Hiring
6
min read

Problems in IT Industry: Before Hiring

Globally, 54% of businesses reported a talent shortage, the highest percentage in over a decade
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Talent shortage

  • Talent shortage occurs when the demand for a particular type of employee exceeds the supply of such an employee.
  • Globally, 54% of businesses reported a talent shortage, the highest percentage in over a decade
  • According to Korn Ferry, the global skills shortage might reach 85.2 million individuals by 2030.
  • According to a report from Gartner, Inc., IT leaders see a talent shortage as the most significant adoption obstacle for 64 percent of emerging technologies, compared to just 4 percent in 2020

Quality of talent

  • Getting the right talent for a project and retaining the talent is a huge struggle for IT companies now.
  • According to PwC's 20th CEO Survey, more than 50% of APAC CEOs say it's difficult to hire digital talent with the right skills.
  • Furthermore, IDC predicts that this year, the monetary losses resulting from IT skills gaps will be $775 billion worldwide. https://datastorageasean.com/expert-opinions-opinion-byline/2022-cloud-skills-trends-and-predictions
  • AWS and cloud are such a huge space with so many underlying technologies and services that identifying the right talent for a given project can be confusing ,difficult, time taking process for someone not versed in these technologies.
  • The need of the hour is a platform which can act as a "one stop shop" for all stakeholders involved.
  • There is no need to constrain yourself because of geographical or cultural barriers to get the right talent.

Time invested in hiring

  • When an enterprise is building new technology products both for its internal and external business clients, they always look out for exceptional talent to join the enterprise. Sometimes a skilled talent leaves an ongoing project and finding are placement for the same is crucial for the project to continue without getting affected. The amount of time invested in recognizing a talent to actually hiring it can actually be an opportunity cost for something more productive.
  • The usual hiring process of identifying, interviewing, negotiating, on-boarding is a time-consuming process.

Money invested in hiring

  • Screening the right candidate and on-boarding them needs a set of recruiters, talent specialists, hiring/tech managers working as a team to onboard talent.
  • An $8/hour employee can end up costing a company around $3,500 in turnover costs. (Investopedia)
  • Training and retaining employees need investment
  • According to a recent study by Training Magazine, companies spent $92.3 billion in 2020-2021 on training.
  • Refilling the position while the project is going on will affect the project.
  • It can take up to 6 months or more for a company to break even on its investment in a new hire. (Survey of 210 CEOs by Harvard Business School)
  • Using a third-party vendor, specialty staffing experts or talent supply chain experts, the fixed cost of workforce can be converted to variable cost and an enterprise can scale up or down their workforce as per their requirement.

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