The Utah tech market is growing but companies are struggling to attract and keep the talent to support it, according to a new study from technology staffing and consulting company ProFocus Technology. The report, “Utah Tech in Focus: 2023 Trends Report,” found that despite 50 percent of respondents expecting revenue to increase and 34 percent expecting to increase headcount, almost half (46 percent) rank finding talent as their biggest tech talent challenge. Retention of workers was the second-largest{mprestriction ids="1,3"} concern at 29 percent.
According to ProFocus, burnout is a reality among the Utah tech community, with 63 percent of survey respondents reporting feeling burned-out. Fifty-nine percent say their tech team is overworked, and 38 percent anticipate working more hours this year over last. Seventy-six percent say they are open to changing jobs in 2023, with 42 percent actively looking for a new position and 34 percent open to a move for the right opportunity.
Forty percent (40 percent) of survey respondents say salary/compensation is the most important factor in attracting and retaining top tech talent, yet just 38 percent report that overall compensation for the tech team will increase this year and 10 percent report compensation will decrease.
“For Utah companies looking to maintain their innovative edge, these findings should serve as motivation to look at new ways to recruit and retain the best tech talent,” said John Boone, ProFocus Technology founder and president. “The survey findings are consistent with what we are seeing with clients: The tech community in Utah has made it clear they are looking for competitive compensation and meaningful work, and Utah businesses should take note.”
Boone added, “Companies need to be very intentional about keeping their tech workforce happy. In addition to compensation, ensuring workers are offered development opportunities, instilling a strong culture, and balancing remote work needs will all play a big part in which Utah companies win the best tech talent.”
More than half of all firms represented in the survey received subpar marks in the recruiting and retention categories. Fifty-nine percent (59 percent) said their firm is poor or average at attracting tech candidates, 55 percent said they are poor or average at onboarding talent and 54 percent say they are poor or average at retaining talent.
A divide exists when comparing the findings from small, midsizedand enterprise organizations. More than two- thirds (68 percent) of workers at small and midsized firms say they offer competitive market compensation, compared to 49 percent at enterprise firms. Smaller firms also received higher ratings for providing pay equity for remote and local staff.
Enterprise firms struggle more when it comes to retaining talent, and they are also rated lower by tech workers at onboarding, maintaining a strong culture, and providing work-life balance.
“Larger firms with bigger brand recognition have the advantage of getting talent in the door, but these survey results show they need to pay greater attention to improving company culture, which includes being responsive to requests for flexible work, providing meaningful project opportunities, and offering clear career paths,” said Jennifer Waldrip, vice president of client and talent services and partner at ProFocus.
Utahns are almost equally split between those who work remotely all the time (49 percent) and those who work in the office some (40 percent) or all (11 percent) of the time.
Respondents have mixed feelings about remote work almost three years after the start of the pandemic, sharing the challenge of being responsive to workers’ preferences to work remotely while trying to build and maintain a connected, strong company culture. Fifty-six percent (56 percent) of respondents say their firm does a good or excellent job of maintaining a strong culture.
The ProFocus report is based on responses to an online survey of 173 Utah technology professionals, including executives, managers, directors, team leads and individual contributors in companies from small firms with less than 100 employees to large enterprises with greater than 5,000 employees. The survey was conducted between Oct. 19 and Nov. 19, 2022.{/mprestriction}
