“You look at the resume and see that the candidates skipped between four and five jobs within five years because they were offered salaries and benefits. Today he is an employee of my company because I offered him 20% more, and tomorrow he is at another company because they offered him offered Playstation5 or other benefits, “Avi Golan, executive director of Israeli face recognition company AnyVision, told Globes.
Golan became the person often talked about in the Israeli technology sector this week after a post on LinkedIn titled #stopthemadness. In that announcement, Golan called on his fellow executives, especially in the technology sector, to stop what he described as “recruitment madness” before the bubble burst. In the post, Golan claims that the increase in salaries and “illogical benefits” harms the young generation of engineers, who do not learn the basics of career building, which will ultimately lead to the transfer of development jobs abroad.
The announcement received great support, but also criticism. Critics say Golan is urging CEOs to create an illegal association to cut spiraling salaries in the technology sector. Another criticism was that AnyVision, which just last week announced the completion of a $ 235 million funding round run by SoftBank, had enough money to pay the engineers the company fired at the start of the Covid-19 pandemic (before Golan became CEO) is not in a position to complain. In his first interview since the San Francisco announcement, Golan tries to answer his critics.
He said, “It’s not logical and it can’t go on like this, because in practical terms it takes an average of 18 months for an employee to provide value to the company. Candidates come to us and see a resume with all the job changes and ask, why didn’t you stay and where is it?” awareness of retaining and building company value? We need to think of ways to explain to the younger generation that there are things that are more important than salaries and benefits. “
On his decision to publish the announcement, Golan said: “In conversations with colleagues and venture capital investors, I realized that they are all preoccupied with the problem, but no one wants to talk about it. It is not a salary problem, but a competitive market. employees who move from job to job and don’t actually develop a career.You need 15,000 hours of work to specialize in an area, and if you don’t get there, your opportunities remain shallow.I remind you of the situation we were two weeks ago before that we received an investment and there were employees who concentrated on looking for another job, not because they did not believe in the company, but because they were offered a job in other companies with a higher salary. “
It will eventually employ workers in India or Eastern Europe. “
Hiring technology employees has always been a difficult task for high-tech companies, but this year it has become even more challenging. The record capital raised by Israeli startups has injected a huge amount of money into the market and companies are trying to beat their rivals in placing products on the market. This creates a thirst for developers and engineers, who are goods in chronic shortage in Israel. All of this created a reality, which some have described as employment in the Wild West, and employees, especially in sought-after areas like AI and cybersecurity, were constantly getting offers, and their employers were forced to raise wages and offer benefits like reporting compensation of tens and even hundreds of thousands of shekels.
Golan, who has lived in Silicon Valley for 20 years, claims that in California they have largely sobered up from the aggressive competition of talented employees. “When Google, Facebook, Twitter and Microsoft hired a lot of employees, small companies also increased salaries and benefits, but that stopped when they realized they were hiring the wrong talent, who jumped from job to job because of the salary and was not the quality that they asked. What scares me is all this jumping and moving. When you tempt a high-paying employee, you don’t do him a favor. “
Golan’s post on LinkedIn, which caused the storm, can certainly be understood as an invitation to employers to unite against the salary increase. But Golan denies that was his original goal. “I didn’t come from there. It distorts what I wanted to write. It was not a call to form an association, but an attempt to see how to solve the problem of lack of resources. If you offer more money, then someone after you will raise more money and offer more. will be the upper limit and eventually the companies will hire employees in India or Eastern Europe. “
So what can CEOs in the industry actually do?
“I don’t have a bigger solution, but we have to understand that there is a significant problem here and we have to recruit a brain in Israel to see how it can be solved. There are all kinds of solutions. For example, when we were at Google we would contact students attending their second year. The big technology companies in the US have defined specific roles in industries that are lacking, such as data analytics, and have talked to universities about opening special courses.If we do not develop and build capabilities, in the end, this bubble will burst. “
It’s hard to hire after you get fired
The timing of Golan’s announcement is a bit surprising, it came a few days after the company, which develops face recognition systems for commercial and defense purposes, raised $ 235 million under the leadership of SoftBank. While Golan talks about a bubble in the tech job market, others argue that startups like this one that benefit from investment balloons are flooding them with more money than ever before. And with so much money in the coffers, what’s the problem with hiring employees?
“I don’t think there’s a bubble in investment,” Golan said. “The coronavirus has created a need for technology and we see very successful technology companies, not only in terms of these public offerings, but also in terms of market size and customers. What the bubble is is the labor market in Israel. I have received investing and can and will do what other companies are also working, and that is to offer attractive salaries to find talented staff because I work in a competitive market.Do we have another choice? But if we do not move forward regarding certain things and just raise salaries, then we will constantly face the same problem. I marked the situation because many of my colleagues talk but don’t work. “
At the beginning of the coronavirus anyVision laid off dozens of employees and now it is difficult for you to hire.
“That was a while ago and the company went through very difficult processes that harmed it in the market and required harsh measures. There are a number of employees who have already returned from their previous dismissal from anyVision, and today we employ with a sense of family and talk someone isn’t comfortable and it’s always hard to hire after you get fired, and it’s a stain you carry with you, but coronavirus hasn’t been an easy time for many other companies.
You are engaged in the controversial field of facial recognition. Maybe that makes it harder for you to get a job?
Not all. Those who know our area understand. We are one of the most technological companies in the world of artificial intelligence and computer vision and many engineers want to be connected with us. We’ve never had a problem with hiring, and besides, we’re looking for talents that are hard to find. “
Posted by Globes, business news in Israel – en.globes.co.il – July 15, 2021
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