When we look at the U.S. tech talent marketplace right now, there is an element of friction at play: lower hiring demand has nevertheless coincided with very specific talent shortages in the most in-demand areas such as AI. While overall hiring has softened as the economy has slowed, technology skills and capability remain key to organizations’ success. Attracting and retaining the right talent is as critical as ever. But what do U.S. tech professionals themselves feel – and can employers count on them to stay?
Intention to leave?
In this context, it is fascinating to look at the findings of the Harvey Nash Tech Talent & Salary Report, based on the views of 2,700 tech professionals across 44 countries, including over 600 in the U.S. This finds that 25% of U.S. tech professionals say they are thinking of leaving their role in the next six months, and 37% within a year.
That might sound sobering – although it remains to be seen how many people actually follow through. Delving deeper into the data, the U.S. intention to leave is slightly lower than the global average, and U.S. professionals appear to be marginally happier in their job compared to the global figure. But, at the same time, more American staff say their workloads have risen over the last year (61% compared to 55% globally) and fewer have received a raise (39% vs 45%).
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What can we read into these this mixed picture?
The figures show that, here in the U.S., we have been dealing with a downturn economy for longer than other regions – people have moved through the initial worry and stress of that and reached a point of acceptance. Overall, they like their jobs, in an exciting sector they love, and they’re looking at the positives. It’s a sector they want to stay in.
Although it came after our field research closed, the Federal Reserve’s recent decision to reduce interest rates has also, I believe, brought some hope and optimism into the market – maybe we have turned a corner. If rates go on a downward trend, the costs of doing business will fall and conditions for organizations should therefore improve. This could increase their hiring activity and create new opportunities for technology professionals.
Nevertheless, there is no doubt that our research findings are concerning. There are clear hints that overall job satisfaction is waning. It’s a challenge and a problem that organizations need be thinking hard about and getting ahead of as much as they can.
How can employers improve attraction?
It is instructive to look at what our survey respondents said were their chief reasons for thinking of leaving. It won’t be a surprise that the top reason amongst U.S. staff (around half) was for more pay. This was followed by the opportunity to further their career – to a more senior position, or to more challenging or stimulating work. But it is also noteworthy that for a significant proportion – nearly a third at 29% – a change of culture was a key factor. Data insights from LinkedIn, which partnered with Harvey Nash for the publication of this report, also support these findings, with technologists globally ranking ‘Organizational support to balance work and personal life’ and ‘Opportunities for career growth’ in their top five Employer Value Propositions.
Then there are the prime attractors to a new role: what might pull talent away? The five top areas flagged by U.S. respondents were:
- Compensation and benefits
- Work from anywhere policies
- Healthcare benefits
- Paid time off (PTO)
- Flexible working hours
Compensation, work from anywhere and flexible working hours feature in the top five across global regions – but healthcare benefits and PTO were very specific to the U.S., underlining how much they matter to U.S. tech professionals. Employers take note!
Retention: the importance of culture
These factors mainly sit on the attraction side – but retention is perhaps more complex still. It may be relatively easy to get staff in through the door with the lure of a good salary and package – but keeping them there comes down to the culture and environment of the business.
Tech staff want to work in an environment where they feel valued and supported, where they have flexibility, development opportunities and a career path that helps them flourish. Leadership need to facilitate this through building and lifting the skillsets of tech teams, through investment in training, upskilling and development opportunities, and access to the latest, innovative tech tools and solutions. The pivot towards AI is a big case in point.
Communication is another key aspect. Transparent and regular communication about the vision and strategy, and the role that different teams in the business have to play in that, can be a strong catalyst in engaging and motivating staff. In fact, communication skills were ranked by our survey base as the most important feature of a tech leader (by 55 percent of respondents) – even ahead of a deep understanding of tech (48%).
Carving out a competitive advantage
It will be interesting to see how some issues unfold. Work from anywhere is a prime example. This is something that most individuals really value – but there has been quite a push, particularly from some of the Big Tech giants, to bring staff back to the office full-time.
I don’t believe that we will see a technology talent exodus in terms of people leaving tech altogether. But I do believe that we could see a significant reshuffle as individuals move to another employer in a different tech role. This is something the work from anywhere debate could prompt, for example. More tech professionals could cast their nets wider, looking at sectors and industries outside technology to see what’s on offer there.
Clearly, there are some significant talent issues at play. The organizations that really get their employer value proposition right – from the market cap giants down to mid-sized businesses and start-ups – will be the winners who can gain significant competitive advantage relative to their peers. They will increase their attraction of new talent, and retain more existing key staff too – a win/win that will position them well for the future.
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