The tech revolution has changed the way humans interact with one another and the world at large. The tech industry is arguably the most valuable today, with companies like Meta, Apple, Amazon, Alphabet Inc, and Microsoft worth over a trillion dollars today. We can say the influence these companies have brought us is immeasurable. And because of this revolution taking place, recruitment is one of the arduous tasks in the industry. The combination of the scarcity of skilled talents, inflated salaries in the market, and the tendency for employees to jump ship at a heartbeat – recruiting in tech can be a nightmare. This article will explore some of the recruiting challenges tech companies face.
High Turnover Rate
Recruiters and HR hiring personnel face the problem of constantly recruiting for a new position every other month. The tech industry is notorious for a high attrition rate, and the cause is the highly competitive market and demand for limited skilled tech candidates.
Tech companies face this because it’s easy for a tech staff to be in a company for mere months before deciding to leave if they feel they have a better offer.
HR can combat this by giving employees reasons to stay with the company. Aside from a good remuneration package, factors like organization culture, branding, and working conditions will all play a huge role.
Higher Compensation Packages
The scarcity of skilled IT candidates has seen the tech industry become one of the well-paid industries in recent times. To put this in context, the entry-level for software developers is $110,140, according to the Bureau of Labor Statistics.
Compare that to an entry-level attorney or financial analyst, which is on average $60,202 and $50,058 respectively in a year. The higher compensation package means companies will need to offer better terms to the best talents to recruit them.
Massive Passive Candidate Pool
There is a massive pool of passive candidates. These candidates are skilled candidates who are already in a job. The problem is the top talents don’t stay in the market for too long – chances are, the skilled workers you are searching for will have a job.
To complicate this problem – it’s expensive to recruit these passive candidates from their jobs. Hiring managers can create a talent pool to connect with talents from universities – training and educating the best talents to meet the required skill set of the company.
Offering internships and partnering with the schools can be a great way to secure a talent stream. Tech companies can also build an extensive network with their current staff, who have colleagues in other companies interested in other job openings.
Maintaining Brand Image
Maintaining a great brand image is one goal every company aims to achieve. But in the tech world, the company’s branding influences candidates’ job decisions. The large availability of IT-related jobs has seen candidates take more precautions before choosing a company, and the image and branding of the company are something they will research.
Google is known for its relaxed working atmosphere and unconventional workspace. That’s an image of the company. They are also known to stand for diversity and gender equality, and these are part of the brand of the company, something any prospective recruit will want to know.
The internet is an effective tool for candidates to research a company and decide if they wish to be associated with its brand. Companies will have to ensure to keep their brand respectable and avoid controversies.
Slow Hiring Process
IT companies are notorious for their long interview process. This hiring process is also justifiable because of how delicate and specific the work of this set of employees is. I will use programmers as an example. There are various programming languages used to program. To test the proficiency of a programmer, the hiring managers will have to assess them.
Assessing them means a lot of coding tests and one-on-one interviews with the hiring department, which can lead to a lengthy recruitment process. Sometimes a hiring company can put too many processes which slow the recruiting process, putting off some skilled candidates.
HR should ensure that the hiring process improves the candidate’s experience.
Demand For flexible Work Policies
The pandemic brought about one change tech employees craved for, even before COVID-19 – remote work. 99% of employees surveyed said they want to work remotely in one form or another. The pandemic delivered this to the world, and now that tech employees have a taste of it, they don’t want to let go.
A survey shows most employees want to keep working remotely or have days in the week they can work remotely. The pandemic has proved to employers what they feared the most – employees could work from home and be productive. The IT candidates know of this and negotiate remote work into their offer. Demanding days they can work from home or even work remotely permanently.
The hiring manager should be forward-thinking and incorporate remote work into prospective candidate job offers. It improves your chances of landing the best in the industry.
A Drive to Work For Something Other Than Money
We mentioned tech companies experience a high attrition rate because of the current dynamic of the industry. According to this survey by CNBC, 86% of Millennials will take a pay cut to work for a company whose mission statement aligns with theirs.
This study highlights even if tech workers seek competitive salaries, they also want to belong to a community. The tech industry is big on communities. So, it’s not strange to see an employee leaving an established firm for a start-up because they believe in what the company offers. The mindset to dream big is at the heart of tech innovation itself, and it’s easy to see why it exists in the hearts of many tech employees.
Recruiters should find out what candidates expect from the company. It may be good practice to invite your top candidates to your organization and let them witness a day in the company. Also, have them ask questions about the culture, mission, and vision. It will be inevitable, but some may leave, showing they are probably not the best fit.
The Dynamic Industry
Recruitment in tech can be tricky, aside from all the points mentioned. The industry is also very dynamic. Innovation in the industry means a lot of times they require a new set of skills at given periods. Because of its ever-changing nature, skills irreplaceable ten years ago are now obsolete. The dynamic nature makes recruitment of talent difficult when hiring for the future.
Final Thoughts
In conclusion, Tech candidates are challenging to recruit because of the various highlighted problems. In the future, recruiters will need to familiarise themselves more with the industry or become specialists that only serve the industry. Doing this will enable recruiters to stay ahead in the IT recruitment game.
