Effective and legal solution to the shortage of IT professionals

Effective and legal solution to the shortage of IT professionals

The problems of the labor market in the IT sector are known to everyone, but the reasons behind the shortage of specialists are perhaps less so. The background of the problem is extremely complex, just as solving existing problems seems to be a very complex task. In order to provide clarity, we will explore the subject a little bit through our own experience and — as a responsible IT company — we have outlined a way out that may be the future for meeting the ever-increasing specialist needs of domestic companies.

Why is there not enough IT in Hungary?

A labor market shows significant demand dominance for years. A much-mentioned, almost boring industry estimate that tens of thousands are missing from the domestic IT sector. Currently (in August 2022) only through Profession.hu - which, by the way, is not only in recruitment, butAs a Salesforce customeris also a partner of UC — companies are looking for suitably qualified specialists for more than two thousand to two hundred different IT positions. Despite the fact that the supply of IT trainings in Hungary is expanding year by year, the educational system is practically unable to keep up with market demands in quantitative terms.

The tech sector, which is developing at an amazing pace, was also surprised by the Digital Tsunami, which has been aroused worldwide by the coronavirus pandemic starting in 2020. Although, despite the initial difficultiesthe industry has adapted quite wellGiven the changed circumstances, the explosive growth in demand has severely tested the performance of IT providers — project managers, developers, testers, operators, etc. The work has become more and more, but the number of specialists does not show a significant change in Hungary, so customers are forced to count on longer waiting times and higher costs for each task.

The not very rosy situation is only exacerbated by the outbreak at the beginning of the year Russo-Ukrainian War, which makes its adverse effects felt on several points in the IT sector. On the one hand, the specialists of the two countries have disappeared from the European and overseas labor markets, whom the client is trying to replace, among other things, with Hungarian IT; on the other hand, the proximity of the war in terms of cybersecurity developments has significantly increased the needs of Hungarian companies, which thus appear as another extra burden on the demand side of the market.

A unfavorable foreign exchange ratesand the current tax changesThey also have a negative impact on labour supply in the domestic IT sector. More and more of the employees who work for Hungarian companies and receive their salaries in forints are turning to international freelancers to take up remote work for different companies in Western Europe or overseas for euros or dollars. In the short term, they will undoubtedly receive significant financial benefits, but in the longer term they will have to face serious disadvantages due to the unclear employment, health and pension insurance relationship. Of course, contract freelancers work not only for foreign employers, but also for domestic clients, and what's more, quite a lot of Hungarian companies have so far preferred to have low-tax IT contractors do regular work for them instead of professionals with employee status.

The situation of both companies and entrepreneurs was drastically changed by the kata law, which was transformed overnight. IVSZ (Association of IT, Telecommunications and Electronics Enterprises)recentemente ha dettoIn this regard, “one of the main limiting factors threatening Hungary's digital development is the shortage of IT and digital workforce (...) the reduction of the possibility of simplified taxation is causing the migration of the digital workforce”. We only add that if these professionals do not disappear immediately, they will be forced to raise their entrepreneurial fees, which their employers either cannot or will not want to pay.

The client is doing well with the loan

It is becoming increasingly apparent that in many areas of the IT world Project-Based Assignments and HiringThey can provide solutions to combat labour shortages and constant turnover. All this means that companies and institutions do not burden their own management and HR resources with only switching employees or hidden employees who see a given position as a kind of springboard or temporary position, but rather they are hired for a specific task or for a slightly longer period of time They say goodbye to each other after work. Of course, if necessary - in case of mutual satisfaction - the respective expert can return to the company in connection with new and new projects, so there is no need to start the “acquaintance” from the beginning either with the client, the working environment, or with the business or IT-professional goals and background of the task.

For this solution provides an effective and legal frameworkif companies have an official employment agency, such asVia UC Hire LabThey ask for help in the implementation of a project. While employees usually only have relevant knowledge and experience in a specific area, the customer can always ask the lender for expert help tailored to the specific task. United Consult and UC Hire Lab, for example, offer a wide range of services: from software development and testing to project management and operations, to big data and cybersecurity solutions, we provide our partners with a well-trained workforce with senior competencies for a wide range of tasks.

Renting is not only a good choice for companies from an IT professional point of view, but It also has other benefits. During the period of labor shortages typical of the industry, a great burden is taken off the shoulders of employers, that they do not have to deal with recruitment (advertising, interviewing, etc.), the HR is exempted from administrative duties, the new employee does not need to be trained, and the necessary things to do when new employees come to work (medical examination, fire safety training, etc.) do not constitute a mandatory additional task for the company.

Within the framework of UC Hire Lab, we also operate a so-called site management system for professional and social support of our employees. All this means that we do not let go of the hands of our colleagues on the day of hiring, that is, on the day of hiring, but we constantly provide them with assistance so that they can focus even more effectively on customer needs. The effectiveness of the loan system is also enhanced by the continuous improvement of the professional competences of our employees within the framework of internal trainings — often project-specific —. We also assist in the integration of the hired workforce with onboarding support: we provide our colleagues with detailed information on the client's organizational structure, workplace culture, internal communication tools and rules, as well as relevant work processes and methods.

All in all, it can be said that through the rental, the customer receives a qualified specialist with whom he has practically nothing to do before starting work, yet he is able to effectively support the realization of the company's plans from the first minute. Moreover, you can do all this extremely easily, without unnecessary administrative burdens, within a legal framework, optimizing your expenses. Experience shows that more and more people in Hungary are recognizing the potential of hiring workers, which, due to the former, represent an obvious competitive advantage — measurable in time and money — for ordering companies in today's top IT market.

UC Hire LabEmployment agency registration number: PEM/01/016041-1/2021-1229
https://uchirelab.hu/
info@uchirelab.hu
+36 1 999 0660