Why Most Companies Struggle To Retain Top Tech Talent

January 13, 2021

The struggle to find top tech talent and retain talent is real. 

Staying on top of new tech developments and ensuring that your organization is doing everything to retain talent can be challenging.  

In this day and age, companies have to be aware of the things they need to offer to retain talent. They need to be cognizant of the compensation and work environment they offer.  

A recent report published by Linkedin Learning shares some of the tools that technology leaders can use to nurture and retain talent. Linkedin writes, “As a technology leader in one of the most competitive job markets, it’s your responsibility to hire, retain, grow and lead the most epic team possible. Technology talent is driving innovation and business transformation in the 21st century, making your leadership role all the more important.”

Talent retention is affected by the world’s digitalization

In an increasingly digital world, many organizations are having a hard time retaining top tech talent. 

Top tech talent receives dozens of solicitations and better offers from other companies every day. Make sure that your processes do not hinder your organization from retaining top talent. 

We have definitely seen something such as “message fatigue”. When you reach out to top tech talent, it’s important that you accurately represent what your organization can do for them, and why it’s a great place to work. 

Keep in mind that candidates may have been bombarded with messages from other competing companies. This is why you have to figure out what you can do differently to stand out from the crowd. 

From outdated systems to poor communication, inefficient hiring processes can lead to losing out on top tech talent.

So, what steps should hiring managers or companies take to retain talent and help your organization continue to thrive? 

Consider focusing on enhancing your company culture, responding to employee input, and ensuring you have a rigorous compensation package. It’s likely top tech talent knows their competitive worth. 

Top Tech Talent Receive up to 7 Linkedin Solicitations Per Day 

Recruiters and your competitors are always trying to approach talent. According to Career Builder, IT professionals report receiving 32 solicitations each week. Typically, candidates will receive 7 solicitations on Linkedin daily. 

We’ve compiled some of the challenges that companies face when attracting top tech talent.

Demand is too high, so it’s hard to retain talent 

The tech industry is projected to reach $5 trillion in 2021.

Although top tech talent continues to be in high demand, specialized roles continue to be hard to fill. 

According to Cloutera, 50% of hiring managers have struggled to fill open jobs. 

“Nearly 73% of employers state they are having trouble finding skilled candidates overall, and 45% are legitimately concerned about locating the talent they need. Currently, technology leaders have difficulty finding qualified professionals for a wide range of tech roles, including security, software development, data analytics, and more,” writes Cloutera. 

Because of this, many companies reach out to specialized niche recruiters to assist with the issue of filling a niche, or hard-to-fill tech roles.

As a tech leader, it’s important to ensure that your team is content with your organization’s workflow and not feeling overworked or overwhelmed. Top tech talent candidates may easily find another company that can offer better leadership, compensation packages, or long-term value.

Another good idea is to find ways to improve efficiency and other outdated practices. These could be holding your organization back from retaining top talent.

Competing Companies Will Always Offer More Money 

Money is an important deciding factor for top tech talent, but it’s not the only factor. 

If your compensation package is not competitive enough, candidates know well enough not to waste time.

Since competition in tech is fierce, you want to make sure you have all your bases covered. This includes offering employees an enticing compensation package which is a priority for most tech talent candidates (and most employees in general).

You may want to review or shift your overall organizational strategies to see how your organization can continue to attract top tech talent for job positions that are in high demand.

Offering a competitive retirement or compensation package can further help incentivize and attract quality candidates. 

Does your company offer a 401K, profit sharing, or other incentives to retain talent? 

Many candidates share that compensation is one of the first things they look for in a tech startup position. In fact, according to a report by Linkedin Learning, 54% of people shared that they joined a new tech job for better compensation and benefits. In the report, 59% reported their interest in seeking a new career path and opportunities. 

Also, according to Payscale, “top tech talent in the 75th percentile or higher, especially in highly competitive labor markets, can earn over $200K”. Keep all of this and mind and realize that top tech talent stays where the money goes. 

Aside from the compensation aspect, candidates often look for a role that is both challenging and rewarding. They gravitate toward roles that are meaningful and give them room to thrive as a technologist. 

To retain talent, you must be clear on the technical position

You want to get clear on the technical position you’re looking to fill. What business problems will your future hire solve? How will they add value to your organization? 

You also want to do a thorough assessment of whether your candidate has the specialized skills required to succeed in the role. 

Also, if there’s a quality candidate that meets all the criteria, but lacks one of the skills you’re looking for, try to give some wiggle room. See if there’s room for growth and a chance for your candidate to quickly learn and pick up a new skill. Nurturing talent is the key to a successful organization. 

Also, consider reviewing your organization’s internal technology. Is it outdated? If so, candidates might not be as interested in pursuing your organization.

Retain talent by helping them grow within the organization

Candidates typically gravitate towards companies that offer incentives and the opportunity to learn and grow in their specialized roles.

As technology changes, there will continue to be more of a demand for candidates with specialized skill sets that can take on complex algorithms, coding, and other roles. 

According to Linkedin Learning, candidates look for purpose-driven work that is meaningful and provides a sense of happiness and productivity. 

You want to make sure that your work environment is set up in a way that is supportive. This means carrying enough opportunities for learning and growth. 

“Passionate work brings clarity, drive, and happiness. If work is meaningful, they’ll be more likely to stick with it, which means your tech team is more likely to be successful,” writes Linkedin Learning. 

All in all, it is important to figure out better ways to stand out in the competitive tech industry. Retaining top tech talent requires an understanding of creating meaningful workplace environments, mentorship, competitive compensation, and opportunities for employees to feel challenged and rewarded for their skills. 

Align yourself with an expert. Contact Focus GTS to help you fill those hard-to-fill roles. 

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