Tech and Telecom Companies Continue to Rely on Traditional Recruitment Methods Despite Talent Shortage

With technology and telecommunications companies still looking to lure talent using traditional compensation-based approaches, there is a disconnect between HR practices and candidates’ priorities, according to a new Deloitte survey.

The study, “Competing For Talent,” found that the vast majority of companies in these sectors are relying on financial incentives to attract and retain employees. In contrast, the study found that today’s workforce values greater freedom in schedules and control of where and how they work over financial compensation.

The survey also found that creative and other critical talent that generates greater-than-average value for customers and shareholders is most difficult to attract, and the problem is expected to increase over the next three to five years.

Deloitte surveyed more than 150 technology and telecommunications companies in North America to understand their most significant talent issues and what they are doing to address them.

Key findings of the survey include:

--Two-thirds of respondents expect their workforce to grow by at least 6 percent over the next 12 months, and only 6 percent expect their workforce to shrink.

--Technology and telecommunications companies surveyed are generally less worried than companies in other industries about a prolonged global labor crisis. This may be due to the fact that technology and telecommunications companies are considered “sexy” and, therefore, have an easier time attracting talent. It may also be attributable to their younger workforces, which are less affected by Baby Boomer retirements.

--Respondents that fail to address their talent management challenges over the next three years will feel the pain where it really hurts: in limited growth, increased time to market, reduced innovation, damage to customer relationships, and more.

--Forty-four percent of respondents have either not defined a list of critical skills for future growth or are in need of updating their list to meet current needs.

--Roughly a third of respondents regularly discuss the talent shortage at board meetings, while another third discuss it once or twice a year. Moreover, nearly half of the surveyed companies have started to conduct workforce planning to identify critical skills and talent gaps.

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