Following the unprecedented job crisis we witnessed during the pandemic, a new trend emerged in the U.S. labor market. Many Americans have started to voluntarily leave their jobs. In January alone, more than 4.3 million people in the United States voluntarily left their jobs per the U.S. Bureau of Labor Statistics. The amount of U.S. employees leaving their roles now exceeds pre-pandemic heights.
Employees are leaving for various reasons. Some of the reasons that resignation rates are increasing are that many workers are no longer willing to settle for pay, adjust to a negative work environment or have changed their priorities at work. Now being referred to as ‘The Great Resignation’, it is impacting all industries in different ways.
The Great Resignation is particularly hitting the tech industry hard, increasing the challenges faced for finding qualified talent. According to a Gartner survey, only 29% of global IT workers have a “high intent” to remain in their current roles. The gap between the demand and supply of tech talent is only increasing.
The challenges technology companies are facing with the current worker exodus go beyond skill gaps. Businesses are finding that the hunt for qualified talent is also a large obstacle. Once these professionals are found, companies are finding more difficulties with having talent choose to join their company over others. Therefore, businesses have attempted a few different solutions to recover and accommodate.
As a solution, we have seen some companies increasing the incentives for joining the team or offering more benefits to talent. We have seen multiple tech companies offering interview finalists cash payments, 5% of a role’s annual compensation as a welcome bonus or a month’s salary upon signing a contract. Whether or not these incentives are working is up for debate. These incentives are upsetting many current employees at these organizations since they did not receive these payouts when they joined.
Another viable solution to solve the issues presented from the great resignation is the use of contractors. We have seen an influx of tech professionals utilize their highly sought-after tech skills to enter the space of contracting. We have also seen corporations opt for the use of contractors in tech, but why?
For many professionals, working as a contractor has become the preferred option. From the contractor’s perspective, they gain flexibility, earn higher wages and are opened up to projects on a global scale. Contracting also allows these professionals the opportunity to become highly specialized in the areas they choose.
From your business’ perspective, you reduce costs and quickly adjust to market fluctuations. The flexibility that comes from working with contractors also protects your core staff’s positions. As more employees continue to leave their current company, providing your staff that reassurance is crucial. Additionally, in the niche market of tech, using contractors opens your company up to a whole new pool of specialized professionals.
However, that doesn’t mean finding contractors is always easier. When it comes to hiring in the current candidate focused market, opting for contractors will help your company drive innovation and remain competitive. Working with a recruitment company, like ConSol, will save you valuable resources in this tight market. We have a pool of readily available tech talent that are not easily acquired otherwise.
If your company is looking for qualified tech talent to close the gaps, work with our expert consultants. We can connect you with contract professionals who will help you achieve your goals.