According to the most recent study by the consulting firm PwC Mexico, Workforce Hopes & Fears 2022, in Mexico, 75% of workers are satisfied with their jobs; however, more than half of the respondents (54%) have expressed wishes to change or temporarily or permanently leave their current employers.
Let’s consider that this is the prevailing situation of talent management in most companies. It is not difficult to imagine that the challenge is even greater in IT areas, where talent shortage, high competition, and theft of trained and skilled personnel constantly matter in the market.
“Although the areas concerning IT or companies focused on this specialization are the ones that experience the most job rotation, they are also the ones that invest the most in developing new talents in regards to the existing shortage and the gap between real and required skills in the market,” says Natalia Botero, VP of Latam Growth for the communications and technology Publicis Delivery Groupe in Latin America.
“Today, we are at that critical point where there is a lot of demand and a great shortage. At PGD, we have an average turnover of around 30% per year for the Tech area; however, the current standard in the market is close to 50-55%. The most basic or junior positions present much greater mobility, while the senior staff tends to seek greater stability. But it is also true that a well-developed IT talent will receive multiple job offers, not only from the country where it currently resides, which increases the conditions for competition, especially for local companies. The United States, Norway, Germany, Canada, the Netherlands, and Finland are hunting for IT talent imported from Latin America, ready to cover the costs of relocating staff in many cases,” adds Botero.
While a significant degree of turnover is inherent in employment, especially in such dynamic areas as IT, companies are concerned with activating strategies that enable them to improve their talent retention for the impacts that this type of intellectual flight can represent in a scenario like the one we currently live in.
High turnover has an economic impact on companies due to lost productivity. Companies usually take 40 days to replace each person who leaves the company. During that time, companies lose productivity and often incur high overtime costs to compensate for staff shortages.
“The recruitment and selection process has progressively become more difficult, and it takes longer for companies to meet their demand for talent. About two years ago, the recruitment process for an IT vacancy usually took a month or 40 days maximum; however, nowadays, there are positions that can take 2 to 3 months to 6 six months to find a suitable candidate. This has a clear impact when there is a market with scarce talent, and a key piece must be replaced. Furthermore, the positions most susceptible to ‘pirating’ are always those of greater specialization”, according to the spokeswoman for Publicis Global Delivery (PGD).
Similarly, with the flight of talent in critical areas or positions, sensitive information and strategy leakage is a concern, in addition to the investment of money, time, and efforts that specialized companies are making today for talent development in the region. “After all, given the highly competitive environment of the sector, we are developing talent for the market, not necessarily for our company alone, but it is part of the efforts needed to generate some loyalty from young talent, in addition to progressively closing the skills gap that is still very pronounced in industry.”
In line with the mentioned challenges and concerns, these are five simple recommendations for companies interested in improving their talent management and retention strategies in IT areas:
Investing in the well-being and satisfaction of talent in parallel with competitive wages: Generating value in work beyond salary has acquired a special relevance among the new generation of talent. Labor flexibility, work climate, and hybrid work schemes are some of Tech specialists’ most valued attributes. However, fair and competitive wages remain one of the decisive factors, especially in the Latin American context.
Personalized benefits: It is a fact that there is a wage war between the most specialized and coveted positions in IT areas in the face of scarcity, but tailored benefits packages are equally important to add value to employees. More senior positions are also looking for stability; these benefits or personalized compensations can contribute to a better quality of life and a greater sense of belonging.
Investing in diverse talent: Organizations are exploring the possibility of hiring more diverse talent with specific skills, temporarily or permanently, without physically having such talent in the same locality. Exploring market options and investing in a strong and diverse culture that enhances talent experience is a real human need today.
Ongoing training and development of specialized workers: Given the shortage of human resources and the skills gap still existing in Latin America, a good strategy will always be to invest in the development of local talent; aside from playing the real role of trainers, it generates one more factor to retain this talent. Highly trained staff in IT areas becomes coveted in the market. Still, by maintaining a constant foundation of talent generation and development, it turns out to be easier to meet the needs and demands of customers and reduce the bump generated by the theft or migration of talent.
Career plans and internal promotions: Career plans and development processes within a company allow knowledge to be managed with greater mobility, maintaining the interest of employees to grow and acquire new skills that would enable them to have achievable options to develop their potential, as well as having a group and individual knowledge of other areas through collaborative work.
