What is the most challenging aspect of building a business for tech companies, especially startups? Is it finding investors? Creating a go-to-market strategy? Heck, is it just coming up with that one golden idea?
Talk to an entrepreneur or two in the tech industry, and they’ll likely tell you a problem they all face is acquiring top talent. According to the Washington Technology Industry Association (WTIA), the Evergreen State creates so many new tech jobs each year that there is an annual gap of 3,000 roles—roles that Washington companies have been filling by recruiting from out outside the state or even the US.
The demand for tech talent isn’t limited to the cradle of the Emerald City, though—it’s strong across the country, which is why Ben Weber, Managing Director of Greythorn North America, advises companies be strategic in their hiring strategies.
"Financial incentives are important, whether you’re talking about base pay or bonuses," Weber explained. "But employers who stop after getting the payscale right are often still having trouble finding and keeping top talent. When the average salary for a skill set reaches a certain threshold, money can become less of a priority."
Greythorn conducts annual nationwide surveys of technology professionals about employee motivation, salary ranges, and benefits packages. In the survey, participants are asked why they left their last job. "Higher salary" was the second most common response at the end of 2013, with 12% citing it as their primary reason. Interestingly, by the end of 2014, only half as many—6%—said "higher salary" was why they left their previous role.
As competition breeds higher pay for top tier talent, it seems to be less of a concern for job seekers. So what are they citing instead as their reasons for moving on to new roles?
A full 25% of survey participants said they left their previous job for career development and/or advancement, followed by 12% of wanted a new challenge and more interesting work, 10% who were laid off, and 7% who left due to issues with the management in their previous companies. "Higher salary" was ranked as the fifth most common reason.
Greythorn’s 2015 Inside Technology Market Report contains additional survey results about employee attitudes and motivation, as well as data about average salary ranges, benefits packages, and other industry information potential job seekers will find valuable. Employers will also find actionable data for staying competitive in the tech sector.
If you would like to request a copy of the 2015 Inside Technology Market Report, please visit www.greythorn.com/market-reports.