Skills shortage top concern for tech SMEs

More than half of Britain's mid-sized technology companies are concerned about losing skilled employees, according to new research.

The research, commissioned by insurance company Zurich, found that this worry is even more widespread among UK companies with an annual turnover of between £25m and £100m, 70 per cent of which are anxious about losing their skilled personnel.

However, more than three-quarters of respondents (77 per cent) said they feel more optimistic about the future than they did last year.

In terms of achieving growth objectives, competition for skilled employees was a concern, with nearly half (41 per cent) saying that retention is their top priority – particularly as IT salaries are rising rapidly.

For smaller companies, almost half (49 per cent) said that keeping up with new technologies is a key element to their growth strategies.

"The research shows that employers in the technology industry are suffering from brain drain and fear this will get worse in the future, losing skilled employees to overseas competitors who provide them with a richer, more challenging environment to work in," said Geoff White, senior market underwriter, TechMedia in Zurich's UK General Insurance business.

"It's essential that both businesses and government work together to overcome these issues to ensure British technology companies are able to survive and grow in this fast-moving global technology market."