In the hospitality industry, many companies are evolving into technology providers or choosing to take their tech needs in-house. We think is a dangerous game (and not just for us). We have looked at some data on the tech industry in 2022 and here’s why you should take a hard look before considering taking your technology needs in-house.
1. Turnover Rate for Tech Professionals Is at an All Time High
Have you heard of the term “The Great Resignation”, coined in 2021? We know that many companies had to make difficult employment decisions based on the pandemic implications, but did you know that nearly 48 million people quit their jobs in 2021 because of the hiring sprees beginning when economies started bouncing back? If you’re thinking this may change because COVID is nearing the end, industry analysts are saying this trend isn’t going away any time soon.
The data suggests that people are not leaving their jobs to take government subsidies, but rather they are making moves for higher paying or more flexible jobs elsewhere. The data also suggests that Generation-Z and Millennial employees care much less about job tenure and have no qualms with leaving a company after a short run.
It is important to understand that employees are chasing bigger and better dreams. If you’ve invested the average 33 hours in training them, it is a major time loss for your other team members to lose them. When hiring a professional tech organization to help with your needs, you don’t have to worry about the cost of bringing on a new employee; it’s up to them to be sure that they have the qualified staff to support you.
2. It Takes 60% Longer to Hire a Tech Professional Than Any Other Position
We know better than anyone that it is hard to find talent that fits your organization. They have to have the right experience and education that you need, and want to work with you. Industry statistics say that it takes an average of 66 days to find the right person to fill a technical role – 50% longer than that of non-technical positions. Depending on your company structure, this can be particularly challenging if you need multiple individuals in multiple cities and your hiring team is centralized. Pursuing an in-house technical team means you are committing to a large HR undertaking to source those qualified individuals, or you’re paying a recruiter big bucks to get the right candidates. By outsourcing and hiring a professional organization to assist with your technical requirements, you’re saving the time and money of your HR team.
3. The Demand for Tech Professionals Outnumbers the Supply
Here are a few crazy statistics as it relates to labor shortages:
- In 2021 in the US alone, there were 920,000 available software engineer positions with only 165,000 potential applications; meaning that only 18% of those positions could be filled.
- 69% of employers were said to be struggling to fill positions; up from 14% in 2010.
- 63% of senior executives admitted the shortage of software developers remains an area of great concern.
- In 2021 it was reported that in the US, there were only 432,077 graduates with bachelor’s degrees in the STEM discipline. STEM stands for science, technology, engineering, and mathematics and could include non-technical positions, such as astronomy, physics, mechanics, or chemistry, meaning that many of these graduates are not relevant for traditional tech jobs.
These statistics prove that the labor market for technical professionals remains incredibly competitive. This means finding and keeping those candidates will be difficult and time consuming. Time, in our opinion, better spent perfecting your niche and focusing on your customers, particularly when there is no shortage of professional management companies willing and able to assist with your technology needs.
4. Getting Someone With Experience Will Cost You
It is true that most employees do not rank financial benefits as being the most important aspect of their employment. In fact, many say that feeling valued and like they are creating an impact draw them to a position. People say that they want acknowledgment, growth opportunities and to feel valued, trusted and empowered by their employer – and the ability to work from home is a major driver. However, money is always going to be important, and in this climate, you must be prepared to pay big for your tech employees.
Per Hired, one of the largest staffing and talent agencies in the world, the Austin, TX market has seen a 9% increase in average salaries for engineers – the highest ever. A recent report also states that job postings mentioning hiring bonuses more than doubled between March 2020 and October 2021. If you’re looking to see some statistics on median salaries for different technical jobs, take a look at this US News article about the “Best Technology Jobs.”
At the end of the day, rising salaries will likely cost us all, both tech companies and our customers. The choice is yours if you want to take the financial risk of employing your own tech team or rely on a tech provider to do the hard work for you.
5. It’s Difficult to Complete the Work and Stay On Top of New Trends
I think most of us know that technology is changing constantly, and it’s difficult to keep up. At SolutionInc, our team dedicates time every day to reviewing industry changes, competitor analysis, and global events. Currently, we’re reviewing the Metaverse, and its implications for our customers so we know how to best service them. We’re watching global events to be sure that our products are certified with the correct hardware vendors as global manufacturing plants are being impacted by labor shortages, war, and shipping/material problems.
On top of changing technology trends, if you are committing to securing your own hardware (any kind of hardware), you need to be on top of availability and be sure that the specifications are future proofed, so you aren’t setting yourself up for future failure. If the pandemic has taught us anything, it’s that you must be agile, or you will stand to have extensive wait times.
We know these points sound like the industry is dismal, but it’s not – technology is an exciting and potentially lucrative industry, and one we are proud to be a part of. The reality is, though, that in the current labor market, it is increasingly competitive and challenging. If you are not prepared for these realities, you will be setting your team up for some real headaches. Turning to a valued partner to help you on your technology journey may appear costly, but the alternatives are costly too, and they are logistically and operationally challenging. Share these statistics with your team ahead of deciding to bring your technical services in-house so you have a full view of the picture.
March 28, 2022
Written by: Beth Hamilton, Product & Marketing Manager.