The tech industry faces a talent crisis of unprecedented proportions. A recent study reveals that replacing a tech employee can cost 100-150% of their annual salary. The competition for top tech talent has intensified dramatically due to the widening skills gap and the surge in freelancing.
A recent LinkedIn Live session hosted by Everest Group, "Countering Volatility in the Tech Talent Market: Technological Solutions," brought together industry leaders to address these pressing challenges. Somnath Chatterjee (Founder and CEO, Prismforce) along with other panelists Ronak Doshi (Partner, Everest group), Arpita Dwivedi (Practice Director, Everest Group), and Agnieszka Porebska (CEO, Talent Alpha) shared valuable insights on navigating this turbulent landscape. The live event discussed four critical issues:
In this article, we’ll discuss the key takeaways from the event and delve into actionable strategies to overcome the volatility in the tech talent market. By understanding and adapting to the dynamics of the tech talent market, companies can position themselves for success in 2024 and beyond.
The tech talent market is undergoing a radical transformation, driven by several dynamic factors. It is a landscape marked by rapid technological advancements and evolving employee expectations. As a result, businesses face unprecedented volatility in their efforts to acquire and retain top tech talent.
These factors collectively contribute to the tech talent shortage, making recruiting and hiring tech talent increasingly challenging for organizations. The tech talent acquisition landscape has become more competitive than ever, requiring innovative strategies to overcome the tech talent shortage.
The tech industry's rapid evolution has spotlighted certain skills and roles. Keeping the current trends in mind, these are the most sought-after tech skills:
Companies can better navigate the volatile tech talent market by understanding these key insights and factors. Staying ahead of these trends enables businesses to attract and retain the talent crucial for their success.
The tech talent landscape demands that companies adopt comprehensive strategies for attracting and retaining top talent.
A strong employer brand is essential for attracting top tech talent. During the session, Ronak Doshi from Everest Group stressed the importance of prioritizing talent management. He stated, "Creating that high-performing IT workforce is not just an issue for technology leaders now but has become an urgent business priority overall." Companies can position themselves as desirable employers by promoting an inspiring vision and demonstrating commitment to employee growth and innovation.
The fierce competition for specialized skills necessitates competitive compensation. Agnieszka, CEO of Talent Alpha, highlighted the need to pay premiums for high-demand skills during the discussion: "Specifically if we talk about very high-demand skills, you have to pay premiums as high as 40 to 50% even for compared to traditional IT roles." To attract and retain the best talent, companies must ensure their compensation packages reflect market demand.
Career development opportunities significantly impact employee retention. Arpita emphasized the importance of aligning employee aspirations with market growth during the session: "You have to shape that journey and support your employees in their learning trajectory so that their aspirations are aligned with where the market is growing." Companies should invest in training programs and clear career progression paths to keep their workforce motivated and engaged.
The rise of new work models, such as freelancing and gig work, underscores the need for workplace flexibility. Somnath pointed out, "There is a strong movement towards freelancing models, especially with the work-from-home theme." Companies can better meet evolving employee expectations and improve retention rates by offering flexible work arrangements and fostering a supportive environment.
Continuous learning is crucial for keeping employees' skills current. Most tech leaders understand the value of creating a strong L&D ecosystem internally that can fuel self-sustained learning within the organization. A self-sustained learning ecosystem encourages employees to continuously upskill and reskill, ensuring they remain relevant in a rapidly changing market.
Key elements of a self-sustained learning ecosystem include:
Implementing such an ecosystem not only enhances employee skills but also cultivates a culture of continuous improvement and innovation within the organization.
By adopting these strategies, companies can develop a resilient talent strategy that attracts and retains top tech talent. This approach ensures organizations remain competitive and capable of navigating volatile market challenges.
AI and automation have become essential tools for optimizing the talent supply chain. By leveraging these technologies, companies can enhance their talent supply chain, making it more flexible and responsive to market needs. These technologies not only boost efficiency but also enable employees to continually upgrade their skills, ensuring long-term success in a dynamic tech talent market.
AI has transformed the talent acquisition process, enabling more efficient and accurate hiring decisions. It has the ability to match candidates based on skills rather than job titles. By analyzing vast amounts of data, AI identifies candidates with the right skills and potential, reducing the time and costs associated with traditional recruitment methods.
AI-powered platforms significantly enhance talent management processes. Somnath explained how Prismforce uses AI to manage the entire hire-to-retire chain: "We use AI to ingest data from multiple sources to create a skill profile of the individual, which is more accurate and up-to-date." This comprehensive profiling allows companies to make informed decisions about talent deployment, cross-skilling, and upskilling, leading to more efficient resource utilization.
He also emphasized the importance of continuously updating skill inventories: "We can use AI to ingest a lot of data from multiple sources to create a skill profile of the individual which is a lot more accurate and much more up to date?" This approach ensures companies maintain a real-time view of their talent capabilities, enabling better planning and management.
AI plays a crucial role in talent development by personalizing learning experiences. Arpita highlighted AI's value in creating personalized learning paths: "You have to shape that journey and support your employees in their learning trajectory so that their aspirations are aligned with where the market is growing." AI analyzes individual learning styles and career goals to recommend relevant training programs, ensuring continuous skill development.
Generative AI holds immense potential to reshape the tech workforce. While its long-term impact remains uncertain, promising developments are already emerging. Somnath mentioned during the session, "There are so many pilots happening, and over time, those pilots will convert into large-scale projects." Generative AI can boost productivity by automating routine tasks, allowing employees to focus on more complex and creative problem-solving activities.
He also addressed concerns about AI reducing the need for human labor: "I do think that it will have a big impact on the tech services, but I think it will be a slightly positive bias. It's about the nature of work being changing rather than a compression of work." While some low-end tasks may be automated, generative AI is expected to create new roles and opportunities, ultimately transforming the tech workforce.
Addressing the tech talent challenge requires a comprehensive strategy that harnesses technology, promotes ongoing learning, and adjusts to changing market dynamics. Here are the key takeaways companies can take from the discussion:
As emphasized in the LinkedIn Live session, adapting to the changing tech talent landscape is imperative. Companies that proactively embrace these strategies and technologies will be better positioned to attract, retain, and develop the top talent needed to thrive in 2024 and beyond.
Did you miss the LinkedIn live? Watch it now.
