Google’s new London headquarters.
LONDON – Technology firms in London are finding it difficult to hire tech workers as Silicon Valley tech giants expand their operations in the UK capital.
American tech biometrics, including Google, Facebook, Amazon, Apple, Microsoft, Polantier and Twitter, now employ tens of thousands of tech workers in fraudulent offices across London, and some are expanding.
Oscar White, CEO and founder of venture capital-backed travel startup Beyonc, told CNBC that the expansion is making recruitment more difficult, adding that he has raised salary expectations and increased tech resources. The deficit has increased.
Alphabet, Google’s parent, is in the process of building a large complex at Kings Cross with enough space for 7,000 Google employees and about 1,000 1,000 deep-minded staff. A few miles away, Apple plans to move 1,400 staff to a new Apple campus at Beatrice Power Station. Although construction has been halted by the Corona virus lockdown, they are still moving forward. Elsewhere, Facebook and Amazon have recently opened multi-storey offices in London.
According to Facebook’s career website, there are currently 266 open positions in London, while Google has 172 and Apple has 103.
“There is more demand from software developers than ever before, which is likely to get worse as more tech company’s campuses spread around the city,” White said. “This presents a real challenge for startups on a tight budget, which rely heavily on technology resources as a key enabler for growth.”
Twitter declined to comment. None of the above-mentioned American tech giants responded immediately to CNBC’s request for comment.
Many startups in London will struggle to attract software developers if they offer a salary of less than 80 80,000 ($ 110,000), according to White, who said the experienced developer now pays annually. Can get a salary of up to 120,000.
Tom Richardson, CEO of the money management app Lumio, told CNBC that finding the right people is “very difficult.”
“We are a startup and with only one seed round and we cannot attract giant or great product managers,” he said. “It’s crazy to start paying.”
To address the issue, Richardson is considering moving his business or hiring more remote workers, but he said both have their own risks.
Another CEO of a London-based tech firm, who spoke on condition of anonymity because he was not authorized to speak on condition of anonymity, told CNBC Firms have tried to hunt down many of their staff in recent years. “When Manchester United knocks on the door, you have to answer,” he said.
The US tech firm, which did not name the CEO, offered the employee the same salary but a stronger overall package that included share options and car allowances. “We ended up retaining them but it had to be worth their time and they had to make an offer they couldn’t refuse,” the CEO said.
The CEO said that Amazon has tried to prey on the employees of the London tech firm more than any other American tech giant.
To ensure the company retains its best people, the CEO said he has developed a “more round-the-clock benefits package” that includes high-performance staff share options and career development. Plans included.
Venture capitalists and tech investors have a relatively broad view of the recruitment scenario as they are involved in a number of startups.
MMC Ventures venture capitalist Simon Manshi, who has invested in dozens of startups, including food kit delivery firm Gusto and travel startup Low Home Sweep, told CNBC that Silicon Valley’s new outposts in London Definitely contributing to the rise in wages. “Large tech firms compete with local start-ups for engineers,” he added.
According to Manshi, London startups were also competing with other startups in the city for some workers.
“When our portfolio companies lose candidates for senior executive talent, they are for other start-ups and scale-ups, not for large established tech companies,” he said.
Ezvedra, a former investor in Google Ventures who now works as a managing partner at Remagen Ventures, told CNBC that it is more difficult for London startups to hire good employees because they are from big tech companies. ” In the lure of growing packages and benefits. And better funded startups.
Meanwhile, Ian Hogarth, an angel investor who sold his music startup to Warner Music Group, told CNBC that he was not convinced that the Silicon Valley expansion would be rented out to a London startup. Making it difficult to get. .
Hogarth argues that the rise of remote working has allowed companies to grow without having to put everyone in a physical office. Hogarth, for example, said Hoppen, headquartered in London but far away, had increased the number from one to 800 in two years.
Although Bridget has made it difficult for companies in London and the rest of the UK to find work, the development of the UK tech ecosystem means that more experienced talent is available than ever before.
Alice Bentinck, co-founder of startup investment firm Entrepreneur First, told CNBC that Silicon Valley firms increase competition in London in the short term.
“But in the long run, I don’t think that’s a bad thing,” he said. It’s a sign that London’s tech ecosystem is thriving.