Want to recruit tech talent in the APAC? Aon has some advice
DESPITE a conservative economic outlook, companies are keen to increase headcount in technology teams because of the increasing pressure from the market to go digital.
In an exclusive interview with Tech Wire Asia, Aon Human Capital Solutions APAC & ME Partner and Head of Technology and Life Sciences Alexander Krasavin shared some trends in the tech talent market for 2020 and provided advice for those looking to recruit.
“While compensation is a hygiene factor, we do observe tech talent jumping to organizations whose mission is aligned with their individual values.
“Forward-thinking organizations, therefore, need to clearly state their Employee Value Proposition and give employees a clear sense of purpose by explaining what the organization is looking to accomplish and why.”
At the fundamental level, tech talent is motivated by different things depending on their goals and expectations or even whether they grew up in Saigon, Surabaya or Singapore.
Future-forward organizations, therefore, compensate differently, both in terms of roles and by performance – they take into account pay premiums within the market, and differentiate merit increases further.
“Apart from competitive pay, companies who are successful in hiring tech talent typically offer referral bonuses. We found in our study that there is a higher probability of referred employees going on to becoming successful within the organization itself.”
Now more than ever before, paying close attention to how technology talent is rewarded is critical for companies. Failing to look inwards and make the necessary changes will result in challenges in the coming months.
“The region continues to face a shortage of tech talent,” said Krasavin.
This could be because the APAC is home to about 35 percent of the world’s unicorns, evolving digital advancements across industries and sectors has led to the need for diverse and newer tech-skills, and the emergence of new technology hubs in Philippines, Malaysia, and Indonesia have caused demand for tech talent to grow further.
“In such an environment, employees are more likely to be lured and retained into tech jobs by attractive rewards plans, career advancement, and opportunities to expand their skills.”
As companies reassess their retention strategies, they must work harder to optimize their rewards to align them with their employees’ preferences. In addition, businesses with a voluntary turnover of more than 10 percent should evaluate their employer brand and human capital practices carefully.
At the start of 2020, Krasavin reminds clients that in today’s digital age, every company is a technology company.
“By this, we mean that the integrating of knowledge, processes, capabilities, technologies, and people from one industry to accelerate growth and change in another has transformed every company into a technology company.”
As a result, the competition for tech talent has intensified regardless of whether the organization is a digital native or a newcomer.
To survive and thrive in 2020, business leaders need to think long and hard about what they’re offering to tech talent in the region because monetary rewards might not help build a strong tech team, at least not in the long-run.