strategies for recruiting and retaining information technology workers: the case of lebanon

Strategies for Recruiting and Strategies for Recruiting and Retaining Information Retaining Information

Technology Workers: The Technology Workers: The Case of LebanonCase of Lebanon

By

Toufic Mezher and Dima Sabouneh

American University of Beirut

Engineering Management Program

IntroductionIntroduction

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.

IntroductionIntroduction

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.

Human Resources ManagementHuman Resources ManagementHRM is the utilization of human resources to

achieve organizational objectives. Six functional areas are associated with HRM:

1. human resource planning,

2. recruitment and selection;

3. human resource development;

4. compensation and benefits;

5. safety and health; and

6. employee and labor relations.

Who is the Core IT Worker?Who 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.

Who is the Core IT Worker?Who 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.

IT Labor ShortageIT 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.

IT Workforce Shortage AssessmentIT 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.

Costs of an IT Worker ShortageCosts 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

IT Human Resources ManagementIT 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.

Alternatives to RecruitmentAlternatives 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.

IT External RecruitmentIT 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.

Job Analysis of an IT ManagerJob Analysis of an IT Manager1. Position Title: IT Manager

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

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 organization’s 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

Sources of IT WorkersSources of IT Workers

1. Four-Year colleges programs

2. Graduate programs

3. Competitors

4. College Relationships

5. Recruiting Firm

6. Employee Referrals

7. World Wide Web

8. Networking

Selection TestsSelection Tests

The tight IT labor market and increasing salaries are prompting the use of testing services.

The selection tests include: job knowledge, work sample, andpersonality tests.

Due to the variety of IT-related jobs, selection tests are specific for each position or occupation.

Position/ 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

Title 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 skillsMotivation/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

InterviewingInterviewingThe interview provides an opportunity for the

employer and applicant to assess whether a match exists between an applicant’s qualifications and skills and the organization’s 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.

Retention PracticesRetention PracticesConcern 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

Organizational Stability and employment Security

Employability Training and Development

Quality of Leadership

Sense of Community

Life-Style Accommodations

Crafting an IT HR StrategyCrafting 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.

Crafting an IT HR StrategyCrafting an IT HR Strategy LTI StrategyLTI 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.

Crafting an IT HR Strategy Crafting an IT HR Strategy BP StrategyBP 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.

Crafting an IT HR Strategy Crafting 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.

Crafting an IT HR Strategy Crafting 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.

The 4 strategic levers The 4 strategic levers

LTI

BP

HPP

STP

Professional AchievementPersonal & Professional

Personal, Professional & Security

Long Term

Short Term

Length of Relationship Sought

Assumptions about Needs

IT Recruitment & Retention in LebanonIT Recruitment & Retention in Lebanon The Objective of the SurveyThe 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’ setTo identify the organizations’ recruiting policies and the strategies used in external recruitment such as sources, methods, and selection toolsTo assess the extent to which each organization is applying the 11 retention practices in order to keep its employees.

Questionnaire ContentsQuestionnaire Contents

The questionnaire utilized in the survey contains 17 sections:1. Information about the Organization

2. Information about the IT department

3. Information about the IT labor shortage.

4. Recruitment

5. Interviewing

6. Selection Tests

7. Performance Appraisal

8. Work Arrangements

9. Human Resources Development and Training

10. Longer-Term career Development

11. Organizational Stability and Employment Security

12. Financial Compensation

13. Opportunities for Advancement

14. Opportunities for Recognition

15. Quality of Leadership

16. Sense of Community

17. Lifestyle Accommodations

The Surveyed CompaniesThe 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



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

IT Labor ShortageIT Labor ShortageHalf 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.

Recruitment 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)

Recruitment Practices (cont’d)Recruitment Practices (cont’d)

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

The Recruitment Practices (Cont’d)The Recruitment Practices (Cont’d) 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 organization’s 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

RETENTION PRACTICES

Co.1 Co.2 Co.3 Co.4 Co.5

1. Concern for Productivity


Conducted By:Immediate Supervisor

Immediate Supervisor




Method 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.

Work Arrangements Interesting Duties Challenges Job Rotation

Interesting Duties Job Rotation

Interesting Duties Challenges


Interesting Duties

Training & Development

Technical skills New methods


Technical skills

Technical skills new methods


2. Career Development & Security

Longer-term career Dev.

Executive DevelopmentDev. Of communication skills Career planning

No Career Planning



No Career Planning

Organizational Stability & Employment Security

Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable

RETENTION PRACTICES


1. Concern for Productivity


Conducted By:

Immediate

Supervisor





Method Rating Scales Rating Scales Rating Scales Rating Scales Rating Scales

Frequency Once per yr. Once per yr. twice per yr. Once per yr. twice per yr.

Work Arrangements Interesting Duties Challenges

Interesting Duties Job Rotation

Interesting Duties Challenges Job rotation


Interesting Duties Job rotation

Training & Development



Technical skillsnew methods


Technical skills

2. Career Development & Security

Longer-term career Dev.

No Career Planning No Career Planning Executive DevelopmentDev. Of communication skills Career planning

No Career Planning


Organizational Stability & Employment Security

Not Applicable Not Applicable Not Applicable Not Applicable

Not Applicable

RETENTION PRACTICES


3. Compensation and Benefits System

Salaries Bonuses Insurance Paid vacation/sick days Social security





4. Concern for Individual


PFW Dual career path

Not Applicable PFW Dual career path

PFW Not Applicable


Feeling of Achievement

Not Applicable Feeling of Achievement


Not Applicable


Managerial skills training Empowerment of employees





Sense of Community

Interaction with the CEO

Intranet Intranet Intranet Intranet

Lifestyle Accommodations

Flextime Comfortable working conditions





RETENTION PRACTICES


3. Compensation and Benefits System






4. Concern for Individual


Not Applicable Not Applicable PFW Dual career path

PFW Not Applicable


Not Applicable Not Applicable Feeling of Achievement


Not Applicable


Empowerment of employees





Sense of Community

Intranet Intranet IntranetInteraction with CEO

Intranet Intranet

Lifestyle Accommodations



Flextime Flextime Flextime Comfortable working conditions

Concern levels of the 10 organizationsConcern 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

Recommendations and Recommendations and ConclusionConclusion

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.

The Need for Governmental InitiativesThe Need for Governmental InitiativesIt 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.

The Need for Governmental InitiativesThe 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.

New Higher Education OutlooksNew 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.

New Higher Education OutlooksNew 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.

Retraining of the Current WorkforceRetraining of the Current Workforce

Cisco Equipment Training for network professionalsWindows NT (Win 2000) skills’ enhancementUNIX knowledge enhancement for system administratorsJAVA knowledge training for Web DesignersMiddle 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

Improvement of the Recruitment PracticesImprovement of the Recruitment PracticesThe 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 company’s differentiator elements. (organization’s 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.

Improvement of the Retaining PracticesImprovement 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 wellThe 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.

Final ConclusionFinal ConclusionCollaboration 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.

Final ConclusionFinal 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.

strategies for recruiting and retaining information technology workers: the case of lebanon

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