How to increase your competitiveness as an employer in the IT industry?

  • By Paweł Senator
    • 24 Nov, 2022
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Companies from the IT industry compete for qualified staff. Apart from recruiting employees, keeping them in the company is also a big challenge. Employers from the IT industry outdo each other in attractive job offers, taking into account a wide range of non-wage benefits.
As a result, employees who get more and more attractive job offers also increase their expectations towards both future and current employers.

What are the biggest challenges in the area of ​​employment for IT companies?

Foreign competitiors offer more for Polish workers

There is a growing trend according to which many foreign companies are very eager to employ Polish IT specialists. The greatest advantages of a foreign employer are certainly high salaries, a portfolio of globally recognized clients, opportunity to participate in many ambitious international projects. According to the recent survey of  Antal, a leading recruitment agency, high-class IT specialists obtain four-digit pay raises when transferring to a new employer. The average gross salary for this category of employees amounts to as much as PLN 18,843, which makes this professional group best paid in Poland, apart from the management staff. As a result, Polish IT companies are forced to compete for employees, not only with each other, but also with foreign companies. Interestingly, according to Polish Agency for Enterprise Development, the percentage of women employed in specialist positions in the ICT industry in Poland is still relatively low, where this share is at the level of 14%, with an average salary of 20% lower than that of men in similar positions, despite having the same competences.

Remote work – the current must have

Remote work, especially since the pandemic in 2020, has become a kind of standard on the labor market, and the lack of such opportunity strongly weakens the attractiveness of a given job offer. This is especially important for IT specialists, who can perform their work 100% remotely and expect from the future employer a home office guarantee as a condition for consenting to an employment contract.

Expecting the first move from the employer

Experts from the IT industry receive up to several dozen job offers per month. For this reason, they often stop actively looking for a new job, even when they plan to change it. Despite the willingness to change their position and participate in new projects, employees expect the employer to make the first move and interest them with an atractive offer. The most interesting for them is the employer who will send an offer tailored to their needs and provide comprehensive experience.

Growing financial expectations

IT specialists, due to the constantly growing competitiveness of the labor market in their industry, usually receive regular raises and expect a further increase in remuneration in the following years of their work. They know their value in the labor market, so their expectations in terms of remuneration are growing year by year. Regular salary increase are therefore completely normal in the IT industry.

An additional pressure factor on salaries are attractive job offers obtained from foreign corporations. If you want to recruit talented and competent employees in the IT field you are looking for, you should remember to provide the salary spreads in the job offer. IT professionals getting many of these types of offers are unlikely to take the time to apply for a position without the salary stated previously.

Not only can this practice save time spent on recruitement but also increase the response from genuinely interested candidates. Such action strengthens the employer’s image as an honest and serious interview partner. The duration of the recruitment turns out to be equally important for potential candidates. A short recruitment process and keeping the candidate abreast with the of status of the application process can provide an advantage over other companies that wait weeks to respond.

Competency development

One of the good and effective practices of retaining and motivating employees is their competences and skills development, which is mainly reflected in the attractive training programs. The opportunity of continuous education is widely regarded as very important by IT professionals. According to the Devire Market Insights – IT Industry 2021/22 survey, even every second specialist (54%) plans to stay in a company that ensures their continuous development, even if they receive an attractive job offer from the competitior.

The lack of a glass ceiling and the constant expansion of competences are certainly a great value in the labor market, especially in the IT industry.
At the same time, according to Antal, employers are willing to use a recruitment strategy aimed at employing juniors – employees with relatively small competences and people who would like to change industry. This group is offered a wide range of training programs, including specialized training paths, transformingfor example, Backend Developer for a new engineering role, the so-called SRE (Site Realibity Engineer). Popular online training services, such as Udemy, Codecademy, Coursera, edX or Skillshare, are also helpful in this regard as the first step to gaining the necessary further professional experience as part of projects implemented on behalf of the client.

How to finance proactive HR solutions in the IT industry?

The above-mentioned aspects have a real impact on the attractiveness of employers in the IT industry in the eyes of candidates, or the level of loyalty of current employees. However, each of the ways of developing the HR policy in the company, aimed at satisfying the needs of employees, requires large investments.

How can these funds be obtained?

Is it necessary to give up, for example, renting a large office in favor of remote work, limit some types of benefits and spend the money recovered in this way on training or higher salaries?

A solution that does not require such changes or sacrifices is to tahe benefit of R&D tax relief. Projects focused on the development of new software, systems, applications or games can be qualified as research and development activities, which allows to taxpayer to recover a significant part of the related costs of works in the form of an income tax refund.

The creative aspect of the work carried out is important, even if the work is commissioned by the client.
Base on the current law, development activities mean involve the acquisition, integration, formation and use of currently available knowledge and skills also related to IT tools or software, for production planning as well as designing and creating modified, improved or new products, processes or services.

Thanks to the R&D tax relief, paid income taxes can be recovered and spent, for example on the attractive employee incentive programs. If you pay taxes and consider benefits of R&D tax relief, please contact our experts – you may be able to recover your paid taxes even up to 5 years back!

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    Paweł Senator

    R&D Consultant Leyton Poland

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