1. Conquering the tough competitionAccording to a McKinsey digital report, 80% of the tech workers laid off in 2022 managed to secure a new position in 3 months, and the job openings outnumbered the laid-off workers 1. Despite the massive layoffs in the tech industry, demand for talent remains strong. Similarly, the need for hiring tech talents in developed countries like Germany will continue to grow; there are currently 700,000 open positions in Germany now, and it is expected to reach 780,000 by 2026. Likewise, the US Bureau of Labor Statistics projected a 25% of job demand for software developers, quality assurance analysts, and testers in the next 8 years. Currently, there are 162,900 openings for the stated positions, and the job demand is expected to reach 203,625 in the coming 8 years 2. From a hiring point of view for startups to mid-size tech companies, software developers are able to create unique and differentiated products that stand out from the competitors, bringing creativity and technical knowledge to the table to increase user demand. Tech companies must therefore acquire the correct candidate to assist the business in scaling fast in an evolving business environment.
2. Focus on the employment attributes to avoid global competitionPractically, big companies like MNCs are more open to disclosing pay ranges in job listings to use attractive salaries to attract high-quality candidates. When there is a potential talent acquisition war between competitors, MNCs can adjust or increase the budget to win the acquisition competition. Gartner research has conducted a recent study with software engineering talents to understand the top 10 employment attributes that lead them to decide to join a company. The result shows that compensation is undeniably the top factor that the majority of the candidates (55%) will first decide on when applying for a job, followed by work-life harmonization (39%) and location (30%). As a mid-size company, not disclosing salary information might give you more negotiation range to attract top talents and at least get the first contact from job applicants with impressive profiles. What can you offer besides an attractive salary to attract highly skilled candidates? An interesting study found that 42% of employees would choose a new employee benefit rather than a wage increase if the offer is within an extra $200 incentive. If you are hiring from Asia, it is important to understand different employee benefit needs. Instead, hiring managers can emphasize other attributes that job seekers value, as indicated by Gartner, such as work-life balance, possibilities for professional advancement through training, and remote work opportunities highlighted if you are transitioning to a remote company.
3. Should you consider pay transparency?Pay transparency has been a hot topic, especially spreading rapidly and advocated by public US academic institutions to decrease the gender pay gaps significantly 3. In reality, Buffer, a reputable social media management tool company, has started to implement the salary transparency policy since 2013. The company believes that trust and unity will be established among its employees in doing so. All of the salary data can be viewed openly not only among Buffer's employees but also by the public. If you want to view Buffer's salary information, here is the link. As we can see, Buffer's pay transparency has led the company to positive branding and enabled the company to be well-known as a generous employer. However, here are a few things to consider when you implement a salary range disclosure approach in your job listing:
- When hiring from anywhere, are you using value-based compensation, location-based compensation, or a mixed approach?
- How would the same team member with similar years of experience and skillset feel when their peers living in the capital city get higher salaries?
- How would the resigned employee feel when seeing their replacement hiring ads with the salary range disclosed?
- How would a position with a lower salary range feel when their perceived workload is higher and they are underpaid?
- Will it discourage your ideal candidate from applying if the salary range doesn't match their expectations?