The war for talent has been on the business agenda for years but has never been more critical for the Tech sector than it is now. Industry-wide, businesses are increasing their reliance on digital solutions. Tether that growing need to the rapid rise and development of AI (Artificial Intelligence) and you have a soaring demand for skilled developers. So, what can businesses do to ensure they are attracting and retaining the talent they need to be successful in this thriving industry?
Get the basics right
Fundamentally, we need to get our whole compensation package right. Ensuring pay is competitive against the market is crucial but is seldom enough with so many companies offering market-busting rate to attract and retain talent. For many organisations, this aggressive tactic falls down for a number of reasons: often it is not financially viable; the satisfaction it brings employees is short lived; and it can cause large disparity in pay which goes against the growing expectation of transparency and fairness.
More than ever, employees want to be well informed about how and why pay decisions are being made. It is all too easy to disengage and potentially lose talent by not considering this.
Build out the proposition
In the current landscape, an authentic Employer Value Proposition (EVP) is critical to attracting and retaining talent. A strong EVP can reduce compensation premiums by 50% and reach 50% deeper into the labour market. Companies are achieving success by incorporating generic trends around work-life balance and wellbeing into their EVP, but those digging deeper are reaping even greater rewards. By peeling back the layers and seeking to better understand specific talent pools, companies differentiating their offer are hitting the sweet spot for more employees: if tech people value equipment, providing them with the latest in hardware and software could be an easy win.
Beyond that, supporting employees in keeping abreast of the latest tech developments through industry-recognised courses, seminars and certifications is also popular. By offering financial support and encouragement to attend those events, an employer can demonstrate genuine interest in their employee’s own development and progression, while also benefitting from those enhanced skills.
Invest in your own pipeline
From Graduate Academies to internal talent programmes, there can be huge benefits to growing your talent pipeline, rather than relying solely on recruitment. It may be a longer-term approach, but it allows an organisation to plan strategically and gradually develop skills and knowledge to support an evolving business. It can also allow for a more considered response to resignation and help embed desired behaviours as part of an overall company culture.
With the growing developments in AI, the skills landscape for technology businesses is set to evolve. Soft skills like communication, collaboration, problem-solving and leadership will become more prevalent - skills that do not always come naturally to some technically minded people. Offering an environment of self-improvement could be popular in achieving personal growth and enhancing resilience in face of the changes AI may bring to tech roles.
To ensure the long-term success of a programme like this, think carefully about your reward outcomes. What happens after the initial excitement fades, skills are developed, and any knowledge gained is contributing to success? This is when the spotlight falls on the equity and fairness of reward. If your systems and processes are transparent and well communicated, you stand the best chance of maximising your investment.
Communicate, communicate, communicate
When you ask business leaders what makes their company great, it is always inspiring to hear the responses, but how often does that same passion run right through the organisation?
If employees think that their ‘package’ is nothing more than their salary, there is every chance they will be lured away by a better offer. This happens a lot because communication around the Employee Value Proposition (EVP) is not strong enough or lacks consistency. By spelling out everything we offer in our benefits, recognition, EAP and development programmes we get better engagement, and achieve greater return on investment. The gold standard is clear and multifaceted channels delivering consistent communication laid out in a calendar or regular schedule managed by dedicated HR resource. Whether aimed companywide or at a group, the impact this can have on an individual basis should never be underestimated.
Similarly in the race for new talent, communicating our EVP should be included at every stage of the recruitment and onboarding process. This can help to differentiate the organisation, and effectively showcase the ‘package’ while also helping to ensure the candidate is the right fit for the organisation.
Praise and celebrate success
Finally, let’s celebrate when the time is right. Celebrating company success and personal achievements can be incredibly powerful. Coming together to praise the collective can instil pride, promote connection and create an energetic culture. Personal recognition can foster loyalty, enhance a sense of purpose and show talent they are valued - important in Tech organisations where many employees are not customer-facing, so rarely receive that positive affirmation elsewhere.
It is important that we get the structure and channels right to showcase personal and team success. We can achieve a big win when our EVP authentically integrates our company's vision and values with the offerings and experiences our people value the most. Ultimately, this kind of strategic approach will give us greater longevity, control and stability in the war for talent.
In their first 100 days in power, Labour’s focus is on ‘making pay work’, a message which could bring further change to the talent landscape. If this resonates with you, and you want to stay up to date with all the latest trends and changes affecting HR, Innecto and I can help - join the Innecto Community on Linkedin or visit Innecto.com.
By Gemma Hollinshead, Reward Professional Leader
