UK Tech Start-ups and Their Talent Shortage Woes

Described as the “great British success story”, the recent boom in the UK technology sector has nothing been short of overwhelming.

To put things into context, a record £3 billion was invested into the UK’s tech sector last year. That’s more than double of the previous reported high.

And the industry experts believe that there could be more to come, if UK tech start-ups can find a solution to the biggest challenge that they face at present…

The challenge: there’s significant shortage of skilled employees in the local market.

46% of UK companies reported facing difficulties when hiring new employees; people with the right skill set are hard to find in the labour market.

And further,

61% of UK companies reported that since many of their current staff lacked in digital expertise, their growth is likely to be hampered in coming years.

So how can tech start-ups tackle this problem of talent shortage?

Training is one solution, but not really a feasible option. It costs money and more importantly it takes time to nurture an employee’s technical skillset—the two things which start-ups lack most.

The other solution that they’re then left with, is sourcing talent from international markets.

Normally, UK tech companies sponsor employees via Tier 2 visa. But one must remember that this visa category is open to doctors, nurses, accountants, solicitors and other professionals as well.

The competition in the visa category can be high, and as such, applicants interested in working for UK tech companies may not always succeed in securing a visa.

However, there’s another immigration route which UK tech start-ups can leverage and it’s a route not many companies tread on.

We’re talking about Tier 1 Exceptional Talent visa.

The UK government reserves 200 visas in this category to attract exceptionally talented tech entrepreneurs and workers. The Tech City UK, a tax-payer funded government organization, oversees the endorsements in this visa category (a part of the application process), before forwarding their recommendations to the Home Office.

Unfortunately, only few people apply for Tier I Exceptional Talent visa.

In 2015, the Tech City UK received just 37 applications. Out of these 37 applications, 28 were endorsed. The unfulfilled quota went to waste.

Considering, it’s a visa category under which the tech sector has its quota reserved and reviewing the high rate of endorsements it receives (on average, 75% applications are endorsed by the Tech City UK), Tier 1 Exceptional Talent visa could help tech start-ups overcome their talent shortage woes.

It’s a convenient solution that tech start-ups should start looking into more.

Have any questions about UK Tier 1 Exceptional Talent visa?

Feel free to reach out, our expert UK immigration solicitors will be happy to serve you.