With high unemployment rates being a popular topic in the news for about two years now, many people are surprised when they learn a talent shortage exists. But it’s true! As an example:
Google (GOOG, Fortune 500), which recently gave its workers an across-the-board 10% pay raise, often starts new computer-science college grads off at salaries that top $100,000 — and it’s willing to pay more if there’s a competing offer from rivals like Facebook or Twitter. It’s also on a hiring tear, looking to add at least 6,000 workers to its ranks this year. – CNN Money article Tech companies desperate for “rockstarninja engineers”
Why is that an example of a talent shortage? Great question. Think about supply and demand for a second and consider why a popular, respected, and by all accounts “cool company to work for” has to pay $100,000 to a recent college grad, or why they felt it necessary to give an across the board pay raise. You may think “Well they are just nice people and they are a nice company,” and while that is a positive way to look at it, the reality is it is a publicly traded company with shareholders. They have a strategy and they recognize the need. It is Google after all…who better to know what kinds of searches you are doing? As the most popular search engine on the planet, you can be assured they know how many people are looking for work. With that knowledge they still found it necessary to increase pay and offer high starting salary. Think about it!
So what are some of the lessons we can learn from this situation? First, keep your engineers happy because they may develop a wandering eye. Second, even amidst widespread unemployment there are sectors and disciplines that have an unemployment rate of about 1%. Third, as competition heats up among companies vying for the best talent, recruiters will be your best friends.
If you want to know how to offer the right benefits, compensation and perks to keep your engineers happy, contact Masiello Employment and we can discuss a strategy. And if you are looking to replace certain talent that may have already left or that you are worried may leave, Masiello Technical Resources can help. You can also take a look at our new Featured Talent section of our website to view some of the stars we are working with right now.