The global tech talent gap.
According to the report “The Developer Shortage- How to Solve It”, the global shortage of software developers is estimated to be over 3,1 million (2021) and projected to hit 4.3 million by 2030. This gap is being driven by the increasing demand for applications and the lack of computer science graduates.
According to a CNBC US data report, the software developer shortage will be alarming in 2022. The rate of unfilled IT jobs increased to 918,000 vacancies at the end of 2021. Another report noted that by 2030, the number of software job vacancies would rise by almost 22%.
The average growth rate of software developers in the USA is only 8% right now, and that clearly emphasizes there is already an overwhelming and severe shortage of skilled workers.
As per the Bureau of Labor Statistics, the software engineer shortage in the USA will increase to almost 1.2 million by 2026. This pattern has increased the salaries of software developers in the USA. The salary of a median computer programmer is around $110,140 a year, way more than the regional pay.
Despite the increased salaries, most software engineers are not ready to work and benefit the economy through their immense talent and skills. It’s an unfortunate scenario for the USA and the rest of the world, but why does it happen?
There are numerous reasons which have driven the global shortage of talented software developers. Firstly, there is not enough talent coming out of colleges and universities. In Europe alone, it’s been estimated that only 1% of all college students study computer science. Secondly, there are more job openings than there are people to fill them. The US Bureau of Labor Statistics predicts that there will be 1.4 million more computer science jobs than there are graduates by 2020. Thirdly, the software industry is growing at a faster rate than the supply of developers can keep up with. The global market for application software is expected to grow from $632 billion by 2020 to $1 712 billion by 2025. Finally, the number of people retiring from the software industry is increasing while the number of young people entering the workforce is decreasing. In the US, for example, there are approximately 10,000 Baby Boomers retiring every day.
The hourly rates of experienced engineers vary for $20 to $150 dependant on the region. For expample the typical hourly rate for a Polish offshore developer is $25-$35, which is much lower than the rates in the UK ($50-$100) and the US ($75-$150). The table below shows some more details on this topic.
With the rapid growth of technology, the demand for software developers is only going to increase. So how can you attract, manage, and retain the best software developers for your business? Here are the top 20 tips:
1. Keep your recruitment process simple and streamlined.
The software development industry is constantly changing, and so are the skillsets required for each role. As a result, many developers find themselves applying for jobs that they’re not actually qualified for. To attract the best talent, it’s important to keep your recruitment process as simple and straightforward as possible. This will ensure that only the most qualified candidates make it through to the interview stage.
2. Make sure your job descriptions are accurate and up-to-date.
It’s not uncommon for job descriptions in the software development industry to be outdated or inaccurate. This can often lead to frustration on the part of candidates, who may feel like they’ve been misled about the role they’re applying for. To avoid this, make sure to keep your job descriptions accurate and up-to-date.
3. Offer competitive salaries and benefits.
The tech industry is an extremely competitive one, and top talent can often command high salaries. To attract the best developers, it’s important to offer competitive salaries and benefits packages. However, it’s also important to remember that money isn’t everything – many developers place a higher value on factors such as company culture, flexible working arrangements, and opportunities for career growth.
4. Provide clear expectations and objectives. When onboarding new software developers, it’s important to provide them with clear expectations and objectives from the outset. This will help to ensure that they’re able to hit the ground running and be productive from day one.
The software development industry is a highly collaborative one, and developers often find that they learn best from their peers. As such, it’s important to encourage collaboration and knowledge sharing within your team. This can be done through initiatives such as regular code reviews, pair programming, and group workshops.
Many software developers place a high value on career growth opportunities. To retain your best talent, it’s important to offer them the opportunity to progress within your company. This could involve providing training and development resources, or offering promotions and pay rise over time.
The software development industry is a fast-paced one, and many developers appreciate the flexibility that comes with working remotely or on a freelance basis. To attract the best talent, it’s important to offer flexible working arrangements that suit their lifestyle and preferences.
Developers need access to adequate resources and support in order to do their job effectively. This includes things like access to the latest tools and technologies, as well as a supportive team environment. If your developers don’t feel like they have the resources and support they need, they’re likely to look for opportunities elsewhere.
10. Invest in employee retention.
Employee retention is essential for any business, but it’s especially important in the software development industry. To retain your best talent, invest in initiatives such as regular performance reviews, regular feedback, and ongoing training and development opportunities.
11. Promote a healthy work-life balance. A healthy work-life balance is crucial for preventing burnout and promoting employee wellbeing. To encourage a healthy work-life balance, consider things like flexible working arrangements, regular breaks, and ample vacation time.
12. Encourage continuous learning. The software development industry is an ever-changing one, and developers need to continuously upskill in order to keep up with the latest trends. To encourage continuous learning, provide access to resources such as online courses, eBooks, and conference tickets. You could also offer paid time off for employees to attend training courses or conferences.10. Invest in employee retention.
For more information regarding nearshore software development services rates please take a look at this article: https://nxtide.com/offshore-development-center/global-offshore-software-development-rates-comparison-by-country/.
13. Offer additional perks and benefits. In addition to competitive salaries, many software developers also value perks and benefits such as free food and drink, gym memberships, and transportation allowances. To attract and retain the best talent, it’s important to offer a comprehensive benefits package that meets the needs of your employees.
14. Encourage open communication. Open communication is essential for ensuring that everyone on your team is on the same page. To encourage open communication, make sure that you have regular team meetings, and that everyone feels comfortable sharing their ideas and concerns. You should also Encourage employees to use collaboration tools such as Slack or HipChat to stay connected.
15. Build a strong team spirit. A strong team spirit can go a long way in making your company a more enjoyable place to work. To build team spirit, encourage employees to socialize with one another outside of work, and organize team-building activities on a regular basis. You could also consider setting up employee resource groups for things like gender, ethnicity, or sexual orientation.
16. Offer career growth opportunities. Many software developers place a high value on career growth opportunities. To attract and retain the best talent, it’s important to offer clear paths for advancement within your company. You should also provide access to resources such as mentorship programs, job shadowing, and educational resources.
17. Encourage a healthy lifestyle. A healthy lifestyle is important for both physical and mental wellbeing. To encourage a healthy lifestyle, you could offer things like on-site gyms, fitness classes, and health insurance subsidies. You could also promote healthy eating by providing free or discounted meals at your office.
18. Support employees in their hobbies and interests. Employees who feel like their hobbies and interests are supported by their employer are more likely to be engaged and productive at work. To support employees in their hobbies and interests, you could offer things like flexible working arrangements, paid time off for volunteering, and company-sponsored social events.
19. Offer remote working options or open nearshore department. This one is extremely strong nowadays. Many software developers value the flexibility that comes with remote working arrangements. To attract and retain the best talent, consider offering remote working options to your employees. You should also provide access to resources such as online collaboration tools, video conferencing, and VPNs. By offering remote work – you can open your company to more top software developers from other locations like Mexico, Poland, Ukraine, Turkey, Philippines. This option is often used by startups, who can’t afford to pay competitive salaries in local markets. More mature companies prefer to create “remote software departments” called nearshore development offices or offshore development centers. This way they mix the best values of office and remote work. The possibilities are almost endless here.
20. Promote a diverse and inclusive environment. A diverse and inclusive environment is essential for attracting and retaining the best talent. To promote diversity and inclusion, you could consider things like offering training on unconscious bias, setting up employee resource groups, and implementing blind recruitment practices. You should also make sure that your company’s policies and procedures are fair and inclusive for everyone.
Following all these tips does not guarantee 100% success – but it might help you attract software developers to your company and retain them for the long term. Implementing even just a few of these ideas will show your employees that you value their skills and contributions and that you’re committed to creating a workplace where they can thrive.
Opening a Nearshore Software Development Office in Poland can be a great opportunity for businesses looking to outsource their software development projects. By partnering with a reliable and experienced nearshore development company, you can get access to a team of skilled software developers who can help you deliver high-quality projects on time and within budget.
Looking for a Nearshore Development Office in Poland? Contact us now! We are a reliable and experienced nearshore development company with offices in Krakow, Warsaw, Katowice and more.
About Us: NxTide is a specialized company focusing on building local, Software Development Teams or larger Software Development Centers in major cities in Poland. We take care of all recruitment and quality control processes making it faster and more cost-effective for you. Here is some more information about our expertise: – Over 7 years experience in creating a variety of software development teams – Over 60 teams and 300 engineers successfully hired and deployed – Several dedicated HR and IT Project Management Teams acting on your behalf.
Please take a closer look at a dedicated and flexible offer we have prepared based on market needs: 1) Software Development Teams: dedicated to clients looking to expand their software development teams or create small remote teams from scratch. 2) Offshore Development Center: dedicated to larger and permanent projects. We’ve implemented the innovative Build Operate Transfer model to make the whole process faster, more efficient, and transparent. 3) Nearshore Software Development Office: dedicated to larger and permanent projects within the same region, continent.
Over our 7-year company activity we have helped many US and EU companies to successfully build Software Development Teams and Software Development Centers in a variety of locations in Poland.
Interested? – Let’s discuss your case on a call.
Marcin Dziedzic, CEO of Pragmatic Coders and NxTide.
Over 0,8M population, 13% of total IT Engineers supply
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IT Outsourcing, Offshoring & Nearshoring in Poland
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