Dufrain, a data consultancy, has released new research from its State of Data report, exposing more statistics on the stark ‘talent shortage’ in the data and analytics sector the could result in substantial losses for firms worldwide.

60% of data and analytics leaders said the biggest challenge to their business was recruiting individuals with the necessary skills and talents.

The State of Data Analytics 2023 report, which surveyed senior data leaders in the UK and US across multiple sectors including banking, retail, insurance, manufacturing, healthcare, and financial marketing, give further credence to the general outlook that attracting and retaining top talent will pose a significant challenge to growth and development in multiple industries over the next 12 months.

At the same time, over three quarters (79%) of respondents believed competition from other organisations is the biggest challenge to attracting and retaining talent, making it even more difficult for firms to source the right people for the job at hand.

As demand for digital skills increases, the shortage of workers puts the power back into their hands to barter for better wages and more benefits.

If firms lack the talent to maximise data, then it is likely unavoidable financial losses will occur, making it even more difficult to attract the right talent.

Recruitment difficulties amidst the labour shortage is leaving many firms struggling to find the right tech talent to handle crucial daily activity, such as managing data governance and de-siloing data and assisting with cloud migrations.

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If these gaps are left unaddressed, the tech talent shortage is projected to reach 4.3 million workers and cost the industry over $449.7 billion (£36.1.67bn) globally by 2030.

“Our industry depends on the successful recruitment and retention of world-beating talent, and yet so many leaders are struggling to attract the right people to deliver upon growth targets and innovation initiatives. We are on the precipice of a major talent shortage and something must be done,” Joseph Geoege, CEO at Dufrain, commented.

“That said, recruiting new talent in a highly competitive field can be a challenge for firms. Attracting the right level of expertise is about more than salary. Company culture, employee benefits, and a unified sense of purpose also matter.

“In the interim, before making that crucial hire, firms should reach out to external advice from recruitment agencies that specialise in this or specialist data consultancies that can really share their learnings and experience to drive the best outcome.

“An outsider’s perspective combined with decades of sector-specific knowledge can help steer the way while the recruitment process takes its course.”