We’re all aware there are not enough candidates to fill the available jobs in the engineering market. Now more than ever, the competitive landscape is dynamic, and companies need to analyze what is currently happening in the market. As the market changes, here are some of the nuances we have been seeing:
The Direct hire Compensation vs Hourly Contract Compensation:
The pay and billing rates have never been higher than in the market today. A lot of it has been attributed to new entrants creating more jobs, new products, and innovative technology. Although contracting rates have increased, they still have not surpassed the compensation of equally skilled direct-hire employees. This has some people giving pause to entering the engineering market.
Signing Bonuses:
To compete in the war for talent, cash has been thrown at candidates to incentivize them to join the company’s team. Earlier in the year, after asking an executive at a large tech company if there were ties or guarantees to the signing bonus, surprisingly, the answer was no. At first impression, the bonus seemed like a great incentive; however, fast forward a few months, and it turns out a lot of companies are doing it, so it nullified any competitive advantage from one company to another.
The Culture Quotient Matters!
Large companies that are leading in creating new cell phones, computers, self-driving cars, or other cutting-edge products used to be the selling points to lure candidates in, but now we are seeing an influx of candidates leaving positions because of a lack of culture. Highly sought-after candidates are not looking for micromanaging leaders or unrealistic schedules. Actually, few people are. The biggest incentive we have seen that is making a difference to candidates when applying to jobs is the communication culture. Setting up communication channels of who to ask questions, how to give and ask for feedback, who to ask questions, resetting and setting expectations, ramp-up progress, etc. Processes need to be analyzed and evaluated for improvement continuously.
Hiring Processes need to be adjusted for Contractors:
Companies, internal recruiters, and hiring managers are hitting a hard point with the increasing demand to hire engineering professionals to fill their needs. The first goal of the company is to hire direct employees, but with the current market, many companies are resorting to partnering with staffing firms to bring on contracting help. One area many companies fall short when hiring is not recognizing the difference between contractors and perm candidates and the length needed for the hiring process. When a contractor, who is paid hourly, is going through the job search process, most do not have the time available to go through multiple hour-long series of interviews. A candidate’s time is valuable; they are either working or just became available, so if they are reaching out about projects it is important to prioritize their schedule. We’ve found that candidates want to work with hiring managers and staffing agencies to find great projects that pay well AND have a streamlined hiring process.
Bureaucracy and Antiquated Vendor processes stifle innovation:
You would think most large billion-dollar companies are setting the standard for removing the red tape around the hiring process, but in our experience, it is far from reality. This process is hindering the company’s ability to create innovation and hire top talent. Forbes shares, “Innovation springs up on its own when conditions are right. When people at work understand the big goal, buy into the vision that the big goal has been established to bring about, and have the freedom to come up with their own solutions to problems, you’ll get breakthrough ideas from them. You only need to hire brilliant people, then step back and watch them change the world! Your job as a manager is to take obstacles out of their way, from corporate red tape to pointless processes that would otherwise slow them down.” A new management mindset is needed for attracting and retaining top talent in this new market.
Revaluating the Current Processes:
There is no question that because of the pandemic candidates now have the upper hand over employers. With more projects continuously opening and the demand becoming greater, it is more apparent than ever that companies need to put emphasis on creating a culture that supports, engages, rewards, and inspires. In a LinkedIn article written by Kate Pangallo, she says, “With the peeling back of red-tape and widening the qualifications, talent professionals and hiring teams will be able to access a larger talent pool, create a more inclusive company culture that represents its employees, and ultimately, ensure their talent pipeline is strong for years to come.” Start by reflecting on your current hiring process and what “red tape” you might have that may be hindering you from attracting the right professional for the project. TeamUP Staffing is here to help!
At TeamUP Staffing, we have an experienced, ambitious team that is dedicated to building long-term relationships with candidates. Our culture of ownership, transparency, and honesty empowers our team to provide experienced and high-quality candidates in a short amount of time to our clients. With a customer-centric approach, and established recruiting processes, we have become your first choice as a valuable recruiting and business partner.
