The UK’s tech sector is expanding rapidly, with a market valuation of $1.1 trillion and 171 unicorn companies, according to Tech Nation’s 2024 report. Despite this growth, the industry faces a major challenge: a shortage of skilled workers.
The IT Skills Gap Report 2023 revealed that 93% of UK businesses acknowledge an IT skills gap, with 35% citing competition in the job market as a key obstacle to recruitment.
The demand for IT and technology skills surged during the pandemic but later plateaued, leading to mass redundancies across major tech firms. At the same time, advancements in artificial intelligence and other technologies have made specialist talent more necessary than ever. With competition for skilled candidates intensifying, businesses are looking for alternative solutions to attract and retain talent.
One strategy gaining traction is lateral hiring—recruiting employees from within the organisation and upskilling them to take on new roles. This approach not only helps address the talent shortage but also reduces hiring costs and improves employee retention.
The Benefits of Lateral Hiring and Upskilling
Stacey Hayes-Allen, Director of Corporate Partnerships at Arden University, said, “Businesses are experiencing a significant shortage of technology talent, and there simply aren’t enough qualified people available to fill the needs of companies. As a result, organisations should look to cultivate talent internally to thrive. We’ve worked with businesses before that have upskilled their staff to the point where they feel comfortable enough to enter a new industry that they once would never have considered they were knowledgeable enough to work in.”
Hiring laterally allows companies to retain employees who already understand the business, its culture, and values, reducing the need for lengthy onboarding processes. It also enhances employee engagement and personal career growth, leading to higher job satisfaction and loyalty. As businesses adapt to evolving technological needs, upskilling internal staff ensures they have the right expertise to respond effectively to new challenges.
Kibria Ahmed, Senior Service Desk Analyst at L.E.K. Consulting, is an example of how lateral hiring can work in practice. He transitioned from Facilities Management to IT while completing a Level 6 Chartered Manager Degree Apprenticeship (BA Hons Business & Management, CMI). Reflecting on his journey, he said, “When I was younger, I went to university but never completed the course, and during the pandemic, I realised I was finally ready to get a degree apprenticeship. It was important that I could still work at the same time and had the flexibility of studying on my own time, as I am also a carer, so doing an online degree apprenticeship was the perfect path for me.
“Funnily enough, I wasn’t planning to change industries, but an opportunity came my way, and I opted to move from Facilities Management to IT. Of course, initially, I felt way over my head – I knew very little about IT, but the skillset I was getting from my Chartered Manager degree apprenticeship helped me navigate through the changes. Since finishing my degree apprenticeship and gaining the knowledge I needed, I feel confident enough to work in an industry that was once completely unknown to me just a few years ago.”
Career Growth Through Internal Mobility
Within nine months of moving into IT, Ahmed progressed into a senior management position. Although he had to develop IT knowledge separately from his degree apprenticeship, he credits the qualification with giving him the confidence and skills to succeed in a new field.
“I was previously on a localised team when I was a Facilities Supervisor. Since completing my degree apprenticeship, I am now working across global teams with up to 500 other people, across different time zones and with people in completely different areas of the business. If I hadn’t taken the leap to do a degree apprenticeship, I never would have imagined working in the role I am today,” he said.
As businesses compete in a global marketplace, retaining and developing talent is crucial. Hayes-Allen believes companies should take a proactive approach to employee growth. “Taking the time to get to know your staff and making sure their true passions and strengths lie within the work they’re currently doing is so important. If their skills are better used elsewhere, businesses should certainly take the time and money to train them to fit into another part of the organisation.”
