How to Retrain Your Tech Workforce to Address Growing Skills Gap

As the tech industry grapples with an ongoing labor shortage, the need for a skilled and adaptable workforce is critical — and will be for the foreseeable future.

Despite more than a third (37%) of tech employers requiring candidates to have a two- or four-year degree, nearly three-quarters (72%) anticipate the need to upskill and retrain their teams over the next three to five years.

These were among the findings of Cengage Group's 2024 Employability Report, which highlighted the urgency for strategic workforce development to retain tech talent and maintain a competitive edge in the evolving landscape.

With the rapid adoption of generative AI (GenAI) tools — already in use at 94% of tech workplaces — 71% of employers said they now believe foundational knowledge of these technologies is essential for job candidates.

To bridge existing skills gaps, 62% of tech employers are collaborating with educational institutions to ensure curricula align with industry demands, while 72% are expanding opportunities for hands-on learning through internships and cooperative programs.

Always-On Approach to Upskilling, Retraining

Rya Conrad-Bradshaw, SVM, general manager of ed2go and Ready to Hire, part of Cengage Group, said for companies and workers to remain competitive, there must be an always-on approach to upskilling and retraining.

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"Employers can accomplish this by developing comprehensive skilling programs and fostering a culture of learning to ensure employees are routinely upskilling and using those skills," she said.

Conrad-Bradshaw said to design impactful and engaging skills initiatives, employers must be in tune with the most in-demand skills for both their industry and organization.

This is often role-specific — some roles may need intensive upskilling year in and year out given industry changes (e.g., cybersecurity), while others may be on a slower schedule given the slower rate of change.

Going one step further, many technology employers — about 62% according to the report— are working with educational institutions to create or align curricula with in-demand job needs.

"When employers and learning institutions work in tandem, it aligns workforce development with innovation — constantly addressing a workforce's skills gaps," Conrad-Bradshaw said.

She noted that many colleges and universities are offering certifications and micro-credential programs as stand-alone offerings that align with current skills an employer looks for when hiring.

"Some are even working to embed these industry-recognized certificates into degree programs," she said. "Creating our future workforce requires the entire education ecosystem to align and adapt to labor market demand."

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Brijesh Kohli, vice president of Xebia Academy and head of education, said an important aspect of this upskilling effort is the emphasis on experiential learning and knowledge-sharing within organizations.

"Tech companies are fostering environments where employees can continuously learn from each other through structured initiatives and collaborative projects," he said.

Additionally, partnerships with academic institutions and involvement in industry innovation labs allow employees to work on cutting-edge technologies, further enhancing their skills.

Hands-On Training, Real-World Experience

Scott Wheeler, cloud practice lead at Asperitas, said most enterprise organizations utilize a just-in-time approach for training their IT workforce, followed by a hands-on project that cements what they have learned with real-world experience.

For example, many organizations will train their employees on new cloud or GenAI technologies close to the time when a project starts that requires those skills.

"This approach helps ensure that the training effort is focused on what the organization needs and reflects the current state of GenAI technologies, which are advancing at an alarming rate," he said.

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Wheeler predicts that the IT industry will continue to require IT professionals to have a broad understanding of technology and a solid set of automation skills.

"The move to automation will continue to codify and document security, compliance, and architecture decisions made in developing IT systems," he said.

Hands-on training, according to Kohli, includes the use of cloud labs and learn-by-doing platforms that simulate real-world environments, allowing employees to gain experience in applying GenAI tools to solve business challenges.

Companies are embracing the 70:20:10 learning model, where experiential learning is emphasized, encouraging employees to learn through real work experiences and interactions with peers, he said.

"Recognizing the importance of well-rounded professionals, there is an increasing focus on developing soft skills, particularly for those in client-facing roles," Kohli said.

Effective communication, problem-solving, and the ability to translate technical insights into actionable business strategies are crucial for professionals working with data, AI, cloud, and GenAI tools.

"By implementing these strategies, the IT industry is ensuring candidates are not only knowledgeable but also equipped with the practical experience, certifications, and soft skills needed to thrive in a competitive job market," he said.

AI Changes Everything

Although AI is still in its infancy, employers are increasingly prioritizing upskilling, training, and enhancing employees' AI skills now to stay ahead and build for the future.

The use of AI to quickly and accurately implement technology will continue to grow at an accelerated pace, with the skills needed to determine when AI provides incorrect answers in high demand.

Conrad-Bradshaw said as AI plays an increasing role in the workplace, employers need employees who not only demonstrate competency in using GenAI tools but also — at a minimum — demonstrate a familiarity and enthusiasm for incorporating GenAI into daily workflows almost as if it's second nature to leverage AI capabilities across all work tasks.

"Moving forward, AI prompt entry, data literacy, and no-code AI are all new competencies that employees must have," she said.

Kohli explained that the evolution of required skills is accelerating as GenAI and AI tools become more widely adopted and more deeply integrated, giving rise to new competencies that professionals must master.

One of the most significant shifts is in software development, where tools like GitHub Copilot are transforming how code is written and optimized.

"Developers are now expected to be proficient not only in traditional programming languages but also in leveraging GenAI to accelerate coding, debug more efficiently, and enhance overall productivity," Kohli said.

Most GenAI tool usage is related to GenAI embedded in software-as-a-service (SaaS) products such as Microsoft's Copilot or Salesforce's Einstein GPT.

Wheeler noted that while most software developers utilize GenAI to assist with coding, this can be a mixed bag.

"GenAI is very effective for experienced developers but can lead to poor code with less experienced developers," he cautioned.

Another emerging competency is data-driven decision-making, driven by use of GenAI for advanced data analytics.

Professionals must now be adept at using AI tools to extract insights, predict trends, and make data-driven decisions that can significantly impact business outcomes.

"The ability to interpret AI-driven data is becoming a critical skill," Kohli said.

Additionally, as GenAI continues to automate more tasks, there is a growing demand for expertise in AI ethics and governance.

"Professionals need to understand how to implement AI responsibly, ensuring that their use of GenAI tools aligns with ethical standards and regulatory requirements," Kohli said.

Looking 3-5 years down the road, he said tech trends point to a growing demand for IT professionals with specialized skills and certifications in AI, cloud computing (including AWS), DevOps, cybersecurity, data analytics, and project management.

"The IT employment market will increasingly favor those who can demonstrate expertise in these critical areas through recognized certifications," Kohli said.