The demand for high-level technology jobs (such as software engineers) has steadily increased since 2000. Contrary to popular belief, offshoring has not slowed job growth in developed countries. The cost of filling the vacancy of a skilled technical employee has been estimated to be as high as 120% of the yearly salary attached to that position. A recent business article suggests that companies are looking for technology workers with more experience and a broader set of skills such as leadership and interpersonal communication skills, and that the competition for these employees, combined with the drop of computer science graduates and the impending retirement of the baby-boomer generation, has led to fierce recruiting competition among firms. Retention of skilled technical professionals was also cited as a key challenge by 50% of around 900 technology leaders surveyed. In Asia, the retention concern jumps to 63% of those surveyed.
The supply of talent is dwindling - a 1998 McKinsey Quarterly article warned that the supply of executive talent would go down by 15% by 2015. The upcoming retiring of baby boomers is hightening the problem. According to a Deloitte Survey, by 2008 US companies will lose 11% of their workforce to returement, and as much as 30% by 2010.
In this context, the recruiting, retaining, and advancing female talent is a top concern of technology companies. Talent management practices are an important component to retaining women in technology. But what works? Flexibility practices are often mentioned as crucial to retaining women. Yesterday, I assisted to a presentation by Linda Golan, Co-Founder of Third Avenue Consulting, a firm that advises companies on the design and implementation of flexibility practices.
The first point Linda made was that flexibility practices need to be integrated to business goals as opposed to being a “perk” or an entitlement. Similarly, a 2006 McKinsey Quarterly study identified the lack of alignment between talent management strategies and business strategy as a key barrier to the success of such practices. The company then defines which jobs and whom will be eligible for such flexibility practices. The design of the criteria needs to involve the managers. Golan also recommended opening such programs to both men and women, and putting top performers in the program, so it doesn’t perceived as a “women’s problem” or associated with poor performance.
The Anita Borg Institute’s original study with the Stanford University Clayman Institute, “Climbing the Technical Ladder“, is currently underway with seven major high-tech companies participating. Our findings will identify what practices are the most effective at retaining and advancing female technical talent. We expect to release a report of our findings in 2008. Sign up for the ABI newsletter to make sure you get notified!
Sources:
Amiti, M. and S. Wei (2004). Fear of Outsourcing: Is It Justified?, NBER Working Papers 10808.
Blessing White (2006). Leading Technical Professionals. Princeton, NJ, Blessing White.
Baily, M. N. and R. Z. Lawrence (2005). “Don’t Blame Trade for US Job Losses.” McKinsey Quarterly 1.
Chambers, E., Foulon, M., Handfield-Jones, H., Hankin, Steven M, and Michaels, G. Edward III. The War for Talent. McKinsey Quarterly No 3.
Di Carlo, L. (2004). “IT Employees well-paid, in demand.” Forbes.com(June 8).
Guthridge, M., Asmus B. Komm, and Emily Lawson. (2006). The people problem in talent management. McKinsey Quarterly, No 2.
Overby, S. (2006). “How to Hook the Talent you Need.” CIO Magazine(September 1, 2006).
Vitalari, N. and D. Dell (1998). “How to attract and keep top talent.” HR Focus 75: 9-10.