If you are a first time tech hiring manager or are new to recruiting technical talent for a digital transformation project, you have come to the right place. As technologies advance each year, the tech employment market evolves in response. A new generation, called the millennials, can be seen flourishing amidst these changes and the recruitment industry, employers and candidates have to adapt to keep up and stay relevant.
With our recruitment specialist hats on, we put our heads together to give you our take on the main hiring trends within the tech recruitment market for 2015 and how you - as a first timer in tech recruitment- can use this information to your benefit.
Permanent vs. Contractual
Permanent employment continues to remain buoyant in London and the South East. There is a demand for a variety of technical talent – from developers to architects and project managers – coming from a number of different sources:
- Start-up Market: The prominence of the Silicon Roundabout means there is no shortage of new businesses offering developers their next big opportunity.
- Agencies: With a greater focus on providing digital services to customers, agencies of all types are investing in their tech teams.
- Brands (private/public sectors): Digital transformation projects or building new products has led to an increase in internal hiring.
This sheer volume in opportunity has created a significant number of permanent roles that cannot be filled. The result? The shortage of candidates for perm roles has created a need for contract resources to fill the employment gaps. This in turn reduces the number of candidates in the market as perm employees turn to the financial rewards contracting offers. There is also an increase in contract employment as it now offers candidates long term assignments and career development typically only available to perm employees.
Salaries & benefits
The lack of supply in the permanent market means that salaries are increasing on a month by month basis. Where 12-18 months ago a mid-weight developer would earn in the 30’s, they would now expect to earn in the 40’s. What is also increasing is the step up in salary; candidates are being offered to move. Again 12-18 months ago you could expect to see a 10% increase on average but now we regularly see 15-20% increase. In this situation, the hiring manager is looking to make a statement by offering a significant salary that beats the competition and removes the risk of a counter offer from the candidates’ current employer.
How employers can differentiate themselves
Although salaries are important to candidates, more often than not it is a combination of the financial reward, the nature of work and the environment that convinces the candidate to join a business. Candidates will not move to a new position unless they can learn something new. Employers need to keep these factors in mind and find ways to differentiate themselves to attract talent. Here are some ways to achieve this:
- Benefits package: A well thought out benefits package makes a difference particularly if there is limited scope on the basic salary. Bonus, pension, healthcare is vital but so are lifestyle benefits. If the environment is pressurised by delivering to fixed deadlines, it is important to give people the opportunity to blow off some steam and funded company social events can help on this.
- Personal development: Companies must offer individuals the opportunity to broaden their skills through a combination of in-house and external training.
- Office environment: Employers must not ignore their work space as employees spend most of their time at work. Engaging, fun and collaborative work environment will have a positive impact on employee motivation.
- Project work and methods: New development work, using the latest technologies, will always be at the top of the list for candidates. In the event that you cannot offer this then using the latest methods and techniques will make it more interesting to work and attract candidates.
- Stock options: Not everyone can offer this, but if there is an opportunity to give employees a stake in the business, it is worth considering. It significantly increases commitment and develops an emotional bond between the employer and employee.
The Hiring Process
Pace is everything in the current permanent market. We rarely see active candidates on the market for more than two or three weeks as employers realise that they need to move quickly to secure the talent they need. Ideally, the process will have no more than two stages and will focus on not only assessing suitability but also marketing the opportunity to the candidate as well. A good match for a role is someone that can do the job but also someone who wants to do the job. Beware of focusing on making the candidate jump through so many hoops - this could be mean little to no engagement with the hiring manager or business on a personal level.
If you are looking for a candidate, new job, or perhaps would like to know more about what we do, please don’t hesitate to get in touch with me at Nathan@wearefutureheads.co.uk and I’ll be happy to help!