Demand for tech talent still robust

The Tech Council of Australia and startup agency LaunchVic say demand for tech talent in Victoria is robust, despite the widely reported large-scale redundancies occurring in global tech businesses.

The two organisations have released The Startup Skills Report, which they say illustrates a high local demand, as startups face significant issues in recruiting and retaining business, operations and design talent.  

The report suggests these shortages are not driven by a lack of suitably skilled talent as, for every vacancy in these business and operations roles, there are approximately 25,000 people in Victoria with suitable skills and experience.

Attracting people with non-technical skills to work in startups is currently hampered by a ‘winner takes all’ effect. This is where a small number of widely recognised startups receive very large numbers of applications for open positions, while others struggle to attract talent to apply.

There is also a risk of cultural mismatches between potential employees and startup cultures with conventional recruiting methods, so adopting new ways to recruit is becoming more common.

Shortages in technical talent remain a pressing issue for Victorian startups and the broader tech sector. Previous Tech Council research has found job vacancies are 60% higher than the national average, with a forecasted growth rate triple that of other sectors.

LaunchVic CEO Dr Kate Cornick said the Victorian startup sector had grown 16x in just six years. The report confirms an anecdotal understanding that the local ecosystem is experiencing growing pains.

“Despite reported job layoffs in the tech sector for notable startups and scale-ups, the demand for talent is strong. We need to look at better pathways to attract talented Victorians to work at startups and help them better transition into the startup world — so they stay there.”

According to Tech Council CEO Kate Pounder, the resilience of jobs over the last 12 months is encouraging.

“However, despite the incredible opportunity that working in a startup can offer, many startups are still struggling to connect with the talent they need.

“Government and the tech ecosystem need to find ways to connect tech workers to startups and raise awareness about the range of pathways they can take to build long-lasting careers in the tech sector. That’s why we welcome this joint work by LaunchVic and the TCA, on top of the initiatives LaunchVic is running for startups in Victoria.

“Startups are where the innovative ideas and companies that will power Australia’s future are nurtured — we need to make sure they have every chance to succeed,” she said.

Eight recommendations have been made for consideration, which include programs to help the transition of executives to startups, information campaigns and targeted outreach, collaboration on existing initiatives by governments and industry nationally, and advocacy for the issue to the Commonwealth.

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