By Luis Paiva, SVP, People, Technology and Operations at BairesDev
As the latest COVID-19 variant spreads, it’s already impacting business resumption plans once again – causing more operational challenges for many organizations. Omicron comes at a time when many organizations are recognizing the long-term issues that were caused by the pandemic, with employee retention being a notable concern. Many companies are just now finding themselves unable to simultaneously fulfill the new business needs and expectations brought by the pandemic and it’s critical that businesses address these issues both in light of the new variant and to prepare for future crises that could result. Data shows employees are increasingly looking elsewhere for higher flexibility and pay. While companies are scrambling to fill roles in the short-term, a longer-term shift is underway that will change the talent and solutions landscape forever.
The tech talent gap should be a major concern for businesses
While the overall talent shortage should be a concern for business leaders, the tech talent shortage should be an even greater concern. The ability to retain tech talent impacts all industries and it’s only going to get worse. The shortage is driving up costs for businesses, and we expect a further increase in the cost of software engineering over the next quarter.
The combination of an overall talent shortage and simultaneous rise in talent costs will make it even more difficult for businesses to fulfill their tech needs. Plus, this is all occurring on the backs of a difficult fiscal year for many. Looking outside the traditional direct in-house hire can offer companies increased flexibility and help them secure high-achieving talent without the same holistic costs.
Businesses must address staffing issues to maintain company growth
The new reality is that long-term, full-time roles at companies will become only part of the staffing equation, and businesses must become increasingly comfortable with working with outsourcing services and talent to thrive. We are already seeing this taking root. Where companies used to look for a handful of outsourced team members to close a staffing gap on a short-term project, many are now looking to staff full teams that can run an entire project in perpetuity. Outsourcing services can not only provide additional talent, but they can offer businesses advice and guidance on tech-related solutions that many businesses might not have the tools to implement successfully on their own.
There is a direct connection between staffing issues and a lack of company growth. Just like the digital acceleration and flexibility forced by the pandemic, the businesses that fail to adapt to new team structures will fall behind.
The pandemic as a whole has changed the “local-first” mindset of companies. Employees have proven that they can productively and effectively work together from locations all around the country and globe. Filling out or building teams based on that principle is an opportunity for businesses to foster a team of employees – both internally and outsourced – that are committed to the organization and have the necessary skills for the job.
Location no longer needs to be a deciding factor for a talented candidate, and the sooner and more widely that mindset is fully adopted the better for businesses, talent, and the product. By identifying the challenge early on and seeing location as an opportunity rather than a barrier, businesses will have a higher chance of growing their organization internally.
A crucial priority for businesses in the short-term should be listening to the needs of their own employees and addressing those needs while also looking at the shifting needs of employees in their wider industry to determine what needs to be done within their own organizations to keep staffing level. Rather than trying to force employees back into the office or scrambling to hire traditional staff, companies that continue to embrace change and the forward momentum of the pandemic will see huge long-term return on investment.
It’s important that companies don’t get too comfortable in their current situations and view the pandemic as a thing of the past because it will only hurt them in the long run. Business leaders need to plan and prepare for increased issues related to the pandemic in order to ensure their organizations continue to grow and prosper. If this year has taught businesses anything, it’s that they need to prepare for unknown challenges – including increased risks related to the future of work. Staffing concerns should be a top priority for businesses in the months ahead, and by addressing this issue now and being open to all types of talent, businesses will be best positioned for long-term success.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.