Hiring in today’s market is very different from what it was a decade ago. India is the digital capabilities hub of the world where you can find 75 percent of the global digital talent. But recruiters of India’s IT & ITeS industry, which grew to US$ 181 billion in 2018-19, are facing many challenges in hiring the best talents in today’s market. The changing job market, changing demands of the talents, and changing economic conditions of the country pose new problems for the IT staffing professionals. Here are the biggest IT staffing challenges.
Higher Employee Turnover
Today, IT talents prefer global capability centres (GCCs) run by MNCs such as JPMorgan, HSBC, and Airbus, among others, and start-ups over software companies. India is home to 1,250 GCCs. Plus, global organizations like Grab and Go-Jek are planning to open their centres in the country. The average salary paid by GCCs to IT engineers is 10-40 percent higher than software companies. With high salaries and better opportunities, candidates with experience prefer GCCs and MNCs rather than SMBs. Another reason why employees are moving to GCCs is H1-B Visa restrictions imposed by the Trump administration. Nearly 75% of H1-B visa holders in the US are Indian citizens. But the new regulations are negatively impacting the IT industry in India and candidates looking for jobs in the US. So candidates are moving to big organizations where they can get the best opportunities, resulting in higher employee turnover.
Employee turnover is extremely expensive. The average cost of a lost team member is 38 percent of their annual salary. Organizations take up 51 days to fill a vacant position and productivity drops with the addition of a new team member.
Pro Tip: The main aim of all companies should be to hire the right talent and retain him or her. Take the help of IT staffing companies to find the best talent for your company and provide the best work environment to prevent attrition. Temp staffing is another way to reduce hiring costs and attrition rates.
The IT industry works closely with many companies in the US, the UK, Europe, China, Japan, and more. With the economic slowdown in these countries, organizations in India have to face the heat. Further, in the light of the current economic changes, it becomes quite difficult to forecast project orders and demands from the international markets as they tend to fluctuate. As a result, companies face difficulty understanding what size of workforce they need to maintain for meeting present and future demands.
Pro Tip: Contract staffing services would be the right choice in the current economic situation. In the absence of the right environment, companies need the flexibility to be competitive in the market.
Western countries and modern enterprises are adopting emerging technologies like cloud computing, artificial intelligence, the Internet of Things (IoT), Machine Learning, AR and VR, and blockchain. These companies need IT talents who have experience in these advanced technologies. According to a recent survey, 50% of the employees in the IT industry could become irrelevant over the next few years. The majority of the workforce is still working on traditional technologies and methods. They are not putting enough effort into learning these emerging techs or they are not getting opportunities to learn new things. Therefore, it has resulted in a skill gap. That’s why companies are facing difficulties in finding skilled employees.
Pro Tip: Hire IT staffing services from a reliable recruitment agency. They will help you find skilled candidates in a few days, minus all the worries of searching, screening, interviewing, and background checking. You save time, money, and efforts.
Finding The Right IT Staffing Partner
Hiring is a time-intensive process. It is not a small task. From screening, interviewing to onboarding, there are a number of activities that are involved in placing the best and most qualified candidates. Partnering with a staffing company, which does not understand your business and your hiring objectives, can result in disastrous consequences. You would end up paying more for hiring employees through an agency, and in worst cases, may not get the right candidates for critical positions at the right time.
Pro Tip: So what does a true IT staffing partner look like? A reliable IT staffing agency will provide best-fit hires at low costs, understand your tech needs, show commitment to quality hiring, and have low internal turnover record. Perito is one such reliable IT staffing firm. We use time-tested strategies and innovative recruitment tactics to help your business get ahead in the market.
With the growing challenges in IT staffing and the increasing complexity of doing business, companies are increasingly engaging HR recruitment firms in their hiring process. To ease down your burden of hiring new IT employees for your organization and also reduce the cost per hire, you can contact Perito.