The unemployment rate for IT and tech talent is 2.1 to 2.4 percent lower than the regular unemployment rate in the country. This indicates that the unemployment rate for IT and tech talent hovers around 1.4 to 1.7 percent. It’s a good sign. It shows that the job market for IT and tech talent is prosperous. There’s only 1.4 to 1.7 percent of tech talent in the country that is waiting to be employed. This high demand is exactly the reason as to why it has become so challenging to hunt down competent tech talent these days. The bad news is that it will continue to be this way in the years to come.
20 years ago, if you took a college level economics class, you must have been taught that unemployment rate rarely gets lower than 4 percent. It’s because about 4 percent unemployment always exists in the job market due to some drastic change that has altered a country’s economy. This is what standard economics calls transitional unemployment. It also includes people looking for new work.
Keeping in mind the economics involved in the unemployment rate, it’s not very difficult to understand that the current unemployment rate (1.4 percent) for IT and tech talent is more than satisfactory. In fact, it won’t be wrong to state that this is probably the best time to be an IT or tech worker.
This article is all about exploring what such a low unemployment rate for IT and tech people actually means for them. The IT and tech talent is surely in a very profitable position these days as they can reap huge benefits, owing to such high demand for them in the job market.
1- IT & Tech Talent Is in Demand
With the proliferation of the Internet of Things (IoT) devices and the advent of cloud computing, the demand for IT and tech talent has risen significantly. Both these platforms have created new avenues where IT and tech talent is heavily required. You can expect the same trend to continue in the years to come because the companies have only started to incorporate both these technologies in their existing IT infrastructures. Besides cloud computing and the IoT, the use of artificial intelligence in various industries has opened new opportunities for the IT and tech talent. Considering there is a shortage of competent tech talent that can deal with AI, companies have started to offer competitive salaries and perks to the candidates who qualify for such advanced level positions.
2- Tech Talent Is Enjoying High Wages
Yes, it’s true that some of the AI firms are offering $500,000 starting salaries. And that’s not it. That salary comes with additional perks as well. In fact, the salaries of IT and tech talent are spiraling so fast that it seems as if competitive companies are battling over the scarce supply of IT and tech talent. There is actually more than one reason for such high salaries. The auto industry has started to openly compete with Silicon Valley because it wants tech talent to make self-driving cars. Moreover, the demand for tech talent at giants like Google and Facebook never dies. Both these companies have problems they think can be solved by hiring advanced tech talent. For instance, Google is always in search of top-tier tech workers to build digital assistants for home gadgets and smart-phones.
3- Tech Talent Is Getting Better Perks
Companies from various industries are trying to nab tech talent in the market. Thus, besides salaries, companies have also started to offer them tempting perks that are difficult to resist. Some of the major and most common perks that software company executives are offering tech talent these days include flexible work schedules, remote work opportunities, regular social events, free food, free gym membership for on-site or off-site gyms, and a compressed work schedule. On top of all these perks, companies are very much willing to offer incentives like profit sharing, rewards for individual and team achievements, retention bonuses, deferred compensation, and stock options to keep tech talent motivated and satisfied with their jobs.
4- Tech Talent Gets More Inquiries in Their Services
The importance of being a tech worker and the kind of financial benefits IT professionals are enjoying these days are the two reasons sure to attract the attention of other industries. Other companies will inquire as to how the services of IT and tech talent can benefit them. Once they have determined the need for them, it wouldn’t take long before they also start offering tech talent competitive salaries and irresistible perks.
5- Companies Need to Hire Tech Talent Faster
Given that there are ample job opportunities for tech and IT talent to consider and the supply for such talent is limited, companies need to act faster and speed up their hiring processes if they want to hire the best tech and IT talent out there in the market. According to a study, tech talent loses interest in the job offer if there is no follow-up after the final interview within two weeks.
6- The Right Environment & Culture
In order to be the first one to hook the best tech and IT talent available, companies must think about providing the right culture and environment to the hired tech workers. In fact, culture is the best tool companies have to lure in tech talent. It’s really important that companies realize the fact that moderations and advancements in technology are pretty common. Thus, adopting the latest technology should be made a part of their culture. IT people simply love the idea of working with the latest tech. It gives them an opportunity to grow and develop professionally.
Bearing all this in mind, companies and software houses must get more creative when it comes to finding tech and IT talent. It’s about time they evaluate to what degree technology and the people who understand it are capable of increasing their revenue streams.
Are you finding it harder to locate the good technical and IT talent? Many companies find them selves in the same situation. There are some better ways to locate and attract the right it and technical people to your company. Contact us to learn more.