The Covid-19 pandemic brought about a wave of unemployment with almost every company laying down employing. The International Labor Organization estimates that nearly 1.6 billion informal or unregulated jobs are at risk due to the pandemic. That’s almost half of the global population. The world we live in today looks very different from two years ago.
Amidst the global employment crisis, one sector remained unaffected – technology. With businesses moving online, the competition for IT and tech talent is fierce as ever and it’s expected to get even more fierce. Karin Kimbrough, LinkedIn’s chief economist says that, in the next five years, they expect almost 150 million new tech jobs.
In this article, we will discuss the competition for IT and tech talent and how your organization can get ahead of the game.
The Global Shortage for Tech Talent
According to a report by Korn Ferry, there will be a global talent shortage of 85 million by 2030. That’s roughly the population of Germany! The report further says that Russia and the US could be facing a talent shortage of up to 6 million people with China facing a shortage of 12 million (twice as much). The countries most affected by this will be Brazil, Indonesia, and Japan with a possible talent shortage of up to 18 million skilled workers.
The main reason behind this talent shortage lies in simple demography. Japan along with many European nations is seeing a decline in birth rates for decades. In the case of the US, most baby boomers will have moved out of the workforce by 2030 and the younger generation won’t have adequate time, skill, or training to take up the high-skilled jobs.
The chairman of Korn Ferry, Alan Guarino explains this as:
“It’s pure supply and demand. Companies are paying more, they’re hiring more, but there is still a shortage of high-skilled tech workers. Technology is the thread that runs across every aspect of the business.”
The Competition for Tech Talent and Cost
As the demand rises for a certain object, then so does the cost. Alongside experienced individuals, entry-level engineers are also expecting higher salaries and signing bonuses. Tech giants such as Google, Amazon, and Facebook are using huge compensation packages to attract top talent. Facebook is known to offer up to a $100k signing bonus to its software engineering interns. A data scientist in the United States earns an average salary of $117,212 and the salary for software developers starts at $68,000 per year. As the demand increases, the cost of hiring tech talent is also likely to increase.
Is the Competition for Tech Talent a Temporary Trend?
With the rising demand for tech talent, the balance of power has shifted in the direction of experienced engineers and tech professionals. However, whether or not the competition for tech talent will continue is a disputed subject.
Jennifer Van Grove of The San Diego Union-Tribune asked the following question to some industry experts in her article:
Competition for tech talent is fierce. Is the trend temporary?
“NO: Technology will play an increasingly important role in peoples’ lives, and that will keep the competition for tech talent high. The ability to work remotely has made the labor market for many workers, particularly those in technology, a national one as opposed to a regional one, which further increases the competition for those workers. This makes it imperative to deal with the STEM divide, where poorer education in those areas threatens to leave some people behind and worsen income inequality.”
Alan Gin, University of San Diego
“NO: As new technologies permeate all aspects of our lives, the need for advanced workers accelerates. While technical college graduates and training programs increase, they continue to be outpaced by global demand. As such, in-demand workers will command additional salary and benefits. Regions that efficiently produce or attract highly trained workers will fare best in the coming decades.”
Austin Neudecker, Weave Growth
How to Attract Top Tech Talent
Attracting top tech talent in this highly competitive world can be quite a challenge. We all hear about how tech giants such as Google make the workplace feel like home for their employees. From culture to the best food and even huge compensation packages, they haven’t any stone unturned. In such times, it’s vital to stay ahead of the game.
Here are a few ways to attract and hire top tech talent:
1. It all starts with the company culture! People are no longer looking for just a place of work, but a place where they can grow both professionally and personally.
2. Optimize the recruitment process via innovative search and hiring techniques such as boolean search.
3. Tech enthusiasts usually love to explore new technologies and take risks. A company that encourages smart risk and growth usually attracts developers with in-demand tech skills.
4. Meetings used to be the highlight of the day, but they often end up taking too much of the time. Opt for fewer and briefer meetings and smart workflow to hire and retain developers.
5. In the post-covid world, remote work is the holy grail of recruitment. Make sure to let your employees know that you offer flexible hours and days.
With every company hiring tech talent to build, run, and manage their online businesses, the demand is likely to increase over time. Tech recruiters have become a commodity as they are at the forefront of this battle.