Tag: Information Technology

Market at “boiling point” by a post Brexit talent shortage

London-based network engineering recruitment firm Hamilton Barnes has reported that “a counter offer culture” is gripping the tech recruitment sector as candidates “go to market to get a payrise” triggered by the cost of living crisis and a post-Brexit talent shortage.

George Barnes, Co-founder and Director of the firm said this was prompting “desperate attempts to hold onto talent” and “wild counter offers of up to £40,000 extra”.

He explained: “Inflation and the cost-of-living crisis has had no real effect on our clients in terms of hiring. While some sectors may have experienced recruitment slowdowns, we are seeing clients in the tech sector hiring ever more aggressively.

“Meanwhile, the effect our current economic situation is having on candidates is that they are reading about it and hearing about it in the press and they are going to market in huge numbers to get a pay rise, especially if they believe they are not in a position to get one in their current role, maybe because they think they haven’t been there long enough to get one or are in a structured role where they know they are not due one yet.

“In turn, employers who are determined to hold onto talent in a market where talent is highly prized and in short supply, are counter offering really aggressively into the tens of thousands.

“In the last week, I have seen one employer go up by 40k on someone’s salary to hold on to them when they were offered a role elsewhere because they were clearly so desperate to hold onto them. This sort of offer is phenomenal and can only be counter-productive.”

Barnes, who co-founded Hamilton Barnes, with Nick Barker in 2014, said the market had already been brought to “boiling point” by a post Brexit talent shortage:

“Salaries in tech have risen massively since Brexit – most have doubled at least with a typical salary we might have seen pre-Brexit of around £54k is now around £100k,” he said.

“Salaries were previously diluted by the influx of European workers into UK tech – for example when the Greek economy collapsed and lots of Greek specialists relocated here, happy to work for 25% less. It was a similar story with talent from Portugal and Spain.

“So, the market pre-Brexit was far more competitive talent-wise with more candidates competing for the best jobs so salaries were kept down and employers never counter offered. We have seen a complete reversal of that. We are firmly in the grip of a counter offer culture and we need to calm this down.”

Barnes said he believed agencies like Hamilton Barnes, which saw record growth during the Pandemic, had a responsibility to clients and candidates to “take unnecessary heat out of the market”, and said he was “steering some candidates back to their current employers”, explaining:

“Of course, we want candidates who are genuine candidates looking for their next role but we are not interested in people who are moving solely because of a kneejerk reaction to press reports of a cost of living crisis.

“My advice to candidates who are only moving because the current market conditions have triggered them into wanting a payrise is that they should not need to look externally but if they think they are stuck because they don’t meet the criteria to hit the next threshold where they are and are worried about pay, speak to their current employer. Employers in tech want to hold on to their talent and are open to conversations.”

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Numbers not indicative of lack of demand, says expert

An analysis by the TechServe Alliance has revealed that the number of IT jobs in the US remained flat in June compared to May.

A marginal increase of 0.05% was seen month over month in June. When looking at the figures year-on-year, the number of jobs increased by 0.48% (25,700 jobs).

The company also reported an increase in engineering employment 4.16% year over year in June (108,400 jobs).

TechServe Alliance CEO Mark Roberts said: “The flat growth rate in tech employment since the pandemic can be misleading,”

“These numbers are wholly a reflection of the lack of supply of talent and not demand from businesses, as is clearly reflected in the 2.2% and 2.5% unemployment rates for IT and engineering professionals, respectively.”

“While there may be industries where demand for talent slackens, the overall need for technology professionals will continue to outstrip supply for the foreseeable future. At this point, employers cannot become complacent and should continue updating their talent attraction and retention policies to stay competitive.”

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UK government gives thumbs up to screening and identity services firm

Background screening and identity services firm, Sterling, has become the first such organisation to become a certified digital identity service provider (IDSP), under the UK Digital Identity & Attributes Trust Framework, for UK Right to Work and DBS Criminal Record checks.

The company, which meets the requirements of the trust framework, can employ in-session biometric and document verification to confirm a job candidate’s identity. This fulfils the standards to digitally process DBS Criminal Record and UK Right to Work (RTW) checks. In addition, the company can provide employers with a statutory excuse for UK Right to Work.

The digital nature of these checks is set to reduce turnaround times, improve accuracy, and reduce the chance of identity fraud.

Steve Smith, President International at Sterling, commented: “We are delighted to announce that Sterling is the first identity and background screening service provider to become a certified digital identity service provider (IDSP). IDSP’s can carry out digital identity verification to a range of standards or levels of confidence, and this development will improve the experience for both the job candidate and the employer.”

“In addition, Sterling’s certification as an IDSP is well timed, particularly as the competition for talent intensifies and with growing concerns around identity fraud. While some businesses may not immediately recognise the advantage of using an IDSP, the introduction of digital identity should be viewed by employers as a positive change: Working with a registered IDSP will allow firms to benefit from technology that can significantly improve the candidate experience, as well as the speed and accuracy of their background checks.”

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70% of respondents say their organisation should do better in terms of diversity

New research by released by Thoughtworks, a global technology consultancy, has revealed that employees in the tech sector believe that their employers are not doing enough to prioritise gender equality, this despite the clear ethical, social and business benefits for doing so.

Alarmingly, the national survey of 500 employees from UK tech and software companies found just two in five (41%) of organisations in the sector had a plan in place to improve gender equality in the workplace.

In terms of initiatives, only 23% of people in the tech sector said their organisations had a return-to-work programme for working parents and carers, while 27% offered diversity and inclusion training.  Just one in four organisations (25%) offered mentoring for employees.

Overall, three in five respondents believed that their organisation should be doing better in terms of diversity, equity and inclusion (DEI). Around half (51%) said their organisation was behind the industry with 16% believing their company has no plan to address DEI issues at work.

Despite these concerns, the vast majority of employees in the IT sector (87%) agreed there are business benefits from championing DEI issues. Two in five say that it would foster better employee relationships (39%), with the same proportion believing it would increase staff retention (38%). At a time when skills shortage in the UK tech sector is up 191% compared to the same period for 2020[1], the need for initiatives that will positively improve employee engagement and retention is particularly pressing.

Amy Lynch, head of Diversity, Equity and Inclusion at Thoughtworks UK commented: “Our research findings make clear that, from an employee perspective, our sector must do more to foster a true sense of equity and diversity.

“If staff are concerned, as this research suggests, then the messages are not getting through. At Thoughtworks, diversity, equity and inclusion are at the heart of our business.

“We decided to partner with WORK180 and go through their endorsement process as a commitment to our public stance on increasing diversity. WORK180 promotes organisational standards that raise the bar for women in the workplace. The work that WORK180 is doing with Endorsed Employers such as Thoughtworks is already having a positive impact, but it’s not over yet.”

Amy Lynch added: “We won’t stop until all women are able to thrive and feel equally valued at work. WORK180 is a hub for like-minded individuals who want to make that change, and who are also searching for employers like Thoughtworks that want to make a real and lasting difference for all women.”

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The programme provides a full-time curriculum to train participants in a bid to stave off skills gaps 

SAP SE announced the launch of its Partner Talent Initiative. The initiative aims to identify and train new and existing talent in the SAP Partner Ecosystem in order to support increasing demand within the IT channel for skilled certified professionals.

Participants who complete the programme will graduate with three SAP certifications before re-entering the partner ecosystem as graduates who are ready for employment. The programme provides full-time curriculum designed to certify IT professionals in crucial and high demand areas including  RISE with SAP S/4HANA Cloud as well as an introduction to SAP S/4HANA Financial Accounting.

Two cohorts have already started the programme and following successful completion, graduates will begin a three-month intensive training program that will equip them with the professional and personal skills needed to become an SAP consultant.

SAP’s partners are in demand as the SAP EMEA North cloud services market is growing at CAGR of 16% which has resulted in a digital skills gap. The new programme is open to both recent graduates and those working in complimentary industries and will help address existing gaps in talent by equipping graduates with the skills and qualifications that they need to find employment in the partner community.

Participants will receive ongoing support and continuous feedback from delegates, instructors and the wider partner team throughout the training period and will also have an executive welcome and kick-off event upon joining. Participants will be given the option of attending a physical graduation ceremony upon completion.

SAP also announced that a business development fund (BDF) incentive to partners who recruit, train and certify new consultants under the Drive2Deliver partner capacity initiative.

The Partner Talent Initiative also includes:

  • Access to enablement content for members of SAP partner ecosystem
  • First-hand practice on live SAP software training systems
  • Expert-led and peer-to-peer learning environments
  • Opportunities to obtain SAP Global Certification digital badges and stay current with ongoing technology advances

Celine Cazali, chief partner officer, SAP UK & Ireland, made comment: “By launching the Partner Talent Initiative, graduates of the program will learn invaluable skills, helping customers and partners successfully become Intelligent Enterprises and provide high-quality services. Through a rigorous curriculum, combined with continuous feedback and support, our programme will equip the next generation of consultants with the mindset, skills and ambition needed to succeed in the channel and beyond.”

Paul Cooper, chairman, UK & Ireland SAP User Group (UKISUG), also commented: “We welcome the creation of the Partner Talent Initiative as it will help address a potential skills gap in the future. Our most recent member research highlighted that many organisations are concerned a lack of available skills will impact the speed their organisation moves to SAP S/4HANA. A thriving partner ecosystem with more certified talent will be essential in supporting customers’ SAP S/4HANA journeys and developing the next-generation workforce.”

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