How to Attract and Retain Top Tech Talent in 2021 and Beyond

The competition for top tech talent has never been fiercer. With the rapid digitization of every industry, the demand for skilled technologists is far outpacing the available supply. According to the U.S. Bureau of Labor Statistics, employment in computer and information technology occupations is projected to grow 11% from 2019 to 2029, much faster than the average for all occupations^1. This translates to over 500,000 new jobs that need to be filled.

However, the supply of qualified candidates is not keeping pace with this demand. A survey by Indeed found that 86% of hiring managers say it‘s challenging to find and hire technical talent^2. The most in-demand and hard-to-fill tech roles include software engineers, data scientists, cloud computing specialists, and cybersecurity professionals.

As a full-stack developer with over a decade of experience, I‘ve seen firsthand how difficult it can be for companies to attract and retain top tech talent. The best developers are often inundated with job offers and have their pick of opportunities. So what does it take to stand out and win over these in-demand technologists?

Offer Competitive Compensation and Benefits

First and foremost, companies need to provide competitive compensation and benefits packages. Skilled tech workers know their worth in the market and expect to be paid accordingly. According to data from Dice, the average technology salary in the U.S. was $97,859 in 2020^3. But for in-demand roles like data scientists, software engineers, and cloud engineers, salaries can easily soar into the $120,000 to $200,000+ range.

However, it‘s not just about base salary. Top tech talent also expects competitive benefits like:

• Health insurance
• Retirement plans
• Paid time off
• Parental leave
• Professional development stipends
• Flexible work arrangements

Many companies are going above and beyond with unique perks to stand out. For example:

• Netflix offers one paid year of maternity and paternity leave to new parents^4.
• Twitter provides health benefits that cover fertility treatments and egg-freezing^5.
• Airbnb gives employees a $2,000 annual travel credit^6.

While free lunches and ping pong tables are nice-to-haves, substantive benefits that support employees‘ quality of life are far more meaningful.

Company	Unique Perk
Netflix	One paid year of maternity and paternity leave
Twitter	Health benefits covering fertility treatments and egg-freezing
Airbnb	$2,000 annual travel credit for employees

Foster an Engaging and Inclusive Culture

Beyond compensation, company culture is a major factor in attracting and retaining tech talent. A great company culture is built on strong core values, open communication, transparency, collaboration, and inclusion.

Diversity, equity, and inclusion (DE&I) are critical components of a healthy culture. Building diverse and inclusive teams leads to more creativity, innovation, and better business results. According to McKinsey, companies in the top quartile for ethnic and cultural diversity on executive teams outperformed those in the bottom quartile by 36% in profitability^7.

To support DE&I, companies can:

• Implement diverse interview panels and inclusive hiring practices
• Provide unconscious bias training for employees
• Establish employee resource groups (ERGs)
• Offer mentorship programs for underrepresented groups
• Host events that celebrate diversity

A strong example of this is Salesforce. The company has been a leader in pay equity, conducting annual audits and making adjustments to ensure equal pay for equal work. They also publicly share their diversity representation data and set clear goals for improvement. Their chief equality officer oversees programs to drive diversity and create an inclusive culture^8.

As a developer, I can attest that an inclusive culture where everyone feels like they belong and their contributions are valued is essential for job satisfaction and retention. It fosters psychological safety and encourages people to bring their full selves to work.

Provide Growth and Development Opportunities

Learning and development (L&D) opportunities are essential for keeping tech talent engaged and motivated. According to a Dice report, 71% of tech professionals say L&D programs are important or very important to them^9. However, nearly half felt their employers‘ offerings were not applicable or did not help develop new skills.

To support continuous growth, companies should provide:

• In-house training and workshops
• Conference and event attendance
• Tuition reimbursement
• Lunch-and-learns
• Mentorship programs
• Hackathons and innovation days

Giving technologists opportunities to work on diverse projects across the business and collaborate cross-functionally can support growth while benefiting the company. Managers should have regular development conversations with direct reports and co-create plans to achieve their goals.

Microsoft is an example of a company heavily investing in L&D. They offer a wide range of programs including an AI School to upskill employees in artificial intelligence and machine learning^10. They also have a career development framework called the "Career Explorer" that helps employees map out their career path and acquire the necessary skills.

In my experience, the opportunity to continuously learn and take on new challenges is a major factor in job satisfaction for developers. We want to work with the latest technologies and have a clear growth path.

Embrace Remote Work and Flexibility

The COVID-19 pandemic dramatically accelerated the shift toward remote work, and it‘s a trend that‘s here to stay. A survey by Hired found that 93% of tech workers want to continue working remotely at least part of the time post-pandemic^11. Embracing remote work and flexibility has become table stakes for attracting talent.

Some notable companies have gone fully remote:

• Coinbase announced a "remote-first" policy in May 2020, allowing all employees to work remotely indefinitely^12.
• Shopify declared that "office centricity is over" and moved to a permanent remote-work model^13.
• Twitter told employees they can work from home forever if they choose^14.

Others like Google and Facebook are adopting a hybrid approach, allowing employees to work remotely part of the time but still maintaining physical offices^15.

To make remote work effective, companies need to have the right digital infrastructure, communication tools, and collaborative processes in place. This includes:

• Cloud-based platforms for code repositories, project management, and documentation
• Video conferencing and instant messaging tools
• Virtual whiteboards and design tools
• Pair programming and code review tools
• Regular virtual team building and socializing events

It‘s also important to provide remote employees with the necessary equipment and resources to create a productive home office setup. Some companies provide stipends for this purpose.

As a full-stack developer who has worked remotely for several years, I‘ve found that the key to success is having clear communication channels, structured daily check-ins, and collaborative tools that facilitate seamless virtual teamwork. When done right, remote work can offer technologists a better work-life balance and more control over their schedules.

Showcase Exciting Projects and Innovative Technology

Top tech talent wants to work on cutting-edge, impactful projects that solve real-world problems. They‘re drawn to companies pushing boundaries and driving innovation.

To attract technologists, showcase the exciting technologies being used and the scale and complexity of the systems being built. Highlight the impact this work has on end users and society as a whole.

Some great examples of this:

• Stripe processed $350 billion in payments in 2020 for millions of businesses worldwide^16. Their infrastructure and APIs power the online payments ecosystem.
• Moderna used cloud computing and AI to accelerate the development of their COVID-19 vaccine in record time^17.
• Google is building quantum computers that have the potential to solve problems beyond the reach of classical machines^18.
• OpenAI developed GPT-3, the largest and most powerful language model to date, capable of generating human-like text^19.

Hosting tech talks, publishing technical blog posts, contributing to open source projects, and presenting at conferences can showcase an organization‘s technical prowess and engage the tech community.

Use Skill Assessments and Work Samples in Hiring

Traditional hiring practices like resume screenings and behavioral interviews are not always the best predictors of a candidate‘s technical abilities. Many organizations are shifting towards skill assessments and work samples to better evaluate candidates.

• GitHub replaced coding interviews with a work sample in their hiring process. Candidates complete a real-world coding project that mimics the type of work they would do on the job^20.
• HackerRank provides skill assessment tests that cover a variety of programming languages and domains. They found that candidates who score well on these tests are 30% more likely to be high performers on the job^21.

Companies can also evaluate a candidate‘s past projects and contributions to open source repositories to get a sense of their coding style, problem-solving approach, and collaboration skills.

Invest in Employer Branding and Recruitment Marketing

In a competitive talent market, a strong employer brand and proactive recruitment marketing can make a big difference in attracting top tech talent. This involves showcasing company culture, values, and employee stories across various channels.

Some effective recruitment marketing strategies:

• Leverage social media to share employee testimonials, photos, and videos that give a behind-the-scenes look at life at the company
• Host virtual events and webinars to engage with the tech community and showcase thought leadership
• Participate in university recruiting events and sponsor student hackathons
• Partner with diversity organizations and attend conferences focused on underrepresented groups in tech
• Offer referral bonuses to incentivize current employees to tap into their networks

Salesforce does a great job with employer branding. They have a dedicated careers blog and social media channels that highlight employee stories, DE&I initiatives, and social impact work^22. They also have a "Futureforce" university recruiting program that includes internships, hackathons, and career fairs.

The Future of Tech Talent

Looking ahead, the demand for tech talent will only continue to grow as digital transformation accelerates across every industry. The U.S. Bureau of Labor Statistics projects that employment in computer and information technology occupations will grow 13% from 2020 to 2030, faster than the average for all occupations^23.

Emerging technologies like artificial intelligence, machine learning, blockchain, augmented and virtual reality, and quantum computing will create new roles and skill sets that companies will need to hire for. The World Economic Forum predicts that 97 million new jobs may emerge by 2025 as these technologies continue to be adopted^24.

To stay ahead of these trends, organizations will need to be proactive in upskilling and reskilling their existing workforce while also attracting new talent with diverse backgrounds and experiences. Continuous learning and adaptability will be key for both technologists and employers.

Additionally, the rise of remote work has opened up global talent pools. Companies are no longer limited to hiring in specific geographic locations. This means the competition for top tech talent will become even more fierce, but it also presents an opportunity to build more diverse and distributed teams.

Conclusion

Attracting and retaining top tech talent in 2021 and beyond requires a multifaceted approach that encompasses competitive compensation, inclusive culture, growth opportunities, flexibility, innovative projects, and effective hiring practices.

As a full-stack developer and tech professional, my advice to companies is to stay attuned to the evolving needs and preferences of technologists. Continuously gather feedback and adapt your talent strategies accordingly.

Invest in your existing talent through upskilling and professional development. Showcase your technical innovations and impact to the wider community. And most importantly, create an environment where technologists from all backgrounds can thrive and do their best work.

The organizations that prioritize these strategies and view tech talent as a core competitive advantage will be well-positioned for success in the digital age.