiring practices. 

“Providing learning opportunities on diversity and inclusion is something that should be considered, for hiring managers, but also for all staff in creating an inclusive environment. By prioritising diversity and inclusion, companies can create an environment that not only supports employee growth but also enhances overall organisational performance.”

How important are partnerships between businesses and tech training providers in helping to close the skills gap?

“Partnerships between businesses and tech training providers are vital for closing the skills gap. These collaborations enable the development of training programmes that are closely aligned with industry needs, ensuring that the skills taught remain relevant. 

“As a result, businesses gain access to a pipeline of talent that is better prepared to meet workforce demands, while training providers benefit from valuable insights provided by employers. This mutual exchange of knowledge and resources enhances the effectiveness of training initiatives, ultimately contributing to a more skilled workforce.”

Can small and medium-sized enterprises (SMEs) compete with larger corporations in attracting top tech talent, and what approaches can they use?

“SMEs can effectively compete with larger corporations for top tech talent by leveraging their unique advantages. Smaller organisations can often offer quicker career progression and more responsibilities – something which ambitious candidates will be drawn to. To attract this talent, it’s essential for SMEs to highlight their company culture, flexibility, opportunities for progression and development and the direct impact employees can have on the organisation. 

“Strong employer branding and showcasing success stories can resonate with candidates who seek a personal and engaging work environment. By emphasising these attributes, SMEs can position themselves as appealing alternatives to larger firms. In fact, many are already doing this – with 32% of SMEs reporting that they have been enhancing their workplace culture to attract top talent over the last three years, compared to just 24% of large businesses.”

How can businesses future-proof their workforce to ensure they continue attracting and retaining skilled tech professionals in an ever-evolving industry?

“To future-proof their workforce, businesses must cultivate a culture of continuous learning and adaptability. This involves investing in training programmes and encouraging proactive skill acquisition among employees. By regularly assessing emerging trends and technologies, organisations can identify potential skill gaps before they become critical issues. 

“Furthermore, encouraging open communication about career aspirations and development needs is essential for ensuring workforce engagement and motivation. By prioritising growth and innovation, businesses can position themselves as attractive employers in a competitive landscape, ultimately enhancing their ability to attract and retain top talent.”