Digitalization is making great strides - and not just in international corporations. The digitalization push triggered by the coronavirus pandemic is also continuing in German SMEs. According to the KfW SME Digitalization Report 2023, SMEs' spending on digitalization has risen by 35% since 2019. These figures show: German companies are recognizing the opportunities offered by digitalization - more efficient production, faster innovation processes, higher product quality and better customer communication.
Especially in economically uncertain times characterized by recession, increasing efficiency and cutting costs are high on the agenda for many companies. Digital transformation is therefore one of the top priorities for many companies. However, successfully advancing digital transformation projects requires in-depth expertise and the right people in IT. IT specialists implement new systems, support these systems and thus ensure the digital transformation.
IT experts are therefore currently among the most sought-after talents on the German labor market. At the same time, a survey by the Boston Consulting Group (BCG) of 9,864 employees in the IT sector worldwide shows that almost three quarters (73%) of respondents are thinking about changing jobs. The competition for the best IT experts is in full swing and applicants often have the choice between numerous attractive offers. How can companies stand out in this dynamic environment and win over the sought-after IT talent?
Our many years of experience show that it is not always (just) the salary that makes the difference. In this article, we highlight six key factors that companies can use to position themselves as particularly attractive to IT professionals.
Flexibility and modern working models
In addition to benefits for companies such as increased efficiency and cost savings, digitalization also brings many new opportunities for flexible working models. IT experts in particular can now work from anywhere in the world in many areas, as in most cases their work has to be done on a computer and is therefore independent of a specific work location. As a result, the issue of flexibility is becoming increasingly important for many candidates.
Particularly in the wake of the corona pandemic, many candidates moved away from urban areas for their families and therefore often want not only flexible working hours to better care for their children, but also a flexible home office arrangement. According to the BCG survey cited above, only five percent of the IT specialists surveyed want to spend all of their working hours in the office and are prepared to change jobs to do so. The topic of workation is also of particular interest to candidates with a migration background, who want to be able to spend time in their home country.
However, flexibility does not only mean working from home. Companies can create additional attractiveness through hybrid working models where employees can work both from home and in the office. This not only offers the advantage of a better work-life balance, but also boosts productivity and motivation. According to a study by the Harvard Business Review, employees who have flexible working hours are 55 percent more productive than those with fixed working hours.
Salary and additional benefits
Salaries continue to play a central role for many job seekers. According to a recent StepStone survey, salary is one of the most important factors when choosing a suitable employer, with 66% of respondents citing it as the most important factor in changing jobs. On the one hand, this is due to the increased cost of living. On the other hand, as mentioned above, demand for talent is high on the market, particularly in the IT sector, which is driving salaries upwards. Companies that offer their employees standard or even above-average remuneration and can also score points with an attractive portfolio of benefits such as JobRad, health and pension plans have significantly better chances on the applicant market.
In addition to direct salary, bonus programs and performance-related remuneration are becoming increasingly important. For example, companies can offer bonuses for successfully completed projects or for special innovations. Long-term incentives such as company shares or participation models can also be a decisive factor for IT talent.
Health promotion and work-life balance
Another benefit that is important to many candidates is health promotion. Gym memberships, sports courses and massages are good ways of promoting employees' health and performance. Companies that also focus on occupational health care, for example through regular check-ups, ergonomic workstations or healthy food in the canteen, show that they take the well-being of their employees seriously.
However, vacation also has a major influence on well-being and employee satisfaction. In the StepStone study mentioned above, vacation days are the decisive factor for 70% when choosing a suitable employer. If companies only offer the statutory minimum number of vacation days, this can have a negative impact on employee satisfaction. On the other hand, companies that offer attractive and flexible vacation arrangements are increasingly attractive to employees looking for a new challenge. Some companies are now experimenting with unlimited vacation or additional days off, which is particularly popular with young talent.
Corporate culture and team spirit
An often underestimated factor is the corporate culture. Open communication, flat hierarchies and respectful interaction are basic prerequisites for retaining talent in the long term. IT experts appreciate being able to work in an environment that promotes innovation and sees mistakes as learning opportunities. Cross-team projects or regular team events can strengthen the sense of togetherness and positively shape the corporate culture. Employers who also specifically promote a sense of togetherness and a positive error culture, for example through hackathons or the freedom to test new technologies, offer additional added value: they create space for creative development and team cohesion.
Technological equipment and promotion of innovation
For IT experts, technological equipment plays a key role when choosing an employer. In an industry characterized by rapid technological advances, IT talents expect modern working environments that allow them to use and develop their skills optimally. Outdated systems, slow hardware or inefficient processes are not only an obstacle to productivity, but also a real frustration factor that can significantly reduce motivation and job satisfaction in the long term.
IT specialists are often driven by a passion for technology and innovation in their profession. They don't just want to implement solutions, they also want to work on new ideas and drive forward technologies that create real added value. Companies that provide access to the latest tools, programs and technological resources signal that they take innovation seriously and are willing to invest in their employees.
In addition, modern technical equipment helps to enable efficient and agile work processes - an environment in which IT professionals can work particularly well. Companies that think ahead and rely on state-of-the-art technologies not only position themselves as attractive employers, but also as future-oriented and competitive. In the IT sector in particular, this is a strong signal for attracting and retaining the best talent in the long term.
Conclusion
The requirements and expectations of IT talent have changed significantly in recent years. Flexibility, further training opportunities, health promotion and a modern corporate culture are key factors that companies should consider in order to stand out from the competition. By combining these measures with attractive salary models and innovative working environments, companies can not only attract the best talent, but also retain them in the long term. The challenge lies in putting together an overall package that both meets the individual needs of candidates and supports the company's strategic goals.