The technology industry faces an ongoing challenge in recruiting and retaining high-tech talent. Despite the rapid growth and new developments in technology, there is a persistent scarcity of individuals with the necessary skills and expertise to meet the demands of this dynamic sector. This scarcity is particularly pronounced in fields such as software engineering, data science, and product management, where the pace of innovation is relentless and the need for specialized skills is paramount.
According to recent findings from a McKinsey survey, the demand for tech talent continues to surge, with 80 percent of CEOs ranking new-business building as a top five priority. The survey predicts that the demand for tech talent in the United States will increase from 9.2 million jobs in 2022 to 9.4 million in 2023, with the tech workforce growing twice as fast as the overall US workforce over the next decade.
Mobility sector talent challenges
The mobility sector, including industries such as automotive and transportation, is not immune to the challenges of talent acquisition and retention. In fact, as the industry undergoes rapid change, driven by technological advancements such as autonomous vehicles and electrification, the demand for tech talent in this sector is particularly acute. With approximately 70 percent of automotive leaders focused on building new businesses, there is a pressing need for individuals with skills in software engineering, data analytics, and other technology-related fields.
Despite the high demand for tech talent in the mobility sector, there are significant capability gaps that hinder the ability of incumbents to attract and retain the best candidates. These gaps primarily revolve around the need for new skill sets, such as software engineering and product management, which are essential for driving innovation and competing effectively.
To address these talent challenges, mobility incumbents must develop and communicate an effective Employee Value Proposition (EVP). The EVP serves as a framework for articulating the value that an organization offers to its employees, encompassing factors such as job satisfaction, career development opportunities, and compensation packages. When improving their EVP, mobility companies can differentiate themselves in a competitive talent market and attract top-tier candidates who are essential for driving innovation and growth.
Mobility sector talent landscape
Competitive scenario in tech talent acquisition
The competition for tech talent in the mobility sector is fierce and relentless. With advancements in technology driving innovation across industries, companies are vying for skilled individuals who can navigate these changes. According to recent industry reports, the demand for tech talent has surged, outpacing the available supply. This scarcity has led to intense competition among companies to attract and retain top talent.
Tech giants, startups, and established players in the mobility sector are all actively recruiting skilled professionals with expertise in areas such as software engineering, data science, artificial intelligence, and product management. These roles are important for driving innovation and staying ahead in a rapidly growing market. As a result, companies must offer competitive salaries, attractive benefits packages, and opportunities for career advancement to entice tech talent to join their ranks.
Shift in tech workers’ priorities
In recent years, there has been a noticeable shift in the priorities of tech workers when considering potential employers. While competitive compensation and job security remain important factors, tech professionals are placing increasing emphasis on other aspects of the employee experience. Factors such as company culture, work-life balance, opportunities for learning and development, and the ability to make a meaningful impact are now top considerations for many tech workers.
This shift can be attributed to several factors, including changing societal norms, the rise of remote work, and the growing influence of younger generations in the workforce. Millennials and Gen Z, in particular, place a high value on purpose-driven work and seek employers who align with their values and offer a supportive and inclusive work environment.
Opportunity for incumbents in mobility to attract tech talent
Despite the stiff competition from tech giants and startups, incumbents in the mobility sector have a unique opportunity to attract tech talent by leveraging their existing strengths and resources. Established players often have well-known brands, extensive customer bases, and deep industry expertise, which can be appealing to tech professionals looking for stability and long-term growth opportunities.
Complimentary to this, incumbents can capitalize on their experience and infrastructure to drive innovation and build new business ventures within the mobility sector. Investing in digital transformation initiatives and creating a culture of innovation means traditional automotive companies can position themselves as attractive destinations for tech talent..
Employee Value Proposition (EVP) in mobility
An effective Employee Value Proposition (EVP) covers four key dimensions that collectively define the overall employee experience and shape perceptions of the employer brand. These four dimensions are incredibly important for attracting and retaining top talent in the mobility sector.
Great job
The “Great Job” dimension focuses on the nature of the work itself and the opportunities for professional growth and development. Tech talent seeks roles that offer challenging and meaningful work, opportunities to expand their skill set, and clear pathways for career advancement. Companies must articulate the value proposition of the role and provide resources for continuous learning and skill development.
Great people
The “Great People” dimension emphasizes the importance of interpersonal relationships and collaboration in the workplace. Tech professionals value working with talented and supportive colleagues, as well as having access to mentors and role models who can help them grow and succeed in their careers. Companies should aim for a culture of inclusivity and teamwork to attract and retain top talent.
Great company
The “Great Company” dimension encompasses the overall culture, values, and reputation of the organization. Tech workers are drawn to companies with a strong sense of purpose, a positive company culture, and a commitment to corporate social responsibility. Employers must communicate their values and mission effectively to resonate with tech talent and differentiate themselves from competitors.
Great rewards
The “Great Rewards” dimension includes both financial and non-financial incentives that contribute to overall job satisfaction and employee engagement. Competitive compensation, benefits packages, and opportunities for recognition and advancement are essential for attracting and retaining tech talent. Additionally, companies should offer perks such as flexible work arrangements, wellness programs, and professional development opportunities to enhance the overall employee experience.
Strategies to close the talent gap
Having clear career development paths is undeniably important for attracting and retaining tech talent in the mobility sector. According to research, 43 percent of respondents consider career development the most important factor when evaluating their job prospects. This shows the need for companies to provide structured pathways for employees to grow and advance within the organization. Without clear career trajectories, employees may feel stagnant and seek opportunities elsewhere.
Companies can establish clear career development paths by offering opportunities for skill development, advancement within the organization, and horizontal movement across different departments. For instance, incumbents in the mobility sector can introduce specialized training programs, mentorship initiatives, and rotational assignments to help employees broaden their skill sets and explore various career paths within the company.
Career development also has a crucial role in both attracting and retaining tech talent. Research shows that individuals who feel their current job offers ample opportunities for career growth are more likely to stay with their employer. It is the second-highest motivating factor for employees considering a job change, just after compensation.
To address the importance of career development, companies should prioritize initiatives that support continuous learning and skill enhancement. This can include investing in training programs, providing access to professional development resources, and offering opportunities for employees to take on challenging projects that align with their career goals.
Focus on rewards
Compensation is a significant factor in attracting and retaining tech talent in the mobility sector. Research shows that total compensation is the second-most-cited consideration for individuals evaluating their job prospects, with 38.5 percent of respondents highlighting its importance.
To remain competitive, companies must offer competitive compensation packages that reflect the value of the skills and expertise tech talent brings to the organization. This may include competitive base salaries, performance-based bonuses, and equity options for employees.
Flexibility in compensation packages
In addition to traditional compensation structures, companies can differentiate themselves by offering flexible compensation packages tailored to the individual needs and preferences of employees. This may include benefits such as remote work options, flexible work hours, and additional perks like wellness stipends or educational assistance.
Flexibility in compensation attracts top talent and contributes to employee satisfaction and retention. Allowing employees to customize their compensation to align with their lifestyle and priorities means companies can create a more inclusive and supportive work environment.
Noncompensation benefits and meritocracy
Noncompensation benefits and a meritocratic culture are equally important in attracting and retaining tech talent. Research reveals that 40 percent of technology hires prioritize opportunities for advancement in their decision to join a new organization.
Companies can foster a meritocratic culture by providing equal opportunities for career advancement based on merit rather than tenure or subjective criteria. This may involve implementing transparent performance evaluation processes, offering opportunities for skill development and advancement, and recognizing and rewarding employees based on their contributions to the organization’s success.
Focus on people
Companies can invest in leadership development programs to cultivate strong people leadership skills among senior leaders and managers. To compliment this, providing opportunities for open communication, feedback, and collaboration can help build trust and rapport between employees and their supervisors.
Building a strong sense of community and connectivity among employees is essential for employee engagement and retention. Research shows that reliable and supportive colleagues are a top-ten factor in job evaluation and a key reason why employees choose to stay with their current employer.
Focus on company
Industry reputation and stability are significant factors that influence tech talent’s decision to join or stay with a company. Established incumbents in the mobility sector often enjoy a rich history of success, which can instill trust and loyalty among employees.
Companies can make use of their industry reputation and stability by showcasing their track record of success, commitment to innovation, and impact on society. Additionally, highlighting opportunities for career growth and development within the organization can demonstrate a long-term commitment to employee advancement and retention.
To sum up
Mobility incumbents have a unique opportunity to attract and retain tech talent by using their existing strengths and addressing talent challenges through strategic initiatives.
Emphasizing elements such as clear career paths, competitive rewards, supportive work environments, and strong employer branding, mobility incumbents will further help companies differentiate themselves and attract top tech talent.
With the right approach to talent acquisition and retention, mobility incumbents can position themselves for growth and success in new business ventures, capitalizing on the increasing demand for tech talent and the opportunities presented by emerging technologies and market trends.
