A strategic road map for navigating the cloud skills shortage

As I write this column, the U.S. Bureau of Labor Statistics just released a bad jobs report and the stock market tanked. I’ll be honest, this news has me considering whether I should postpone retirement for another five years. I’m also thinking about how the current situation affects the market for IT people, specifically those working in cloud computing.

A recent HashiCorp survey of nearly 1,200 IT professionals worldwide found avoidable cloud spending was a challenge for 91% of this year’s respondents. The largest waste factor is the lack of required job skills, followed by overprovisioned resources (40%) and idle or underused resources (35%).

In other words, we’re forced to hire not-so-smart people and they’re screwing things up. The survey did not go into why companies hired unqualified people, but the answer is they couldn’t find smart ones, so they had to settle for second-tier talent. This translates into huge expenses for enterprises.

Many of my clients cite inadequate IT staff expertise as a reason cloud migration projects fail. They also mention overspending on cloud resources. Today we can add a new one: Companies can’t move to generative AI because they lack the expertise to work within their cloud provider.

Enterprise IT executives often ask me how they should deal with the fact that too many open jobs are chasing too few qualified candidates. I have several ideas; however, they will require some work, some spending, and perhaps some adjustments to the business culture.

Embrace remote work to broaden talent pools

The number of companies attempting to push people back on the highways and into their offices five days a week continues to grow. Even if jobs are listed as “hybrid,” many larger companies are setting quotas of how many hours need to be spent in the office or even tracking key card usage. It’s a common complaint from rank-and-file staff members, and it’s leading the better cloud pros to seek pastures with more flexible fences.

Companies can tap into vast talent pools with unrestricted geographic boundaries by championing flexible, location-agnostic work arrangements. This broadens access to top-tier talent and fosters a more diverse workforce. On-site work requirements are the primary reasons that top talent don’t take positions or why they leave. May I remind you of one of the great things about cloud computing: It’s in the cloud. You can do the work anywhere.

I’m not advocating that employees never go into the office. However, I believe that companies should consider location-agnostic work arrangements to create more attractive work situations and to access talent living outside the immediate vicinity of the company, possibly in other states or countries. I’m something of a remote IT work pioneer. As an IT manager and executive, I learned early on how worthwhile it is to adjust the culture to this important employee “perk.”

Invest in internal training and development

One of the most effective ways to address the skills gap is by cultivating internal talent. A great first step is to establish a dedicated in-house cloud learning center to provide employees with the continuous education they need to stay abreast of cloud technologies. Access to cutting-edge courses, certifications, and hands-on training programs is essential. This not only enhances the skill sets of current employees but also demonstrates a commitment to their professional growth, which can significantly improve retention rates.

Many companies set up “cloud academies,” a collection of courses and certification programs funded by the company. This normally involves a mix of on-demand learning, access to boot camps, and instructors who run classes right at the company. Make sure managers or instructors don’t paper the department with “I’m a star” attendance certificates to anyone who shows up to sleep through a lecture or presentation. Uncertified courses and curricula should include testing or some sort of formal oversight to ensure staff proficiency in these new skills.

Create a culture of innovation

Everyone thinks they already have a culture of innovation. I’m sure it’s somewhere in your annual report. In reality, most companies don’t. Business professionals are often driven by the opportunity to contribute to creative solutions and make meaningful decisions. Implementing a flat organizational structure where control is distributed and employees feel empowered can significantly enhance job satisfaction and engagement.

Encouraging collaborative innovation through centers of excellence and recognizing and rewarding contributions further stimulates a dynamic and forward-thinking work culture. This approach retains existing talent and attracts new, high-caliber professionals seeking a stimulating work environment.

Offer comprehensive compensation and benefits

Culture and education are wonderful, but you can’t use them to buy groceries. Competitive salaries are only part of the equation for attracting and retaining top talent. Enterprises need to offer comprehensive benefits packages that support employees’ work-life balance.

Stock options or performance-based bonuses can align employees’ interests with the company’s goals for long-term success. It’s not about the money; this perk fosters a sense of ownership and motivation. Employees should feel appreciated. A well-rounded compensation strategy demonstrates to potential and current employees that the company values their contributions and well-being.

The cloud computing skills shortage is a substantial hurdle that enterprises must navigate to fully exploit the potential of cloud technologies. A multifaceted approach is required and should include significant remote work options, significant investment in internal training and development, fostering a culture of innovation, and a management focus on just being a better company to work for.

Most enterprises are not accustomed to acknowledging the role a lack of skilled employees plays in the root causes of cloud computing failures, but that’s where the issues lie 9 times out of 10. The topic is rarely discussed and action is rarely taken.

Generative and agentic AI systems are now on everyone’s to-do list, and most of those systems will exist in the cloud. Your ability to obtain and retain key talent is not just something to brag about at the shareholders’ meeting. It’s now foundational to your success in cloud computing and, really, in IT to a larger degree.

Simply put, if you can’t get and keep the right talent, your cloud projects will fail and you will fail.