Tech recruiting: how to attract and retain employees in today’s full employment economy
| Date | 08 October 2018 |
| DOI | https://doi.org/10.1108/SHR-10-2018-147 |
| Published date | 08 October 2018 |
| Pages | 265-266 |
| Author | Brian Hegarty |
| Subject Matter | HR & organizational behaviour,Employee behaviour |
Strategic commentary
Tech recruiting: how to attract and retain
employees in today’sfull
employment economy
Brian Hegarty
Whatdoesittaketobean
employer of choice for
technology workers?
In the battle for tech talent,the
answers are surprisingly similar
based on MMA’s work with small- to
mid-tier employers. The challenge for
many is meeting the increasingly
higher bar because of competitive
pressures to attract and retain
employees in technology centers,
particularly on the West Coast.
The following is an overview of winning
compensation and benefit strategies to
help recruit the best and the brightest:
䊏Compensation that is good –very
good. Attractive pay is the
attention-grabber that motivates
candidates to look more closely
at your firm. What is “attractive”
compensation? Firms that tend to
pay above market median in total
compensation do the best. A
company’s approach to salary
increases can also make a
decisive difference. Over the past
decade, salary increase budgets
across all types of employers
have been relatively constant at 3
to 3.5 per cent. At the same time,
annual turnover has been
consistent at 14 to 18 per cent.
Having a good process to identify
and reward the top-performing
employees can go a long way to
retaining your most valuable
people.
䊏Employee health and benefits
that cover all the bases but are
not too onerous in terms of co-
pays. Because of the rising cost
of health care, employees are
placing a high priority on
coverage. That means medical,
dental and vision plans that cover
themselves and their
dependents.
䊏Retirement benefits that help
employees get ahead. With
defined pension plans a thing of
the past, employees are drawn to
organizations with employer-
funded retirement programs,
such as 401k or 403b plans.
Those organizations that offer an
employer contribution benefit
have a better chance at recruiting
employees.
䊏Equity participation to benefit
from the company’s success.
Stock options, restricted stock
awards and employee stock
purchase programs are some of
the reasons why so many people
head to technology and biotech
firms. They can offer
opportunities to generate wealth.
Companies that offer equity
ownership in some form have a
greater opportunity to win the
hearts and minds of younger and
more seasoned professionals.
䊏A well-defined career path.
Increasingly, employees are
Brian Hegarty is based at Marsh &
McLennan Agency, Los Angeles,
California, USA.
DOI 10.1108/SHR-10-2018-147 VOL. 17 NO. 5 2018, pp. 265-266, ©Emerald Publishing Limited, ISSN 1475-4398 jSTRATEGIC HR REVIEW jPAGE 265
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