“Acquiring the right talent is the most important key to growth. Hiring was — and still is — the most important thing we do.” — Marc Bennioff
Every business needs people; thus, the need for hiring. And hiring doesn’t only mean looking for and appointing people who would just do the job, but actually the “right” people to do the job well. And finding the right people to do the job well makes hiring a little challenging.
And the tech industry is not excluded from the hiring crisis, especially during this pandemic. In early 2022, unemployment is at a low of 4%, and it’s 1.7% for tech jobs.
In this article, we’ll discuss the five most common tech hiring problems and how to solve them. Let’s first talk about the problems first because a lot of them have the same solutions.
Qualified Developer Shortage
Around 40 million technical jobs go unfulfilled due to a lack of skilled talent. It is also expected that by 2030, the software engineers shortage will reach 85.2 million. 2021 was the year of the Great Developers Drought, which didn’t change in 2022.
Here are some possible solutions you can start with to overcome the scarcity of software developers:
- Go remote
86% of software developers have been working entirely remotely since the pandemic. And two-thirds of developers prefer to continue this setup in the future.
- Reduce your job requirements
With the current shortage, do not be too strict with the requirements. Many developers are teachable. So even if they currently do not have all the skills your job opening requires, you can allow them to learn and acquire them while working for and with you.
- Consider hiring entry-level developers.
Hiring entry-level developers is a lot cheaper than mid and senior developers. Although not as experienced, there are many entry-level developers out there who are just as skilled as developers with developer experience. Employers just need to consider and give them a chance.
There are too many jobs but few developers available. Even if there are available, there’s no assurance that they are qualified developers. And even if there are qualified developers available, there’s no assurance you can hire them.
There’s a big competition, and it’s getting harder and harder to win.
Increased Competition
On recruitment sites like Indeed, there are no less than 4,000 job postings per country for front-end developers alone. And if you have a job opening for frontend developers, you have no less than 4,000 competitions in your country. That’s still a lot!
Here are some possible solutions you can start with when there are a lot of competitors:
- Give better offers
Be competitive and give competitive offers. This is the best way to stand out among your competitors. This can be a problem, but don’t worry, we’ll discuss this later.
- Market Better
Hiring is marketing. You can create job ad graphics containing details about your job opening and post them on job sites or social media. Be sure to have attention-grabbing content!
- Conduct impactful interviews
Always remember that when you’re interviewing a candidate, the candidate is also interviewing you. You need them as much as they need you. So be sure to leave an impression. Even if you don’t get to hire them now, you can be their future option when they find another company.
When there are a lot of competitors, it’d be harder to find and hire someone qualified because many of the competitors would increase their offers to get the top developers.
High Hiring Cost
According to CodeSubmit research, it costs employers at least $28,548 to $35,685 to hire a full-time developer. This excludes indirect costs such as productivity losses, which can potentially raise up to $41,049.
And it’s not just the hiring cost that is getting higher and higher; it’s also the developers’ rate. And if you do not have a competitive offer, it’d be harder to hire someone who is actually qualified for your job openings.
Here are some possible solutions you can start with when you have a low budget:
- Recruit via Social Media or Job sites
You don’t have to spend anything trying to recruit from social media and job sites if you want to. You can join groups where your audience is, and like job sites, just post a job, and they will apply themselves.
- Ask for referrals
Use your network to source candidates. Ask for referrals from your employees or workmate. They are already in the industry and most likely have friends, colleagues, and even family members they can recommend.
- Consider hiring entry-level developers
As mentioned above, entry-level developers are more affordable than other developers. Thus, they reduce your hiring costs.
There are other ways to source and hire qualified developers. But sometimes, even qualified developers can be bad hires. And there really is a problem with avoiding bad hires.
As mentioned above, the hiring cost for developers is a no-joke. And if you spend more time with a bad hire, it will go up.
There are candidates who lie in their resumes and are good at convincing people, which can result in a company’s bad hire. Others are also qualified and can work well, but they are hard to work with.
Yes, a bad hire doesn’t always mean they’re not good at their jobs alone. Sometimes, they’re also developers without work etiquette, toxic, or abusive to power, making them hard to work with. These types of people could cause a bad work environment that might result in no unity, employees’ poor mental health, bad performances, and slow output.
Here are some possible solutions you can start with when you have a low budget:
- Learn from past hiring mistakes
Assess your current hiring process, and if you had bad hires, learn from those experiences and apply them to your next process.
- Never ignore red flags
Don’t overlook details that shout red flags about your candidate. Always trust your gut.
- Don’t rush
Don’t feel pressured to hire quickly. You can take your time to avoid bad hires. Unless you are really in a rush. Even so, still do your best to assess well before hiring.
One bad hire can cause multiple problems. This problem should not be taken lightly because an unhealthy work environment can make employees leave the company. Thus, the low retention rate.
Low Retention Rate
Software developers have an average turnover rate of 57.3%, according to the Bureau of Labor Statistics. A turnover rate is the number of employees who leave a company in a given period of time. It is estimated that 29% of turnover happens involuntarily (people getting fired), while 25% happens voluntarily.
According to a 2020 study by the Work Institute, 75% of employee turnover can be prevented.
There are many reasons out there, but here are some of the top reasons why developers leave their companies:
- No room for growth
It becomes boring when you’re not growing or learning more than you already know. You should motivate your employees to grow more. They help you grow your company, so help them grow as well.
- Poor compensation (got a higher offer from another company)
Always show your appreciation to your employees when they deserve it. Stay competitive even if they are already hired because they can always leave when they feel unappreciated.
- Bad company culture
No one enjoys toxic work environments. Developers need a healthy workplace and non-toxic people to work with to be more productive and produce better outputs.
A lot of developers seek growth opportunities, skill-wise and salary-wise. Even if they are not developers, most employees will look for better compensation, especially if they are doing great in and for your company. Company culture is also playing a big part in retention rate. Employees love a healthy work environment with non-toxic people and company traditions that are actually enjoyable and inspiring.
Wrapping Up
There are many challenges when hiring, and it gets harder and harder as time goes by. They should be taken seriously because failed hiring may put a company at risk. One bad hire can poison the work environment, ruin the unity, and damage your business or its reputation.
But it is satisfying and rewarding when you hire the right people for the right job. It is the root of a successful company or business. After all, like what was mentioned in the quote above, you bet on people.
