04.4 Competing For & Compensating Talent The impetus for founders to ensure they have designed competitive incentives mechanisms to attract talent is underpinned by the growing level of competition for talent The impetus for founders to ensure they have designed competitive incentives mechanisms to attract talent is in the European tech ecosystem. Founders from all regions, though at varying levels, underpinned by the growing level of competition for talent in the European tech ecosystem. Founders from all report increased levels of competition from both global tech giants, as well as homegrown regions, though at varying levels, report increased levels of competition from both global tech giants, as well as local startups that are playing in the same talent pool. homegrown local startups that are playing in the same talent pool. 100 Founders' view on change in competition for talent from global tech giants and local startups, by subregion 75 s LEGEND t n e d Tech giants, Increase n po 50 s e Local startups, Increase r f o Tech giants, No change % Local startups, No change 25 Tech giants, Decrease Local startups, Decrease 0 Global tech giants Global tech giants Global tech giants Global tech giants Global tech giants Global tech giants Global tech giants Central Europe DACH Eastern France & Nordics Southern UK & Ireland & Baltics Europe Benelux Europe Note: Respondents stating 'Not able to comment' ïltered out. Source: Founder respondents only More than half of European founders are COMPETITION FOR TALENT seeing increased competition for talent from global tech companies of European founders have experienced % an increase or significant increase in 54 competition for talent from global tech companies in the past 12 months The effect of increased competition for talent plays out in different ways, including salary The effect of increased competition for talent plays out in different ways, including salary in�ation, greater inflation, greater employee churn and more difficulty in filling roles. On the last point, for employee churn and more di�culty in �lling roles. On the last point, for example, the number of job postings for example, the number of job postings for ‘software engineer’ roles that prove hard to fill has 'software engineer' roles that prove hard to �ll has increased in every European country for which data is available, increased in every European country for which data is available, except Denmark. except Denmark Share of software engineer job postings that Netherlands 46% are hard to ïll 42% Spain 42% LEGEND 34% 2018 Belgium 42% 2017 34% Ireland 41% 35% Germany 36% 32% Italy 35% 27% France 33% 25% Austria 32% 25% Denmark 32% 35% UK 29% 20% Sweden 28% 26% Portugal 27% 20% 0 10 20 30 40 50 % hard to �ll 'software engineer' job postings Note: Hard to �ll is de�ned as % of 'software engineer' job postings Source: on the Indeed site(s) for more than 60 days. & 57 In Partnership with www.thestateofeuropeantech.com