There’s no doubt that tech talent is in demand. Companies are having a hard time both keeping their talent and recruiting talent – to no surprise these things go hand in hand. This is ultimately due to a lack of supply of people that can perform the job – until this changes (or the demand compresses) we will be in a constant talent war with others in the industry.

The greatest challenge I see here is that this talent war between tech companies is disruptive to the industry. Not only does it cause salary inflation but it causes a more catastrophic impact to the effectiveness of the workforce:

  1. Less commitment – People have more options and are no less committed to their jobs. When projects fail or when the company is faced with an uphill battle (which honestly in many startups is the majority of the time), it’s easier for employees to answer recruiting emails than to stay committed and tackle hard long-lasting problems.
  2. Less tenure to see drive impact – In software, we reap the benefits of compounding efforts. We make investments in strategic areas, iterate, and over time with the right bets and learnings, you’re able to see the impact that has been compounded. When projects stop short, or the vision has been telephoned a few times between leaders, you lose the ability to drive long-term impact.
  3. Less domain knowledge that is kept – In many instances the talent is more important than the code. When people leave, you don’t just lose momentum and efficiency, but you lose an important asset – knowledge. Some companies manage this more effectively than others.
  4. Culture and bond between teams – With the further divide with a remote culture, employees don’t share the same bond you typically see in an office setting (e.g.: no more 5 pm happy hour by the keg). With revolving doors of new employees and tenured ones that leave, it leads to a factory-like feeling. You’re there to contribute to the company’s goals but the bond between team members is a constant threat.

What this ultimately compounds to is a sharp drop in innovation and drive that the Silicon Valley culture was built around and enabled it to thrive. In this industry, we take big bets, we solve hard problems, and try things that have never been done before – when people, the single biggest asset of a company, are disposable this disrupts companies from scaling beyond its core team that was driven by internal motivations.

So what can we do to retain talent?

  1. Hire right – First and foremost, hire people that believe in your cause and are a strong culture fit. When they start, they’ll stay focused on the mission and
  2. Set strong a mission – Give your team something to strive towards. Make this mission both tangible but also achievable. Make the work exciting and show them the impact that we’re contributing to the world.
  3. Celebrate wins – Things are going to be hard. Celebrate wins with your team. Keep them motivated on the long-term objectives. This will ensure they feel like they’re making progress.
  4. Pay them market – Provide leveling guides to your team, guide them on their career, and compensate them according to market rates. Don’t give them a reason to make an extra xk elsewhere. Don’t pay your new employees more than your tenured ones.
  5. Be there for the team – This goes without saying, and there’s lots of material out there on how to be an effective manager – but nonetheless, be there for the team. Show they’re valued and ensure you’re there when they’re having difficult times. This can’t be replaced by a new role elsewhere.

There’s no silver bullet to this. But at the end of the day, the industry thrives when people take on tough challenges and commit to their purpose. We need to rebuild a culture in the industry where we value the employees we have and close the revolving door in talent.