Looking for a new tech job? It’s your lucky day

Two months ago, Jacob Eiting closed Series B for his startup RevenueCat, which is building an integrated subscription management platform. The $ 40 million investment was aimed at growing the business and, most importantly, hiring more people. The 35-person startup hopes to reach 50 employees by the end of the year and 100 by the end of next year. To woo them, RevenueCat offers a series of perks – unlimited vacation, a home office allowance – as well as equity and salaries comparable to some of the big tech companies, whatever the geography.

Such offers were less common in startups two years ago, before the pandemic. Today, a competitive hiring market has pushed up wages, strengthened benefits, and encouraged companies to offer more flexibility to applicants. “Partly it’s like, ‘How do we stand out from the Googles of the world? ”, Explains Eiting. “We take advantage of our strengths. We pay well if you’re out of the Bay Area, that’s how we set ourselves apart. (Google, among other big tech companies, said it could reduce wages for teleworkers.)

Like RevenueCat, startups around the world are in expansion mode. The first half of 2021 marked a world record for venture capital spending, with $ 288 billion invested in startups around the world. For most of them, an influx of money means an influx of employees, which has inflated the number of jobs available in startups. Engineers and software developers, who have always been in demand, can now write their own checks.

It’s not just startups either. In the first quarter of 2021, overall tech job vacancies grew 16%, according to a report de Dice, an industry career database. While big tech companies are still growing, a year of Zoom meetings, telehealth, and restaurant menus with QR codes has driven demand for programmers and software engineers more broadly. Between March and July, there were more than 323,000 job postings for software engineers, according to analytics firm Emsi Burning Glass, which tracks job growth and labor market trends. This is 13% more than in 2016. Postings for other tech jobs, such as data engineers, have increased by 312% over the past five years, suggesting greater interest in these jobs in the past. over time.

All of this created what Silicon Valley insiders have called the most frenetic hiring market since the dot-com boom of the 1990s. “The engineering market has become so competitive,” says Justine Moore, an investor who manages a job board on Pallet to promote openings in startups and venture capital firms. “I’ve seen a lot of startups offer referral bonuses. I would say $ 10,000 is a pretty standard referral fee, but I’ve heard of people making up to $ 50,000.

Other startups have used more creative tactics to find referrals, or at least to stand out from other job openings. One-step start posted on Moore’s pallet board offering four tarot readings, two boxes of succulents, a giant piñata of ‘mysterious goods’, plus a $ 3,000 cash prize, to anyone who recommends a candidate who stays in the business for at least six months. Another startup donated a year’s supply of cookies from Levain Bakery to the godchildren. (A gift set of four of the bakery’s signature chocolate chip and nut treats sells for $ 27 online-or $ 6.75 per cookie.) On Twitter, the founder of a mobile game company Free to “personally pay a Bitcoin” – valued at $ 44,500 – for a referral that resulted in a hire.

A year ago, job seekers preferred the stability of Big Techs to startups, which experienced more volatility during the pandemic, but small businesses may have an advantage in today’s market. A to study, who examined research on AngelList between February and May 2020, found that job applicants were 20% more likely to apply for jobs at companies with more than 500 employees, like Apple and Google. Today, more and more job seekers are prioritizing the flexibility and benefits of remote working, according to a recent report investigation technology workers based in the United States. This survey also found that technologists experienced high levels of burnout in the last quarter and that 48% were interested in changing companies this year, up from 32% in the same period last year.

Small businesses may have a chance to capture some of this talent in transition, offering the things that job seekers feel they care about the most. “Startups are increasingly targeting other companies that are going to be great places to hire,” said Hunter Walk, partner of the Homebrew venture capital fund. When CEOs create new work policies from the office, or expressing oneself on social issues during labor there will naturally be an attrition of people who disagree. For startups, Walk says, there is an opportunity to recruit these people. “What I see is that more and more candidates are thinking about a mission they want to participate in or the culture of the company in which they work, and this is a more important factor in taking decision.”

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