Talent War in Silicon Valley
- Talent Acquisition & Total Rewards
Global IT/Tech giants, such as Apple, Alphabet, Facebook, etc., in Silicon Valley are in intense competition to secure the best software talents. Under these circumstances, those talents’ remuneration has been sky-rocketing rapidly. The competition calls for deploying increasingly
creative and flexible talent strategies, including talent acquisition and total rewards, so that they can attract, acquire and retain talents.
Silicon Valley companies promote three recruitment strategies.
The first strategy is to strengthen targeted talent acquisition. Silicon Valley companies maintain large teams that focus exclusively on recruitment, while relying on employee recommendation systems to ensure that they recruit people with a strong fit to the company and to their prospective jobs.
The second recruitment strategy is cross-border talent sourcing through social networks, where job postings can spread globally in an instant. Sites like LinkedIn provide venues for companies to seek talent that fits their organizations regardless of nationality.
Third, Silicon Valley’s large IT firms frequently practice “acqui-hiring” to secure promising technology manpower. Acqui-hiring refers to acquisitions made primarily to obtain outstanding technology talent.
Silicon Valley also provides different levels of compensation for each job title based on skills and market principles. Current market conditions allow software engineers to get about 1.24 times more than hardware engineers. Silicon Valley firms are also well known for granting sizable stock options. These grants come in the form of “new hire grants,” and “performance grants.”
Lastly, Silicon Valley raises employee satisfaction through data-based scientific compensation management. Through analysis of market data and evaluation of employee duties, tailored compensation packages can be provided. Through data analysis, Silicon Valley firms have increased the share for the compensation items most preferred by employees, thus leading to enhanced satisfaction.
Korean firms hoping to respond to the cross-border war for software talent need more flexible recruitment and compensation strategies. With a lack of software manpower, companies need to increase their competitiveness in compensation, including the provision of sizable stock option grants. In order to do this, Korean firms will need to switch from their seniority-based compensation management system to one based on the value of each duty and on individual performance.
*If you need the Full Report "War for Talent Strategies in Sillicon Valley - Recruitment & Compensation", please send me the email (seanchoi.cb@gmail.com)
