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How can organizations attract and retain IT talent?

Gartner has outlined three ways

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One of the biggest stories in digital transformation right now? Attracting and retaining IT talent. 

According to Gartner, the labor market has tightened in the last two years. They report that:

  • 60% of HR leaders are “significantly concerned” about employee turnover.
  • 62% of candidates have explored a career change in the last year.
  • Nearly three-quarters of candidates who receive a job offer have at least one other offer on the table.

Amid stories from the ‘Great Resignation,’ workers in all industries are pushing for higher compensation, better benefits, and increased flexibility — and IT talent is no exception. In fact, Gartner’s Global Labor Market Survey found that compensation is the top driver for IT talent attraction and retention. According to a recent Gartner IT Compensation Increase Poll, 50% of organizations reported increasing the salaries of key employees after they received a separate job offer — all in a bid to retain this talent.

How can organizations effectively attract talent and, most importantly, retain these employees? Gartner has outlined three ways.

Make monitoring and raising pay competitiveness a priority

As Gartner explains, “In order to pinpoint where additional funding will be necessary to address pay gaps in the short term, work with your HR team to identify IT roles and skills areas facing higher attrition risk and recruitment challenges due to noncompetitive compensation.”

Limited resources? Prioritize roles in high-risk areas, they explain.

Build flexibility into IT compensation through variable pay programs

“One way to minimize locking in compensation adjustments as long-term fixed costs,” explains  Lily Mok, Gartner VP Analyst, “is to use variable pay components that can be adjusted or removed as talent needs and market conditions evolve.”

Examples of these include skills-based premium pay, a signing bonus (lump sum or split up), and retention bonuses (eg. during a major period of transition).

Make sure managers can have successful pay-related conversations

According to Gartner, there are three important elements needed to make sure these conversations are effective. 

First, never forget empathy — especially since finances are a very personal topic and can be a sensitive issue.

Second, make sure the compensation package’s value is clearly outlined and understood. This includes pay, bonuses, benefits, etc.

Finally, be transparent about the organization’s pay structure, and how pay rates are set. After all, there are many sites out there (eg. Glassdoor) that features self-reported public pay data. 

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“Financial growth alone won’t cut it anymore”

UC Berkeley Haas School of Business dean Ann Harrison describes what the future’s successful leaders look like.

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Automation, flexibility, data analytics — these are only a few of the business trends shaping 2023 and beyond. But you can’t implement those trends in your workflow or organization without having leadership on the same page. 

McKinsey & Company recently interviewed Ann Harrison, Dean of UC Berkeley’s Haas School of Business, on characteristics of successful, modern business leaders, and how to improve education models to produce them.

Here are a few highlights from the interview:

On why today’s leaders must lead with empathy

One of our management professors, Cameron Anderson, did research on “selfish jerks.” He tracked people all the way from college and looked at how they succeeded in their careers. And he found that being selfishly competitive doesn’t get you ahead faster. He also found that these characteristics can really hurt your organization.

So confidence without attitude is critical for today’s leaders. More than ever, it’s important to be a great listener and not think that you know all the answers.

On the importance of data analysis in business leadership

We’re in the midst of another major Industrial Revolution. It was happening before the pandemic, but the pandemic really accelerated the digital transformation. We see it in the markets, which increasingly are dominated by players that really understand how to harness the power of data and how to harness the power of technology.

We are weaving that into our curriculum’s core requirements. We’ve added requirements on mastering and strategically using data tools, like AI and machine learning. Students are learning everything from how to program to how to use and present big data. They’re also learning the ethics and pitfalls of machine learning and AI, where discrimination can be built into algorithms without your even realizing it.

On how we can change the education model to produce more modern leaders

Investing in K–12 in ways that are successful would be one approach. Right now, we see a bifurcation. Increasingly, those who can afford it send their children to private institutions, which negatively affects the public ones. 

Another thing we can do without changing the whole system is to have early-intervention programs. Businesses can do this. At Haas, we have our own: a program called “Boost.” Boost goes to local junior highs and finds candidates in disadvantaged areas who would really benefit from early help. The kids who sign up stay with the program all through high school.

Some of the help is academic, some is mentoring, and some is preparing for college. And the kids are incredible—they get into all the best universities and do amazingly well. It’s local, and it’s not huge, but it helps develop the pipeline. It’s all about the pipelines.

Read the full Q&A from McKinsey & Company

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Could recent tech layoffs prompt talk of unionization?

The labour movement in tech has yet to fully break through. Is change on the horizon?

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The old joke has it that when Google employees are laid off, they would just do a Google search for a new job. That conversation may have shifted in recent months. Now, tech workers who are laid off — or who fear being laid off — might be firing up a search on unions.

Indeed, while there’s been a recent raft of layoffs in the tech sector, there has also been, in the past year, an increase of 200,000 union members, amongst the 16 million members in the US. 

Taking a quick step back, the numbers were much higher in generations past. According to Rabble.ca, about 10% of the American workforce is in a union, contrasting to double that amount four decades ago. Almost 30% of the Canadian workforce is in a union, compared to nearly 40% in 1981.

Setting the stage?

Layoffs to the degree we’ve been seeing often prompt unionization talk, and this was no exception.

AFL-CIO President Liz Shuler said in an interview with Bloomberg that workers see an injustice: they don’t see an improvement in working conditions, as their corporations net billions of dollars of profit. In expectation that automation might replace workers, she foresees union contracts that prohibit this.

“That will continue to be a driver for people to say, ‘hey, do we have to sit back and take it, or can we do something about it?’”

In June 2022, workers in a suburban Baltimore Apple store were the first to successfully vote to form a union at one of the tech giant’s stores — a move the company appears to have embraced. Key issues included pay, working conditions, and having a voice at work, said an Apple spokeswoman. This fight came amongst other wider efforts of store workers at Amazon and Microsoft. A second Apple store, this time in Oklahoma, voted to form a union in October.

The Baltimore union reached another milestone in January 2023, entering into collective bargaining with management for the first time. 

Meanwhile, Amazon, as of January 2023 lost its fight to overturn its first union, voted on by workers in July 2022. In contrast, Microsoft accepted the results of its first union, with the 300-some workers at ZeniMax Studios.

“Microsoft has lived up to its commitment to its workers and let them decide for themselves whether they want a union,” CWA president Chris Shelton said in a statement. “Other video game and tech giants have made a conscious choice to attack, undermine, and demoralize their own employees…”

For many in the lay-off wave, though, it might be too late. It could take more than 450 days, on average, from the time a union is formed, to ratify its first contract, according to Bloomberg Law.

“Layoffs are shaking the tech industry,” said Clarissa Redwine, Senior Design and Tech Outreach Lead at Kickstarter from Jan. 2016 to August 2019. She said that management fired a third of her organizing committee in the same week — and she was one of them. “The team had 15 years of tenure and were all high performers,” she said.

She was then invited to the Organizing Committee of Kickstarter United just before they took the campaign public. 

Kickstarter United was the first wall-to-wall union in modern tech, Redwine said, and recently penned a contract that secured many rights unprecedented in the tech industry, such as guaranteed minimum 3% annual cost of living raises for all employees, a profit sharing bonus pool, salary benchmarking based on a national average, and ‘just cause’ provisions.

Kickstarter United and Tech 1010 from OPEIU held information sessions to discuss how to protect their workers. Redwine added that other workers in the tech labor movement began creating resources that directed tech workers to provisions like the WARN act (Worker Adjustment and Retraining Notification) that “might shield them from severe and malicious layoff tactics.” Twitter workers, she noted, crafted a Layoff Guide that went viral in worker Signal groups. 

“To challenge layoffs, workers must have the existing capacity to mobilize, and the tech labor movement is still young,” she added. “Only a handful of unions have won elections, and most unions in tech are still underground building quiet power. We have not yet seen a strike to effectively reverse these needless layoffs.”. 

“The mass layoffs are encouraging a surge of interest in unions… leadership uses this glut of labour and ‘competition’ to drive down the cost of labor in tech.”

Interestingly, a Harvard Business Review study from May-June 2018 showed that of twenty companies that let go of workers, presumably as a cost-saving measure, profitability actually declined in some instances, for up to three years.

In the wake of so many job losses across the tech sector in such a short period of time, it may very well come to pass that unions, learning from the fallout, will mobilize in greater numbers, preparing for the next round of mass layoffs coming down the pipe.

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Switzerland, Greece, UAE among most digitally secure countries for remote workers

Proxyrack describes the world’s most cyber-secure and digital-nomad-friendly countries.

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Nearly 80% of employees worked remotely in 2022 — and that doesn’t even cover the influx of digital nomads and solopreneurs that emerged after the pandemic. Peachy, right? Not for organizations or workers, as remote work brought an onslaught of cybercrime with it. That’s what you get when you put company-sensitive data on unprotected personal devices times a thousand. 

So, should these laptop labourers stay in Canada? 

Proxyrack says sure, as Canada earns a tenth spot in their top-ten list for most digitally secure countries. Not too shabby! Here’s the full list: 

Most secure countries for remote workers

  • Switzerland
  • Netherlands
  • United Kingdom
  • Singapore
  • Luxembourg
  • Denmark
  • United States
  • Germany
  • Finland
  • Canada

Still, Proxyrack reports covered a few more lists with focuses on cybersecurity, 5G networks, internet access, and more. Here are a few countries that caught our eye and what they offer today’s remote worker. 

Greece for unparalleled cybersecurity

Greek IT companies agree cybersecurity has a huge role in civil protection. Plus, the government stands behind that with a robust Digital Transformation Bible, which details investments in cybersecurity certification, cloud computing security, AI, and electronic identification. 

Proxyrack found that Greece tops the entire world on the National Cyber Security Index, with a 96.1 — the highest score in existence. 

Switzerland for 5G, high salaries, and happiness

Switzerland topped the secure list for remote workers for excelling in a few key areas. First, the Swiss have over 70 5G hotspots per 100,000 people, second only to Slovenia and Lithuania. But they rein the report’s secure list for the third-highest happiness score and world’s highest salaries. Sounds pretty convincing, especially if you tack on the country’s staple, decadent cheese fondue. 

UAE for VPN access

You might use VPN to access Netflix in another country, but it’s a much more vital service for today’s remote worker. That’s where the United Arab Emirates (UAE) really shines in Proxyrack’s report, revealing VPN access for over 84% of the population. So, remote workers can rest easy knowing their internet traffic, location, and IP addresses are secure from hackers. 

Read Proxyrack’s full report

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