Why finding tech talent is so challenging nowadays?

Looking at the tech industry from the standpoint of the last few years, these have brought some fundamental changes in working patterns, acted as a catalyst for digital transformation, and shaken the political stability of both Europe and the world as a whole. It is clear that the accumulation of factors contributing to the current state of affairs is quite exceptional. If we add to that the inexorable forthcoming of another economic crisis, it becomes obvious that we are now in the eye of the cyclone, which is about to not only shake up the status quo of the global economy but literally wipe the status quo off the face of the earth.

Where is this eye of the cyclone, the seemingly calm area of the market? It is rather most likely in the Tech industry.
At Talando, we are on the front line and fastest observing changes and trends. We are in daily contact with companies operating in the industry and top-level employees and professionals. This gives us access to market sentiment before it develops into global trends.

So, what is the situation now?
It is certainly not easy.

What are the reasons?

It is easiest to claim that there are simply not enough specialists on the market. The truth is that the workforce is there, just they are already employed with other tech companies. The problem is complex and cannot be solved by choosing one strategy. This is because the root of the issue is multi-dimensional.

Ever-growing demand

The demand for IT specialists is ever-growing. This trend has been observed for years now and, certainly, it will not change any time soon. Also, as far as the emergence of new professions is concerned, most of them will be closely related to IT, linking the digitalised world with fields such as medicine, spatial management or entertainment. Unemployment in the industry is lower than the national average. This practically means that there are not as many available specialists on the market as in other sectors of the economy.

Shifts in specialisations 

Pandemics and war are shifting the focus and directions in technology development and new professions. Not all recruiters are keeping up with these changes. Many companies have had to move towards a completely remote workplace or a kind of hybrid working environment. This has led to an increase in cyber-attacks and, consequently, an increase in investment in security technology. More talents also focus on cloud and automation skills. Because of this, candidates are looking for jobs that centre more around building infrastructure and cyber security, rather than just being a developer. The other side of the problem is that even if the employee does not switch specialisation, the field itself is systematically transforming. The entire tech industry is based on continuous improvement and ongoing learning, it is evolving all the time and therefore it is not a profession for everyone. Some Tech talents adapt and some leaves for other professions.

Increasing expectations

Candidate requirements are increasing. Systematically from 2020 onwards, employees are becoming more confident in their jobs and feel more secure about their employment. After experiencing remote and hybrid working during the Covid-19 pandemic, they do not want to go back to old office working models. They expect to work remotely, which is slowly becoming the standard in the IT industry. The model of limiting working hours to a 4-day week is also on the table. First impressions suggest that such a model can have an impact on productivity growth – employees are voicing these conclusions.

Junior burnout

Employers are undervaluing the workforce, especially in junior positions. This occurs on a number of dimensions – from underpayment, little or no bonuses and raises, to complicating onboarding processes and mismanagement often manifesting itself as an uncontrolled increase in tasks and responsibilities. Young workers are overwhelmed, become frustrated and burn out quickly. As a result, they leave their jobs. Everyone loses in this, but employers lose the most.

Employer reluctance

Despite the rising clamour of employees, employers are reluctant to adapt to the new requirements. They are pushing to revert to the standards of a few years ago and refuse to look ahead. Maintaining the status quo will have multiple consequences, but these will not be beneficial in the long term. Company culture and employer opinions count now more than ever. Those who turn a blind eye to this truth will quickly face negative implications such as talent exodus and recruitment difficulties.

Outdated recruitment strategy

Many technology organisations still focus on internal recruitment. This strategy is fraught with weaknesses, in the long term in particular, even though on the surface it may seem cheaper. It is by no means the optimal hiring strategy in the IT industry, especially regarding C-level talents.

What IT positions are currently the most challenging for recruiters?

In 2022, Statista’s global survey asked recruiters about their predictions for IT staffing.

Respondents answered the question, “Which positions do you think you will struggle to source/recruit in 2022?”

They identified the 10 biggest IT staffing challenges:

1. Full-stack developer / engineer – 36%
2. Back-end developer / engineer – 35%
3. DevOps – 28%
4. Applications developer – 26% 5.
5. Front-end developer / engineer – 25%
6. Architect – 21%
7. Data scientist or machine learning specialist – 15% 8.
8. Tester – 13%
9. Mobile developer / engineer – 10%
10. System engineer – 9%

Based on this list, we can clearly see that developers of different specialisations are the most challenging to recruit. What do they expect from employers? The research states clearly: Devs care most about salary, culture and flexible working, which includes most wanting to work fully or primarily remote. More on this below.

What can be done to meet this challenge and overcome the difficulties?

Attractive remuneration

The first effect of the current labour market landscape will be salary growth. According to estimates, rates will rise this year, for example by 4.4% in Germany and the UK, 5.4% in the Netherlands, 8.2% in Poland and 8.9% in Hungary. Rapid inflation and the Russian-Ukrainian war are undoubtedly adding fuel to the fire. Rising wages will be another trend in 2023. However, companies can also raise salaries indirectly, through a benefits range, work flexibility or unique and interesting projects attracting talents. Although employees are becoming more vocal about their expectations and are looking for a new dimension of work-life balance, studies indicate that we are not in danger of a European equivalent of ‘Great Resignation’. Executives indicate that, yes, there has been some outflow of employees recently, but it is not drastically high. A contributing factor is European labour laws, which are much less liberal than in the US.

Non-EU workforce

Can Ukrainian refugees provide relief to the growing demand for workers in European countries? Despite a number of procedures to streamline entry processes, forecasts indicate rather sharply that the new workforce will not have a significant impact on employment challenges, and certainly not immediately. The language barrier is also likely to be a significant concern in this regard. Therefore, patience must be applied and this topic should be examined again in a few months’ time.

Investing in staff

The most affordable solution for many businesses might be to invest in their current workforce. Training and reskilling current staff can boost employee motivation and satisfaction, build company culture and reduce turnover. At Talando, we provide comprehensive consulting on a range of HR services. We will guide you on how to find true talent among your employees and what action you should undertake to kick-start the realisation of their full potential in your company.

Understanding candidates’ needs

To improve their chances of attracting great talent, there are things that every tech company can improve. The foremost is to promote a better work culture and stop thinking that it’s always about the money. If recruiters and employers can focus more on the mission and culture of the organisation, they will attract the best candidates. There are a vast amount of high-level professionals for whom inspirational projects, a strong sense of mission and community remain their primary motivators. Such takents are worth targeting, for if they find these traits in a company, they will stay loyal to the firm.

Applying an optimal strategy

The most reliable and, in the long run, safest solution is to outsource the recruitment process, especially in the C-level talent acquisition, to a professional body. Agencies experienced in industry recruitment have access to an unbeatably larger talent pool. Qualified recruiters know how to talk to candidates to persuade them into considering another career opportunities. Talando proffessionals use the CABS methodology, which translates into hundreds of successful hires for the most challenging positions. Additionally, they can assess instantly and accurately whether a candidate is a good match for the position and the company. The devil is in the details, and it is these details that determine whether the partnership will be rewarding. An additional safeguard for Talando’s clients is cost-free recruitment in the case of the failure of the originally chosen candidate. Each recruitment is a huge amount of time and work, and with this assurance, the client entirely avoids the risk of double expenses.

Expanding the talent pool

To address staffing shortages, companies need to consider expanding the talent pool to include non-traditional talent sources such as retired workers and people with disabilities. The latter group in particular represents a huge potential in the tech industry due to the very nature of the work and job responsibilities. Physical disabilities are becoming a negligible factor with the remote working model, which is now becoming a major IT employment model.

Shifting the mindset 

A huge role in the whole process is, of course, played by the recruiters themselves, who must tenaciously strive to find the right talent. Talando and other top agencies work on a ‘candidate-first recruitment’ basis. Their focus is on personal approach and finding ways to attract candidate’s attention. The heart of recruitment is not the number of candidates you hire in a given time frame, but how many perfectly matched talents you are able to reach out to, find the perfect job for them and keep them in your network.

At Talando, we work in just this way. We find and connect like-minded people. We’ve been recruiting for the most demanding positions globally since 2014. Do you want to see how quickly and seamlessly we tap into your employment needs? 

Contact us at: [email protected] to transform your business with the best IT talents.