MSP Staffing Crisis 2025: Why 52% of MSPs Can't Find Technicians
The Numbers Don't Lie: MSPs Are Facing a Staffing Emergency
If you're running an MSP and struggling to find qualified technicians, you're not alone. In fact, you're in the majority.
According to CompTIA's IT Industry Outlook, more than half (52%) of channel companies report experiencing a workforce shortage and have difficulty finding job candidates with the skills their organization needs. This isn't a minor inconvenience—it's an existential threat to MSP growth and profitability.
The situation is even more dire in specialized areas. The cybersecurity sector faces a record-high gap of 4.8 million unfilled roles worldwide, according to ISC2's 2024 Cybersecurity Workforce Study. That gap grew 19% year-over-year, and for the first time ever, budget cuts have overtaken recruitment challenges as the leading cause of talent shortages.
For MSPs in the United States, Canada, and Australia, this creates a perfect storm: clients demanding more sophisticated IT support and security services, while the talent pool to deliver those services shrinks.
This guide examines why the MSP staffing crisis has become so severe in 2025 and, more importantly, what you can do about it.
Understanding the Scope of the Problem
Before we can solve the staffing crisis, we need to understand its true dimensions.
The Global IT Talent Shortage
The tech workforce is growing, but not fast enough to meet demand. CompTIA's State of the Tech Workforce 2025 report shows the U.S. tech occupation workforce reached 5.9 million in 2024, with projections to reach 6.1 million in 2025. That sounds positive until you consider that employer job postings over the past 12 months exceeded 2.5 million positions.
The math is brutal: demand is growing at roughly twice the rate of supply.
| Metric | 2024 Data | Trend |
|---|---|---|
| Global Cybersecurity Workforce Gap | 4.8 million unfilled roles | Up 19% YoY |
| Channel Companies with Workforce Shortages | 52% | Persistent challenge |
| Organizations Concerned About Talent Retention | 74% | Critical priority |
| Tech Professionals Who Changed Jobs (2 years) | 30% | High turnover |
| Hiring Managers Saying Tech Talent Is Hard to Find | 90% | Near universal |
The MSP-Specific Challenge
While the broader tech industry faces hiring difficulties, MSPs encounter unique obstacles that make staffing even harder.
Competing Against Enterprise Salaries
MSPs—particularly small and mid-sized ones—simply cannot match the compensation packages offered by large enterprises. According to Robert Half research, 90% of technology hiring managers in the U.S. say finding tech talent is difficult, and 51% would pay higher salaries to professionals with in-demand skills like cloud expertise.
The median tech salary reached $112,667 in 2024, representing a 127% premium over the national median wage. When Amazon, Microsoft, and Google are competing for the same candidates, smaller MSPs get outbid.
The Skills Breadth Problem
Enterprise IT roles are often specialized. An MSP technician, however, must be a generalist capable of handling everything from password resets to network configuration to security incidents across multiple client environments. Finding candidates with this breadth of knowledge is extraordinarily difficult.
High-Stress, High-Turnover Environment
The technical service and IT support industry's average turnover rate is close to 40% per year. This means the average helpdesk agent remains in their position for just two-and-a-half years before moving on. Every departure costs an MSP approximately $12,000 in replacement costs—and that doesn't account for lost productivity, client relationship disruption, or the burden on remaining staff.
Why Traditional Hiring Isn't Working Anymore
Understanding why conventional recruitment strategies are failing helps identify what alternatives might succeed.
Reason 1: The Talent Pool Has Fundamentally Shifted
The pipeline of new IT professionals isn't keeping pace with demand. According to ISC2's research, nearly one-third (31%) of cybersecurity teams had no entry-level members, and 15% had no junior-level representation. Without entry points for new talent, there's no pipeline developing the next generation of experienced professionals.
At the same time, experienced workers are leaving. ISACA's 2025 Tech Workplace and Culture study found that 30% of tech professionals changed jobs in the last two years, largely driven by burnout and workplace stress. The most frequent reason for leaving? Higher compensation (33%), followed by better career prospects and more interesting work.
Reason 2: Salary Wars You Can't Win
Smaller MSPs face an impossible competition. According to research data:
| Role | Average US Salary | Enterprise Premium |
|---|---|---|
| MSP Technician (Tier 2) | $57,000 - $65,000 | Baseline |
| IT Support Specialist (Enterprise) | $65,000 - $85,000 | +15-30% |
| Cloud Engineer | $100,000 - $140,000 | +50-75% |
| Cybersecurity Analyst | $90,000 - $130,000 | +40-60% |
| AI/ML Specialist | $120,000 - $180,000 | +70-100% |
When an MSP technician can jump to an enterprise role for 20-30% more pay with better benefits and more predictable hours, retention becomes nearly impossible.
Reason 3: Geographic Limitations
Traditional hiring assumes you're recruiting from your local market. But in cities with high costs of living, entry-level IT salaries barely cover rent. In smaller markets, the qualified candidate pool may simply not exist.
Meanwhile, remote work has untethered talent from geography—but it's also given your candidates access to jobs anywhere in the world. That local technician you're trying to hire can now work remotely for a Silicon Valley company at twice the salary.
Reason 4: The Certification and Experience Paradox
Job descriptions often require years of experience and multiple certifications for entry-level pay. This creates a catch-22: candidates can't get experience without jobs, and they can't get jobs without experience.
ISC2's research revealed a significant disconnect: while cybersecurity professionals emphasize technical skills like cloud computing and AI, hiring managers are increasingly prioritizing non-technical skills like problem-solving and critical thinking. This mismatch between what candidates think employers want and what employers actually need creates friction in the hiring process.
Reason 5: The Training Investment Problem
MSPs invest heavily in training new hires, only to watch them leave once they've gained experience. Many technicians view MSP roles as stepping stones—places to build skills before moving to specialized enterprise positions.
As one industry analysis put it: most technicians don't want to stay in entry-level positions for long. Many expect a promotion within six months, leading to frustration when growth opportunities don't come fast enough.
The Real Impact on MSP Operations
The staffing crisis isn't just a hiring inconvenience—it's affecting every aspect of MSP business performance.
Service Quality Degradation
When you're short-staffed, response times slip. SLAs get missed. Complex issues sit in queue while your overworked team handles the urgent fires. According to industry surveys, the result of staffing shortages includes poor service quality, slow response times, and dissatisfied clients.
Revenue Ceiling
You can't grow what you can't staff. Many MSPs report turning down new business because they don't have the technicians to support additional clients. Others take on new clients anyway and watch service quality deteriorate across their entire portfolio.
Burnout Cascade
When positions go unfilled, existing staff absorb the workload. This leads to burnout, which leads to more departures, which increases the burden on remaining staff—a vicious cycle that can hollow out an MSP's team rapidly.
According to ISACA's research, this high turnover rate is largely caused by burnout and copious amounts of workplace stress. Yet despite 74% of organizations being concerned about attracting and retaining talent, only 27% frequently talk to their employees about the issue.
Security Risk
Perhaps most concerning: 58% of organizations say cybersecurity staff shortages put them at significant risk. When you don't have enough qualified people watching your clients' networks, threats slip through. The average cost of a data breach reached $4.88 million in 2024—a risk that understaffed MSPs are increasingly exposed to.
Solutions That Actually Work
The good news: successful MSPs aren't accepting the staffing crisis as inevitable. They're finding creative solutions that address the root causes rather than just the symptoms.
Solution 1: Offshore and Remote Staffing
The most transformative solution for many MSPs has been embracing offshore talent—particularly from the Philippines.
Why It Works:
The Philippines offers a unique combination of advantages for MSP staffing:
English Proficiency: Over 55% of the population is fluent in English with a neutral accent suitable for voice support
Technical Talent: With 1.7 million Filipinos employed in IT-BPM, there's a deep bench of experienced professionals
Cost Efficiency: 50-70% cost savings compared to US domestic hiring
Time Zone Advantage: Filipino teams working their normal business hours can cover US after-hours, enabling 24/7 support
| Role | US Salary (Annual) | Philippines Salary (Annual) | Savings |
|---|---|---|---|
| L1 Helpdesk Technician | $45,000 - $55,000 | $12,000 - $18,000 | 65-73% |
| L2 Support Engineer | $55,000 - $75,000 | $15,000 - $24,000 | 65-73% |
| NOC Technician | $50,000 - $70,000 | $14,000 - $22,000 | 68-72% |
| Systems Administrator | $70,000 - $95,000 | $18,000 - $30,000 | 68-74% |
This isn't about finding "cheap labor"—it's about accessing a global talent pool that's been serving Fortune 500 companies for decades. The Philippines has become the preferred destination for MSP offshore support because the infrastructure, training, and cultural alignment already exist.
Implementation Approach:
Start with roles that don't require on-site presence (L1 helpdesk, monitoring, documentation)
Partner with a staffing provider who handles HR, payroll, and compliance
Invest in proper onboarding and integration with your existing team
Scale based on performance and business growth
Solution 2: Upskilling and Internal Development
Rather than competing for scarce experienced talent, invest in developing your own.
Create Career Pathways:
One of the top reasons technicians leave MSPs is lack of growth opportunities. Combat this by creating clear advancement paths:
L1 → L2 → L3 progression with defined criteria
Specialization tracks (security, cloud, networking)
Leadership development for senior technicians
Certification sponsorship and training time
Hire for Potential, Train for Skills:
ISC2's research shows hiring managers are increasingly prioritizing non-technical skills like problem-solving and critical thinking over specific technical expertise. This suggests a shift toward hiring candidates with the right aptitude and training them on the technical specifics.
Consider candidates from:
Military backgrounds (disciplined, security-clearance eligible)
Adjacent industries (customer service excellence)
Career changers (motivated, fresh perspectives)
Recent graduates (trainable, lower salary expectations)
Solution 3: Automation and AI Augmentation
Reduce the number of positions you need to fill by making existing staff more productive.
Automate Tier 0 Work:
Self-service password resets
Automated ticket routing and classification
AI-powered knowledge base suggestions
Chatbots for basic inquiries
Leverage AI-Powered Tools:
Modern PSA and RMM platforms offer AI capabilities that can handle tasks previously requiring human intervention:
Automated alert triage and remediation
Intelligent ticket classification and prioritization
Predictive maintenance to prevent issues before they become tickets
Documentation generation and summarization
According to Datto's research, 66% of MSPs cite automation as a way to scale their businesses, while 76% note increased efficiency. The goal isn't to replace technicians—it's to let them focus on complex work that actually requires human judgment.
Solution 4: White-Label and Partnership Models
If you can't hire the talent yourself, partner with organizations that already have it.
White-Label Helpdesk Services:
These providers handle L1/L2 support under your brand, allowing you to:
Offer 24/7 coverage without hiring overnight staff
Scale capacity up or down based on demand
Access trained technicians without recruitment costs
Focus your internal team on higher-value work
Co-Managed Arrangements:
Partner with other MSPs or specialized providers for:
After-hours coverage
Specialized skills (security, cloud migration)
Overflow capacity during busy periods
Geographic coverage in regions you don't serve
Solution 5: Retention-First Strategy
The cheapest hire is the one you don't have to make because you kept your existing employee.
Address the Root Causes of Turnover:
The top reasons tech professionals leave their positions:
Higher compensation (33%)
Better career prospects
More interesting work
Better organizational culture
Competitive Retention Strategies:
Compensation reviews: Even if you can't match enterprise salaries, ensure you're competitive within the MSP market
Flexibility: Remote work options, flexible hours, and work-life balance matter more than ever
Recognition: Acknowledge achievements, provide regular feedback, celebrate wins
Reduce burnout: Monitor workloads, enforce time off, hire before your team is overwhelmed
Culture investment: Team building, social activities, and a sense of belonging increase retention
According to the data, nearly 70% of tech workers received a salary increase or promotion in the last two years. If your employees aren't getting those opportunities at your MSP, they'll find them elsewhere.
Building Your Staffing Strategy: A Practical Framework
Here's how to develop a comprehensive approach to solving your staffing challenges.
Phase 1: Assess Your Current State (Week 1-2)
Audit your positions: Which roles are hardest to fill? Which have highest turnover?
Calculate true costs: What does a vacancy actually cost you in lost revenue, overtime, and client impact?
Survey your team: Why do people stay? Why do they leave? What would make them more likely to stay?
Map your processes: Which tasks could be automated, outsourced, or handled by less experienced staff with proper training?
Phase 2: Implement Quick Wins (Week 3-8)
Automate immediately: Deploy self-service tools and automated workflows
Pilot offshore staffing: Start with 1-2 offshore team members in lower-risk roles
Launch retention initiatives: Address compensation gaps, implement recognition programs
Streamline hiring: Remove unnecessary requirements from job postings, speed up your interview process
Phase 3: Build Long-Term Capacity (Month 3-12)
Scale what works: Expand offshore team based on pilot results
Develop career paths: Create and communicate advancement opportunities
Establish training programs: Build internal capability to develop junior talent
Optimize team structure: Right-size the balance between domestic and offshore, senior and junior
Phase 4: Continuous Optimization (Ongoing)
Monitor metrics: Track time-to-hire, turnover rate, employee satisfaction, client satisfaction
Adjust compensation: Stay competitive with annual market reviews
Evolve your model: As AI and automation advance, continuously reassess which tasks need human attention
Build your employer brand: Position your MSP as a great place to work to attract passive candidates
Regional Considerations for US, Canada, and Australia
The staffing crisis manifests differently across regions. Here's what MSPs in each market should know.
United States
Largest talent pool but most intense competition
Highest salary expectations, particularly in major metros
Strong candidate preference for remote work
Greatest opportunity to leverage Philippines time zone alignment for after-hours coverage
Canada
Similar dynamics to US but somewhat smaller scale
Immigration programs can expand talent access
Currency considerations when comparing to US salaries
Provincial variations in labor market tightness
Australia
Geographic isolation intensifies local talent scarcity
Strong cultural and time zone alignment with Philippines
Higher minimum wages increase cost pressure
Growing acceptance of offshore staffing models
| Factor | United States | Canada | Australia |
|---|---|---|---|
| L1 Tech Salary (Local) | $45,000 - $55,000 USD | $45,000 - $55,000 CAD | $55,000 - $70,000 AUD |
| Offshore Savings Potential | 65-70% | 60-65% | 60-70% |
| Time Zone Overlap (Philippines) | 2-4 hours | 2-4 hours | 3-5 hours |
| After-Hours Coverage Fit | Excellent | Excellent | Good (some overlap) |
Common Mistakes to Avoid
Learn from others' failures:
Mistake 1: Waiting Until You're Desperate
By the time you're turning down clients or missing SLAs, you've waited too long. Build staffing capacity proactively, before the crisis hits.
Mistake 2: Treating Offshore as a Cost Center
If you view offshore team members as "cheap help" rather than valued professionals, you'll get cheap results. Invest in their development, include them in your culture, and they'll perform like any other team member.
Mistake 3: Ignoring Retention While Focusing on Recruitment
It's five times more expensive to hire a new employee than to retain an existing one. Don't pour resources into recruitment while ignoring the factors driving turnover.
Mistake 4: Unrealistic Job Requirements
Requiring five years of experience and three certifications for an entry-level position eliminates most candidates. Focus on potential and trainability, not checkbox credentials.
Mistake 5: Slow Hiring Processes
Top candidates are off the market in days, not weeks. If your interview process takes a month, you're losing talent to competitors who move faster.
Measuring Success: KPIs for Your Staffing Strategy
Track these metrics to ensure your approach is working:
| Metric | Target | Why It Matters |
|---|---|---|
| Time to Fill Open Positions | < 30 days | Measures recruitment efficiency |
| Annual Technician Turnover Rate | < 20% | Industry average is ~40%; aim well below |
| Employee Satisfaction Score | > 8/10 | Leading indicator of retention |
| Cost per Hire | < $5,000 | Tracks recruitment efficiency |
| Revenue per Technician | Increasing YoY | Shows productivity gains from better staffing |
| Client Satisfaction (CSAT) | > 90% | Ensures staffing changes don't hurt service |
Conclusion: The Staffing Crisis Is Solvable—If You Act Now
The MSP staffing crisis is real, it's severe, and it's not going away on its own. With 52% of channel companies experiencing workforce shortages, 4.8 million cybersecurity roles unfilled globally, and turnover rates near 40% in helpdesk positions, traditional hiring strategies are simply not sufficient.
For MSPs in the United States, Canada, and Australia, the path forward requires a multi-pronged approach:
If you're struggling to hire: Expand your talent pool through offshore staffing, particularly in the Philippines where IT talent is abundant and cost-effective
If you're losing people: Implement retention strategies that address the real reasons people leave—compensation, career growth, and burnout
If you're overwhelmed: Deploy automation and AI tools to reduce the number of positions you need to fill
If you need flexibility: Partner with white-label providers and build co-managed arrangements that scale with your business
The MSPs that thrive in 2025 and beyond won't be those who solve the talent shortage—it's structural and likely permanent. They'll be the ones who adapt their business models to succeed despite it.
Don't wait until your best technicians hand in their resignations or your clients start looking elsewhere. Start building your staffing strategy today.
Need Help Solving Your MSP Staffing Crisis?
Konnect specializes in connecting MSPs across the United States, Canada, and Australia with dedicated offshore IT professionals from the Philippines. Our team members integrate seamlessly into your operations, providing the technical expertise you need at a fraction of domestic costs.
We handle:
Recruiting and vetting IT helpdesk professionals with MSP experience
Onboarding and training on your specific tools, processes, and client environments
HR, payroll, and compliance so you can focus on your clients
Ongoing management and support to ensure consistent quality and retention
Stop competing in a talent market you can't win. Start building the team your MSP needs to grow.
Schedule a Free Strategy Session →
About the Author
Vilbert Fermin is the founder of Konnect, a remote staffing company connecting North American and Australian businesses with top Filipino talent. With deep expertise in IT support and remote team management, Vilbert helps MSPs access skilled technical professionals without the overhead of full-time domestic IT staff. His mission is to showcase Filipino excellence while helping businesses stay protected, productive, and competitive through strategic remote staffing.
