How to solve the obvious?
Merger & Acquisitions by https://pixabay.com/en/integration-welcome-shaking-hands-1777537/
According to the latest numbers there are 82,000 Vacancies For IT Specialists In Germany https://alertify.eu/82000-vacancies-for-it-specialists-in-germany/, the number quadrupled in the last 10 years!!
Not a surprise to be honest. The overall demand is increasing, due to digital transformation as one example, more people are leaving the workforce than new talents are entering the IT environments. Much more industries are looking for IT expertise than in the past, as software is dominating the majority of the products in the meantime. And flexibility is unchanged or even going down, on the candidate as well as the company side.
As we are in a candidate market in the moment (to be clear in the age range between 22 and 45) less flexibility is not an issue on their side, as they can really wait for the right offer to pass by 🙂. The majority of the companies looking for IT talent is still at the level of 10 years ago. No flexibility with respect to job description, work place, candidate profile, roles & responsibilities, language, diversity, salary, etc. How do you plan to win the "War for Talent" when you are not willing to adjust your approach and "weapons"?
I always hear the complaint about too high salary expectations of candidates. I don't want to sound like a broken record and did mention especially the 50+ candidates several times already. Candidates with 25+ years of experience are more expensive than newcomers from the university? YES they are and this is okay 👍. Are companies seriously comparing the costs of not filling an open position (for a longer period of time or at all) against the higher salary they would have to pay for a candidate with more experience? If not, why not?
Out of experience, if you have a team of 5 people 1 is a total failure meaning, 4 have to do the work of 5 (100% salary for ~80% work). In most cases the high performers are leaving companies for a new job first, so if they plan a change it is less than 4 having to do the job of 5 (let's say 100% salary for 70% work). With 2 - 3 month notification period and an average of 5 month to fill an open position (see article), we are talking about roughly half a year with 80% salary to pay, but only three or even less people taking care of the work that is planned for five. If companies would seriously apply a total cost of ownership (TCO) approach here, including:
- cost of work not done at all,
- work delayed,
- customers frustrated,
- customers lost,
- offers not started in time,
- offers not even accepted, due to missing resources,
possibly paying a higher salary for somebody, who is short-term available would save a lot of company money?
Some CFOs will say, when I do not pay salary at all I save the most money for my company 😙. This is a free country with freedom of speech and all opinions are welcome. But seriously, if you really want to fill an open position you have to get your financial numbers straight and start to battle the competitors out there in the common ground. Or find a new battle ground, where you are alone or together with much less competitors.
One of the new ideas is to buy complete small companies with the required skills missing in the own company, but this will be the topic for another post ...