Tech is constantly in the news and new waves of powerful AI tools keep shaking things up. But people in the industry know that recruitment and retention for IT companies is a headache.
The rapid changes in trends and technology have caused a talent shortage….
Companies urgently want to level up with cutting-edge tech, but it’s tough to secure top talent. There isn’t much out there, and the talent pool has some catching up to do. In-demand tech skills can’t be learned in a matter of weeks.
Companies are feeling the strain. ManpowerGroup’s 2024 Global Talent Shortage report said that 75% of employers report difficulty filling roles. Meanwhile, businesses only fill 65 positions out of every 100 open job roles.
Why recruitment and retention for IT companies is a challenge.
High turnover rates.
The first battle is recruitment for IT companies – retention for IT companies is the second. The tech turnover rate reached 13.5% in 2023. It’s become a challenge to keep staff around and there are many reasons why:
- Top talent have options: Those with in-demand skills have the world at their feet. They get bombarded with messages on LinkedIn and emails from recruiters all the time! Plus, remote work makes it possible for them to work with companies all over the world. They’re spoilt for choice.
- Tech giants snap up top talent: The biggest names in tech offer impressive salaries, perks, and compensation packages that smaller companies struggle to compete with. Plus, having a blue-chip name on your CV can do wonders for your career. They’re hard to resist.
- Job hopping is on the rise: People job-hop for different reasons. Whether it’s to boost their salary or find a better working environment – top talent won’t struggle to find a new employer if their needs aren’t met.
- More people are going freelance: Freelancing offers flexibility and the chance to rapidly make more money than most in-house positions. It’s never been easier to transition into freelancing. There are many freelancer websites and techies could easily build their own.
- Desire for new challenges: It takes many hours to become a world-class software engineer or developer. Lots of techies dedicate many hours of their own time to grow their skill sets. It’s more than a job to them. So they often seek a new challenge if they feel they’ve outgrown their employer.
Supply and demand mismatch.
Software developers and engineers take years to refine their craft. They are complex professions with many areas of specialisation. But even the most talented people need time to learn the latest tech. The demand comes first, and it could take months/years for the supply to emerge.
2023’s most in-demand tech jobs were:
- Artificial intelligence/machine learning engineer
- Cybersecurity specialist
- Software/application developer
- Cloud architect
- Data scientist.
The competition for recruitment and retention for IT companies in these areas is fierce. As the demand for these skills skyrocketed in recent years, the talent pool is sparse – especially in AI, machine learning, and cybersecurity.
Changing skill sets.
Tech is vast with so many niches and programming languages to learn. Those looking to get into the industry want to invest time in learning in-demand skills. It explains why recruitment and retention for IT companies is challenging. People need to find the areas they’re interested in and it takes time to become a great candidate.
5 strategies to attract and retain tech talent.
A proactive approach beats a reactive one when it comes to recruitment and retention for IT companies. Focus on what you can control to boost your chances of securing and retaining top talent.
1. Build a thriving company culture.
Facing recruitment and retention for IT companies leads businesses to look outward. It’s easy to stress over the competition and wonder how you can compete with bigger companies.
But it’s important to remember that people are motivated by different things and that their motivations change over time. Some chase the highest salary, others prioritise creative fulfilment, and some place company culture above everything else.
“There’s no magic formula for great company culture. The key is just to treat your staff how you would like to be treated.” – Richard Branson, Founder, Virgin Group
How to build a thriving company culture:
- Create a productive environment: Office trends have changed. Companies like Google and Facebook used to have eccentric open-plan offices and lots of gimmicks. But it turns out that they don’t do much for happiness or productivity. Do you know what the Harvard Business Review said was the #1 office perk? Natural light! Biophilic design – the use of natural elements like plants to bring the outside into your home – has been on the rise too. People want a cosy office that brings out their best work.
- Define your brand values: Clarifying who you are, what you do, and why you do it makes it easier to attract clients and top talent. Your mission, values, charity contributions, etc., could be key factors in why top talent chooses you over the competition.
- Encourage open communication: A Fierce survey found that 86% of respondents blame lack of collaboration or ineffective communication for workplace failures. Encourage open communication so any questions/concerns can be dealt with early on.
- Provide opportunities for growth and development: It’s natural for top talent to ponder their future when they’re contacted by recruiters day in, day out. So, it’s important to define what growth looks like at your company. Do you have internal promotions, mentorship programs, leadership development programs, courses and training programs? If so, don’t keep them a secret. List them on job postings and tell candidates about them during interviews.
- Team days out: Take your team to tech events and conferences. This will build team morale and skill sets and give your team opportunities to make friends with everyone at the company.
- Offer perks: Mixing up company perks is a simple way to keep things exciting for your team. Free gym memberships, meals, and subscriptions (tech tools, learning platforms, magazines, etc.) show staff that you appreciate their efforts.
2. Encourage a healthy work-life balance.
A 2024 study from American Express found that a healthy work-life balance tops UK workers’ list of priorities.
The working world changed in 2020. Even if someone loves their job, commuting to spend 40 hours a week in an office can be exhausting. It was necessary before video conferencing and instant messaging tools but work no longer needs to be so rigid.
Promoting a healthy work-life balance helps recruitment and retention for IT companies. People can’t do their best work if they’re tired all the time. Flexibility goes a long way.
Offer remote working options.
A staggering 98% of workers want remote work at least some of the time. The demand for remote working shot up after the COVID-19 global pandemic.
Tech companies coped better than most as they were up to date with modern tech. But after months of companies working remotely, people quickly got used to it. It’s not going away any time soon, so not offering remote work may cost you top talent.
Offer flexible hours.
Working 9 to 5 every day doesn’t suit everyone. It leaves little space for people to take care of themselves – appointments at doctors, dentists, etc. Plus, people wake up at different times so a nine o’clock start might not bring out the best in people.
How to be more flexible:
- Establish core hours: It’s almost impossible to schedule meetings when everyone is working different hours. Core hours provide flexibility while ensuring everyone is available for team meetings.
- Offer workweek compression: Developers and engineers tend to work in “flow states” and for long periods until they complete a task. Sometimes, staff may prefer to work four 10-hour days rather than five 8-hour days.
- Experiment working with on a task basis: Netflix made headlines when they introduced a ‘no vacation policy’, which meant employees could take as much time off as they want. They had tasks to complete and Netflix let them manage their own time as long as deadlines were met. This may not be an option for all companies but it’s something to consider as it provides a great level of autonomy. And autonomy is proven to be a major factor in employee satisfaction.
3. Streamline your recruitment process.
Process plays a vital part in recruitment and retention for IT companies. Understandably, companies take their time to hire the best candidates as recruitment is expensive. But candidates don’t enjoy waiting around after being interviewed…
Candidates feel disrespected if you keep them on ice for too long. Plus, a long wait leaves space for them to get snapped up by another company.
Streamlining your recruitment process will be well worth your time. It could be the difference between securing top talent or losing them to a competitor.
How to streamline your recruitment process:
- Create detailed job descriptions: Get as clear as you can about what the job entails, the skills and level of experience required, etc. A common problem for companies is posting vague descriptions that attract a mixed bag of talent. And it’s impossible to pick the right person when you’re not sure what you need.
- Use an Applicant Tracking System: There are many steps involved in the recruitment process and a clunky experience doesn’t reflect well on your company. Use an ATS system to streamline the process. Save your time and energy to focus on finding the right person.
- Offer virtual interviews: It’s a big ask for candidates to travel 1-3 times for interviews. Video interviews are a more convenient way for a candidate to get a good read on your company before they meet you in the office for the next interview.
- Collect feedback: It’s always frustrating to miss out on top talent but even more so when you don’t know why they said no. Follow up with an email or phone call to try and get some feedback.
4. Host events to build your name and attract top talent.
Recruitment and retention for IT companies are challenging from the start. How do you stand out? Remote work makes it even harder, as top talent can work with companies anywhere in the world.
A simple way to get your name out into the world is to host events or start a Meetup – either online or in person. This may sound complicated but it’s simpler than it sounds. You could host a tech talk, workshop, hackathon, panel discussion, etc.
If you don’t have the time or premises to host events like that, you could organise a ‘drinks and pizza’ meetup at a nearby venue. It’s a fun and relatively easy way to get your name out into the world and meet talent in the process.
5. Keep job roles clearly defined.
Once you’ve hired an engineer, you want to use their skills as effectively as possible. But that’s not always easy. When demand increases, you may have to ask team members to take on tasks outside of their remit. This can lead to burnout, missed deadlines, and even job dissatisfaction.
While an all-hands-on-deck approach might be necessary from time to time, when it becomes normal, you begin to blur expectations and miss SLAs. Besides that, it’s also an ineffective use of your resources to ask highly-skilled employees to perform tasks that could be handled by someone without speciality knowledge.
Consider outsourcing your customer service to a third-party provider to give your engineers and other colleagues the freedom to focus on what they do best. That also allows your customers to receive a quick response from someone who’s not distracted trying to perform several tasks simultaneously.
If you’re struggling to keep your IT team staffed up, Our IT answering service can help. Our trained receptionists can lift the burden on your existing staff and give your engineers time back to resolve tickets.
