Why do some companies struggle more than others to recruit IT talent?

Damia Group Portugal
8 min readJul 8, 2024

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In today’s digital age of fierce talent competition, organisations struggle to attract and retain the best candidates. 😱 Understanding the reasons behind this challenge is critical for organisations looking to build robust and innovative technology teams.

In this article, I will explore the key factors that contribute to the difficulty of recruiting IT talent and share what Damia Group has done to enable our clients to remain competitive and successful in attracting and retaining the best technical talent. 📣

1. High demand and limited supply

1.1 Booming technology industry: The technology industry is growing rapidly, and this phenomenon has led to a surge in demand for IT professionals worldwide. From start-ups to established companies, almost every sector requires skilled developers, data scientists, cybersecurity experts and other IT specialists. This high demand creates a competitive labour market, making it difficult for companies to find available and highly skilled talent.

1.2 Skills shortages: The rapid evolution of technology means new skills are constantly in demand. Many educational institutions and training programmes are struggling to keep up with these changes, resulting in a skills gap. As a result, there are fewer candidates with the necessary expertise in cutting-edge technologies such as artificial intelligence, machine learning, blockchain and cloud computing. While the number of fast-boot tech academies has increased, it’s still not enough to meet the market’s need for experienced talent.

2. Competitive job market

2.1 Attractive offers from top tech companies: Large tech companies such as Google, Amazon and Microsoft can offer attractive salaries, comprehensive benefits and appealing work environments. Smaller companies or those outside the tech industry may find it difficult to match these offers and have a harder time attracting top talent.

2.2 Location constraints: Many skilled IT professionals are concentrated in tech hub areas. Companies located outside these concentrated areas often struggle to attract talent willing to relocate. In addition, even within tech hubs, the cost of living can be extremely high, deterring potential candidates. Remote working has solved some of these problems, but many companies still lack a fully remote working policy to attract these candidate

3. Evolving candidate expectations 😅

3.1 Desire for flexibility: In recent years, there has been a sense of change in the labour market. If a few years ago the emphasis was on having a great career with a great employer and achieving high goals, the tide has turned and candidates and professionals are looking for these, but also for a better balance between work and private life. Flexibility and autonomy are keywords that will be put into practice in the coming years. Policies such as remote working and flexible working hours have been quite successful in attracting talent.

3.2. Emphasis on company culture: More than salary and benefits, IT professionals now value company culture, career development opportunities and a sense of purpose more than ever. Companies that fail to foster an inclusive, innovative and supportive working environment may struggle to attract and, more importantly, retain IT talent.

4. Recruitment process challenges

4.1. Inefficient recruitment processes: Lengthy and dense hiring processes can deter top talent. Skilled IT professionals often have multiple job offers and may not be willing to wait for slow-moving companies. Streamlining the hiring process and ensuring timely communication are critical.

4.2. Inefficient talent acquisition strategies: Some companies rely on outdated or passive recruitment methods, such as generic job postings or limited networking. Proactive talent acquisition strategies, including the use of social media, attending industry events and building relationships with educational institutions, are essential to attracting top candidates.

4.3. Not targeting what you need: If you don’t know how to identify the most appropriate profile to fill a role, you’re setting yourself up for a frustrating and inefficient recruitment process. The organisations that are most successful at recruiting are the ones that know exactly the work that needs to be done and the profiles of people who can do it.

Knowing what to look for when recruiting in the tech industry will help us avoid some of the mistakes. Now, in this second part of the article, I will share some tips on what companies can do to overcome this and successfully attract top talent!

5. Betting in efficient & effective recruitment processes

5.1 Streamlined processes: IT is a candidate-driven industry, so efficiency throughout the hiring process is critical. A long, cumbersome or unclear recruitment process can result in companies losing top talent to competitors with a simpler and clearer process. Damia’s strategy includes:

  • Assessing current recruitment pain points;
  • Comprehensive kick-off meeting to immerse the client in their culture and processes; discussing roles & budgets; employment policies; perks & benefits, etc;
  • Dedication of a dedicated Account Manager / Project Manager for each recruitment process or client;
  • Agree on specific SLAs and guarantee quick response times;
  • Advice on minimum interview rounds;
  • Advice on job offer benchmarks;
  • Ensure ongoing feedback and communication at all stages of the recruitment process.

5.2 Leverage technology: The ability to use advanced recruitment tools and technologies such as Applicant Tracking Systems (ATS), AI-driven tools such as CV screening and automated interview scheduling can significantly improve the efficiency of the recruitment process. This ensures that candidates aren’t kept waiting and feel valued throughout the process.

6. Use employer branding to stand out

6.1 Company reputation: A great way to attract top talent is to have a strong employer brand. If a company has a positive reputation in the marketplace, is known for being innovative, has a supportive work culture and growth opportunities, it becomes more attractive to all candidates. Damia can leverage the best of your culture and proactively use your employer brand to engage with candidates.

6.2 Employee advocacy: Encouraging current employees to share their positive experiences on social media and job review sites can enhance your company’s image. Word-of-mouth and peer recommendations are powerful tools for attracting new talent. Glassdoor and Teamlyzer have become the go-to sites for IT professionals before accepting an offer. Check your company profile on these platforms and make sure your recruitment processes are in line with market expectations. And don’t be afraid to use positive reviews to boost your social media.

7. Guarantee a positive candidate experience 👍👍

7.1 Respect the candidate’s time: A candidate’s time is just as valuable as a recruiter’s, so being punctual in interviews, providing timely feedback and not dragging out the hiring process shows that your company values the candidate.

It sounds simple, but you’d be surprised how many companies miss this step. 🙈 🙊 🙉

7.2 Personalise the approach: Engaging with candidates based on their unique skills and career aspirations can make all the difference. Tailoring your job offers and career paths to candidates’ personal and professional goals can attract more engaged and enthusiastic employees. This often requires experienced recruiters who understand tech roles and careers, and who avoid contacting unwilling or overqualified candidates.

8. Culture and work environment

8.1 Have an inclusive culture: A working environment that promotes inclusivity and diversity can do wonders for attracting and retaining top talent. The current job market is candidate-driven, which means you don’t choose the talent, the talent chooses you. Tech professionals often look for workplaces where they feel comfortable, can be themselves, and have organised teams from which they can learn and grow.

8.2 Work-life balance: Offering flexible hours, remote work options and policies that support work-life balance will make your company more attractive. The ability to work from anywhere at any time is particularly valued in the technology industry. More conservative companies with strict work-life policies tend to have a harder time attracting top talent and may have to compensate with higher financial offers.

9. Development opportunities

9.1 Continuous learning: To attract top talent, companies must provide opportunities for continuous learning and skill development. Technical professionals are typically motivated by challenging projects and the opportunity to work on cutting-edge technology. Companies that offer training programmes, certifications and pathways for career advancement are more attractive and send the right message to future candidates.

9.2 Challenging projects: Top tech talent is looking for innovative and challenging projects to work on. To attract and retain them, companies need to offer engaging and challenging projects that grab their attention. More innovative companies tend to attract the most valued professionals.

10. Competitive compensation 🤑

Offer comprehensive benefits: We all understand the importance of salary compensation, but a comprehensive benefits package that includes health insurance, retirement plans, stock options and other perks can be equally compelling. You need to understand the best practices of the market you are recruiting in and Damia can help you with this. It’s never too late to take advantage of our 2024 Salary Benchmark & the art of creating compelling job offers — Guide. 👇👇👇👇

Recognition and rewards: Show your employees and candidates that your company cares. These actions make people feel valued in the workplace, contributing to retention and increased productivity.

11. Use marketing to recruit smarter and better

11.1 Source talent proactively: In a competitive market like IT, it’s not wise to wait for candidates to come to you. Instead, learn to be proactive and use the power of social media platforms, networking and tech events to source the best quality professionals. Most of the time, none of the above may be enough to get the results you are looking for.

That’s why we exist and we’re here to help you on your company’s growth journey.

11.2 Engage with passive candidates: Don’t miss the opportunity to engage with passive candidates who are not actively looking but may be open to new opportunities. This is a key strategy. Most tech professionals are already employed and aren’t likely to be looking for new opportunities. This requires building relationships, maintaining a network of potential future hires and engaging them effectively.

We’ve gone through the stages of understanding the reasons for the difficulties in recruiting in the tech industry and reviewed some tips that Damia Group Portugal uses to ensure we continue to attract the best talent in such a competitive industry, for some of the most incredible growing companies around. So don’t be shy, apply these tips or contact us to avoid wasting precious time on your growth journey.

Damia Group Portugal, Tech Recruitment Experts

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Damia Group Portugal
Damia Group Portugal

Written by Damia Group Portugal

At Damia Group we take the hassle out of tech recruitment and put in the right professionals who will excel in your organization 🔥