Title: Strategies for Recruiting and Retaining Information Technology Workers: The Case of Lebanon
1Strategies for Recruiting and Retaining
Information Technology Workers The Case of
Lebanon
- By
- Toufic Mezher and Dima Sabouneh
- American University of Beirut
- Engineering Management Program
2Introduction
- The last decade was marked by a technological
revolution. This was due largely to the
successful deployment of IT solutions in the
industrial and service sectors and emergence of
software technological parks (STP). - This high demand for IT professionals has
resulted in a global shortage. - The objective of this presentation is to
summarize the innovative recruiting and retention
programs adopted by the successful IT
organizations to solve the the shortage problem.
3Introduction
- In Lebanon, the IT sector has become one of the
most vital and advanced sectors in the country. - New automated Telephone switches were installed
by the Lebanese MPT. In addition, Internet
service provider companies and GSM network
operators emerged in the past 5 years.
4Human Resources Management
- HRM is the utilization of human resources to
achieve organizational objectives. Six
functional areas are associated with HRM - human resource planning,
- recruitment and selection
- human resource development
- compensation and benefits
- safety and health and
- employee and labor relations.
5Who is the Core IT Worker?
- The core IT occupations are
- computer scientists,
- computer engineers,
- systems analysts, and
- computer programmers.
- The core IT occupations are differentiated from
other IT-related jobs by significantly higher
skill and educational requirements.
6Who is the Core IT Worker?
Computer Scientists they generally design
computers and conduct research to improve their
design or use, and develop and adapt principles
for applying computers to new uses. Computer
engineers they work with the hardware and
software aspects of systems design and
development Systems analysts they work to help
an organization realize the maximum benefit from
its investment in equipment, personnel, and
business processes. Computer programmers they
write and maintain the programs that list in
logical order the steps that computers must
execute to perform their functions.
7IT Labor Shortage
- The term "shortage" refers to a "market
disequilibrium between supply and demand". A
shortage requires two things an occupational
market in disequilibrium and a slow market
response. - When a worker shortage occurs, employees and
workers take various actions, some of which can
be tracked statistically as indicators of the
presence and severity of a shortage.
8IT Workforce Shortage Assessment
- The followings are some indicators of IT labor
shortage - Increased recruiting,
- overtime,
- reducing minimum qualifications,
- substitution of machinery for labor,
- training, bonuses,
- benefits, and
- a growing amount of IT work contracted.
9Costs of an IT Worker Shortage
- Slow Innovation and Product Development
- Slowdown in Productivity Improvement
- Fill positions with people who are less than
- adequately qualified
- High Failure Rate of software projects
- Limit innovation and stifle competitiveness
- Increase in the cost of doing business
- High-wage jobs
10IT Human Resources Management
- The ability to attract IT professionals with the
desired skills and to retain them so that they
may offer productive contributions is an outcome
of the human resource and work practices employed
by an IT organization. - Due to the severe shortage and high turnover rate
of the IT professionals, getting and keeping the
right person with the right skills at the right
time requires extraordinary efforts and
innovative practices.
11Alternatives to Recruitment
- Temporary and Contract Employees employers can
get the specific skills they need for a temporary
project without hiring people that might need to
be laid off later - Outsourcing allow the proliferation of
technical consulting companies and staffing
operations that can offer a wider range of
opportunities to individuals.
12IT External Recruitment
- The recruitment process usually begins when a
manager issues a job requisition. The requisition
is usually accompanied by the job analysis. Then,
external sources for meeting the specified
qualifications and skills are identified. - The process is achieved by matching the skills of
the applicants with the required skills using
selection tools and interviewing.
13Job Analysis of an IT Manager
1. Position Title IT Manager 1. Position Title IT Manager
2. Basic Purpose Plan, coordinate, and direct design, production and computer related activities. May supervise IT workers 2. Basic Purpose Plan, coordinate, and direct design, production and computer related activities. May supervise IT workers
3. Working Environment Spend most of their time in offices in comfortable surroundings. They usually work 40 hours per week. They may experience pressure in meeting goals within short time frames or tight budgets 3. Working Environment Spend most of their time in offices in comfortable surroundings. They usually work 40 hours per week. They may experience pressure in meeting goals within short time frames or tight budgets
4. Educational Background/Experience Bachelor degree in computer science or engineering is required. A graduate degree in MBA or Engineering Management is often preferred. Also, experience with the specific technology on the job 4. Educational Background/Experience Bachelor degree in computer science or engineering is required. A graduate degree in MBA or Engineering Management is often preferred. Also, experience with the specific technology on the job
5. Duties Determine technical goals within broad outlines provided by the top management Make detailed plans for the accomplishment of these goals Propose budgets for projects Make decision on staff training and equipment purchases Hire IT employees Supervise and Review the work of these employees Coordinate the activities of his unit with other organizations units 6. Skills Knowledge of engineering, computer and Information System to oversee a variety of activities Knowledge of administrative functions budgeting/hiring/supervision Interpersonal skills Planning, organizing and time management Delegate tasks within the team Write a clear description of the job of each person in the team
14Sources of IT Workers
- Four-Year colleges programs
- Graduate programs
- Competitors
- College Relationships
- Recruiting Firm
- Employee Referrals
- World Wide Web
- Networking
15Selection Tests
- The tight IT labor market and increasing salaries
are prompting the use of testing services. - The selection tests include
- job knowledge,
- work sample, and
- personality tests.
- Due to the variety of IT-related jobs, selection
tests are specific for each position or
occupation.
16Position/ Title Technical Tests
IT Manager Job Knowledge Tests project management functions (budgeting/planning/time management), human resource functions (hiring/retaining/reviewing), and knowledge of the technology on the job tests. Verbal Work Samples writing business letters or a clear job description for each member in the team.
Network Administrator Job Knowledge Tests Networking knowledge TCP/IP, SNA, IPX Operating systems Windows NT, Windows 95, Unix, Solaris Internetworking Ethernet Switching, Routing LAN administration Microsoft NT server, Novell NetWare, Ethernet, HTTP Internet skills Net Development tools
17Title Tests
IT Manager Ability Tests. Working with Language assess his ability in using the language as a vehicle for reasoning and problem solving Motivation/Interest Tests. Team work shows the level of interest in work that deals with people Personality Tests. Consciousness, stress and leadership tests
Other IT Workers Ability Tests. General abilities to assess the reasoning, problem solving and analysis skills Motivation/Interest Tests - Working with Data assess their ability to deal with compiling, computation and programming functions - Working with Things assess the level of working with inanimate objects like computers and other equipment Personality Tests. Cooperation, innovation , and frankness tests
18Interviewing
- The interview provides an opportunity for the
employer and applicant to assess whether a match
exists between an applicants qualifications and
skills and the organizations needs. It should
include the following issues - Job-related information is discussed
- Job description is communicated to the
interviewee - Some work samples are shown to the applicant
- Topics like overtime, flextime, and compensation
issues are discussed - Communicate to the applicant the organizational
competitive differentiator elements.
19Retention Practices
Concern for Productivity Concern for Individual Compensation and Benefits Career Development and Security
Performance Measurement Opportunities for Advancement Compensation and Benefits Longer-term Career Development
Work Arrangements Opportunities for Recognition Compensation and Benefits Organizational Stability and employment Security
Employability Training and Development Quality of Leadership Compensation and Benefits Organizational Stability and employment Security
Employability Training and Development Sense of Community Compensation and Benefits Organizational Stability and employment Security
Employability Training and Development Life-Style Accommodations Compensation and Benefits Organizational Stability and employment Security
20Crafting an IT HR Strategy
- In order to understand an organization IT HR
retention strategy, we have to understand two
factors the length of the employment and needs
of IT professionals - Length of Relationship Organizations seeking a
long term relationship will invest more in career
development and security. Organizations seeking a
short term relationship expend additional
resources on compensation and benefits. - Assumptions about Needs Under the assumption
that IT professionals are driven by professional
achievement needs, practices related to concern
for productivity are more heavily emphasized.
Under the assumption that IT professionals seek a
balanced life, a balance of practices from both
strategic levers of concern for productivity and
concern for the individual are used.
21Crafting an IT HR Strategy LTI Strategy
- An organization following an Long-term Investment
(LTI) strategy sees IT people as worth developing
and retaining because of their specific knowledge
and competencies relative to the organization.
The organization believes that besides the need
for professional achievement people have other
short and long term needs to be maintained. The
LTI strategy has more emphasis on practices
related to career development and security.
22Crafting an IT HR Strategy BP Strategy
- An organization following a Balanced Professional
(BP) strategy sees the IT people as a scarce
resource providing valuable contributions to the
organization for a number of years. The
organization believes that besides the need for
professional achievement people have other short
and long term needs to be maintained. BP strategy
places more emphasis on practices related to the
concern for the individual.
23Crafting an IT HR Strategy HPP Strategy
An organization following an High Performance
Professional (HPP) strategy sees the people as a
scarce resource providing valuable contributions
to the organization, ideally for a number of
years. The organizations following the HPP
strategy do not consider building commitment and
loyalty among professionals. Thus, IT workers may
tend to experience stress and burnout resulting
in high turnover rate.
24Crafting an IT HR Strategy STP Strategy
An organization following Short-Term Producers
(STP) strategy sees the people as a scarce
resource providing highly valuable contributions
to the organization in short term. It believes
that IT people willing and able to provide these
contributions are driven by short term
professional achievement and financial goals. STP
strategy has more emphasis on compensation.
25The 4 strategic levers
Long Term
LTI
BP
Length of Relationship Sought
HPP
STP
Short Term
Personal Professional
Personal, Professional Security
Professional Achievement
Assumptions about Needs
26IT Recruitment Retention in Lebanon The
Objective of the Survey
- Data were collected form 10 Lebanese IT
organizations in three sectors using a
questionnaire. This survey has several
objectives - To show that there is a growth in the Lebanese IT
sector despite the severe economic situation in
Lebanon and there is a shortage in certain types
of skills set - To identify the organizations recruiting
policies and the strategies used in external
recruitment such as sources, methods, and
selection tools - To assess the extent to which each organization
is applying the 11 retention practices in order
to keep its employees.
27Questionnaire Contents
- The questionnaire utilized in the survey contains
17 sections - Information about the Organization
- Information about the IT department
- Information about the IT labor shortage.
- Recruitment
- Interviewing
- Selection Tests
- Performance Appraisal
- Work Arrangements
- Human Resources Development and Training
- Longer-Term career Development
- Organizational Stability and Employment Security
- Financial Compensation
- Opportunities for Advancement
- Opportunities for Recognition
- Quality of Leadership
- Sense of Community
- Lifestyle Accommodations
28The Surveyed Companies
No. Sector Services No. of Current Employees Growth Factor
1 Customer Support Installation and support of O/S and networking services 7 1.28
2 Internet Internet Service Provider 4 1.5
3 Internet Regional Internet Consultant and Network Integrator 23 1.17
4 Internet Internet Service Provider 11 1.36
5 Internet Internet Service Provider 16 1.25
6 Internet Web Page Design 6 1.5
7 Telecom X.25 and Frame Relay Services 5 1
8 Telecom GSM Network operator 144 1.11
9 Telecom Microwave Link installation and maintenance 10 1
10 Telecom Microwave Link installation and maintenance 12 1.5
29IT Labor Shortage
- Half of companies stated that they have problems
finding professionals in Web-related jobs (Web
design using JAVA as a development tool and Web
administrators). - Half of them complained that they are having
problems finding networking professionals
(Designing/installing/ maintaining a LAN or WAN),
Cisco products, UNIX and WinNT professionals. - This can be attributed to the fact that there is
a rapid change in technology and frequent changes
in skill requirements, there are mismatches
between what university teaches and industry
needs, and a lot of professionals are immigrating
to other countries Canada, States etc where the
working conditions are better. - Two companies said that they lack low-level
managers because they cannot find professionals
that combine technical and supervisory skills.
30Recruitment Practice No. of companies adopting the practice
a. Alternatives to Recruitment
Overtime 8
Contingent Workers (part-timers) 8
Telecommuting 1
Subcontracting 1
b. Sources
Internal (PFW) 5
High Schools and Vocational Schools 2
Colleges and universities 9
Competitors 4
Other firms 1 (ISP in case of the internet consultant company)
31Recruitment Practices (contd)
c. Methods No. of companies adopting the practice
Internships 3
Ads in newspaper 8
Employment Agency 5
Recruiters 4
Company Web Site 4
Employee Referrals 8
Walk-in applicants 6
Ads in universities 1
32The Recruitment Practices (Contd)
- It is important to note that one company stated
that it does not recruit women because of the
nature of the work, which requires constant
travelling. Two other telecom companies said that
they do not assign to women duties like microwave
installation - d. Selection Tools
- Interviewing All of the organizations admitted
that they usually conduct an interview to assess
the technical and personality skills, the
experience and the educational background of the
applicant. Only three of them mentioned that the
organizations strategy and policies (Challenging
duties, compensation, and salary) are
communicated to the applicant - Selection Tests None of the organizations has a
prepared available technical or personality tests
for the applicant. Usually, these tests are
rarely conducted
33RETENTION PRACTICES Co.1 Co.2 Co.3 Co.3 Co.4 Co.4 Co.5
1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity
Performance Measurement Conducted By Immediate Supervisor Immediate Supervisor Immediate Supervisor Immediate Supervisor Immediate Supervisor Immediate Supervisor Immediate Supervisor
Method Rating Scales Rating Scales Rating Scales Rating Scales Rating Scales Rating Scales Rating Scales
Frequency Once per yr. Once per yr. Once per yr. Once per yr. Once per yr. Once per yr. Once per yr.
Work Arrangements Interesting Duties Challenges Job Rotation Interesting Duties Job Rotation Interesting Duties Challenges Interesting Duties Challenges Interesting Duties Challenges Interesting Duties Interesting Duties
Training Development Technical skills New methods Technical skills New methods Technical skills Technical skills new methods Technical skills new methods Technical skills new methods Technical skills new methods
2. Career Development Security 2. Career Development Security 2. Career Development Security 2. Career Development Security 2. Career Development Security 2. Career Development Security 2. Career Development Security 2. Career Development Security
Longer-term career Dev. Executive Development Dev. Of communication skills Career planning No Career Planning Executive Development Dev. Of communication skills Career planning Executive Development Dev. Of communication skills Career planning Executive Development Dev. Of communication skills Career planning Executive Development Dev. Of communication skills Career planning No Career Planning
Organizational Stability Employment Security Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
34RETENTION PRACTICES Co.6 Co.7 Co.8 Co.8 Co.8 Co.9 Co.9 Co.10
1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity 1. Concern for Productivity
Performance Measurement Conducted By Immediate Supervisor Immediate Supervisor Immediate Supervisor Immediate Supervisor Immediate Supervisor Immediate Supervisor Immediate Supervisor Immediate Supervisor
Method Rating Scales Rating Scales Rating Scales Rating Scales Rating Scales Rating Scales Rating Scales Rating Scales
Frequency Once per yr. Once per yr. twice per yr. Once per yr. Once per yr. Once per yr. Once per yr. twice per yr.
Work Arrangements Interesting Duties Challenges Interesting Duties Job Rotation Interesting Duties Challenges Job rotation Interesting Duties Challenges Interesting Duties Challenges Interesting Duties Challenges Interesting Duties Challenges Interesting Duties Job rotation
Training Development Technical skills New methods Technical skills New methods Technical skills new methods Technical skills new methods Technical skills new methods Technical skills new methods Technical skills new methods Technical skills
2. Career Development Security 2. Career Development Security 2. Career Development Security 2. Career Development Security 2. Career Development Security 2. Career Development Security 2. Career Development Security 2. Career Development Security 2. Career Development Security
Longer-term career Dev. No Career Planning No Career Planning Executive Development Dev. Of communication skills Career planning Executive Development Dev. Of communication skills Career planning No Career Planning No Career Planning Executive Development Dev. Of communication skills Career planning Executive Development Dev. Of communication skills Career planning
Organizational Stability Employment Security Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
35RETENTION PRACTICES Co.1 Co.2 Co.2 Co.3 Co.4 Co.5
3. Compensation and Benefits System Salaries Bonuses Insurance Paid vacation/sick days Social security Salaries Bonuses Insurance Paid vacation/sick days Social security Salaries Bonuses Insurance Paid vacation/sick days Social security Salaries Bonuses Insurance Paid vacation/sick days Social security Salaries Bonuses Insurance Paid vacation/sick days Social security Salaries Bonuses Insurance Paid vacation/sick days Social security
4. Concern for Individual 4. Concern for Individual 4. Concern for Individual 4. Concern for Individual 4. Concern for Individual 4. Concern for Individual 4. Concern for Individual
Opportunities for Advancement PFW Dual career path Not Applicable PFW Dual career path PFW Dual career path PFW Not Applicable
Opportunities for Recognition Feeling of Achievement Not Applicable Feeling of Achievement Feeling of Achievement Feeling of Achievement Not Applicable
Quality of Leadership Managerial skills training Empowerment of employees Managerial skills training Empowerment of employees Managerial skills training Empowerment of employees Managerial skills training Empowerment of employees Managerial skills training Empowerment of employees Managerial skills training Empowerment of employees
Sense of Community Interaction with the CEO Intranet Intranet Intranet Intranet Intranet
Lifestyle Accommodations Flextime Comfortable working conditions Flextime Comfortable working conditions Flextime Comfortable working conditions Flextime Comfortable working conditions Flextime Comfortable working conditions Flextime Comfortable working conditions
36RETENTION PRACTICES Co.6 Co.7 Co.8 Co.9 Co.10
3. Compensation and Benefits System Salaries Bonuses Insurance Paid vacation/sick days Social security Salaries Bonuses Insurance Paid vacation/sick days Social security Salaries Bonuses Insurance Paid vacation/sick days Social security Salaries Bonuses Insurance Paid vacation/sick days Social security Salaries Bonuses Insurance Paid vacation/sick days Social security
4. Concern for Individual 4. Concern for Individual 4. Concern for Individual 4. Concern for Individual 4. Concern for Individual 4. Concern for Individual
Opportunities for Advancement Not Applicable Not Applicable PFW Dual career path PFW Not Applicable
Opportunities for Recognition Not Applicable Not Applicable Feeling of Achievement Feeling of Achievement Not Applicable
Quality of Leadership Empowerment of employees Managerial skills training Empowerment of employees Managerial skills training Empowerment of employees Managerial skills training Empowerment of employees Managerial skills training Empowerment of employees
Sense of Community Intranet Intranet Intranet Interaction with CEO Intranet Intranet
Lifestyle Accommodations Flextime Comfortable working conditions Flextime Comfortable working conditions Flextime Flextime Flextime Comfortable working conditions
37Concern levels of the 10 organizations
Concern for Co. 1 Co. 2 Co. 3 Co. 4 Co. 5 Co. 6 Co. 7 Co. 8 Co. 9 Co. 10
Productivity High High High High High High High High High High
Individual High Middle High High Middle Middle Middle High Middle High
Career Dev. employee security Middle Little Middle Middle Little Little Little Middle Little Middle
Strategy adopted BP HPP BP BP HPP HPP HPP BP HPP BP
38Recommendations and Conclusion
- The IT Lebanese organizations are facing
shortage in IT workforce. In order to overcome
this shortage, many strategies can be adopted
creation of governmental practices, collaboration
between universities and industry, retraining of
the current IT workforce and innovative
recruiting and retaining practices.
39The Need for Governmental Initiatives
- It should continue to build an up-to-date
information infrastructure. - It should encourage the development of
information technology parks by given incentives
to the private sector. Incentives include tax
breaks, low cost of lands and utilities, building
educational institutions nearby, low
communication costs, reduce governmental
bureaucracy, change labor laws, etc. Information
technology parks can help stop the brain drain
from Lebanon. - It should take the initiatives by using IT
technologies in all its ministries and agencies
by using local companies. - It should reinforce the bureau of national
statistics which should include information
related to educational institutions and IT
industry, e.g., existing companies, IT labor
market including forecasting future needs, and
other related information.
40The Need for Governmental Initiatives
- It should adopt programs for K-12 education that
will lead to greater technological literary. This
will enable a larger fraction of citizens to
participate in and benefit from more productive
working careers. - It should encourage continuous education and
training for the workforce. - It should invest in basic and applied IT
research. - It should help to strengthen traditional higher
educational programs in IT related areas. The
government can encourage colleges and
universities to promote degrees to prepare
students to meet IT industry needs. - It should encourage universities and industry to
form a variety of partnerships to train the IT
workforce.
41New Higher Education Outlooks
- Universities should broaden their educational
approach in sciences, in technology, and in the
humanities and should educate students to be more
sensitive to productivity, to practical problems,
to teamwork, to the culture, institutions, and
business practices of other countries. - Create a new cadre of students and faculty
characterized by (1) interest in, and knowledge
of, real problems and their societal, economic,
and political context (2) an ability to function
effectively as member of a team creating new
products, processes, and systems (3) an ability
to operate effectively beyond the confines of a
single discipline and (4) an integration of a
deep understanding of science and technology with
practical knowledge, a hands-on orientation, an
experimental skills and insight. - The curriculum in business and engineering
management schools should have strong emphasis on
international management, technology management
including information technology, and human
resources management.
42New Higher Education Outlooks
- Establish a major interdepartmental research
center on information technology between business
and engineering schools. - IT curricula needs to develop faster than other
disciplines and determine the types of training
needed by employers. - Universities should provide additional incentives
for faculty to encourage them to stay in academia
and not go to the private sector. Incentives
should include higher salaries and more research
funds. - Business and engineering schools should form
advisory boards from the private sector. This
will increase the collaboration between the
education and the private sector and will
facilitate internship and other joint programs. - Try to form joint education and training centers
with leading IT companies like Microsoft, Cisco,
etc.
43Retraining of the Current Workforce
- Cisco Equipment Training for network
professionals - Windows NT (Win 2000) skills enhancement
- UNIX knowledge enhancement for system
administrators - JAVA knowledge training for Web Designers
- Middle level Managers if the company has a PFW
policy then the employee having a bachelor degree
should enrol in the university to get a Master
degree in MBA or Engineering Management. These
two programs are available in most of the
Lebanese universities
44Improvement of the Recruitment Practices
- The Internet recruitment should be more used.
- The internship method should also be used more
often. Actually, three companies are using it. It
is a cheap hiring method where the selection
decision is more certain because the employee
worked for a probationary period before getting
hired. - In the interviewing process, only 3 companies
admitted that they communicate to the applicant
the companys differentiator elements.
(organizations vision, compensation, and
training). - Finally, selection testing (technical and
personality) should be conducted more frequently.
Due to the increasing IT salaries and IT
shortage, a wrong hiring decision is highly
costly for the company.
45Improvement of the Retaining Practices
- Five of the surveyed companies are following the
BP strategy while the other five are following
the HPP strategy. In order for these companies to
shift to the LTI strategy where the turnover rate
is minimum all the surveyed 10 organizations must
improve their practices in career development and
employee security lever. The 5 organizations
following the HPP strategy must improve their
level of concern for the individual as well - The three strategic levers concern for
productivity, Organizational Stability and
Employment Security, concern for the individual
must be adopted aggressively in order for IT
companies to move toward LTI strategy.
46Final Conclusion
- Collaboration between industry and universities
is necessary to bridge the knowledge gap between
them. Educational institutions are a good source
for building knowledge and skills for future IT
professionals and for the continuing education of
existing ones. - Retaining current employees is crucial to the
continuation of work within the organization and
offering good employees long term-contracts (3 to
5 years) is an additional good retaining
incentive along with an above average pay.
Companies should always strive to move toward the
LTI strategy and periodically conduct a
satisfaction survey because the needs to people
are changing constantly.
47Final Conclusion
- IT companies should think global and try to get
contracts from the international markets
especially when companies in the US or Europe are
outsourcing part of their work (e.g., Ireland and
Indian experience). One advantage of Lebanese
market is in its highly skilled professionals
which are trilingual (Arabic, English and
French). This give it an advantage over other
regional countries. - The government should take the lead in building
human resources in the country through
legislation, constantly update the information
infrastructure including building local networks
connecting the country, building information
technology parks including nearby educational
infrastructure, and give more incentives to
attract both local and international companies.
These incentives should include tax break, cheap
utilities and lands, cut on government
bureaucracy, etc.