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Ottawa tech companies among those feeling the pinch of a growing skills gap

May 10, 2024

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Tech leaders are increasingly worried about a growing skills gap as workers struggle to keep up with rapid changes in technology, according to a new report from recruiting and employment agency Robert Half. The research study found that 52 per cent of tech managers surveyed were seeing significant skills gaps within their departments, and 48 per cent found the impact of that gap is more apparent now than it was a year ago. “Tech moves really fast,” said Nathan Wawruck, a technology talent solutions expert and director at Robert Half. “Even if you have great people on your team, if they aren’t keeping pace with all the changes in the industry, those skills can get out of date really quickly.” The survey found that the lack of skilled staff was most evident with newer or highly specialized technologies, including AI and machine learning; cybersecurity and privacy; and cloud architecture and operation. The challenges extended to hiring, with almost all managers (92 per cent) reporting difficulties finding skilled candidates to meet their needs. Pierce Ujjainwalla, co-founder and CEO of Knak, said the need for specialized technology training is higher than ever and tech companies can’t afford to wait. “AI was one for us,” he told OBJ on Thursday. “We started building generative AI into our platform. All of our developers are learning it and some have gotten really proficient, but it takes time and it’s a really unique skill set. So we ended up hiring someone outside. You can learn these things, but you don’t have time to wait until your existing team gets ramped up.” Gaps in AI skills were the most prevalent for many employers, due to the newness of the technology and the lack of formalized training available. While AI is less of a necessity than something like cybersecurity, 79 per cent of tech leaders reported plans to implement AI initiatives this year. Nearly half cited a lack of skilled staff as the biggest barrier to their projects. Ujjainwalla said the size of Ottawa’s local tech community is one of the factors posing challenges for local companies. “It’s a very small talent pool in Ottawa, especially as you get to the VP level and above,” he said. “There’s not as many companies for people to go into or to progress their career. I look at it and I wish we had more tech companies that were creating these great people. Each company helps each other. If someone leaves Knak and goes to another company, they’ve brought a lot of things they’ve learned to the next place and vice versa for us.” Despite the challenges, Ujjainwalla said his company is finding ways around them. In addition to hiring third party experts and bringing on more remote workers, Knak is prioritizing training for its staff and encouraging employees to experiment with new tech. “We really encourage people to use it,” he said. “A lot of our managers have led AI workshops and dedicated a day to just jam on it and see what it can be. I think you need to give time and space and permission for people to go out there and experiment.” He added that there’s also hope with the next generation: “There are great young people in the city who we have had a lot of success with hiring out of university and college very early in their careers. I would say that they’re really able to come in and learn and pick things up fast. They’re open and easily mouldable.”

Researcher says gap will persist as boomers retire

A number of factors are contributing to the skills gap, according to Wawruck from Robert Half, including the pace of change and a lack of formalized training processes. But changing workplace demographics are also having major consequences. “There’s a huge number of people exiting the workforce every year, especially in Canada,” said Wawruck. “All the baby boomers are retiring and they’re taking huge amounts of knowledge with them. And there’s not enough people coming through the school system, or even with immigration, to keep pace with that.” Because that trend will continue for the next several years, he said the skills gap issue isn’t going to go away anytime soon. “It will be a real distinct issue going forward and it’s actually accelerating,” he said. “We’re just going to have less people in the workforce. As a company, as an employer, the trick is to recognize that. It’s not a moment in time; it’s a marathon, not a sprint. You have to have a good talent pipeline and you’ve got to constantly have your feelers out there to attract good people.” The problem is also expected to ebb and flow. Right now, for example, layoffs have made a larger number of highly skilled workers available in a way they weren’t at the height of the pandemic. “It’s a good time to hire people,” said Wawruck. “I think the labour market has kind of shifted a bit. That’s not to say it’s easy, but I would always recommend at least getting an advertisement up if you’re looking for a skill set and see who applies. That’s the passive approach. There’s also hiring agencies like us who tend to do those things more quickly.” While there’s no substitute for hiring someone with the skill set you need, Wawruck said dedicating extra resources to train existing staff is worth the investment. “If you get training for your people, you don’t just check a box,” he said. “They’re going to stick around longer, they’re going to be challenged, it’s great for their professional development. Setting aside a bigger portion of your budget for training, certifications, education — people absolutely love that stuff. Help them do those things.” He also recommends tackling the retirement issue before it becomes a real problem: “Get more senior staff to coach and mentor junior staff to ensure that knowledge transfer internally. It takes a bit of planning and a bit of organization, but it’s worth it.”