Tech Talent Shortages and Its Effect on Business and Wages So Far in 2017
Has it Come to This? Over 50% of Tech Companies Settling for Less Qualified Candidates!
It’s a well-known fact that is all too apparent in the Technology sector: Finding and hiring tech talent was extremely difficult in 2016, and it won’t get much easier in the coming year. Also, it doesn’t matter what size business you are, both small and large businesses are suffering from the shortage. Large companies must meet very aggressive hiring goals while sourcing talent from a very-limited talent pool and competing against many other large corporations for the top talent. Smaller organizations are struggling to match the pay, benefits and perks that large corporations can offer.
Due to these factors, many companies are willing to settle for subpar candidates. In fact, Indeed.com recently completed a nationwide survey of over 1000 hiring managers and recruiters to see how the tech shortages have affected their business, and “over half (53%) of respondents have hired tech talent despite candidates not meeting the job description requirements.” This is negatively affecting their bottom line.
With talent shortages affecting the entire tech industry, what should companies expect to see in 2017? Below are 3 predicted trends to keep in the back of your mind as you prepare for the upcoming year:
Trend #1: Hitting the Salary Ceiling? Don’t Expect Increases. Maybe.
According to a survey by TEKsystems discussing their annual IT Forecast, 36 percent of IT leaders say they plan to increase overall IT salaries in 2017, while a staggering 63 percent expect overall 2017 IT salaries to stay the same compared to 2016 rate. Only 1 percent expect salaries to decrease in the coming year. The report goes on to say that ““given the competitiveness of the IT labor market, it is important for companies to evaluate the compensation packages they offer IT talent. Many organizations are relying on rate cards from several years ago, and the IT segment is suffering a degree of wage stagnation.” However, this does not mean that salaries will not increase for everyone, as you will see in our next trend.
Trend #2: Certain Skills Will Get You That Pay Raise
Good news in 2017 for those savvy individuals who possess the right skillsets to advance monetarily! Per TEKsystems, nearly 50% of those CIO’s surveyed, if you are a programmer, developer, software engineer, in security or an expert in the cloud, you are in high demand. This trend also holds true with Eric Edelsberg, Staffing Director and Principal Partner at CultureFit, who stated “The demand for qualified IT Professionals, and the low availability of talent, continues to push salaries higher for certain positions. It’s imperative for companies to insure budgets are keeping pace to remain competitive.” Mr. Eledsberg goes on to explain that “companies have to decide what is more important — talent walking in the door day one (that they must pay top dollar for), or people that take some time to get up to speed, which may be more within a company’s comfort zone from a budget perspective.”
Trend #3: Don’t Overlook Your Current Employees
If you have a diamond in your employ, keep them close and don’t neglect them. In today’s market, those employees know that their skills are valued elsewhere, and they have a real chance of getting what they feel they deserve. “Many IT professionals believe they’re underpaid and their department is underfunded,” said Peter Tsai, IT analyst at Spiceworks, in a statement. “This is leading many tech professionals to take advantage of the favorable job market expected next year and seek employers that prioritize their IT department, invest in tech talent, and provide adequate resources IT professionals need to be successful.” So, if you’re having trouble attracting or keeping the tech talent your business needs, consider the salary you are offering and check whether it’s on par with today’s average tech salaries. If it is, then consider offering additional benefits and perks to the position.
Lastly, while talent has never been so accessible to employers, finding the top-tier, quality talent can still be a bit of a mystery. The talent pool you may be looking to choose from is often difficult to identify without the correct tools and networks that recruiting agencies have access to, like here at CultureFit. We have built relationships with hundreds of candidates and companies, and invested in a recruiting infrastructure and the advanced technologies needed to run it, so finding the right talent for your business can be as easy as searching through our database. So, instead of wasting valuable time and money on the lengthy process of finding potential tech candidates, talk to one of our IT Staffing Professionals at CultureFit.