Ahead of the finals of Calcalist and Poalim Hi-Tech’s third StartUp+ competition, we gathered several HR experts from the world’s top tech companies and asked them to shed some light on human capital management in Israel’s tech industry , especially in light of the current crisis.
Tell me about the talent recruitment process. How does it work in times of crisis? What has changed?
According to Natalie Refuah, Senior Partner at Viola Development: “There are more job seekers in high tech today, but not when it comes to skilled professionals. Many companies are starting to lose value and there is less money to hire. As a result, they began to reduce and freeze employees, the first step they decided was 5% to 10% of employees who are not important in the company, and they are job seekers, great talents are not allowed. . quickly, I think from now on things will settle down between companies, if before there was an option to jump between companies and increase wages, now it is not the case, there will be stability in this field. .”
Natalie Refuah, Gali Meamen Sheffer, Tal Dori, and Ko Shoshani. (from right)
Refuah also added that, in relation to the conditions, “salary has increased a lot in the last two years due to the increase in competition, in terms of choice, there is a problem in the market today, if someone is accepted in the company for a few months. In the past the choice was accepted, in some cases they are not related. There is a big question about what will happen in the field of recruitment from now on. It’s not clear yet.”
And what about the dismissal of workers, have they changed after the crisis? Are there really more layoffs? How do you see the situation on the ground?
According to Gali Meamen Sheffer, Vice President of the Bank of Poalim Hi-Tech, “Companies are currently preparing to face challenges and are taking different measures with the aim of extending the company’s runway, so one of the measures is quality . which also means convenience for workers, the year 2021 is different in terms of capital investment in the financial industry and the hiring of large numbers of workers with increased wages and benefits. which is expressed in providing employees in the field of sales and services and less in R & D. However, according to the report of the Israel Innovation Agency, the industry still does not have nearly do 13,000. The war in Ukraine could create opportunities. , since the development centers of the Israeli companies that are conducting their activities have been closed, and some have been returned to Israel.”
Ko Shoshani, CEO of Lightlytics, said “we are aware of the new reality that the environment is changing. This is smart in what investors broadcast to startups and how we contact customers in the potential market. Right now there are many people in the program even if it is night because it is not known whether the crisis will be very deep and how long people are changing jobs, organizations are freezing the budget for this year and this shows how the purchase of technologies has been postponed, other companies make decisions. Back to the workers. I think that these layoffs from 10%-15% are just the beginning of a big wave. The layoffs are not for the top people in the companies.”
Refuah added that “it is difficult to know if we are in a wave of layoffs and if there is a situation because it is related to the global economy and recession. But I think that today there is more than raising awareness of the costs of companies and saving money and reducing unnecessary expenses, 10% of the employees who are laid off are mostly employees who are not important. Working with us leads to a significant reduction , we try to help the workers find new jobs. We actually go through the list of workers and try to find them other job options.”
Tal Dori, CEO of IBI Capital, which oversees trusts and options for employees in major technology companies, believes that “contrary to what is commonly said today, there is no movement of layoffs in the technology industry of Israel. The technology sector. It has about 300,000 workers in Israel and dozens or hundreds are being laid off – this is not rain. At the same time, yes, you will see that the number of workers has decreased.”
Are laid-off employees in a hurry to exercise their options?
“The answer is no,” said Dori, “most of those fired are employees who are not part of the core of the company, such as businessmen, economists, etc., and usually they have not been in the company for a long time they did not come out. sacked from work, so most of them are not even mature enough to get the choice, so they don’t have any motivation, besides that, most of the sackings you hear in the newspapers are of workers in America, even if the Israeli companies are working for them. Another reason is that there is no doubt that the stock prices, most of which have been reduced by several percent, and the possibility of exercising at this time is in some times are not useful at all.”
Since you mentioned the US, let’s talk about remote workforce management. Why actually integrate foreign workers into the company? How do you deal with remote management and different employee expectations?
According to Shoshani, who manages two types of workers abroad – workers in the US and contract workers in Eastern Europe: “The contract workers get their work from us, and the company that takes them and pays them. The biggest challenge that workers face. of this type is that they need to work hard and cooperate with the pillars of the company, to get more benefits from them, and to understand that They are no different from the development staff in Israel. This challenge was overcome by transporting the senior staff from here to Israel, so that they can get to know us, the product and the company, even in the evening. we went out with them to build relationships, plus our employees sent them. merchandise like shirts, notebooks, jackets and hats, all the things that make a team proud. The challenge in America is facing diversity- the difference in time, and the number of workers in relation to Israel (2:35).
And why actually hire workers from abroad and not only from Israel?
Shoshani said, “We brought in people from the US to serve the clients. Most of our American audience is from the US, the time difference is very difficult, so having a team from Israel manage my clients America is not always possible. In addition, now with the exit from the disease, many meetings and meetings are face-to-face again, so we have someone in America who can represent the company. The third thing is that there is an advantage to get a native working for you who speaks the language. , understands the culture, and understands the other side better. This gives your customers confidence that the company has a team all over the world and especially where they come from . customers in America.”
After the current crisis, are companies offering higher wages and fewer options?
Dori explained: “In general, the answer is no. Lately, at least from what I’ve seen, it’s been shown by the adjustment of workers in advanced technology. Based on the number of options offered, we do . No major change is seen. Contrary to what is seen, the stock of options in the market has increased because many new companies have been established, employees have been hired and options have been given to employees in the first half of 2022.”
What is the impact of the recent technology crisis on the field of choice?
According to Dori, Israel’s top technologies are not in any crisis at all. “A quick analysis of the data for the first half of 2022 and the second quarter of this year shows without any doubt that the word ‘crisis’ does not correspond to the reality of Israeli technology. In the first half of 2022, for example , Israel’s tech giants have raised nearly $10 billion in multiple rounds, the most in 2020, and more than any year before. There were more than 60 exits at the start of the year. and 46 new startups were founded (according to IVC) compared to nearly 700 startups in 2021, which is an unusual year. values and happiness that will never last forever.
“Regarding the impact on the labor market, there is really no significant impact. The sector continues and will continue to use compensation tools as a major tool for compensation. Some companies are currently looking at re-pricing options. They have given permission to return to work for workers and some are taking new programs to fit the current situation.”
What do you think the future holds for Israeli high tech?
“Despite the challenging times, the technology industry will continue to grow and become an engine of economic growth. According to the latest report by the Innovation Agency, Israel continues to be the world leader in the number of employees in large companies. In 2021, the number of employees in the industry will exceed 10% for the first time, and according to the government’s policies and the development of the industry, we believe that this share will increase Estimates, we will also witness another phenomenon, in recent years there has been a decrease in the number of new companies opened, but with a decrease in quality in large companies, some of those employed in large companies. positions in these companies will become entrepreneurs and start new companies and the number of new companies in the industry will increase again.”
