change in the labor market
Payment already for the interview: That’s how desperately the tech companies are looking for new talent
In the IT sector, the lack of applicants is putting companies under pressure
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Expectations of a new job have changed in many places as a result of the corona pandemic. In Silicon Valley and other tech locations, there is therefore a hard fight for every employee, even with unusual incentives.
Skills shortages are not a new phenomenon. However, it is increasingly becoming a problem, especially in the booming tech sector. No wonder that the competition between companies is becoming more and more intense. And this gives the applicants enormously attractive advantages.
Because the workers are currently in an extremely good negotiating position – and are well aware of it. “In the lockdown I was able to think a lot and find out for myself what I really want in the job,” IT expert Ashley told Wired. “I wanted a job that fits my lifestyle and doesn’t tie me to a desk all day. If I don’t feel well, I can just leave.”
Willing to change
This attitude is found among many employees in the tech sector. In the summer of last year alone, 31 percent of US IT workers were looking for a new job. There are more than enough jobs. According to the consulting firm Global Knowledge, 76 percent of decision-makers in this sector complain about important positions in their teams that cannot be filled with sufficiently qualified personnel.
This increases the pressure on companies. This is noticeable, for example, in the recruitment process. The companies outdo each other with surcharges and benefits for the employees. It is no longer just about the level of salaries. In the notoriously employee-unfriendly USA, Pinterest scores with paid parental leave, and the financial company Finder added extra sick days. The Indian start-up On Purpose shot the bird off: There you get a week of special leave if you get a new pet.
money to appear
But of course, when it comes to incentives, it’s often about money. The idea of the Frankfurt company Deutsche Familienversicherung to gild the visit to the job interview with 500 euros was also noticed on the other side of the pond – and adopted it more and more often. Welcome payments for starting a new job in the amount of one or even several salaries are no longer uncommon.
Even the former employees understand that, Joy Nazzari of the British start-up Showhere tells Wired. “A golden welcome is a difficult decision because it offends the longer employees,” she explains 16 vacancies for a long time, now offering a full salary as an introductory gift.”Everyone internally understands that it’s an unusual situation and we need to stay competitive.”
Concerned about well-being
Of course, you also have to keep an eye on the needs of long-term employees – or risk losing them. According to a study commissioned by Microsoft last year, 41 percent of global workers are considering quitting their current job. The phenomenon in the USA is called “Great Resignation” – the great wave of layoffs – in reference to the economic crisis of the 1930s.
“No field has changed as much in the last year as the way we work,” says Microsoft boss Satya Nadella. “The demands of employees are changing.” Instead of just looking at productivity, as an employer you also have to look at cooperation, further training and the general well-being of your employees.
Eternal home office
This also includes a benefit that is also almost taken for granted when new hires are hired: the free choice of work location. With the mass adoption of remote working during the pandemic, many employees have abandoned the idea of having to come to the office every day. And they also expect this flexibility from their employer. “We completely abandoned the location criteria when hiring,” reports Asmitha Das, who works for the science platform Kolabtree, to “Wired”. Instead, all new hires could choose where to live and work. The change has noticeable consequences: Since then, you have had three times as many applications as before.
Sources: Wired, Microsoft, Global Knowledge
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