Effective Strategies for Attracting Talent and Retaining Employees in the UK as a Small Software Company
Across Software Circle’s group of software companies, we indirectly employ over 150 people and are very aware of the struggles a smaller software business can face when it comes to attracting and retaining talent. Although our group companies enjoy the benefit of a large, publicly-listed owner, oftentimes individuals who may be fit to interview at one of our software units are unaware of the wider group at that stage. Once part of the Group team members benefit from professional growth opportunities beyond what is possible within a smaller operating unit, but that rarely plays a role in the very early stages of the recruitment process. So what have we learned from our companies and where can we improve?
Understanding the UK Software Industry
Before delving into our strategies for attracting and retaining talent, it is essential to have a basic understanding of the UK software industry. What differentiates smaller software companies from others?
Key Characteristics of the UK Software Market
The UK software market enjoys a strong emphasis on innovation, a high demand for cutting-edge technologies, and a vibrant startup culture. At the same time, there are many established, older businesses that may not be developing cutting-edge software, but whose culture, stability and social value-add, shine bright. It is important for these businesses to be aware of who they are, what values they stand for and what employees can expect.
Our portfolio companies belong to the latter group. With an average age of more than 10 years, we specialise in supporting and growing established brands with tenured teams and a strong culture towards client satisfaction. Software may not always be cutting-edge, but we find that this does not mean that the culture and working environment shines less brightly than at fancy start-ups or large blue-tech companies.
The UK is also known for its robust regulatory framework and a supportive network of industry associations and research institutions. This ecosystem provides small companies with access to resources, mentorship, and funding opportunities, enabling employees to benefit from a wider network of like-minded people.
Most of our companies operate in small niches. Oftentimes employees have previously worked in the industry and decided to become part of our companies having worked/used the software.
Challenges Faced by Smaller Software Companies
Despite the numerous opportunities in the UK software industry, smaller companies face specific challenges that can hinder their talent attraction and retention efforts. Limited resources, limited brand recognition, and fierce salary competition from larger organisations are common obstacles faced by smaller software companies.
Furthermore, the fast-paced nature of the industry and the constant evolution of technologies present a challenge for smaller companies to stay ahead of the curve and adapt to changing market demands. Navigating these challenges requires a strategic approach, a resilient mindset, and a proactive stance towards talent management and organisational development.
Attracting Talent in the UK Software Industry
Attracting top talent requires a proactive approach that focuses on building a strong employer brand, and maximising visibility in the industry.
Importance of Culture
Fostering a positive work environment that promotes innovation, collaboration, and continuous learning can significantly enhance team retention and help attract new talent. Offering flexible work arrangements, professional development opportunities, and a supportive company culture helps attract top talent who are not only skilled in their respective fields but also align with the company’s values and vision.
Our subsidiary businesses typically employ between 8-30 people. At this size, new hires benefit from a small, close-knit team culture. Individuals often wear more than one hat, which provides a more general understanding of a software business. Furthermore, our ownership provides top talent with opportunities across companies to personally develop, share knowledge and grow.
Leveraging Social Media and Job Boards
Social media and networking platforms provide an excellent opportunity for smaller software companies to connect directly with potential candidates. Active participation in industry-specific groups, sharing insightful content, and engaging with professionals in the field can help build brand visibility and attract talent organically.
Utilising job boards can further increase the reach of job postings and attract a larger pool of candidates. You should carefully choose platforms that cater specifically to the tech industry to ensure the highest quality of applicants.
Our exclusive focus on software companies has helped us improve our understanding of social media and job platforms that work well. Having a background in marketing, we understand the importance of positioning a brand online. For senior positions and top talent, we are able to leverage the Software Circle brand, both to attract and retain people for our operating units.
Retaining Employees in Smaller Software Companies
Attracting talent is only the first step. To ensure long-term success, smaller software companies must focus on retaining their employees by creating a positive work environment.
The Role of Competitive Compensation
Offering competitive compensation packages is crucial in attracting and retaining the best talent. You can offer unique incentives, such as performance-based bonuses and flexible work arrangements, to attract top performers and ensure their commitment to the company.
Importance of Career Development Opportunities
Providing ample opportunities for professional growth and development is integral to employee satisfaction and retention. Investing in training programs, mentorship initiatives, and ongoing learning opportunities to nurture and retain their talent.
Software companies within our group benefit from our ownership in other portfolio companies, which allows for career opportunities across companies if there is no room to grow within a company. This can help in attracting people, but more importantly, it helps us retain talent. Subsidiaries will be able to offer talented individuals opportunities to move around and develop as well as receiving talented people from other organisations who have proven their abilities to collaborate and perform within small teams.
A Helping Hand
Most smaller software companies we encounter have a team of 5-50 employees. They have oftentimes been able to attract talented people who have been with them for many years. However, almost always we have met owners who lost talented individuals to other businesses due to limited growth opportunities. This is where we see ourselves adding value. We are able to provide growth opportunities inside the group to the benefit of all our subsidiary companies.
About Software Circle
Software Circle is a UK publicly listed company with a long history of providing software solutions to various SMEs across the world. We introduced a new corporate strategy in 2021 with the aim of building a Group of independent software companies, servicing different industries and benefiting from a shared pool of resources in terms of talent, knowledge, and capital. Software Circle wishes to be a permanent home for software businesses, managing them with a decentralised approach while maintaining their original brands, continuing the legacy of their owners, and supporting future growth.