The newly released Technology Hazard Warning Report reveals that 57 percent of technology small and medium enterprises consider the loss of skilled employees to be their biggest threat to growth. The research, which was commissioned by Zurich and conducted by B2B research consultants, interviewed one hundred senior managers of technology companies in the United Kingdom, with a turnover between £5m and £300m.

As technology swiftly progresses, the biggest risk factor for tech companies is being successful in the employment of staff with the highest level of skills required for the business. As salaries in the Information Technology sector increase at a rapid rate, 41 percent of companies are concerned about being able to retain their most competent workers, as global competition for skilled staff increases.

As technological advances improve, 39 percent feel pressured to stay ahead of the competition, which is why 49 percent of the companies consider advancement to be a number one priority. This same progression in the IT sector is a threat to 46 percent of smaller companies. The Senior Market Underwriter in Zurich’s UK General Insurance company, Geoff White said:

“The research shows that employers in the technology industry are suffering from brain drain and fear this even more for the future, losing skilled employees to overseas competitors, which provide a richer, more challenging environment for them to work in.”

Although 77 percent of technology businesses feel optimistic about the future, White believes that the government and businesses need to resolve these issues so that UK companies are able to achieve economic growth in a competitive global sector.

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Gary Fields

Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.

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