Even though todays new employees are looking for flexible schedules, more time off and a less rigid work environment that offers work-from-home opportunities, for example, most technology and telecom companies in the U.S. still feel that money is the No.1 driver in attracting talent.
In short, there is a disconnect between HR practices and candidates priorities, according to a new Deloitte survey, Competing for Talent.
"The conflicting perspectives between technology and telecommunications employers and employees suggest that the respondents are significantly challenged in how they capture their fair share of talent in the near term, said Jeffrey Alderton, principal and national industry leader with Deloitte Consulting LLPs Human Capital service area, in a statement.
Despite our experience in seeing organizations wanting to shift focus on long term retention strategies, the urgency of getting talent in the door versus showcasing career scenarios to new recruits is causing some disconnection whereby companies still view financial incentives as a quick fix.
The survey also found that creative and other critical talent that generates greater-than-average value for customers and shareholders is most difficult to attract, and the problem is expected to increase over the next three to five years.
Deloitte surveyed more than 150 technology and telecommunications companies in North America to understand their most significant talent issues and what they are doing to address them.
Key findings of the survey include:
- Two-thirds of respondents expect their workforce to grow by at least six percent over the next 12 months, and only six percent expect their workforce to shrink.
- Technology and telecommunications companies surveyed are generally less worried than companies in other industries about a prolonged global labor crisis. This may be because technology and telecommunications companies are considered sexy and, therefore, have an easier time attracting talent. It may also be attributable to their younger workforces, which are less affected by Baby Boomer retirements.
- Respondents that fail to address their talent management challenges over the next three years will feel the pain where it really hurts: in limited growth, increased time to market, reduced innovation, damage to customer relationships, and more.
- Forty-four percent of respondents have either not defined a list of critical skills for future growth or are in need of updating their list to meet current needs.
- Roughly a third of respondents regularly discuss the talent shortage at board meetings, while another third discuss it once or twice a year. Moreover, nearly half of the surveyed companies have started to conduct workforce planning to identify critical skills and talent gaps.
Respondents came from technology and telecommunications companies across North America. The industry breakdown is as follows: 24% software, 21% telecommunications/ wireless, 16% technology services, 16% technology hardware, one percent life sciences/bio-technology and 22% other related industries.