There has never been a better time.
American companies are facing daunting hiring challenges, and nowhere is this more true than in the technology sector. Employment in the U.S technology sector increased for the 12th consecutive month in November, with more than 1.2 million unique active job vacancy postings in computer-related occupations. This may be why 54% of IT decision makers say they have openings they can’t fill.
Numerous explanations can help us understand our conundrum. We can start with the keen awareness that technologists have of their value right now, and how it drives up cost. Or, look at the record number of resignations and low unemployment numbers (Department of Labor’s December 2021 report is at 1.5%).
In the end, it all comes down to supply and demand. While there are currently 8.6 million people considered out of work in the U.S. right now, there are 10 million job openings. And if Microsoft is right, we’ll see 46% of the global workforce make a major career transition in the immediate future, adding more openings just when we need more jobs filled. The talent supply simply cannot meet talent demand.
There is a bright spot, however, and it’s found in remote work. Candidates overwhelmingly cite the ability to work from home as the leading benefit on their wish list. In response, companies are embracing remote workers. More than half of employers are encouraging remote work and, of those, 16% are exclusively hiring remote workers.
OK, remote. But how remote?
Once the answer to remote is “Yes,” the next question is this: How remote can the job be?
Remote workers generally work from home, whether home is across town or across the country. But there is a large pool of skilled remote workers across the world. Certain job openings that affect sensitive areas like IP and national security, such as the 500,000 unfilled cybersecurity positions across our economy, are best addressed within the U.S. Those roles, however, are a small percentage of the total number of technology positions that need to be filled. A growing talent trend referred to as “borderless” teams is helping businesses overcome critical tech shortages and embrace a new kind of talent-driven globalization.
The practice of bringing foreign professionals into the U.S. on H1B visas was curtailed in 2020. Immigration troubles continue to impact the job market, with millions awaiting visas and green cards while only 140,000 are awarded each year.
If international tech talent can’t come to America, then international talent engagement may be the solution.
Why hire globally?
When pressured to identify solutions that meet your hiring needs, it’s advantageous to consider options outside of your comfort zone. Here are three reasons to consider a global hiring approach:
- Competition. Within the U.S., companies are competing for a small group of computer science graduates and coders and go up against Amazon, Meta, Google, and other tech giants for that talent.
- Cost. Considering the lower wages in many other countries and the inflation we’ve been experiencing over the last 12-18 months, the financial advantages are significant.
- Skills. The skill level of overseas technology workers is very high in certain areas. Therefore, we expect that within a few years, global hiring will be the norm and that those who have secured connections now will be ahead of the game.
Where it works – and why
There are numerous locations throughout the world where talent is well trained, yet the cost to hire is lower because the cost of living is lower. Here are just two examples:
Average salaries are lower and talent engagement faster and easier. In Belarus, for example, current Eastern European compensation aggregators like this one put average annual salaries for programming talent at approximately $30K. ForPolish programmers, Mojo Trek research and employment experience put average salaries at around $60K. This is demonstrably lower than the U.S. where the mean salary for programers is $89K.
Speed to market is critical in technology development. That’s why one of Mojo Trek’s biggest clients chose to open an office in Krakow, where they will hire more than 200 skilled workers. Finding the same level and number of employees in the U.S. would be nearly impossible, take many months or longer, and require a hefty investment.
While salaries are rising throughout Latin America, it remains a cost-effective place to hire tech workers. Right now, Mexico is far outpacing the U.S. in producing computer science and engineering graduates. As reported by Yahoo Finance, “20% of Mexican college graduates have relevant engineering degrees, amounting to over 110,000 per year.”
Chile invested heavily in data center growth and has become a cloud capital for Latin America. Now, Microsoft’s “Transform Chile” plan will help train 180,000 people in digital technologies.
Costa Rica, Argentina, and Colombiaare all producing higher numbers (per capita) of skilled employees than we are in America. The startup boom in Latin America is also driving more people to sharpen their technical skills.
As the talent numbers reveal, going global is not just an option for many businesses today. It’s a requirement. If your firm is interested in discussing how to grow your global talent footprint, Mojo Trek would be happy to share our experiences with you. Contact us now to learn how we have helped numerous clients expand their global footprints and develop borderless teams of innovators.