The Digital Age has completely transformed the way we live and work. Technology has become the foundation of every household and business, especially during the pandemic when many companies transitioned to “online” to stay in business. As part of this digital transformation, some tech companies frenetically hired workers, and what we’re seeing now is a lot of those hires have been “let go.” One reason for that is to correct for over hiring during the pandemic, but soaring labor costs amidst tough economic times are also a contributing factor.
After a period of hiring hysteria, a lot of technology companies are slimming down. The layoffs are largely due to many companies overextending themselves along with increased labor costs, says Fred Voccola, CEO of Kaseya, the leading global provider of unified IT management and cybersecurity software for small to medium-sized businesses and managed service providers.
Voccola explains that many large enterprises spent the better part of the last decade trying to digitally transform themselves, and they hired more people than they needed without considering the future. And now, they just do not need as much help as they once did.
Adding to the problem are labor costs. Voccola says that labor costs are high and will continue to go up for the next year or two. In fact, the average tech salary continues to be over the six-figure mark, especially in certain regions of the country, according to Dice, which connects employers with technology professionals and provides industry data and insights.
“Cost by location” is one of the reasons that Voccola moved Kaseya’s (News - Alert) U.S. headquarters to Miami, Florida. According to Voccola, Florida is more business-friendly than states like California, where he says the rate of increase in labor costs is astronomical. In Florida, he adds, labor rates are a little more reasonable. He believes the cost-effective labor force, along with how motivated employees are, make the Sunshine State the ideal place to do business. Kaseya, under Fred Voccola’s leadership, is actively hiring, especially in Miami where the company plans to add another 3,400 jobs over the next few years. The company recently opened a second location in Orlando.
According to Voccola, maintaining an in-office workplace has also proven successful. He says that it helps build a culture of accomplishing goals, and being around colleagues allows employees to be more focused on the tasks at hand. It also fuels the company’s Grow Your Own program, which promotes employees from within. The in-office collaboration provides mentorship opportunities which positions employees to learn and have pathways for growth within the company.
