You’ve heard (maybe even felt) the angst around sourcing and retaining skilled talent in the Colorado tech scene. We’re a thriving market, which is fantastic, right? Yes, 100%, but it can also cause issues around talent retention, especially when the big guys start vying after your A-list superstars.
Colorado is a growing market because we have ample funding for startups (nearly $2B in venture capital investments in 2018 alone) and our lifestyle perks are incredible. That’s drawing in plenty of new talent, which is awesome. It’s also attracting a lot of new and existing tech companies to the Denver and Boulder areas, which is eating into that pool of existing candidates (and potentially your current employees).
If you’re not keeping your team satisfied and motivated, they may be the next ones snatched away for another opportunity. And talent retention alone, if done in-house, can cost around $25K. That’s just the average price to recruit one developer.
We want you to succeed and keep your talent right where they are. It’s hard enough recruiting new people to fill the spots. Don’t let them go just because they’re getting a bit complacent. In this post, we’re sharing details on why there’s looming pressure around tech talent retention in our area and how you can combat it.
Finding the Source: Pressure Around Talent Retention
Housing Prices Are Rising Faster Than Salaries
It’s an unfortunate but real truth. According to Reuters, the annual average earnings growth has remained below 3% even as house price rises have averaged more than 5% over the last few years. Concern around salaries is putting pressure on employees, especially those trying to maintain the status quo.
How to Fight Back: Offer your team salaries that are fair to the market. It may seem like a daunting task to keep up with the powerhouse tech companies, but in reality, your team just wants fair pay. Stick to market expectations and you’re one step in the right direction to keeping your employees satisfied and on your side.
More Major VC Funded Tech Companies Are Moving To Your Backyard
According to BisNow, more than 20 major tech companies (like Google and Slack) have moved their HQ or opened satellite offices to the Denver Metro Area over the past two years. This means it’s harder to compete inside the talent pool. Especially when you’re dealing with employees that could be attracted to the glitz and glamour of big names.
How to Fight Back: Be true to your company values and hire people that fit the mold. Your company is important and you’re definitely making waves in the tech world. The right team members will care about these benefits and want to contribute to the world with you. You can also provide them with bigger opportunities to get involved, which can be a huge benefit over being a small fish in a big pond.
VC is Driving Up Base Salaries Making It Hard To Compete As A Startup
Salaries are important but let’s be real, it’s hard to compete with heavily funded companies when you’re a startup. It’s the nature of the beast. But we want you to know it’s okay. It’s not always about the money. Many employees value other benefits just as much as their salary, which is important for you because it gives you grounds to really compete.
How to Fight Back: There are a number of benefits you can offer employees to keep them on board. Talent retention is really a multi-tiered process, figuring out what works best for your team and what aligns to your values. Benefits you can offer include:
- Offer education to help employees grow and develop their skills
- Facilitate tech meetups to encourage networking and industry learning
- Have transparent career paths laid out with goals to reach new levels
For a complete list of ways to increase talent retention, check out our post.
Keeping your talent on board and happy isn’t as overwhelming as it may seem to you right now. There are plenty of things you can start doing today to fight back against the unavoidable pressures that are hitting the Denver tech scene. If you need help with building and keeping a stellar tech team, get in touch with us today.
Here at BWBacon Group, we know and live what you are experiencing as an employer or job seeker in Denver, Boulder, Dallas, San Francisco, New York City or any of the other cities we work in. We believe great recruiting starts and ends with understanding people.
If you have any questions about living, working or playing any of the areas we serve, please contact us. We are happy to help. Seize the day, every day, that’s what we say!
