Employ
Recruit
The explosive growth of technology across every industry has many organizations facing serious talent shortages. While technological advancements signal a bright future, it has also created a tech talent crisis. The current tech talent market simply does not have enough skilled candidates to meet these demands. Competition for tech professionals has also made it easy for them to jump ship for better opportunities.
How can organizations attract and retain tech talent so they can continue to thrive in this current candidate-driven market? Further, what strategies are leading companies using to get a jump start on the future of technical skill sets?
The Critical Nature of Tech Talent
Technical professionals serve critical roles for their employers. They support the development of improved software solutions that propel organizations forward. Simultaneously, many firms rely on technical staff to maintain their legacy systems. In other words, tech talent serves as the backbone of all modern businesses, creating efficiencies, driving new inventions, and giving them the competitive advantage.
Because technology is the foundation of nearly every aspect of operating a business, hiring and retaining highly skilled tech employees is a necessity. In a rapidly evolving world, the organizations that prioritize and invest in their technical talent strategy are able to adapt and thrive. Those that create robust technical teams have the ability to deliver the solutions that their clients expect. Without a strong tech workforce, they risk lagging behind their competitors and losing opportunities to grow.
What’s Behind the Tech Talent Shortage?
There are multiple reasons why the tech talent shortage is occurring now and is expected to continue. With the rapid emergence of technology comes the need for knowledgeable candidates to fill new jobs. The top reasons include a rapidly growing technical workforce and the increased selectiveness of tech talent when accepting work.
According to data from the U.S. Department of Labor, the tech workforce is projected to grow twice faster than the overall American workforce. In the next ten years, the annual replacement rate for tech occupations is predicted to average 6%, which is nearly 377,500 employees per year – and several million by 2034. While some tech jobs will become obsolete in the next decade, there will be many new roles that organizations will need to either fill or have a process to upskill their workforce. In addition to above-average growth in tech jobs, there has been a shift in the way that people work. Before and during the Covid pandemic, tech workers were transitioning from traditional work arrangements to more flexible and remote options. The State of Remote Work report from Buffer reveals that 98% of remote workers prefer to do so for the remainder of their career because of flexibility, elimination of commuting, and financial incentives.
How to Attract and Retain Technical Talent
While the current workplace conditions have made it difficult to attract and retain the best tech talent, there are ways to improve these efforts. Let’s explore some effective approaches that can support your organizational goals to attract and keep your technical talent even while shortages continue.
Offer Above-Average Compensation and Benefits Package
A major driver for attraction and retention of tech Talent is the ability to offer competitive wages and the desired benefits that they appreciate. The Society for Human Resource Management (SHRM) reported that competitive pay (and transparency) is still one of the top factors for attracting tech talent. Microsoft and Google have set the bar high for other companies by offering above-average compensation and full benefits packages. Your organization can attract and retain tech talent more effectively by offering the best possible total compensation.
Embrace Borderless Hiring and Remote Work
Tech workers have a preference for remote and flexible work arrangements, now often referred to as borderless hiring. According to Gartner’s 2023 CEO Survey, in just three years, the rate of hiring tech talent to work remotely from every region and time zone in the world has doubled. Technical professionals flock to companies that offer the opportunity to enjoy the work-life balance that remote work provides. A prime example of this is the tech-giant Atlassian, that introduced the “Team Anywhere” model of a remotely distributed workforce; they increased their employee headcount by 42% between 2020 and 2023.
Create a Remarkable Corporate Culture
A strong culture is also an effective way to attract and retain top level Tech Talent. Glassdoor reports 77% of technical workers they surveyed look at company culture to be as important as salary when choosing whom they want to work for. Well known for its positive work culture, HubSpot has created an environment that promotes inclusivity, professional development, and the well-being of its employees. “Rated in the top 5 of companies of similar size, 83% of employees would not leave HubSpot if they were offered a job for more money while 85% are excited to go to work each day.” By creating a supportive culture, any organization can encourage tech talent to remain dedicated to its mission.
Strategies for Taming the Tech Talent Shortage
Along with offering more attractive compensation, benefits, remote work, and a great culture, there are some strategies any organization can use to tame the “beast” that is the tech talent shortage. Here are some practical ways you can improve tech recruitment and retention.
Expand Tech Teams Through DEI and International Hiring
Why limit your organization’s ability to attract and retain a highly productive technical team by focusing on a small demographic? Technical jobs should be open to all, including those from underrepresented groups and other countries. A McKinsey study discovered that organizations with diverse teams tend to outperform the competition by 33%. There are resources for any company that wishes to expand their teams by hiring technical workers from a more diverse talent pool. This not only improves recruitment and retention efforts, but it brings ideas and skills from many different perspectives.
Foster Learning Initiatives for your Tech Workforce
Technological advancements are outpacing skillsets of many tech professionals. The World Economic Forum has estimated that by 2025, nearly 85 million jobs will have been replaced; by 2028, 44% of skills will become obsolete. Other research suggests that technical skill relevance is now less than 2.5 years. To maintain a tech workforce with current skills, organizations must provide pathways for professional development and continuous learning. Online learning portals like LinkedIn Learning can be helpful, as are internal instructional design initiatives.
Partner with Tech Recruitment Providers
Ramp up recruitment efforts by securing a partnership with an international recruitment provider, specializing in technical talent. Through ongoing recruitment, this can give any business faster access to carefully vetted technical candidates who are actively seeking great opportunities. Outsourced recruitment agents generally have large tech talent pools that are accessible to their clients. Many can also support international recruitment, onboarding, and teambuilding as you increase your technical workforce.
A multifaceted approach is required to tame the tech talent shortage. This means offering competitive compensation and benefits, a supportive corporate culture that includes diversity and inclusion efforts, ongoing learning, remote work arrangements, borderless hiring, and the use of recruitment outsourcing services. By including these strategies, you will be able to create a more sustainable future for your business.
To find out whether specialist tech recruiters are right for you, check out our guide to the best tech recruitment agencies.
Hire Global Tech Talent with Remote People
Facing a tech talent shortage? We can help. Contact Remote People today to discuss tailored solutions, from upskilling your team to finding skilled remote talent to meet your business’s tech needs.
Author: Marcel Deer
Marcel is an experienced journalist and Public Relations expert with an honours degree in Journalism and bylines with a range of major brands.