There is a skills shortage in the tech sector. The war on tech talent continues. The UK skills gap is costing businesses billions.
These are just a few of the statements which are being included in articles, blog posts and conferences when discussing the topic of recruiting for technology positions. 77% of HR Directors believe the tech talent gap is a threat to their business. Also, a recent LinkedIn study suggests that for each tech employee lost the cost to the organisation is predicted to be 50%-250% of the employee’s annual salary. So, if finding tech talent is so crucial to businesses, should organisations be taking a more strategic and serious approach to sourcing in-demand candidates?
In this blog, we’ll be discussing why partnering with a recruiter on a retained basis can help build your tech team. However, first a quick overview of retained search:
Retained search is a type of recruitment where a recruitment agency partners with an organisation exclusively. This means the job(s) will be managed by just one recruitment partner. This company will work closely with the client to provide a shortlist of candidates with the ideal skills, salary and location. One difference between retained recruitment and the traditional contingent recruitment model is that a portion of the fee tends to be paid upfront or on an ongoing basis. By joining forces with a quality tech specialist recruiter on a retained basis, your chances of securing the right talent for your business will vastly increase. And, with any luck, your time-to-hire should reduce significantly.
Retained search is often used for senior and executive level positions, typically with a salary upwards of £100,000. However, if the cost of not filling a role within your tech team is higher than the cost of the search, retaining a recruiter may be a viable option in ensuring your talent gaps don’t have an impact on your business plans.
There are various reasons as to why partnering with one recruiter could be a cost-effective and time-efficient way of recruiting tech positions within your business. Here’s our top 5:
By working exclusively with one recruiter on an ongoing basis the hiring manager or HR team will only have one recruitment company to liaise with. Therefore, the ‘chosen one’ will be able to gain a better understanding of your organisation, objectives, and culture fit.
When you’re building a tech team, a ‘good’ candidate isn’t good enough. You need exceptional candidates who will be able to push the business forward and reach your goals. If you continually work with the same recruiter, they’ll be aligned with your business objectives, meaning they can get on and find you Unicorns.
According to Payscale, recruiting one person takes an average of 10 days away from the hiring manager. By partnering with a recruiter, hiring managers don’t need to spend their valuable time sifting through CVs, arranging interviews and fielding calls from multiple recruiters. By having a recruiter on retainer, the hiring manager will be sent a shortlist of 3-5 candidates that fit the specific profile set out before the search. All shortlisted candidates will have been screened and psychometrically tested (if required) before being put forward for the position. This significantly reduces the time the hiring manager will need to dedicate at the interview stage. Some recruitment models, such as Fuse, utilise video interviewing which saves even more time in the recruitment process.
When conducting an in-depth search, it’s inevitable that recruiters will pick up intel on competitors during their discussions. This could include details on remuneration and benefits packages as well as insights into specific competitors such as identifying high performers or disgruntled employees who may be interested in making a move.
If you establish a long-standing relationship with your recruitment provider, they will happily share this information with you. The competitor knowledge you will gain can be invaluable in gaining the upper hand when attracting tech talent.
Creating a diverse organisation is critical to the long-term success of your business. According to the Financial Times, increasing diversity within an organisation has a significant increase in productivity. What’s more, having a diverse workforce attracts more talent. According to Glassdoor, 67% of active and passive candidates say that when evaluating companies and job offers, it is essential to them that the organisation has a diverse workforce.
Through a retained search process, you’ll work with recruiters with specialist knowledge and experience in the tech industry. They will know what appeals most to the kind of candidates you’re looking for and will be able to advise on how to amend job descriptions to be more inclusive.
You may be happy with the senior members in your team and not see any reason to engage recruiters at this time. Unfortunately, sometimes the unforeseeable happens and you lose a member of your team you thought would be in it for the long haul.
One way of planning for these possibilities is by mapping the market of potential candidates and working with a recruiter to reach out and build relationships long before any formal vacancy is live. By pipelining talent for the future, you can ensure minimal impact on your business’ growth plans if the worst-case scenario becomes a reality.
With 71% and 58% of hiring managers having difficulty sourcing tech candidates with the right soft skills and technical skills respectively it makes sense to look into alternative options for critical tech hires.