Building a good team is not a trivial task. It is critical to have the right combination of skills and experience to achieve successful business objectives, but staffing comes with its own set of problems. Below are common challenges that technical teams are facing and how to overcome them.
Market Competition and High Salaries
Many organizations are determined to add and retain the best resources. Sadly, extremely qualified professionals are few, and therefore it is expected that they get often contacted for new job opportunities.
Highly skilled candidates tend to obtain several offers when they are actively looking for a new job. The hiring teams get into a bidding process that makes them go to their top limit or above their budgets. Similarly, organizations work on staff retention mechanisms like salary raises and promotions that usually increase payroll costs.
Startups and SMBs (small and medium businesses) use mechanisms like company shares and other incentives for hiring and retention. But there is always a point where they cannot afford to continue with such practices.
Lengthy Hiring Process
Hiring the right candidate for the position may take several weeks, and in some cases, months. This process becomes more challenging when the role requires unique competencies. It is common for hiring managers to have high expectations at the beginning of the search and lower them as time passes. In many situations, the hired candidate was not one of the top three.
This problem creates a hidden cost burden since the new hire may take more time to be efficient, or other team members will need to compensate for any gaps during the learning curve.
Given the tech talent shortage, turnover is a challenge for even the most prominent companies. One point that the article deduces is that tech turnover is likely driven by increasing demand and compensation. Top talent is more eager to jump on new opportunities.
The departure of expert members brings adverse effects in the short term, like a decrease in the team's performance and other undesired challenges like a lengthy hiring process, payroll cost increases, or a lesser talented employee.
Unfit or Outdated Skillset
This challenge is common in legacy teams where the hiring manager brought members for specific skills no longer significant in the industry. Not all organizations offer continuous training to their employees, and development costs are usually high. Some professionals may keep their skills up to date by their means, but this case is the exception.
Teams and individuals must stay current with technology trends, especially in the software industry, where the life cycle of some tools and frameworks only lasts a few years.
Businesses use the mechanism of outsourcing to address the previously mentioned challenges. Outsourcing is an agreement where one company hires another company to delegate activities for different reasons. Some of these reasons can be: 1) the team does not have the expertise or capacity to execute the tasks. 2) the total cost of doing the work in-house exceeds the costs to hire an external provider, or 3) it is not in the company's best interest to dedicate resources to such activities because they want to focus on more critical business areas.
Outsourcing the work to a vendor who can immediately support the initiatives is an excellent way to overcome staffing shortcomings. Outsourcing to a nearshore vendor is an ideal cost-effective solution.
Nearshore outsourcing should not be a trade-off decision but a smart and flexible mechanism that reduces costs while getting the highest technical quality. Companies shall never compromise on quality, so it is crucial to hire a nearshore vendor with validated credentials, advanced partnerships, and certifications from tech leaders such as AWS and Salesforce (MuleSoft).
Learn more about the advantages of nearshore outsourcing here.