Fewer challenges are quite as prominent for tech companies as the rush to attract talent for in-demand roles.
In the UK, this struggle has been exacerbated by Brexit-related hurdles and disruptions from the pandemic that have significantly impacted the hiring landscape for businesses.
Nearly 5 million people work in the digital tech economy, up from 2.18 million in 2011, with tech salaries being nearly 80% higher than salaries for non-tech jobs in the UK (at £62,000 compared to £35,000).
As tech talent becomes more highly coveted, how can businesses stand out from the crowd and attract the tech talent they need to remain innovative and grow?
Let’s take a look at the areas you should be focussing on.
The tech sector has been thriving.
Between 2020 and 2021, venture capital investment into UK-based tech startups and scaleups increased by 130% to just under $41 billion, creating more employment opportunities to promote growth, according to Tech Nation.
The digital tech economy accounts for a significant percentage of the 4.7 million UK workforce, standing at 14%.
Tech vacancies have also been high, with tech jobs reaching the top spot for UK hiring from May 2021 to 2022, continuing to rise on a month-by-month basis.
In terms of the most in-demand roles, software developers continue to be top of the list for employer demand, alongside a steady increase in product manager vacancies on the non-technical side.
For employers looking to attract tech talent, there is high competition and candidate demand to contend with – after all, a candidate-driven market and high competition to secure talent means that it’s more important than ever before to solidify your candidate attraction strategy.
61% of tech employees interviewed for Dice’s Tech Salary Report said that they would prefer to work remotely at least half of the time, with only 24% stating they can currently do so.
Importantly for employers, tech employees have also stated their willingness to take a pay cut to work remotely, with some stating they would even take a 5% pay cut – something that could be a key competitive advantage as part of wider employee benefits options.
The most common barrier cited by employers against implementing remote working or flexible working options in their business were the perceived difficulties associated with communication, management and fostering an innovative workspace.
Working remotely isn’t just rising on the agenda of candidates, either.
As more and more tech employees begin to work remotely, the demand for remote-only roles and the salaries for these roles are increasing too.
According to Hired, employers sent 16.4% more remote interview requests in 2021 compared to 2020, with remote candidates seeing a 3.2% year-on-year increase in average salary from £72,498 to £74,839.
Offering remote or hybrid working options is just one area of an even larger priority for your recruitment strategy, which falls under the bracket of employee benefits.
Tech employees are unlikely to be attracted to a company based on salary alone – whilst monetary compensation will always be part of the wider employee benefits offering a business has, it isn’t the sole factor.
Instead, benefits such as flexible working, work/life balance, career progression opportunities, corporate social responsibility (CSR) elements, and mental health and wellbeing support are all key elements of an employee benefits offering.
Let’s take a look at a few examples to put this into context and give you some ideas for potential employee benefits you can implement.
PayPal, with main UK offices located in Richmond, London, has previously been voted the UK’s Best Workplace award in the large company category.
Here are some of the employee benefits that their staff value the most:
As mentioned above as a potential employee benefit, CSR is equally important to employer branding (which is another way to attract talent).
CSR initiatives can help considerably in conveying the values that a business has, helping to contribute towards Employee Value Proposition (EVP).
According to Deloitte, millennials – who are soon to make up the majority of the workforce – seek culture, diversity and high impact in the workplace.
In fact, both Gen Z and millennials feel that driving societal change is a high priority, from making more sustainable choices and seeking more flexible and meaningful work to wanting to tackle climate change and make mental health a priority in the workplace.
Additionally, a company that has a strong CSR initiative will often be focusing on the wellbeing of its employees, and in turn, these employees are likely to speak rather positively about the company, which can attract new talent.
In such a competitive market, standing out is a competitive advantage that could truly make the difference for businesses that need highly skilled tech candidates.
In a competitive, candidate-driven market, your best chance for success relies on knowing what candidates truly want.
The areas mentioned above encompass much of what the current workforce is seeking:
Without a strong EVP and employee benefits strategy, it will be highly difficult to compete with companies that are also seeking out top tech talent – after all, from the smallest companies all the way up to the likes of Google and Facebook, there is a need for tech candidates for the purposes of growth and innovation.
Form your recruitment strategy around the above and you may find yourself far better prepared to truly compete against other businesses in the war for talent.
Get in touch with the Remit Resources team today to discuss your tech recruitment needs.