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1. Limited Pool of Candidates –
The tech workforce is saturated, and there is an acute shortage of professionals. The problem is not with the number of available resources. There is an unprecedented number of graduates who are from a tech background.
The real challenge is the lack of skilled graduates or people with the specific skill sets that make them an asset to recruiters. Despite being from the background of technology, the candidates might not possess the skills that your company demands.
It could also be that the project you have requires someone with significant experience in a field that most freshers will lack. This also creates a roadblock to your hiring process.
The challenge gets even more difficult cause these highly skilled individuals with significant experience are most likely already working in other companies and are quite satisfied with their role as well as their compensation.
2. High Cost of Recruitment –
A lot of times, companies do not take into account the time taken and money involved in hiring tech resources. Finding the perfect candidate for your new project is not as easy as swiping right on the app that you might have created.
Research shows that a company can spend anything between $4,000 to $7,000 while hiring for a developer. The costs are extremely high for the period of time it takes to hire one good employee who will contribute to your business.
Moreover, the time required for hiring a candidate is quite long as well. And the time you spend looking for a developer also costs you money. According to Entrepreneur magazine, business owners spend 40% of their time engaging in work that does not generate revenue, such as recruitment.
In fact, the hiring process can take anything between a few days to 4 months when the resource you are looking for is a developer.
As an alternative to you investing your time and effort as well as money in recruiting these talents, you can always take the help of external recruiting agencies.
For the fee you pay, they will take over your entire hiring process and will most likely come back to you with talented individuals who fit the bill. And you don’t even have to invest too much of your time looking for them yourself.
3. Lack of Formal IT Education –
We understand that finding the right candidate is a matter of skillset and not really just about a degree. Someone who is self-taught with the skills of a developer might actually fit your bill.
But when people without a formal degree respond to your job advertisements, there is enough reason to exercise caution to ensure that you do not invest your time in engaging with someone who, in the end, might not end up adding any value to your firm at all.
The smart way to navigate this challenge would be to ask the candidates for their portfolios and actual work samples or prototypes that they might have worked on. Once you see the work that they have done, it becomes easier for you as a recruiter to make a decision.
The decision to hire a bootcamp graduate or a university graduate will also depend on the position. It might be safe to hire the former for entry-level roles and then train them to upskill them if you see their potential and feel that they need the grooming.
4. The Overcrowded Market –
The tech market has too many players, and each of them has their own propositions. Given that there are so many ‘me too’ ideas with slightly modified distinguishing factors, it might get difficult for you to keep up with the competition.
Every company requires developers, and they are ready to spoil them with perks and benefits. Many times, a candidate might accept an offer and then later reject it when a better offer comes across from a competitor.
Only the salary is not a factor anymore. People look for things that definitely go beyond their pay packages such as dress codes, employee discounts, flexible working hours and locations, signing bonuses, and in-house free meals.
Besides this, they also look for a company whose culture fits their work ethics as well as their ability to grow within the company. For you to reach a place where you can attract the best of the talent, you might need to check with your existing teams to see how they would like you to improve what you offer your employees.
5. High Salary Demands –
While the salary is not the only factor when it comes to recruiting candidates, it still does play a significant role in the recruitment process. The demand for developers is much higher than the number of skilled new developers entering the market.
In a bid to gain a competitive advantage, firms might be offering higher pay packages to recruit the best of the best. You cannot be left behind from this process for obvious reasons.
A good way to navigate this challenge is to remember that in-house developers cost more than freelancers and remote employees. A good way to reduce costs is probably hiring freelancers from off-shore markets, especially in Asia and East Europe.
It is not easy finding the right talent to upscale your business. However, there are always methods with which you can navigate these challenges and find the people who will take your vision from an idea to reality.