Why startups are poised to win the competition for tech talent

Good tech talent has always been in demand. Today, however, that might be an understatement.?

As digital transformation reaches fever pitch, what used to be an industry-specific struggle faced by technology firms is now a reality for organisations across a multitude of sectors.?

Whether by choice or by circumstance, organisations are increasing their reliance on technology. With that comes a need to ramp up in-house capabilities in building, implementing, maintaining and protecting their data and systems.?

On the other side of the playing field, technology firms are eager to ride this boom. In Singapore, government estimates suggest that 6,000 jobs in the industry remain unfilled1. A quick count by a February 2022 media report2 found that five major technology players had 1,110 open job listings among them — and each is trying to outdo the rest with higher salaries and bigger bonuses.?

If the biggest employer names in the world find it hard to hire, where does that leave startups??

Fame and fortune won’t fix the problem

Tech salaries have soared on the back of intense hiring competition, but money isn’t a silver bullet. Globally, the pandemic has given people food for thought. As they reassess their life priorities, many have decided to leave their jobs behind, triggering the Great Resignation.?

In a snap poll on LinkedIn, we asked our followers what would make them join a startup and, overwhelmingly, they chose “Company purpose and values” (42%) over “Compensation package” (22%).?

While anecdotal, this does support a growing body of research that highlights how career priorities are shifting away from material definitions of success. In a 2021 McKinsey study3, for example, 70% of employees surveyed said their own sense of purpose is largely defined by their work. The implication? People are looking for fulfilment through meaningful work and, for tech talent, startups offer that unique opportunity.?

Real impact, in real time?

Startups set the pace of innovation in the world. Today’s technology giants were all once startups. But as a natural consequence of scale, the need for hierarchy, structure and processes often outweighs their desire for speed, agility and creativity. Innovation slows.?

For skilled tech talent, startups offer a direct, hands-on opportunity to create impact?in the form of tomorrow’s breakthrough technologies. In startups, especially early-stage ones, tech talent is at the frontline of innovation. More often than not, tech talent is hired to help create the solutions to real-world challenges. With this comes the excitement of building something completely new, sleeves rolled up and shoulder-to-shoulder with founders and other passionate, like-minded individuals on the team.?

“On the ground, employee sentiments are already shifting. In Silicon Valley right now, the big boys are struggling to hire, not the startups. I believe Singapore will eventually head in a similar direction,” shared Roger Olofsson , Managing Director of Olofsson & Company.

Already, Singapore reigns as the #1 technology innovation hub outside Silicon Valley?. Venture capital funds are also flowing into the region at record-breaking speeds. According to industry estimates, Asia took in over US$165 billion worth of venture investment in 2021, outdoing its own previous-year number by 50 percent?.

Credit: Crunchbase News

Good talent is out there; the right talent is harder to find

Startups have more than a fighting chance to win the competition for tech talent — they have a unique value proposition that is more compelling than ever in today’s context.?

The bigger challenge for startups, in our experience, is finding the right talent. While the startup scene clearly holds exciting promise for tech talent looking for more in their careers, it takes a certain personality to thrive in this environment.?

At Olofsson & Company, we take pride in being the only executive search firm dedicated to the tech and startup world. We work extensively with early-stage startup founders and would be happy to share our experience and expertise with you. Leave us a comment if you’d like to have a conversation about your talent needs.?

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1 Local employment in infocomm media sector grew 5% in Singapore amid Covid-19, The Straits Times, July 2021

2?Tech salaries soar as US, Chinese firms compete for Singapore talent, The Straits Times, February 2022

3 Help your employees find purpose—or watch them leave, McKinsey & Company

? Technology Innovation Hubs, KPMG, 2021

? Venture Funding In Asia Shatters Record For Year And Quarter—Thanks In Large Part To China, Crunchbase News, January 2022