While the likes of Google, Amazon, Micros0ft and Google are laying off 10000s of people, Indian old economy companies are hiring in a big way to digitize their business processes and build new business models. Banks, Conglomerates, Hotels, FMCG, or Fashion – they are all looking for tech talent as they move towards Digitalization.
(Digitalization refers to the process of converting analog information and processes into digital formats. It involves the use of digital technologies to improve efficiency, reduce costs, and enhance the customer experience. This can include activities such as automating workflows, leveraging data analytics, and implementing cloud-based systems.)
Top Roles they are hiring for, apart from developers, include
Chief Digital Officer (CDO): A senior executive responsible for developing and executing a digital strategy for the organization.
Data Scientists: Responsible for collecting, analyzing, and interpreting large sets of data to inform business decisions and drive digital transformation.
- Digital Product Manager: Responsible for managing the development and launch of digital products and services, including web and mobile applications.
Digital Marketing Manager: Responsible for developing and executing digital marketing campaigns to increase brand awareness and drive sales.
User Experience (UX) Designer: Responsible for designing and testing the user interface and user experience of digital products and services.
But, Recruiting digital talent for old economy companies can present a unique set of challenges. These companies, often rooted in traditional industries, may struggle to keep pace with the fast-paced and constantly evolving digital landscape. However, with the right strategies in place, these companies can attract and retain top digital talent to drive innovation and growth. Here we discuss the top 5 challenges we have seen them face and suggested solutions:
The biggest challenge is the wide gulf between CTC levels of traditional industry, vs the tech focused companies.
Many digital professionals have a specific set of expectations when it comes to salary and benefits, and old economy companies may struggle to match the compensation packages offered by more technology-focused companies. To attract top talent, it’s important for old economy companies to be competitive in their compensation and benefits packages.
The 2 solutions that work best are creating a new cadre for tech talent, with its own hierarchy (takes care of other problems too), and adding a supplementary allowance on top of existing CTC structure (like city supplementary allowance used to be)
Hierarchy and Slow Process
Another challenge that old economy companies face is the hierarchical structure and the evaluation process of the company. Many digital professionals are used to a more flat organizational structure and a more agile approach to work. This can be a challenge for old economy companies, who may have a more traditional and rigid structure.
There are many approaches that companies are trying, but having a mission control with tech talent as well as old guard, under an able digital leader seems to have worked best till now.
Cultural Fit issues
Cultural fit is also a major challenge when recruiting digital talent for old economy companies. As these companies may have a more traditional corporate culture, it can be difficult to attract and retain digital professionals who are used to a more dynamic and innovative work environment.
There is no shortcut to this- Companies will need to make sure that the tech hires feel wanted, while the value that they are creating is demonstrated to the old guard so that they vale the contribution. Communication and building positivity in interactions seem to help most.
Hiring Process too slow:
While Tech companies complete the hiring process over a weekend, most companies are used to a more relaxed pace with multiple rounds lasting many weeks. Many digital professionals find this too bureaucratic and loose interest midway.
To solve this, we need to do expectation setting on day 1 with the candidates, while also sensitizing the hiring managers about the industry reality and request them to give feedback promptly, and also take interviews on weekends if possible.
Candidate Evaluation Capability
Finally, old economy companies may struggle with evaluating the capabilities of digital talent. Many digital professionals may have a specific set of skills and qualifications that may not be easily evaluated through traditional methods.
Companies are taking the help of external panels, as well as consulting firms to provide the capability. Most good Search firms will also have the ability to provide this service.
In conclusion, recruiting digital talent for old economy companies can present a unique set of challenges. However, by being competitive in compensation and benefits package, adapting the organizational structure, evaluation process, hiring process and creating a positive work culture that values innovation, flexibility and creativity, old economy companies can attract and retain top digital talent to drive innovation and growth. Additionally, by being aware of the cultural challenges and working towards aligning the company culture to the expectations of digital professionals, companies can improve the chances of attracting and retaining the right talent.