Why leading IT talent is deserting the public sector

Transcription

1 Why leading IT talent is deserting the public sector PRIVATE PUBLIC

2 Foreword The UK government has set itself some tough challenges; not least to become one of the best leading digital economies across the board in five years time. In order to achieve that goal, the UK must demonstrate that it has the knowledge and expertise to compete internationally. We have a lot to be proud of; the UK is leading the charge when it comes to open data, with over 20,000 government datasets now openly available for use by industry and it is a founding member of the D5, a group that includes some of the more digitally advanced governments in the world. It was also the first country in the world to mandate coding in the primary and secondary school curriculum. And don t forget that we have a thriving tech scene with new startups popping up almost weekly. Yet, as a nation, we still don t have an open, agile and transparent public sector. We want to be able to consume public sector services as we do everything else in an always-on, easy-to-use and seamless way. At this year s SXSW President Obama summarised the issue, saying It is easier to order a pizza than it is to exercise the single most important task in a democracy to select who to represent you in government. This disparity between the private and public sectors is slowly narrowing, but the changes and innovations needed to bring the public sector in line with the private aren t happening quickly enough. A recent research report published by Deloitte shows that UK organisations see their employees and leaders as the least prepared in terms of digital skills, with 75% stating that their digital capabilities are behind the private sector. This is where many of the issues lie there is an inherent culture change that needs to take place within the public sector to ensure that it can recruit and retain the talent needed to drive a more digitallyled culture. It needs to demonstrate to graduates and more seasoned professionals that the public sector will provide them with an environment that drives innovation and will support them in the development of their skills and realising their career aspirations. Crucially, the delayed and much anticipated announcement of the government s Digital Transformation Plan will be a key driver for organisations to ensure that they have the teams in place to deliver against any new targets outlined later this year. In the wake of this announcement, it will be up to the leaders of public sector organisations and their technology support functions to demonstrate a collaborative vision, ambition and drive to put digital technology at the forefront of their organisational transformation. It s not just about bringing in new talent either but upskilling the whole workforce to create a culture where digital sits at its heart. Understanding what public sectors workers want and need to feel inspired and encouraged to drive digital transformation is a vital step in the development of a more digitally-led public sector. Through this study, we wanted to shed some light on where public sector workers believe there are gaps in the ability of public sector organisations to meet their ambitions, and what organisations need to do in order to attract and retain the talent they need for the future. James Norman, Public Sector CIO 2 The Great Skills Exodus

3 Introduction The public sector is not alone in the fight to develop its digital capabilities; in fact, UK businesses in general are failing to prioritise IT in the wider business and risk losing IT talent. The IT industry is currently suffering from a lack of skilled workers, with the number of unfilled digital jobs in Europe forecasted to reach 756,000 by 2020, according to research from Empirica. Skilled IT staff are at an advantage, with plenty of job vacancies available to them, they have the luxury of choice. It is up to organisations to create a culture that engenders innovation and provides opportunity for progression and innovation, which will have a dramatic impact on the opportunities that they can offer their IT teams. This survey reveals that many of the frustrations faced in the public sector are related to the culture of the organisation, with respondents highlighting pay and a lack of opportunities to progress careers and demonstrate personal ability as key drivers to moving jobs. When you consider the fact that two thirds of respondents have looked for alternatives roles in the past twelve months, it s clear the public sector is at a crucial point where it needs to demonstrate real commitment to change in order to ensure that it can move forward with the digital talent it needs. Perhaps surprisingly, the results also revealed that IT managers are well aware of the issues leading to IT team members looking at roles outside of their current organisation but feel that they are unable to make the changes needed to encourage them to stay. This could be put down to the historical disconnect that exists between management and the IT team, and the need to demonstrate the value that tech savvy employees provide to organisations. This is where emerging job titles such as Chief Data Officer are coming into their own; providing the bridge between the divisional leaders and other units within the organisation. Generally, the public sector needs to become more agile, implementing change quickly and turning on a dime when required; this is important for the organisation as a whole when it comes to retaining valuable talent. And IT talent certainly is valuable. Public sector respondents felt technology was critical when it comes to the future success and growth of public sector organisations, with 87% of IT workers stating that success was fundamentally reliant on technology and 75% saying it was reliant on themselves or the wider IT team. Nurturing the skills of these teams will allow organisations to exploit their full potential and innovate for tomorrow. However, if IT workers contributions to the business are not valued, this could have significant ramifications for the business, as IT staff look to move to organisations better equipped to appreciate their value and tap into their skillset. Successful organisational transformation today is shaped by culture, people and technology. The findings from this report highlight that any perceived lack of investment across all three areas by employees will have a knock-on effect for those at the coal-face of the business. Money is far from the only driver of employee satisfaction for IT staff; there are opportunities for forward thinking businesses to attract and retain skilled IT staff by giving them a role in the innovation and transformation of the organisation. The Great Skills Exodus 3

4 Executive Summary Four in five (81%) public sector workers already feel that they have the skills in their organisation to support the digital transformation of public services Nearly half (47%) of public sector workers believe that their organisation would benefit from having the vision to plot long term digital plans 87% of IT workers in the sector agree that the growth and success of their organisation is fundamentally reliant on technology 75% state that the growth and success of their organisation is fundamentally reliant on themselves or their team JOBS Two thirds (66%) are currently considering alternative roles (surprisingly lower than the private sector average of 72%), with 63% stating pay, almost half (45%) highlighting restrictions on career progression and over a third (35%) stating lack of opportunities to demonstrate their personal ability as key drivers 4 The Great Skills Exodus

5 Research overview The aim of this study was to better understand the public sector s opinion and adoption of the much needed digital transformation revolution that is being driven by the government, the UK public and wider market drivers. Specifically, the research looked at the current digital skill level of public sector workers and organisations, as well as what changes they believe need to be made in order to make the digital transformation goal a reality. The study polled 500 IT workers in organisations of 250+ employees in the UK. IT and cyber security workers from the public sector made up 85 of the respondents. Areas of questioning including: whether they would leave their current organisation, the reasons for joining the business, innovation within the company, and career progression and verticals. Different verticals were also compared, including financial services, retail, public sector, IT & Telecoms, professional services, manufacturing and engineering & construction. Here s what we found. How do public sector workers view their current role? Many public sector workers are of the opinion that the UK is facing a skills gap, particularly digital skills. And yet, four in five (81%) public sector workers already feel that they have the skills in their organisation to support the digital transformation of public services. What they believe is missing, however, is the ability to put long term digital transformation plans in place, with nearly half (47%) of public sector workers believing that their organisation would benefit from having the vision to plot these plans. This capability is vital to ensure that the public sector can meet the ambitious digital transformation goals set by the Government. In fact, 87% of IT workers in the sector agree that the growth and success of their organisation is fundamentally reliant on technology, with 75% stating that the growth and success of their organisation is reliant on themselves or their team. Unfortunately, 58% also stated that they don t believe there is an opportunity for career progression in their current organisation which suggests that the IT team is still siloed from the rest of the business. This shows a disconnect between the view of how important IT is within the organisation and the amount of investment that is put towards effectively developing an IT team. The Great Skills Exodus 5

6 The innovation gap Innovation is recognised by most forward thinking organisations as necessary to keeping up with or capturing new customer demands. Public sector organisations need to do more with less and technology and innovation are key to this. But according to this study, this is not reflected in the UK s public sector organisations. Only 16% of respondents said that their organisation has a focus on innovation. This compares with 25% in engineering and construction and 19% in financial and professional services. The public sector risks falling behind in the innovation race that could result in the loss of key talent to the private sector. Only 16% of respondents said their organisation has a focus on innovation Why are public sector workers looking for new jobs? Two thirds (66%) of public sector respondents have looked for alternative roles in the past 12 months (lower than the private sector average of 72%). Reasons for wanting to leave their organisation centre around career progression, reinforcing the argument that the public sector needs to show an increased dedication to providing a dynamic and supportive working environment. Almost half (45%) highlighted restrictions on career progression and over a third (35%) stating lack of opportunities to demonstrate their personal ability as key drivers to considering alternative roles. Unsurprisingly, 63% stated pay as a key driver. Interestingly, only 18% of public sector respondents stated that their organisation s unwillingness to change the way that things have always been done is a reason for wanting to change jobs, compared to 26% in the private sector. This, along with a lower level of public sector employees looking for jobs elsewhere, could be symptomatic of the Government s drive to introduce and support digital transformation initiatives. Surprisingly, the study showed that IT managers are fully aware of the reasons for staff leaving and can accurately determine the key factors at play, yet are unable to negotiate the changes necessary to encourage them to stay. There is some positive news, however: when asked if they would aspire to work in the public sector, 60% of public sector respondents stated a significant interest (compared to private sector workers where the majority (50%) aspire to work at a large IT firm such as IBM, EMC or Microsoft). 6 The Great Skills Exodus

7 Recommendations and conclusions It s clear from the study that the issue of attracting and retaining talent into tech careers is challenging. Boosting salaries can t be a crutch organisations rely on to retain staff. Instead, organisations need to throw themselves into three key areas to help preserve their future. All three need to happen in lockstep. 1 RETHINK IT IT s legacy is one of being an operational function within the business, called upon when needed to support wider business strategy. As digital has increased in prominence, it s been more important to define a digital strategy. But the truth is, digital technology needs to be part of the core outlook and strategy for the business as a whole. So, businesses that successfully transition their IT functions from being a siloed operational discipline and start to use the expertise and insight in that team to actively support the wider business will come out on top in the war for IT talent. Not only will it open up the expertise of the IT team to the wider business to drive new innovations and efficiencies, but also foster greater collaboration and job satisfaction across IT and wider business teams. Businesses also need to put in place a clear structure for enabling progression; encouraging employees to take on new roles and opportunities that could be outside of their usual discipline. By offering a clear career path, organisations can help to stem the number of employees looking for alternative roles, as well as avoid stagnation within departments. 2 REBUILD IT In order for IT to play a more strategic role, some of the more painful computer says no aspects of running IT need to be tackled. Businesses struggle with legacy and complex IT, and that means a veritable army of infrastructure managers are needed just to keep the lights on and keep IT operations up and running. Automation and infrastructure modernisation are crucial to addressing this challenge, helping evolve IT infrastructure into something that supports the business more like the on-demand cloud services we ve gotten used to in other aspects of our lives. And critical to managing this transition successfully involves ensuring continuous development of your teams so they can use the technical skills and mindsets acquired over the years in new IT-related disciplines, from data science to cloud or business strategy. 3 REBRAND IT Having successfully changed the role of IT in the business and evolved your infrastructure to give those personnel the time and space to work on innovative projects, it then becomes critical that you promote the changes, internally and externally, and create an environment where becoming part of the IT organisation is something people elsewhere in the business and beyond find appealing. It ll be easier to attract talent into the business if you ve portrayed IT as a critical strategic function, key to the future success of the business. And doing this effectively in the long term will have long-tail benefits of bringing more people into STEM education and careers in IT, a critical objective the whole industry needs to work towards. The Great Skills Exodus 7

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