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3 Key IT Labor Trends You Must Be Aware of Before the Year Ends

By João Nunes - PageGroup
Managing Director and Head of Strategic Markets Latam

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João Nunes By João Nunes | Managing Director-Head of Strategic Markets Latam - Thu, 09/29/2022 - 12:00

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The accelerated digital transformation that companies have experienced in the last two years has created high demand for talent with profiles that meet new needs, mainly in areas related to technology.

Currently, Latin America is reporting a shortage of digital talent of 48 percent; that is, for every two open IT positions in the region, there is only the talent available to fill one. If we consider the number of graduates in STEM careers, Mexico is ranked second for having the highest digital talent — first place is occupied by Chile. It is also  the country with the greatest tendency to increase its digital talent. Even so, the panorama is complicated in terms of  meeting projections of the talent needed.

Some months ago, I shared in this column some ideas to attract technological talent. The strategies included the flexwork methodology, differentiation as an employer, career path development and motivation. All are factors that are still valid today in a negotiation for a candidate to accept a job.

As recruiters use their previous experience and combine it with the knowledge they have gained from new profiles to attract the right people, other topics related to IT talent are emerging. On this occasion, about to enter the last quarter of 2022, I would like to share three fundamental issues regarding this talent, which human resources specialists should  consider when planning for 2023.

1. Pay attention to retention

The same shortage of talent has meant that it is not only necessary to think about attracting talent but also about the necessary strategies to retain it. Today, labor proposals and counterproposals come and go, considering not only a better monetary offer or a benefits package but many other factors that people now consider priorities. 

Remuneration is no longer the only competitive element. Emotional salary is gaining credence, with work flexibility standing out as the undisputed main motivator for millennial IT professionals. It is also important to have professional challenges, a flexible and quality lifestyle, opportunities to contribute with new ideas, remote work, a reduced work week, international scope, autonomy and work oriented to results.

As for the most attractive benefits, international conferences, networking experiences, performance bonuses, free time, gym discounts, exchanges and experiences with colleagues in other countries, certifications and online courses stand out.

It is important to note that the entry of international players into emerging markets like Latin America has had a direct impact on salaries in the region, since they compete with remuneration schemes in foreign currencies, raising the salary bases of the companies that work under local currencies, which directly affects their ability to attract and retain talent.

Among the benefits that are increasing the compensation packages of these professionals, abruptly raising their cost in the market, are high salaries that are constantly evaluated, free time and a flexible vacation scheme (when the worker wants it and not during the two or three traditional periods in the year). 

2. Demand for hybrid profiles in IT goes up

As if the usual demand for IT talent was not enough, the needs of companies have led to the search for profiles that share more than a single technical skill, backed by the required soft skills. For example, today they are looking for cybersecurity experts who also have knowledge of data or designers who also know how to develop products. Super-specialization is still necessary but companies are turning to these combined profiles.

According to the report, Hybrid Profiles 5.0: The New Revolution in IT, by Technology by PageGroup, based on an analysis of more than 2,000 positions of hybrid profiles hired in the region, most of them were millennials, with an average age of 32. As for the most valued soft skills in hybrid profiles, the study mentions great relationship skills, assertive communication, the ability to adapt to change, flexibility and negotiation.

The report also highlights that the English language is one of the greatest differentials, since it is one of the most in-demand skills not only by foreign companies, but also by local companies that provide services to other countries and nearshoring. Mexico ranked first in the countries with the highest percentage of bilingual professionals hired in 2021, at 82 percent.

The sectors that are most demanding hybrid profiles are financial services, retail, health and telecommunications. The high level of rotation among this type of profile poses real challenges for companies that need to adjust their retention strategies.

3. The new leadership in IT

One of the main executive trends for company leadership, according to Page Executive’s report, 8 Executive Trends, is the new profile of the Chief Information Officer (CIO) in this new era of the digital labor market.

Experienced both in tackling technical challenges and convincing teams to put plans into action, the modern CIO has a dual duty to drive businesses forward while retaining and motivating their talent.

Technology leaders must envision digital optimization for their organization and they must also sell that vision to all stakeholders to ensure its successful implementation. Both responsibilities require a balance between technical expertise and human understanding.

According to the PageGroup Remuneration Report 2023 survey, 65 percent of companies in Mexico say they will seek to invest in technology in the short and medium term. Companies continue to think digitally and need leadership capable of consolidating that digital transformation.

IT talent is one of the most valuable assets that companies have today, managing it is a challenge that companies have gradually been learning to find strategies for so as not to be left behind in the new digital age. It is important that human resources specialists today consider the importance of this talent in order to have a complete vision of the business, not only for the remainder of the year but for 2023 and beyond.

Photo by:   João Nunes

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