More than half (51 percent) of technology workers are setting their sights on a new job in 2014, so businesses need to "invest in their workforce" if they are to "win the race for talent", according to research from recruitment firm REED.
With pay remaining static and workers reporting fewer benefits, a new report, which canvassed the views of 2,500 employers and employees across different industries, said "it’s time for businesses to take action".
The REED 2014 Salary and Market Insight report shows that while the UK’s workforce in the technology sector is "stable" with more than three-quarters (76 percent) of workers feeling "secure" or "very secure" in their roles, 62 percent of employers are "worried" about losing talented individuals from their organisation.
Throughout the past 12 months REED research has shown that a "candidate’s market" is reappearing, with the number of job opportunities up 28 percent year on year as the economy continues to improve.
Despite this, only 38 percent of businesses have a "talent strategy" and none of the organisations questioned in the latest report have changed their approach or put new incentives in place to support workers in this competitive environment.
With two-thirds (65 percent) of employees not receiving a pay rise in the last 12 months, and 28 percent receiving no incentives at all, businesses "need to act now if they are to keep their top talent", according to REED.
The report highlighted a shortage of skills with over half (57 percent) of businesses saying they have a skills gap in the technology sector of their organisation, and 70 percent saying this gap is having a "negative impact" on their business.
What’s more, one in 10 organisations (13 percent) admit they "do not do a good job" of attracting talent to their organisation.
Tom Lovell, group managing director at REED, said: “Despite lacking rewards, the majority (75 percent) of technology employees are 'satisfied' or 'very satisfied' in their current role.
"However, as the economy continues to strengthen and job opportunities rise, the competition for quality candidates will increase, and businesses can’t afford to lose out."
He said that despite a need to attract and retain talent within their organisation, many businesses aren’t investing in their workforce through pay or their benefits, such as training, and this will impact on the overall satisfaction rating for their workforce.
"Businesses need to invest in both their employee brand reputation and talent management to attract people with the right skills to their organisation and hold on to employees with the right talent,” Lovell said.
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