6 Hiring Challenges Faced by Talent Acquisition in the IT Industry: Causes and Way Forward

With the seasons passing by, the ecosystem of hiring is looking different. There is a noticeable need for a better workforce in the current market and this leaves a perennial sword dangling on talent acquisition for meeting that need. Things have dynamically changed since 2019!  

HR leaders are ‘always’ at the fork end when it comes to evaluating metrics of hiring professionals based on efficiencies and strategies. Across the employment landscape, no matter how lucrative a particular opportunity looks like, employee preferences are changing and shifting every quarter, if not month.

At this moment, one cannot rule out the fact that pandemic has set off a trend of unpredictability, the organizations are constantly pacing up with the ever changing market conditions. And as per the given circumstance, this pace is not going to slow down anytime sooner. In such a scenario, forecasting future talent acquisition trends is nearly impossible. Given this volatility, a lot of redesigning is required at every level. While on one hand, it’s instrumental for the organization to attract and retain the right talent but on the other, striking a balance is needed between consistency and onboarding fresh talent for different roles. 

Some of the aspects that are contributing to these challenges, especially in the IT sector are -

1. Candidate’s Cosmos - It’s the ‘candidate’s world’! It is because, at any given time, a candidate on a lookout holds multiple offers that give them the power to negotiate for more. As a matter of fact, offer rejections are at an all-time high right now, resultantly, impacting hiring budgets by a large magnitude. 

2. Money Matters Over Anything – There is no denying to the fact that job contentment or brand value is on the back burner. In the prevailing WFH scenario, candidates are continuing to prioritize ‘money over matter’. Since the employee experience of working for an organization is at an ultimate low, therefore, candidates are given precedence on grounds of compensations, paychecks, overall growth, work profile, and even brand name.

3. Embracing ‘WFH’ – The hybrid work model is deeply impacting and shifting loyalties. During the pre-covid times, candidates gave a lot of consideration to factors such as job location, commute time, distance from home, accessibility, or connectivity. Since these factors are no longer relevant, especially in the IT sector, it is directly hitting the loyalty quotient of the candidates. Virtual work and comfort are the preferences now, so candidates compare and weigh options before finalizing and settling for what they want.

4. Quick Goodbyes – Gone are the days when candidates spent eons with a company, stayed loyal, and worked dedicatedly. Today, everybody wants to mint money as early and as much as they can, so why not hop jobs! Given the current state of the industry and market, candidates are not looking at long-term associations anymore. The average employee tenure in the IT sector which was earlier about 3-5 years, has come down phenomenally and very unapologetically. 

5. Never Underestimate the Weapon Called Notice Period - In the given scenario, notice periods are leaving a huge impact on hiring. In sectors like IT, 90 days’ notice is used by candidates very effectively as they use this period to trade off time and grab more opportunities. With more offers in hand, this works as an arm-twisting tactic for pay-hike.

6. No Show Day - Talent acquisition teams go on a tizzy when the candidate doesn’t show up on the day of joining due to varied reasons. This problem is on the rise in the IT sector. For a recruiter ‘Blackout or Backout’ is a situation when candidates act flippant and unfortunately, such issues are at an all-time high.  

Given the above status-quo, let’s look at a few ways to pave a way ahead, and make organizations resilient and future-ready: -

1. Mental health - a necessary pit-stop – One can never rule out the fact that the last two years have deeply impacted the mental and emotional well-being of employees. It is important to keep the morale and spirits of employees up and of late, HR teams are taking important steps for the same. They must regularly check on their employees’ burnout moments and mental health. For this, varied curricular activities should be conducted that involve, art, music, cinema, and interaction.  

2. Upskilling or re-skilling for a future-forward economy - The Covid-19 pandemic has demonstrated that no one has control over the future — not markets, individuals, or even the economy as a whole. Therefore, the time for employee reskilling and upskilling is now. Some of the industry giants have jumped on the upskilling train long before the pandemic. Amazon, for instance, invested $700 Million into reskilling and upskilling programs, and Mastercard has been running its own retraining program since 2016 to gain a competitive advantage over startups. There are many upsides to upskilling and reskilling; such programs always improve employee engagement and retention, attract new talent, increase collaboration between departments, and speed up the adoption of new trends within the company. 

3. Creating Compelling Employee Value Propositions (EVP) - As employees/candidates are stacked with tons of options and are becoming highly particular in picking their choice, it will be a well-timed move for organizations to make compelling EVPs in order to attract and retain talent, especially for niche roles. The modern-day definition does not restrict EVP to monetary and non-monetary benefits but implies offering an ecosystem of support, recognition, and values to the employees so that they achieve their highest potential at work.

4. Introduction of new work ethics and best practices - Although every organization has its own set of no-compete and anti-poaching policies, however, talent is always acquired from competing organization or clients. So, if a candidate says, “I have another offer in hand”, the best way to approach the matter is to drop the candidature. This will help in creating the right value for the compensation and extending opportunities to the most deserving profiles and applicants.

In addition to the above key points, small steps can be taken too:

• Usage of social media to showcase and build the company’s brand value, employee engagement activities and reach
• Focus on employee referrals and creation of a diverse referral program
• Internal job postings that encourage vertical, horizontal, and lateral growth
• Induction of freshers to take the mantle of skill and culture of the organization forward

As I end my note, let this quote by Julie Bevacqua speak volumes, “In order to build a rewarding employee experience, you need to understand what matters most to your people.” 

The article has been written by Ranjini Chakraborty, Director HR, Giesecke + Devrient Mobile Security India Pvt Ltd.