The tech talent shortage has reached boiling point. According to Tech Nation’s 2022 People and Skills report, there were 2 million tech jobs advertised between May 2021 and May 2022. The pandemic accelerated digital adoption for all sectors, putting massive pressure on already dwindling tech talent in the market.
With competition for talent reaching a fever point across all sectors, the average SME in tech may feel unable to compete with some of the industry titans they’re up against. Moreover, with counter offers quickly becoming a fail-safe tactic to keep talent locked in, how can SMEs retain their people without the ability to offer punchy pay-outs?
Our tech hiring experts give their five best SME recruitment tips plus ways to retain the talent you already have.
SME tech talent: now’s the time to hire
Where the pandemic caused a tech hiring boom in large organisations to support rapid growth, the economic downturn has triggered the reverse. This has released a glut of talent back into the market, many with a somewhat eroded opinion of working for large organisations. In short, now is the perfect time for SMEs to swoop in and offer a refreshingly different work experience.
“Although salaries are increasing rapidly, our candidates often look at the whole package,” says Craig Freedberg (UK Director, Technology at Robert Half). “To compete, you’ll need to consider everything from remuneration and benefits to corporate values and career progression opportunities.”
Tech talent shortage: which skills and roles are in demand?
Tech Nation has reported that software developers are currently the most sought-after tech professionals in the UK hiring market, followed by business analysts, Java developers, and DevOps engineers. Interestingly, 36% of the jobs in the digital tech economy are in non-tech occupations. The most popular of these are product manager and consultant roles.
Research for the Robert Half Demand for Tech Talent report shows that cloud and infrastructure, architecture, and leadership roles have proven the hardest to hire for. Employers have also stated that few candidates have the stakeholder and client management skills they’re looking for.
“Software development roles are one of the hardest to fill because it's such an in-demand skill set. Competition is rife to attract talent for these roles and companies need to be creative in the ways they go about attracting the best talent”, says Craig.
“SMEs are able to offer much more variety and autonomy to software engineers but struggle to compete with substantially larger compensation packages offered by bigger firms.”
5 tech talent recruitment tips for SMEs
1. Highlighting career progression opportunities
Candidates aren’t just applying for a role; they’re making a strategic step along their chosen career path. If you can show you're prepared to support their journey and invest in their development, you're more likely to stand out against larger competitors.
As an SME, you can offer candidates a more accessible route to career progression — as part of a small team, their contribution is more impactful. Employees are more likely to get one-on-one learning and development time with senior staff, can take on additional responsibilities outside of their role, and are more likely to have their ideas heard and implemented. You can use the interview process to let candidates know you welcome ideas, offer mentorships, and reward ambitiousness with exciting opportunities.
2. Offer flexible working
Employees are hungry for better work-life balance after getting a taste of it during the pandemic. Because of this, almost three-quarters (73%) of employers believe flexible working is essential for staff retention and attraction. Our research shows that the most popular incentives are early finishes or the offer of more annual leave, both of which are currently being offered by 38% of employers.
Related: Robert Half 2023 Salary Guide – Flexible working
3. Invest in ethical and sustainable initiatives
Ethical and sustainable initiatives like Environment, Social and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) are more critical to your tech talent recruitment plan than you may realise.
According to research for the Demand for Tech Talent report, nine in 10 (90%) tech leaders have been asked about the organisation’s impact, what it stands for and how it supports staff. The same report also showed that 78% of employers recognise that investing in ESG is effective for talent attraction and retention.
Related: How important is ESG to job seekers?
4. Offer share schemes and equity stakes
You may not have the same budget as larger companies, but offering an equity stake or shares in the company can be just as effective when making a counteroffer or securing senior talent.
As an SME, an offering like this not only entices talent to your ranks but also increases their engagement and gives them a stake in your success, making the reward even greater when targets and goals are met. Our research shows that 16% of employers find using an equity or a share scheme effective when hiring talent.
5. Widen the talent pool
Have you considered hiring from an untapped talent pool? In a recent Robert Half event on supporting women in tech, Claire Spiller (Lead, AWS re/Start Programme EMEA) said:
“There's a huge, well-educated [female] workforce out there in STEM technologies that don't even access the workforce in tech [...] So as an employer, there's a highly educated workforce out there, but we're not tapping into it at all.”
Some candidates may not realise they don’t need STEM skills for some roles in tech. Project management, sales, and product management are classified as such tech roles but don’t require a heavy tech background, making them appropriate for candidates outside the traditional tech hiring pool.
Many SMEs have also found success working with higher education facilities to establish a graduate programme for students across all STEM disciplines. Additionally, programmes like AWS re/Start give employers access to fresh talent that can be brought into the company and trained further.
By working to understand what candidates find appealing in an employer, SMEs are just as capable of securing top talent as larger organisations. To learn more about how to recruit tech talent, contact our specialist team today. For more information on the Demand for Tech Talent, download your free report here.
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