Technology talent: it’s not all about pay

Nick Adams at Globalization Partners explains why attracting top technology talent requires a new mindset

 

By 2030, there will be a global human talent shortage of more than 85 million people - roughly equivalent to the population of Germany.

 

Left unchecked, that talent shortage could result in approximately $8.5 trillion in unrealised annual revenues. It’s no surprise then that the growing global skills shortage is a topic that continues to dominate corporate agendas and gives even the most established organisations sleepless nights.

 

One of the fiercest battlegrounds in the fight for talent is in the tech sector, with companies continually scavenging for top candidates to fill software and information technology roles, brought on by the limitless pace of digitisation.

 

Among the most in-demand tech roles are information security analysts, full-stack engineers, software developers, data scientists, computer programmers, systems analysts, and network/cloud architects.

 

Interestingly, demand for different roles isn’t evenly split around the world. A recent study by the Economic Development Board of Singapore (EDBS) found that of the current 3.1 million unfilled cyber security jobs around the world, two-thirds of them (66 per cent) originate from APAC.

 

Meanwhile, a report by IBM found that Europe is currently at a significant disadvantage due to an AI skills shortage.

 

It’s not all about pay

The global talent shortage isn’t the only thing tech firms have had to deal with in recent years. The pandemic gave rise to the ‘Great Resignation’, followed quickly by the ‘Great Reshuffle’, as workers from all sectors took stock and decided to make long contemplated job changes, or even complete career changes in some cases. 

 

It isn’t over yet either. In the UK alone, more than 6.5 million people expect to quit their jobs in the next 12 months. But where will these employees go? What will attract them? And how can companies stand out from their competition in the increasingly competitive fight for talent?

 

Of course, the first thing that springs to mind is pay, particularly in the tech sector, with recruitment firms such as Hays reporting inflation-busting pay rises of 10-20% on offer to those in senior or specialist technology fields in 2021.

 

But offering a competitive salary often isn’t enough by itself anymore. Stock options and equity are quickly becoming a honeypot for top-tier tech talent.  Apart from giving employees a sense of ownership, they can also provide motivation due to the possibility of a lucrative payout if/when the company decides to go public.

 

To sweeten the deal and stand out even further, companies are also including things like comprehensive health insurance, unlimited paid-holidays and attractive professional development plans. Access to an extensive selection of the latest tech tools and solutions is another increasingly popular request among technology project managers, developers, and analysts.

 

Employer branding is more important than ever

Today, any digitally savvy individual does their due diligence on a prospective company before pulling the trigger and accepting an offer.

 

Tech candidates can quickly access brutally honest reviews about company culture, compensation, and even pictures of the prospective workplace. There are even specific sites designed to make this research easy, with some providing Q&A sections that allow users to anonymously pose questions to current or former employers.

 

For this reason, employer branding is now more important than ever before. The way companies market themselves can determine their success in attracting key talent, especially for smaller tech companies fighting against large, established firms.

 

In 2021, Apple caused a stir when Tim Cook, CEO of Apple, told his global workforce of 137,000 employees that they’d have to return to the office three days a week.

 

In response, several tech employees published an open letter criticising the move, going so far as to say: “Over the last year, we often felt not just unheard but at times actively ignored”. A number of employees even quit in response.

 

Employer branding that fails to account for the needs of top employees will lose existing talent and miss out on new potential candidates. Startups and smaller companies are taking notes, actively listening, and tapping into the desires of the tech talent pool.

 

A great example is PayPay. The Japanese fintech company embodies the flexible mantra by providing a work-from-anywhere allowance and access to WeWork offices all over Japan to all its employees.

 

Gen Z becoming a major workforce presence

The growing presence of Gen Z in the workplace is also starting to have a major impact on the tech sector. This demographic currently accounts for 30 per cent of the global population and 25 per cent of the workforce. A recent CloudBees survey revealed that three out of every ten 18-24 year olds want to become software developers after graduation.

 

Although this generation is growing in numbers, engaging and drawing them towards companies is proving tougher than expected. Gen Z is directly influencing employers to roll back outdated policies that no longer resonate with today’s workplace. Companies must come up with fresh, human-centric policies to attract quality tech talent.

 

Central to this is the demand for clear, comprehensive learning and development opportunities included as part of any prospective tech role. As true digital natives, Gen Z values interactive learning and expects technology to play an instrumental role in training experiences.

 

Companies can also utilise things like gamification and video-based collaborative platforms to effectively engage Gen Z tech talent.

 

The ongoing global tech talent shortage has combined with the ‘Great Resignation’ to create a perfect storm when it comes to tech recruitment. While pay remains an important factor in attracting new talent, businesses must think beyond it and create truly compelling employment opportunities if they want to attract the best and brightest talent available.

 

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Nick Adams is VP EMEA at Globalization Partners (G-P)

 

Main image courtesy of iStockPhoto.com