If you’re using Microsoft Azure or Dynamics 365, you’re probably already aware of the cloud’s biggest cost-saving strategies, such as right-sizing and using Reserved Instances. But there’s one aspect of cloud spending that’s often overlooked when it comes to cost optimization: talent.
While a reduction in the cost of cloud services and resources is possible to achieve, the cost of hiring talent to implement and operate cloud products is surging. Tech professionals have always been among the highest-paid in the workforce, but rising demand is inflating average salaries even further for those with the right Microsoft Azure, Microsoft Dynamics 365, and Power Platform skills.
Despite the uncertainty in the tech industry over the past couple of years, salaries for skilled digital talent remain high. The average salary for tech positions in the US has grown by 2.3% between 2021 and 2022 alone. What’s more, key roles within the Microsoft channel like DevOps Engineer, Data Architect, or Security Engineer can surpass the mark of $200,000 a year for experienced specialists, according to data from the latest Nigel Frank Careers and Hiring Guide.
While low-balling won’t get you anywhere in such a competitive market, there are some smart ways you can cut down on your hiring spend. Here are five tips to help reduce your Microsoft Cloud talent costs.
5 ways to cut down on your Microsoft Cloud talent costs
#1: Invest in automation
Much of the admin and governance involved in monitoring Azure costs can actually be automated. But this time-saving innovation is often underutilized by businesses, especially if they don’t have in-house development skills to build it.
Even if you do need to outsource it, setting up automations to manage resources and tasks like autoscaling can save you money on talent acquisition in the long term. Why? Because having automations in place frees up your IT team to work on more valuable and interesting projects. This means your tech professionals will be more engaged and satisfied with the work they’re doing, and therefore less likely to get bored or frustrated, and head for the door.
Plus, it can also cut your overall cloud costs by effortlessly ensuring that you’re using the right resources for your needs at any given time.
#2: Cast a wider net with remote working
When it comes to hiring cloud tech professionals, location can be a major factor and something of a double-edged sword. If your business is based in an area with a healthy tech talent market, you’re more likely to find a candidate with the skills you need. But you’re also going to pay a premium for it, especially if you’re located in a metropolitan area with a higher-than-average cost of living.
On the other hand, if your operations are based outside of coastal tech hotspots, this could mean lower average salaries for cloud professionals in this market—if there are any cloud professionals at all, that is.
Since remote working is a trend that’s here to stay, companies looking for talent no longer need to be hobbled by geographical restrictions. Tech has long been a pioneer in the matter of remote work because the majority of tech jobs can easily be done from home. If you’re struggling to find an affordable resource (or any resource) in your local area, then what’s stopping you from looking further afield by offering more remote work opportunities?
Free from the complications of commuting and cost of living, businesses can vastly increase the footprint of their search and get access to experienced, high-performing candidates outside of their local area; candidates that may have been too expensive to welcome onto their team otherwise.
#3: Embrace flexible working
Expecting your valued tech professionals to follow the office-based 9-5 routine will seriously limit your ability to attract skilled candidates. This is especially important to consider as older generations of Microsoft tech talent leave the workforce in droves, and the new generations taking their place are likely to hold very different ideas of what makes a good job great, expecting perks like flexible working.
According to one report, 37% of technology professionals would take a 10% pay cut if they were offered the chance to work remotely. That’s a significant saving on the salary bill, and that’s before you factor in the other cost reductions that come with having staff working from home. Just ask Google, which saved $268 million in expenses over a single quarter of 2021 as a result of their employees switching to working from home.
If that’s not reason enough to put remote policies in place, then the fact that your competitors are doing it should be. When you’re hiring cloud talent, you’re not only competing with every other cloud customer who wants the same in-house tech staff—you’re also going up against the tech vendors and other tech giants themselves. Companies like Amazon, PayPal, and Intel have all expressed concern that failing to champion remote work will result in losing talent to firms that are embracing the concept and offering more enticing workplace perks.
Offering remote work options makes your business more environmentally and socially conscious too; something else that talented young professionals look for in an employer.
#4: Focus on retention
The only thing more expensive than hiring a valuable cloud tech professional is replacing one. Putting some resources into reducing turnover can make a big difference to your talent acquisition spend.
It’s estimated that replacing an employee can cost anywhere between 16% and 213% of their salary. And for tech workers in today’s market, the figure is going to be somewhere at the top-end of that range.
Keep an open conversation going with employees about their engagement with their work, their development, and their job satisfaction. Sharing an employee survey once a year may be too little too late to uncover and tackle any serious employee discontent.
Expert insights from a Cloud Solutions Architect and MVP
Hugo Barona is a Cloud Architect and Microsoft Azure enthusiast specializing in Microsoft Azure and Microsoft Stack, as well as the design and development of cloud solutions. He works as an independent contractor, helping customers migrate their existing applications to Azure and deliver Azure cloud-based solutions to enable digital transformation while supporting their business. We asked Hugo for his advice on how companies can best retain their cloud talent in such a competitive market.
“Several reports show that retaining is equally or more important than acquiring talent, considering the high costs associated with employing and developing staff. I believe there are several ways companies can approach retaining their staff. And remember, we are talking about people, so individuals with different personalities and interests. Generally, most of them do share common interests and goals. Following that line of thought, here are some strategies which companies can follow to improve the chances of retaining talent.”
Rethink your benefits
To start, companies must rethink the benefits they offer to their staff, including flexible and hybrid work policies.
Offer Competitive Salaries
Another critical factor is offering competitive salaries, so people can feel valued for what they do. Sometimes this requires market research to understand the salaries offered by other companies.
Foster an inclusive work environment
When we talk about the work environment, from my personal experience, it is essential to create an inclusive and friendly environment, so that people can feel good working with their teams. This is even more important for companies with global cultures and a mix of nationalities.
Provide upskilling opportunities
Last but not least, companies must provide ways for their teams to reskill and upskill. They can do this in many ways, including by providing opportunities for taking cloud certifications, training courses, or even connecting with tech communities by participating in community initiatives. This will enable your employees to learn with the community while enjoying and connecting with other tech professionals worldwide.
“The connection between companies and the tech community is crucial. It empowers employees to get to know other tech professionals worldwide while making it easier for companies to find and recruit new talent.”
#5: Tap into new sources of talent
Hiring skilled Microsoft professionals is tricky, and isn’t getting any easier as adoption of platforms like Azure and Dynamics 365 continues to grow. Hiring tech talent that can help you make the most of your Microsoft cloud investment can be prohibitively expensive, with stiff competition for experienced candidates driving salary expectations up.
For many organizations, engaging in this ongoing “race for talent” is proving time-consuming and inefficient, especially with the poaching of tech professionals on the rise. With hiring costs only set to rise further, developing a cost-effective talent pipeline should be a major part of spending optimization for any Microsoft Cloud end-user or partner organization.
No one wants to have their cloud transformation plans derailed by not being able to source the right skills (or by not being able to outbid competitors for high-value professionals). The real solution to cutting Microsoft hiring costs does not involve sniping candidates from the same talent pool over and over again. The real solution is to create more talent.
Adding experienced, Microsoft-certified tech talent to the market is what we do at Revolent. We help organizations that use Azure, Dynamics 365, Microsoft 365, and other Microsoft cloud services get access to the skilled resource they need to achieve their digital goals for less.
How Revolent can help
We cross-train seasoned IT professionals in technologies like Microsoft Business Applications, Modern Workplace, and Azure, equipping them with the technical know-how, soft skills, and official certifications that they need to make an impact on your projects.
Hiring our high-quality certified Microsoft specialists known as ‘Revols’, is not only a cost-effective option but—because our professionals stay with us for up to two years—our clients get guaranteed continuity of service. Our Revols can even stay on with you after their contract is up if you’d like to make them a permanent member of your team. In fact, 83% of our Revols do convert to our clients’ teams.
What’s more, we can also help you build your long-term internal Microsoft Cloud capabilities by reskilling or upskilling your own employees, equipping them with advanced Microsoft Cloud certifications and tech know-how, while minimizing loss of productivity to your business during their training.
