A Positive Step for Tech Businesses

A Positive Step for Tech Businesses, But Sustainable Growth Needs Strong HR Foundations

The recent news that the UK Government is looking to reimburse visa costs for fast-growing businesses hiring overseas workers is a positive development for the tech sector. (The Economic Times)

For the tech businesses we work with, growth can happen quickly. When that happens, it is not just about bringing more people into the team, it is about making sure the business has the right structure, processes and support in place to grow well.

From an HR perspective, we see this as good news for tech employers, and potentially very good news for the clients we support.

The reality is that many tech businesses are operating in a highly competitive talent market, and the right skills for what they need are not always easy to find locally or quickly.

That does not mean businesses should look overseas first. Far from it. We strongly believe in developing local talent, investing in apprenticeships, working with colleges and universities and creating opportunities for people in our own region. But we also need to be realistic. If a business is scaling, there will be times when specialist skills are needed urgently, and international recruitment can form part of a sensible, balanced workforce strategy.

Reducing some of the cost barriers around that can only be helpful.

However, access to the right people is only one part of the picture. For many tech companies, the real challenge lies in the speed and complexity of growth. As teams expand, people matters become more detailed and more important. Contracts need to be fit for purpose. Policies need to reflect how the business actually operates. Managers need support. Compliance needs to be right. Onboarding needs to be consistent. Culture needs to be protected.

This is where the conversation needs to move beyond hiring.

Bringing someone into a business, whether they are based locally, elsewhere in the UK, or overseas, is only the beginning. Once they join, the employer needs to make sure they are supported, managed fairly, integrated into the team and given clarity around expectations.

For tech businesses, this can be especially important. Many operate with lean leadership teams, fast-moving priorities and hybrid or flexible working arrangements. They may also be dealing with intellectual property, data security, contractor relationships, sponsorship requirements and competitive salary expectations, all of which are business-critical people matters.

From our perspective as an outsourced HR partner, this initiative will create a real opportunity for tech business owners. But it is important to remember that sustainable growth is not just about increasing headcount, it is about creating the right environment for people to develop, contribute and support the long-term future of the business.

Relevant across our region.

Middlesbrough and Teesside continue to build a strong reputation in digital, creative and tech. With the Boho zone, DigitalCity, Teesside University and a growing cluster of innovative businesses, there is clear momentum behind the area’s development as a digital and technology hub.

But this is part of a much wider North East story too.

Newcastle has a well-established and growing tech community, with strengths in software, data, fintech, innovation and digital services. Sunderland is also a big part of the region’s digital economy through its networks, business support and technology-led initiatives. Across Durham, Gateshead and the wider North East, ambitious businesses are doing exciting work in AI, gaming, software, clean tech, digital transformation and advanced technology.

The opportunity for the region is significant.The North East is increasingly becoming a place where tech businesses can not only start, but scale. To do that successfully, businesses need access to skills, investment and infrastructure, but they also need strong HR foundations.

Outsourced HR can make a real difference.

Tech business owners are often focused on product development, clients, funding, delivery and commercial growth. HR can sometimes become something that is only addressed when a problem arises. In a growing business, that approach can create unnecessary risk.

Good HR should be proactive. It should support decision-making, reduce risk, strengthen culture and give business owners confidence that the people side of the business is keeping pace with commercial growth.

The Government’s visa reimbursement scheme is a welcome step, as anything that helps ambitious tech businesses access the skills they need and compete on a bigger stage should be seen as positive news. However, for tech businesses, bringing more people in to the business is only part of the challenge. Business Owners also need to be ready to grow in the right way, with the right structures, support and people practices in place to make sure their people and their businesses can succeed.

Growing your business? Make sure you get yourself a HR partner who works alongside the business as a strategic partner to help growth happen well, not just quickly.