The software developer shortage isn’t new – but it isn’t going away, either. With tech needs skyrocketing across industries, companies struggle to recruit the right talent. This shortage impacts project timelines, product innovation, and overall business growth. The pressure on HR teams to fill tech roles has grown, as competition for developers has turned into a global race. This blog discusses the root causes of the software developer shortage and offers strategies to help companies attract, retain, and develop the talent they need.
Causes of the Software Developer Shortage
The software developer shortage is a complex issue fueled by multiple factors across education, industry, and shifting workforce demands. From gaps in university training to a decline in STEM interest among young students, these challenges contribute to an ongoing struggle to fill tech roles with qualified talent. Here are some of the primary causes behind this talent gap:
1. Mismatch Between University Curriculum and Industry Needs
One significant reason behind the software developer shortage is the gap between what universities teach and what the industry requires. Traditional computer science programs often cover theoretical knowledge but lack focus on the latest technologies and real-world applications that companies need. This mismatch leaves graduates underprepared for the immediate challenges they face in the workplace, forcing companies to invest in additional training to bring new hires up to speed. More than 935 million workers globally had jobs that did not match their educational level in 2022, with 72% (677 million) being under-educated for their jobs and 28% (258 million) being over-educated.
2. Long Degree Programs in a Rapidly Evolving Field
A typical computer science degree can take up to four years, during which the industry might have already moved on to new tools, languages, and frameworks. For example, Generative AI has become commonplace within just the past two years, meaning that students who began their degrees before this shift may graduate without exposure to such transformative technology. This long cycle can leave graduates with outdated skills, making it difficult for them to compete in an industry that requires up-to-date technical knowledge and hands-on expertise.
3. Decreasing Interest in STEM Fields
Interest in STEM (Science, Technology, Engineering, and Mathematics) studies has been on the decline when it comes to career choice among young students. While tech jobs offer good salaries and job security, they are often perceived as difficult or unappealing, leading fewer students to envision a future in these fields. In fact only 29% of Generation Z students (born between 1997-2012) cite STEM jobs as their first career choice, despite 75% expressing some academic interest in STEM fields.
4. High Demand Across All Industries
The demand for tech talent has grown beyond traditional tech companies to encompass nearly every industry, from finance and healthcare to retail and manufacturing. As these industries undergo digital transformation, they require more developers to build, maintain, and improve their tech infrastructure. This widespread need stretches the available talent even thinner, increasing competition and making it harder for companies to find the developers they need.
Strategies to Attract, Retain, and Develop Developer Talent
Generative AI has the potential to shrink the software developer shortage by automating tasks like code generation, testing, and debugging, enabling software developers to complete projects faster and more efficiently. It also lowers the barrier for non-technical individuals to create basic applications. However, it’s not a solution. The demand for software developers who can design, implement, and manage these AI tools is growing, shifting the skills required in the industry. While Generative AI can streamline workflows, it cannot replace the creativity, problem-solving, and strategic thinking that only human developers bring to complex projects, meaning the shortage might evolve but it will not disappear entirely.
Here are some strategies that companies and governments can adopt to address the software developer shortage and build a stronger, more sustainable tech workforce.
1. Invest in Reskilling
Reskilling professionals from roles that are no longer needed is a key solution to the software developer shortage. Many industries face automation or economic shifts, leaving skilled workers ready for a new direction. With the right training, these individuals can transition into software development, bringing transferable skills like problem-solving and adaptability. Reskilling initiatives can be driven by the government, implemented in-house by enterprises, or facilitated through partnerships with training centers that offer tailored programs. This approach addresses the talent shortage and helps employees build sustainable careers in tech. Companies can further complement this effort by investing in their current workforce through upskilling programs to enhance capabilities and drive loyalty.
2. Focus on Practical Skills
Rather than prioritizing candidates only based on their educational background, companies should focus on practical skills and proven abilities. For example, a strong grasp of foundational tools like HTML and CSS, proficiency in dynamic programming with JavaScript and Node.js, or experience handling databases with SQL and Python can provide a clear picture of a candidate’s readiness. Evaluating these skills through coding tests, real-world project portfolios, or practical challenges highlights their ability to tackle the complexities of software development. This shift in hiring focus allows companies to identify talented software developers who may lack traditional credentials but excel in the technical expertise required to succeed.
3. Offer Competitive Compensation and Flexible Work Arrangements
Attracting top software developer talent often requires competitive salaries and benefits. Many developers also value flexibility, such as remote work options, flexible hours, and work-life balance. Offering these perks can make the field seem more attractive to individuals transitioning from other careers or exploring new opportunities. Flexible arrangements also reflect the modern workplace’s adaptability, which appeals to tech-savvy professionals seeking autonomy and balance in their roles.
4. Provide Incentives and Tax Benefits for Software Developers
Governments can play a key role in attracting new software developers by offering financial incentives and tax benefits. For instance, in Poland, software developers can take advantage of the “50% tax-deductible costs” (50% TDC), which significantly reduces their taxable income and increases take-home pay. Such policies make software development an attractive career path and help address the talent shortage by drawing more individuals into the field. By implementing similar incentives, governments can encourage more people to pursue tech careers and support the growth of the digital economy.
Wawiwa’s Reskilling and Upskilling Programs
Wawiwa is a global tech education provider, offering reskilling and upskilling programs tailored to the latest industry needs.
Wawiwa reskills people to become Full-Stack Developers and Frontend Developers in 6-9 months, with both programs incorporating AI to equip learners with relevant, cutting-edge skills. Wawiwa also offers specialized upskilling courses in Software Development, including Python Development, Machine Learning for Programmers, Generative AI for Developers, Deep Learning and OpenAI Tools, and more. These courses help professionals deepen their expertise and stay competitive in a fast-evolving tech landscape.
