How to attract and retain top technology talent

It would be all too easy to assume that, as the technology industry is going through a period of staff layoffs, there must be a surplus of talented people available. However, a look at the latest vacancy data quickly dispels this assumption.

 

According to the Hays UK Salary & Recruiting Trends 2023 report, 94 per cent of companies trying to recruit technology staff over the previous 12 months have encountered a skills shortage. Finding the right people to fill technology vacancies remains very competitive, leading to high salary demands, especially for niche skillsets.

 

Compounding this is a new generation entering the workforce who have a much higher expectation of flexibility in their role, to work from where they want and at times that suit them. This is changing the dynamics in the relationship between the employer and employee, with the latter currently having the leverage to define their working arrangements.

 

Another facet of the battle for talent is the need for workplace modernisation, as younger employees demand use of the latest collaboration and communications tools. Picking up the phone is very much a thing of the past, overtaken by applications such as Microsoft Teams and WhatsApp to get the job done.

 

There is also a thirst among these new recruits for access to cutting-edge technology such as AI and analytics as part of their daily roles. Core enterprise resource planning (ERP) systems are mandatory and mission-critical for any organisation, but they’re not differentiating the business or moving the needle.

 

This is where companies can take advantage of the service we provide at Rimini Street. By outsourcing their day-to-day IT systems, businesses free up their employees to innovate and focus on emerging technology. Prioritising this innovative technology not only makes the company more competitive, but it feeds through into talent retention programmes, as staff are more likely to stay where they feel they are developing future-proof skills.

 

However, research shows that many companies are not able to offer staff this modern, agile workplace or compete for the top talent. According to IT Leaders: The Future Outlook 2023, a Censuswide Buyers Sentiment Survey sponsored by Rimini Street, almost half (47 per cent) of firms say that the current spike in cost of living means salary expectations cannot be met for new and existing staff.

 

Of the 1,000-plus respondents across the UK, Ireland and Nordic and Gulf states, 40 per cent of companies are seeing more recruits demand a four-day-workweek policy that they are not set up to provide, while 38 per cent have a senior executive team demanding a return to the office, which is putting off recruits.

 

The four-day week is something that we trialled successfully at Rimini Street in 2022, and we extended our Fabulous Fridays programme through 2023 for our almost 2,000 employees across 29 offices worldwide.

 

Updating your workplace practices to offer more flexibility is also crucial for avoiding staff burnout. As the struggle to fill skills gaps grows, so does the risk of losing key employees to burnout. As the workload increases for under-resourced teams, there is a danger that productivity decreases as they become more reactionary, fighting fires instead of working on projects to optimise and evolve the IT roadmap.

 

To mitigate these issues, companies could take more advantage of existing staff, retraining them in new skills or functions. Our research shows that 53 per cent of firms are not currently invested in reskilling to fill the tech talent gap, so there is a sizeable opportunity here. People want to learn and develop into new areas, rather than remain in the same role. This can be more cost-effective than hiring brand new employees.

 

If you’re focused on retraining or upskilling existing employees, they need to have a clear progression path. This is where industry certifications can be useful as a tool to show progress for employees. Just over half (52 per cent) of businesses are also encouraging staff to learn new skills on the job by providing access to virtual training courses.

 

These industry certification and virtual training options could also prove helpful for companies that are becoming more flexible in their hiring models: 60 per cent of businesses are now hiring talent with less experience and skills than required for the existing role, but who come with a willingness to learn.

 

Today, the uptake of new technology is moving quickly. Generative AI has barely registered on anyone’s radar recently – affecting businesses in both positive and negative ways.This rapid disruption is forcing companies to make constant pivots and refreshes of staff and skills. Whether this is achieved through new hires or reskilling existing employees, companies need to be in a position to attract and retain the best talent. Having a modern, flexible workplace equipped with cutting-edge technology helps ensure your business is in that position.

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Take a look at the independent survey of more than 1,000 CIOs and CTOs across Europe and the Middle East as they share their IT challenges, plans for digital transformation, look at the future of ERP, and explore tackling the IT skills shortage.

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By Eric Helmer, CTO, Rimini Street