A New Reality: Competing with FAANG
It’s well known that powerhouse tech companies snag and nurture top talent before they’ve even finished college. Their compensation packages and perks are nearly impossible to beat. For smaller organizations, it has rarely been worth competing with FAANG for the top engineering talent. Thus, organizations have spent the last two decades building strategies to reach their technology hiring goals. Largely, this has meant competing for top (and very limited) talent that either weren’t interested in the tech giants, were leaving one of those firms, or simply hiring great engineers – but not Google-grade proteges.
However, the demand for technology talent has left thousands of jobs open as we head in to 2022 – from startup shops all the way to FAANG. For budding or experienced engineers looking to add Facebook to their resume (but never had the right educational and experiential pedigree), this is their moment get a foot in the door. Unfortunately for everyone else, this means potentially losing an entire tier of highly qualified candidates to higher salaries and weekly massages.
Does this mean that all companies must resign themselves to the next tier of talent, while also trying to meet their engineering goals? Not necessarily. But it’s a reality that needs to be understood quickly. Throw expectations and past hiring experiences out the window because the market has changed.
In addition to higher salary ranges, companies will need offer flexible working solutions, equity, and be prepared to negotiate all of it. There is certainly a subset of engineers who prefer startups or the potential that equity offers, but it is a limited portion of the available talent population.
If your interview process isn’t tightened up, efficient, and approved, you will find candidates taking other interviews or offers as you fumble to through next steps. Listen to your candidates and the market. Knowing what they want is the first key to being able to provide them with an attractive offer. At some point, monetary compensation and standard perks yield diminishing returns.
You must be ready to engage with candidates on a very personal level and expect to negotiate for their expertise.
To learn more about how the market is responding to the tech candidate shortage, speak with the Talener team. We can provide you with market trends, common candidate desires, and analysis of your hiring process. Schedule some time with us to understand how your packages compare to the current market compensation.