Every day I am asked why tech salaries are so out of control right now. First of all, yes, I agree that salaries across the board are inflated. Especially for junior-level candidates who are demanding $100K+ without much experience to offer. In this article, I’ll walk you through some factors that are contributing to inflated salaries and how your company can compete for top talent.
Factors contributing to inflated salaries
Supply and demand
Supply and demand are still in favor of candidates. So long as companies have to hire aggressively, candidates have many choices and, like real estate, the prices get bid up with multiple offers.
Remote, remote, remote
It’s a simple 100x formula. Candidates who were restricted by location now have access to 100 times more opportunities including companies in the Bay Area. Naturally, those tech giants can afford to pay more so you are now competing with Google, Amazon, Facebook and Netflix.
Strategies to compete for top talent
By offering a permanent full remote model, you can 100x your candidate pool. This gives you access to candidates all over the US including markets where the cost of living is much lower, and money can go further.
If the full remote is not an option for your company, open up to the hybrid model with 2 days a week max in the office. This will at least 3x your candidate pool as it will open it up to candidates 1 – 2 hours away. For example, if you are in Santa Monica, no one outside of the Westside will commute to the office 5 days a week, long term. But if it’s only 2 days a week, you can attract folks from Pasadena to Westlake to the South Bay and even the OC.
Time kills all deals. Don’t put candidates through a 9-step hiring process. Do your due diligence, be thorough, but do it fast! I recommend a fast 3 step process. Be decisive. Use a thorough phone screen with the hiring manager, if needed, a quick coding exercise (no more than 2 hours), a panel (on-site or Zoom) and make your decision. Don’t fall into analysis paralysis. Unless it’s an executive position, I would not recommend having the candidate meet every executive in the company. Finally, make strong compelling offers and sell. Most candidates have many options. Don’t send a cold offer letter with no explanation of benefits and perks and expect to woo an already employed, sought-after candidate.
We know the players and we have established relationships with them. Here at HIRECLOUT, we have built a reputation for having access to the best companies and candidates. Rather than posting and praying for the right candidate to fall in your lap, we’ll actually hunt for the best talent. We’ll tell your company’s story in a compelling fashion and most importantly deliver! Our relationship-based, retention-focused process has led to a 93% offer acceptance rate and tenures that last 3 times longer than the competition. No joke, we know what we’re doing. Let’s work together!
HIRECLOUT is a premier Tech Recruiting and Consulting firm focused exclusively on technology, product, and IT roles. HIRECLOUT is headquartered in Los Angeles, CA and serves the entire United States. Contact HIRECLOUT at 818.882.2000 or firstname.lastname@example.org.