CIOs take note: talent will walk without real training and leadership

Tech talent, especially with advanced and specialized skills, remains elusive. Findings from a recent IT global HR trends report by Gi Group show a 47% enterprise average struggles with sourcing and retaining talent. As a consequence, turnover remains high.

Another international study by Cegos highlights that 53% of 200 directors or managers of information systems in Italy alone say the difficulty of attracting and retaining IT talent is something they face daily. Cybersecurity is the most relevant IT problem but a majority, albeit slight, feels confident of tackling it. Conversely, however, only 8% think they’ll be able to solve the IT talent problem. IT team skills development and talent retention are the next biggest issues facing CIOs in Italy, and only 24% and 9%, respectively, think they can successfully address it.

“Talents aren’t rare,” says Cecilia Colasanti, CIO of Istat, the National Institute of Statistics. “They’re there but they’re not valued. That’s why, more often, they prefer to go abroad. For me, talent is the right person in the right place. Managers, including CIOs, must have the ability to recognize talents, make them understand they’ve been identified, and enhance them with the right opportunities.”

The CIO as protagonist of talent management

Colasanti has very clear ideas on how to manage her talents to create a cohesive and motivated group. “The goal I set myself as CIO was to release increasingly high-quality products for statistical users, both internal and external,” she says. “I want to be concrete and close the projects we’ve opened, to ensure the institution continues to improve with the contribution of IT, which is a driver of statistical production. I have the task of improving the IT function, the quality of the products released, the relevance of the management, and the well-being of people.”

Istat’s IT department currently has 195 people, and represents about 10% of the institute’s entire staff. Colasanti’s first step after her CIO appointment in October 2023 was to personally meet with all the resources assigned to management for an interview.

“I’ve been working at Istat since 2001 and almost everyone knows each other,” she says. “I’ve held various roles in the IT department, and in my latest role as CIO, I want to listen to everyone to gather every possible viewpoint. Because how well we know each other, I feel my colleagues have a high expectation of our work together. That’s why I try to establish a frank dialogue and avoid ambiguity. But I make it clear that listening doesn’t mean delegating responsibility. I accept some proposals, reject others, and try to justify choices.”

Another move was to reinstate the two problems, two solutions initiative launched in Istat many years ago. Colasanti asked staff, on a voluntary basis, to identify two problems and propose two solutions. She then processed the material and shared the results in face-to-face meetings, commenting on the proposals, and evaluating those to be followed up.

“I’ve been very vocal about this initiative,” she says, “But I also believe it’s been an effective way to cement the relationship of trust with my colleagues.”

Some of the inquiries related to career opportunities and technical issues, but the most frequent pain points that emerged were internal communication and staff shortages. Colasanti spoke with everyone, clarifying which points she could or couldn’t act on. Career paths and hiring in the public sector, for example, follow precise procedures where little could be influenced.

“I tried to address all the issues from a proactive perspective,” she says. “Where I perceived a generic resistance to change rather than a specific problem, I tried to focus on intrinsic motivation and people’s commitment. It’s important to explain the strategies of the institution and the role of each person to achieve objectives. After all, people need and have the right to know the context in which they operate, and be aware of how their work affects the bigger picture.”

Engagement must be built day by day, so Colasanti regularly meets with staff including heads of department and service managers.

Small enterprise, big concerns

The case of Istat stands out for the size of its IT department, but in SMEs, IT functions can be just a handful of people, including the CIO, and much of the work is done by external consultants and suppliers. It’s a structure that has to be worked with, dividing themselves between coordinating various resources across different projects, and the actual IT work. Outsourcing to the cloud is an additional support but CIOs would generally like to have more in-house expertise rather than depend on partners to control supplier products.

“Attracting and retaining talent is a problem, so things are outsourced,” says the CIO of a small healthcare company with an IT team of three. “You offload the responsibility and free up internal resources at the risk of losing know-how in the company. But at the moment, we have no other choice. We can’t offer the salaries of a large private group, and IT talent changes jobs every two years, so keeping people motivated is difficult. We hire a candidate, go through the training, and see them grow only to see them leave. But our sector is highly specialized and the necessary skills are rare.”

The sirens of the market are tempting for those with the skills to command premium positioning, and the private sector is able to attract talent more easily than public due to its hiring flexibility and career paths.

“The public sector offers the opportunity to research, explore and deepen issues that private companies often don’t invest in because they don’t see the profit,” says Colasanti. “The public has the good of the community as its mission and can afford long-term investments.”

Training builds resource retention

To meet demand, CIOs are prioritizing hiring new IT profiles and training their teams, according to the Cegos international barometer. Offering reskilling and upskilling are effective ways to overcome the pitfalls of talent acquisition and retention.

“The market is competitive, so retaining talent requires barriers to exit,” says Emanuela Pignataro, head of business transformation and execution at Cegos Italia. “If an employer creates a stimulating and rewarding environment with sufficient benefits, people are less likely to seek other opportunities or get caught up in the competition. Many feel they’re burdened with too many tasks they can’t cope with on their own, and these are people with the most valuable skills, but who often work without much support. So if the company spends on training or onboarding new people who support these people, they create reassurance, which generates loyalty.”

In fact, Colasanti is a staunch supporter of life-long learning, and the experience that brings balance and management skills. But she doesn’t have a large budget for IT training, yet solutions in response to certain requests are within reach.

“In these cases, I want serious commitment,” she says. “The institution invests and the course must give a result. A higher budget would be useful, of course, especially for an ever-evolving subject like cybersecurity.”

The need for leadership

CIOs also recognize the importance of following people closely, empowering them, and giving them a precise and relevant role that enhances motivation. It’s also essential to collaborate with the HR function to develop tools for welfare and well-being.

According to the Gi Group study, the factors that IT candidates in Italy consider a priority when choosing an employer are, in descending order, salary, a hybrid job offer, work-life balance, the possibility of covering roles that don’t involve high stress levels, and opportunities for career advancement and professional growth.

But there’s another aspect that helps solve the age-old issue of talent management. CIOs need to recognize more of the role of their leadership. At the moment, Italian IT directors place it at the bottom of their key qualities. In the Cegos study, technical expertise, strategic vision, and ability to innovate come first, while leadership came a distant second. But the leadership of the CIO is a founding basis, even when there’s disagreement with choices.

“I believe in physical presence in the workplace,” says Colasanti. “Istat has a long tradition of applying teleworking and implementing smart working, which everyone can access if they wish. Personally, I prefer to be in the office, but I respect the need to reconcile private life and work, and I have no objection to agile working. I’m on site every day, though. My colleagues know I’m here.”