iXTalent

What is Quiet Quitting? Reasons and Solutions For Companies

admin — Fri, 28 Oct 2022 06:17:17 +0000

By Bayram Kont | Executive Consultant at iXTalent

While the “Great Resignation” wave that has surged in the U.S. amid the pandemic continues to affect the labor market, a new buzzword has emerged to describe an increasingly common alternative to resigning: “quiet quitting.” More critical is that this quiet alternative will become increasingly common as the economic outlook worsens, and outright quitting becomes less feasible for many people.

Research on the Great Resignation has shown that mid-career professionals tend to leave their jobs, typically between the ages of 30 and 45. While some referred to this as early retirement, it signaled a shift toward the gig economy, which was more prevalent at the professional level and younger ages. Yet, this “quiet quitting” meme gaining popularity in 2022 is common, especially among white-collar youth and Z-generation, who call it the antithesis of the toxic “hustle culture.” This generation joined the working world during the Covid- 19 pandemic has dislocating effects, including blurred boundaries between work and life.

According to a survey in June of 2022 by Gallup based on a random sample of 15,091 full- and part-time U.S. employees aged 18 and over, “quiet quitters” make up at least 50% of the U.S. workforce. U.S. employee engagement took another step backward during the second quarter of 2022, with the proportion of engaged workers remaining at 32% but the ratio of actively disengaged increasing to 18%. The remaining 50%, Gallup theorized, could be classified as quiet quitters, people who were not specially engaged in their work but didn’t broadcast the fact.

In this thorough article, we take a comprehensive analysis to discuss the “quiet quitting” phenomenon in all facets. You can read directly the article’s abstract or by selecting the title that interests you from the table of contents below, and you can continue reading from that section.

Abstract of Article

Quit quitting can be described as “doing only the defined work during defined business hours”, “protecting work-life balance”, “not taking further responsibilities”, and “setting working boundaries.” It is a reaction to the hustle culture and burnout of people who want not to miss a meaningful life outside of work, to break away from work, to do only the assignments given, and to practice self-care after work. The concept of quiet quitting has recently become popular on a global scale due to a viral video published on July 25, 2022, by a teenager named Zaid Khan, a TikTok user. The buzzword went mainstream from there.

Although the Z generation and the young Y generation have “socialized” this concept, we can say that the quiet quitting phenomenon has been in our business for a long time. The phenomenon of quiet quitting is not new, but the expression and articulation of repressed frustration among employees are unique. Employees are sending a clear message to their employers: This is not fair and sustainable; we must speak up! The companies’ reactions will mainly determine whether this trend will be temporary or permanent. Business leaders must take this phenomenon seriously so that companies and quiet quitters will win together.

What are the reasons driving employees to quiet quitting?

Pandemic conditions have born out the workers, primarily the new generations who started working firstly, and triggered further questions about the meaning of work.

Employees fail to see their efforts payoff.

Unhappy employees want to punish the employer

Employers are pressing for productivity

Unhealthy workplace culture gives results in great attrition.

There are some risks for quiet quitters. Their professional and personal development will be slowed down, their career will be put at risk, and there will be included in the short list of those who will be fired at the first contraction by the employer. The significant gaps between employer and employee expectations will generate tensions that constantly disturb both sides.

Quiet quitting is a problem for companies because most jobs today require extra effort to collaborate with coworkers and meet customer needs. Managing quiet quitting is much more complicated and challenging for most corporate executives than managing quits.

Proposals for managing quiet quitting phenomena:

Create an environment of genuine and open dialogue

Conduct “Stay at Work” interviews

Discuss their tasks in greater depth with the employees.

Build a winning culture

Create a healthy and meaningful work environment

Improve employee engagement

1. What is quiet quitting?

Despite the name, quiet quitting is not about quitting. It’s more like a philosophy for doing the bare minimum at your job and putting in no more time, effort, or enthusiasm than necessary. Quiet quitters continue to perform all their regular work and primary responsibilities, but they refuse to go above and beyond and engage. We can summarize quiet quitting in its most general form as ‘doing only the defined work during defined business hours.’ In a sense, the concept that we can describe as a quiet renunciation from the company also includes: “doing nothing but what needs to be done at work,” “protecting privacy,” and “not taking additional responsibilities.”

Nevertheless, from the employee’s point of view, let’s make room for the following definitions of quiet quitting: “acting according to wages, maintaining a work-life balance, taking time to take care of yourself, slowing down the busy work schedule, and setting boundaries.” Because what we are seeing is predominantly a demand for correction to create a sustainable way of working and living. It’s what people say that life is more than work. Quiet quitting is a reaction to the hustle culture and burnout of people who want not to miss a meaningful life outside of work, to break away from work, to do only the assignments given, and to practice self-care after work. Employees who complain about the hustle and bustle culture state that they maintain their work-life balance and become less tired with their quiet quitting. Moreover, they do not experience disappointment because they do not enter expectations.

2. How did quiet quitting happen popularly?

This trend started in the China in 2021 with the name “lying flat” by Chinese social media #TangPing hashtag a movement to make its voice heard against long working hours. This movement was condemned by the Chinese Communist Party and censored on social media.

“Quiet quitting” has been used in the U.S. since at least March 2022, when YouTuber Timothy Ward described it as doing “just enough to get by and not get fired.” However, the concept of quiet quitting has recently become popular on a global scale due to a viral video published on July 25, 2022, by a teenager named Zaid Khan, a TikTok user (@zaidleppelin) living in New York City and watched by millions of people in a short time. Quiet quitting, for Zaid Khan, is to give up the hustle culture. “You’re still performing your duties, but you’re no longer subscribing to the hustle culture mentality that work has to be your life,” he says. In this short video, Zaid, a software developer, introduces the concept as “not outright quitting your job but quitting the idea of going above and beyond” and links quiet quitting to the belief that “your worth as a person is not defined by your labor.”

In his TikTok video, Clayton Farris posted about the trend days later by saying: “The most interesting part about it is nothing’s changed. I still work just as hard. I still get just as much accomplished. I don’t stress and internally rip myself to shreds.”

The buzzword went mainstream from there. The Wall Street Journal, The Guardian, The New York Times, Time, and other major media outlets published series articles. Harvard Business Review and LinkedIn influencers such as Arianna Huffington was involved in the discussion and offered solutions. McKinsey, Gallup, etc. research and consultancy companies contributed to understanding this new trend with their field research. The quiet quitting phrase was defined and redefined.

If we look at the repercussions it creates; how silent can we call “quiet quitting? A TikTok video shared as “quiet” quitting has now turned into a cry. For the last three months, experts from all walks of life have been producing intense content on defining this phenomenon and delivering solutions. So far, there has been considerable literature on the subject.

3. Is quiet quitting a new trend or simply a trendy new name for worker dissatisfaction?

Although the Z generation and the young Y generation have “socialized” this concept, we can say that the quiet quitting phenomenon has been in our business for a long time. The term quiet quitting fills a missing gap to describe the situation most people experience at work from time to time. This movement is developing as a philosophy of life in the Z generation and people who have reached professional satisfaction. The phenomenon of quiet quitting is not new, but the expression and articulation of repressed frustration among employees are unique. Employees are sending a clear message to their employers: This is not fair and sustainable; we must speak up!

Quiet quitting, which has become common among career-weary and especially young workers between the ages of 22-30, is a movement founded on the principle of “protect yourself and work as much as your salary.” They don’t work too little to get fired or too much to get promoted. It is absolutely out of the question to work extra hard to make a difference and succeed beyond expectations.

Quiet quitting workers see their workplace and status at work not as a concept that defines them and determines who they are but as a means to access the money they need to live.

So, why is this concept so popular now?

According to Tayo Beyer in The Guardian, “What is happening is that tired, overworked, burnt-out working-class people are taking back their agency and refusing jobs and working conditions that are unsuitable for us.” She adds that gaining popularity in response to pandemic-induced burnout, quiet quitting is definitely having a moment, especially among young people who, in many ways, have suffered through the worst of these surreal times.

We can address the dynamics that are causing this trend to emerge. Generation Z, who come to the forefront of business life with their fondness for freedom, has a clear statement of why they do not want to take on extra responsibilities outside their assigned jobs. They also have a lower tolerance for problems in their lives than previous generations.

This new trend will make the mutual negotiation process between employees and employers more continuous in business life. As a result, business rules will be re-discussed and determined. We anticipate that this situation will progress into a new phase of balance and harmony.

4. Is quiet quitting permanent?

What is the quiet quitting really? Is it the passive resistance or emotional disconnection of a generation tired of lousy leadership at work, worn out by hard-working conditions, or is it the bottom wave of a deep-rooted questioning of work’s direct value and meaning? Or is it a mix of them? In both cases, changes in the place and style of work are inevitable. However, the most challenging part is estimating how value-oriented quiet quitting behavior will create an adjustment in the labor market.

The first group is reactive. They are worn out and emotionally disconnected from their jobs due to the unfavorable conditions in their company. Pandemic conditions have also worsened this process. These fall outside the quiet quitting category if conditions improve. Although we do not have any field research, this group constitutes a significant majority among quiet quitters.

Those in the second group reject the idea that work should be at the center of their lives. They oppose the expectation that they should devote themselves entirely to work or work overtime. They say “no” to those who demand more than they think should be expected of someone in their position.

The phenomenon of quiet quitting is a warning for companies to keep their part of the bargain. It also reminded us once again that the workplace of the future will be designed according to the employee, not the employer. The companies’ reactions will mainly determine whether this trend will be temporary or permanent. Business leaders must take this phenomenon seriously so that companies and quiet quitters will win together. The general economic structure will also suffer severe damage from this.

5. What are the reasons driving employees to quiet quitting?

According to Pew Research Center, lack of advancement opportunities, low pay, and disrespect are the top reasons Americans were leaving their jobs in 2021.

Arianna Huffington describes the basic dynamic underlying the phenomenon of quit quitting as follows:

“There’s a reason quiet quitting is resonating so widely. It responds to a very real problem — the global stress and burnout epidemic. It’s also about how people feel about their work — what they give to their jobs and what they get in return. The quiet quitting phenomenon tells us that far too many people feel that their employers aren’t holding up their end of the agreement. They don’t feel seen, valued, or cared about. And as Adam Grant put it: “When they don’t feel cared about, people eventually stop caring.” She adds, “We’re not, after all, just in a crisis of burnout; we’re also in a crisis of purpose and meaning at work.”

A Gallup article by Jake Herway goes deeper and highlights strikingly: “there’s a root cause to quiet quitting that is not currently in the mainstream conversation: broken brand promises. For example, some companies assure employees they’ll prioritize worker well-being and implement employee assistance programs. With these promises in place, many employees and job candidates have felt renewed hope, optimism, and excitement about what their work could provide: flexibility, an inspiring mission, and managers who genuinely care about their well-being. If there’s a misalignment between your culture and what your employer brand has promised, employees either leave the organization or quietly do the bare minimum. In the wake of countless resignations, many are now choosing the easier path of smiling and taking the money.”

Let’s take a closer look at the reasons that drive the quiet quitting phenomenon, which has complex and multi-layered dynamics:

The second phase of the Great Resignation wave has begun: While the “Great Resignation” wave, which flared up with the pandemic, began to fade, quiet quitting began to take its place on the stage. In this new trend, many employees do not leave but refuse to work in the old patterns the employer wants. In this respect, some call the quiet quitting the “Great Renegotiation.” In America, where the labor market is tight, especially the young generation wants to make their voices heard more strongly with the social media tools they use effectively. They want to continue the advantages of remote working that they have experienced during the pandemic period and demand the normalization of the working order that works against them. In this respect, quiet quitting will produce more permanent and shocking results for the business world.

The pandemic changed the value judgments about the meaning of work: With the pandemic, people had the opportunity to think long-term about how they spent their lives. Many people deeply questioned the meaning of life and work, “Is it worth putting all my energy into my work?” This fundamentally changed their expectations of life. This paradigm shift in outlook on life and work certainly impacts employees’ quiet quitting decisions. However, we need more field studies on how much of this explains the quiet quitting phenomenon and how long the effect will be.

During the pandemic period, the work schedule was messed up: Due to the practice of working remotely in many workplaces during the pandemic, the boundaries between working hours and private life became blurred. Some employers have asked employees to work more. Employees, who had to submit to this “violation of boundary” due to limited job opportunities during this period, did not want to continue this after the pandemic and began to demand that the work boundaries be clarified. This traumatic period led to burnout in many employees. The feeling of missing life, created by not being able to spare time for themselves and their loved ones, began to take hold. This put the boot in the quiet quitting process.

Deloitte’s external marketplace survey of 1,000 full-time U.S. professionals explore that 77 percent of respondents say they have experienced employee burnout at their current job, with more than half citing more than one occurrence.

Deep dive by reading the insight below:

Addressing employee burnout: Are you solving the right problem?

Employees fail to see their efforts payoff: When employees raise their requests for a title and pay changes despite their extra efforts, they witness their employers ignore them. They realize that the expectations and goals they are regularly asked to exceed are not sustainable or worth it. Efforts to create additional productivity or efficiency do not come back to them through higher wages and benefits. They think that they have financially rewarded their manager or the company they work for. They have no expectations from their workplace and experience a deep sense of disappointment, resentment, and injustice. They develop a defense mechanism with these thoughts and begin to show quiet quitting behaviors. The wage decline against inflation, which emerged worldwide after the pandemic and the Ukraine war, also makes this reaction more severe.

There are so many burnout quiet quitter cases. Some featured ones:

Georgia Gadsby March, 24, from Devon, worked in marketing for a retail and homeware company where she was doing overtime with no reward. After starting her admin support role, she began taking on more responsibility and was working nearly 60 hours a week. She approached her managers about being compensated for the extra commitment. “I was promised a pay rise, but it never materialized into anything. I felt humiliated,” she says.
Paige West, 24, said she stopped overextending herself at a former position as a transportation analyst in Washington, D.C., less than a year into the job. Work stress had gotten so intense that, she said, her hair was falling out, and she couldn’t sleep. While looking for a new role, she no longer worked beyond 40 hours each week, didn’t sign up for extra training, and stopped trying to socialize with colleagues.

Employers are pressing for productivity: In reality, many businesses often want their employees to go beyond regular working hours to maintain high productivity. At this point, the balance works against the employee. The work-life balance of employees turns upside down to the detriment of life. Employees find themselves in an exhausting hustle and bustle culture. As a result of over-centering, the work and neglecting the human aspects of employees, a feeling of alienation from their work and workplace takes root. When these conditions worsen, and they begin to sacrifice their privacy constantly, many employees feel the need to set a limit.

Unhappy employees want to punish the employer: Those who experience job dissatisfaction in the company they work for or do not see the value they deserve do not want to show extra performance in the workplace based on their treatment. Especially those who are unhappy at work but cannot leave the job due to financial difficulties punish the employer with minimum performance and a routine that progresses at a low level. Since it takes time to find a new job and getting new experiences is difficult, the employee puts himself in quiet quitting mode for a while.

Other reasons related to the well-being and functioning of the working environment: These can be summarized as follows.

Inadequate or poor leadership
Toxic work behaviors and workplace bullying burnout syndrome
Insufficient salary and wage inequalities among employees
Long working hours and excessive workload
The lack of meaning and excitement
Uncertainty of business processes
Unclear career paths enough
Overwhelming goals and an oppressive leadership style
Injustices in promotion and rewards
Strictness in flexible working
Not seeing the value they deserve in the workplace
Lack of participation in decision-making processes
Mobbing at work

6. How do we know when an employee is quiet quitting?

Some employees need to be made aware that they are in quiet quitting. On the other hand, many companies have difficulty in identifying their employees in the quiet quitting process. We can address an employee quitting quietly when given the following eight signs.

1. Just doing the assigned tasks, not improving your work
2. Not accepting overtime even if it is paid
3. Not speaking or taking part in meetings,
4. Contribute less to team projects
5. Having a communication breakdown with co-workers
6. Not participating in or forcibly participating in social activities
7. Not being enthusiastic about your job
8. Demonstrating the poor quality of work output

7. What are the risks of quiet quitting for the employees?

It’s essential to stay at the borders. There is a famous saying: “When something goes beyond its limits, it turns into its opposite.” Again, there is a dose difference between medicine and poison. Therefore, the employee must maintain balance and boundaries during the quiet quitting process. Suppose the employee has kept motivation at his job and self-development point. In that case, if he refuses to work overtime and the hustle culture, he can realize good communication with his managers and maintain his continuity and well-being.

However, suppose he goes beyond that and begins to lose all emotional attachment to his work, company, and co-workers. In that case, he will likely fall into a self-feeding whirlpool of unhappiness. The professional and personal development of the employee will be slowed down, his career will be put at risk, and he will be included in the short list of those who will be fired at the first contraction by the employer. The significant gaps between employer and employee expectations will generate tensions that constantly disturb both sides. The employee will face the risk of losing his job. In addition, the employee’s co-workers will react to these behavior patterns from time to time. Because their workload will increase, and there will be a decrease in performance in realizing common goals. This situation also risks disrupting the peaceful working environment and undermining the team spirit. We should note: Employees have responsibilities in the workplace not only to themselves but also to their customers and colleagues. It’s easy to make a silent decision to resign. Some professions make it less easy. Who wants their doctor or child’s teacher to take the easy way out?

The possibility of employers responding in the form of “quiet firing” in response to the quiet quitting reaction of the employees, although it is ethically problematic, is in question. “Quiet firings are defined as indirect layoffs ranging from worsening working conditions to depriving an employee of their job rewards and forcing them to resign.

8. Is quiet quitting really a problem for companies?

At first glance, quiet quitting may not seem like a real issue. Above all, quiet quitters fulfill their core tasks — they’re just refusing to go beyond them. But for many companies, employees willing to go beyond the standard work requirements is a critical competitive advantage. In reality, most jobs can’t be fully defined in a formal job description or contract, so organizations rely on employees to step up to meet extra demands as needed. Furthermore, managing quiet quitting is much more complicated and challenging for most corporate executives than managing quits. Because quiet quitting distracts the manager’s focus, drains his energy to improving the situation continually, increases the workload on other team members, and ultimately dampens team members’ enthusiasm to go beyond.

Making an extra effort at work and even sacrificing time for it comes at a cost to the employee. However, some benefits and opportunities offset this cost: more financial rewards, career success, and personal growth. The quiet quitting trend suggests that employees increasingly feel this exchange has become unbalanced. Employers are demanding additional effort from workers without investing enough in them.

On the other hand, U.S. Labor Secretary Marty Walsh said on Yahoo Finance Live: “I know that quiet quitting’s being reported in the press. I’ve talked to a lot of companies in the country. And I haven’t heard about that.” But, Various studies have found quiet quitting is a rising pain point for companies.

State of the Global Workplace: 2022 Report by Gallup over 160 countries finds out that stress among the world’s workers reached an all-time high. With only 21% of employees engaged at work and 33% thriving in their overall well-being, most would say that they don’t find their work meaningful, don’t think their lives are going well, or don’t feel hopeful about their future. For example, only 9% of workers in the U.K. were engaged or enthusiastic about their work, ranking 33rd out of 38 European countries. The report also indicates that employees who are not engaged or who are actively disengaged cost the world $7.8 trillion in lost productivity. That’s equal to 11% of the global GDP.

Another Gallup survey’s findings refer to a decline in engagement and employer satisfaction among remote Gen Z and younger millennials below age 35. “The percentage of engaged employees under 35 dropped by six points from 2019 to 2022”. This is a significant change from pre-pandemic years. Since the pandemic, younger workers have declined significantly in feeling cared about and having opportunities to develop — primarily from their manager.

Meanwhile, U.S. Bureau Of Labor Statistics data shows a historic drop in productivity in the first half of 2022, falling at a 6.0 percent annual rate. There could be many reasons for this. But some argue that something like quiet quitting might also affect this decline.

The overall decline was primarily related to the clarity of expectations, opportunities to learn and grow, feeling cared about, and a connection to the organization’s mission or purpose — signaling a growing disconnect between employees and their employers.

Quiet quitting is a problem because most jobs today require extra effort to collaborate with coworkers and meet customer needs.

9. What should businesses do about quiet quitting?

In an August 2022 Harvard Business Review article, leadership development consultants Jack Zenger and Joseph Folkman advised managers to examine their behavior first. “Suppose you have multiple employees who you believe to be quietly quitting,” they wrote. “In that case, an excellent question to ask yourself is: Is this a problem with my direct reports, or is this a problem with me and my leadership abilities?”. The article emphasizes that the phenomenon of quiet quitting is related to the manager’s ability to connect with employees rather than the employee’s laziness or unwillingness.

Scott Hitchins suggests that “quiet quitting” represents a breakdown in the relationship and connection between employer and employee. Rather than judging one side or the other, we need to get back to open, multidirectional workplace communication that empowers everyone.

We can summarize our recommendations to business leaders to mitigate the adverse effects of quiet quitting on companies as follows.

Create an environment of genuine and open dialogue: Employers must listen to and be sensitive to change, the new generation’s, and employees’ changing expectations. They should lead a sincere and warm communication and feedback process. In addition, leaders must prioritize creating an environment in which workers feel safe speaking up, in which they believe that the organization cares about them, and in which they can have confidence that leadership will hear and address their concerns.

Conduct “Stay at Work” interviews: “Stay at Work interviews” provide a viable method to understand employees’ challenges with their job and what motivates them. Retention interviews ask the employee the question, “What’s keeping you in the game?” one-on-one conversations can provide key insights into the employee experience. Although an employee is usually interviewed when entering and leaving the job, the most important thing to do in this period is the job retention interviews.

Deep dive by reading the insight below:

How Can You Retain IT Talents at Work? What Motivates Them?

Talk to the employees in more detail about their jobs:

> Discussing the workload with the employee

> Rethinking their work together

> Eliminating unnecessary work

> Developing projects on how to do existing work more efficiently

Creating work plans will turn quiet quitting into a business and process improvement opportunity

Build a winning culture: If we look at the characteristics of the winning culture, research shows that there is an identity that creates a sense of purpose in employees in these companies, communication with all stakeholders is based on honesty, high performance is rewarded, the authority and responsibilities of employees are clear, there is a cooperation between individuals and teams, It shows that it is agile, innovative and success-oriented. When employers want more from employees, they must be open to sharing more. They should do this based on mutual consent without usurping the private space of their employees. Relationships should progress with honest and transparent communication, respecting each other’s expectations. A sustainable, transparent, and rational relationship should be developed based on facts, not promises. Because uncertainty always benefits the strong.

Create a healthy and meaningful work environment:

Consider work-life balance,

Prioritize the well-being and mental health of employees,

Support employees against the challenges of the job,

Invest in their professional development,

Create opportunities to develop their strengths

Encourage open communication and participation,

Share rewards fairly,

Delegate authority to employees,

Protect meticulously human dignity,

Uncover the meaning in your work,

Come up with a mission-driven vision to make the world a better place,

Develop a sense of shared purpose in your employees, allowing them to see the connection between their work and your company’s main strategies.

Improve employee engagement: There are several ways you can boost employee engagement, like as offering incentives, providing growth opportunities, and providing employees with autonomy. Empower your team members with the tools, knowledge, and means necessary to do their jobs well. Find out by focusing on unique employee needs and listening more effectively to what motivates them. One employee may value career development opportunities, another may care more about flexible schedules, and others may want a higher share. After discovering these, invest in employees’ happiness, development, and career.

References:

https://www.gallup.com/workplace/398306/quiet-quitting-real.aspx

https://www.mckinsey.com/mhi/our-insights/addressing-employee-burnout-are-you-solving-the-right-problem

https://hbr.org/2022/09/when-quiet-quitting-is-worse-than-the-real-thing

https://hbr.org/2022/08/quiet-quitting-is-about-bad-bosses-not-bad-employees

https://www.linkedin.com/pulse/lets-quit-quiet-quitting-arianna-huffington/

https://www.nytimes.com/2022/08/23/style/quiet-quitting-tiktok.html

https://www.theguardian.com/money/2022/aug/06/quiet-quitting-why-doing-the-bare-minimum-at-work-has-gone-global

https://www.wsj.com/articles/if-your-gen-z-co-workers-are-quiet-quitting-heres-what-that-means-11660260608

https://www.mckinsey.com/~/media/mckinsey/email/genz/2022/08/30/2022-08-30b.html

https://www.gallup.com/workplace/403598/need-answer-quiet-quitting-start-culture.aspx

https://www.linkedin.com/pulse/sessiz-istifa-sebepleri-ve-%C3%A7%C3%B6z%C3%BCm-%C3%B6nerileri-bahattin-ayd%C4%B1n/

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The post What is Quiet Quitting? Reasons and Solutions For Companies first appeared on iXTalent.

Portugal Has Launched A New One-Year Digital Nomad Visa

admin — Tue, 18 Oct 2022 10:37:19 +0000

Digital nomadism is an undeniably increasing trend worldwide, especially after the pandemic with the rise of remote work. There will be over 35 million digital nomads worldwide in 2022, most originating from the US. Digital nomads generally combine remote work and travel for various reasons.

Many countries have started offering a version of the “digital nomad” visa to lure highly qualified, young professionals. These visas allow remote workers to settle for extended periods, working from home and contributing to the local economy. After the disruptive 5-year digital nomad visa that Indonesia put into effect in July 2022, Portugal has also launched a new one-year digital nomad visa, which will be effective on October 30. The new visa program allows visitors to live and work for up to a year in Portugal. In addition, the visa will also allow you to travel visa-free through the Schengen Zone.

Yet until now, there wasn’t a simple way for temporary residents to work remotely from the country. Previously, expatriates had to apply for a D7 visa. The difference between a Portugal Digital Nomad Visa and a Portugal Tourist Visa is the amount of time allowed to stay in the country. Depending on the country, a Tourist Visa will allow you to stay up to 90 days. In contrast, a Digital Nomad Visa can extend your stay for up to a year or more.

The new visa designed for working professionals, officially called the “residence visa for the exercise of professional activity provided remotely outside the national territory, was created first after the Portuguese government amended immigration law in July. Ana Catarina Mendes, a Portuguese Cabinet minister, says: “Portugal is a country for immigration. Every year, we receive thousands of immigrants seeking opportunities in our country”.

What are the qualifications for the applicants? How to apply?

Here are the qualifications for applicants:

(*) Come from a country, not in the EU or EEA

(*) Be self-employed or employed by a company based outside of Portugal

(*) Earn at least four times the Portuguese minimum wage per month – roughly €2,800.

As well as showing proof of income for the last three months, applicants must submit tax residency documents and a contract of employment (or evidence of self-employment).

The digital nomads can apply at a Portuguese Consulate in their home country or Portugal’s immigration agency, Serviço de Estrangeiros e Fronteiras.

Is Portugal Attractive for Digital Nomads?

Portugal is one of the most popular destinations for digital nomads offering a pathway to European citizenship. According to the Nomad List platform, which aggregates some of the best destinations in the world for this community, Portugal has three cities in the top 10 of the best to work remotely, with two locations in the top three.

Lisbon is considered the best destination in the world for the digital nomad community, with excellent ratings in terms of safety, entertainment, and internet speed, which offset the cost of living in the capital, which is considered high. The island of Madeira appears in third place, with the cost of living being much more affordable. Porto is another fantastic destination for remote workers.

References:

https://www.euronews.com/travel/2022/10/10/digital-nomads-will-be-able-to-live-and-work-in-portugal-full-time-with-this-new-visa

https://www.bloomberg.com/news/articles/2022-10-07/digital-nomad-visa-portugal-wants-remote-workers-to-spend-a-year-in-the-country?

https://www.atlys.com/country/portugal/digital-nomad-visa

https://www.theportugalnews.com/news/2022-10-14/new-digital-nomad-visa-for-portugal/71183

You might also like these featured insights:

Top 10 Reasons for Digital Nomads to Move to Turkey

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Indonesia’s New Digital Nomad Visa Allows Remote Workers to Live Tax-Free

The post Portugal Has Launched A New One-Year Digital Nomad Visa first appeared on iXTalent.

How to Find and Retain Tech Talent For Legacy Systems?

admin — Fri, 30 Sep 2022 20:38:51 +0000

By Bayram Kont | Executive Consultant

Legacy systems, such as financial institutions, are prevalent in large companies with a long history. A good example is MOCAS, a software that the US Department of Defense has continuously used since 1958.

Legacy systems generally have a negative connotation, but they work well in many businesses today. The current state-of-the-art and modern hardware and software systems are candidates to be quickly included in the legacy systems category, especially today when technology accelerates dizzily.

Legacy software engineers may not be in demand in quite the same way as other developers, but there’s still a pressing need for their expertise. Even as technology rapidly evolves and new languages and platforms become commonly used, legacy systems continue to work behind the scenes, providing essential building blocks to the infrastructure of many organizations.

We will cover three topics in this article: 1) What is a legacy system, and how is it characterized? 2) Why are legacy systems still around? 3) How can businesses find and retain rare tech talent for their legacy systems?

What is a legacy system?

A legacy system is more than just old software or hardware technology. It may be old or relatively new. The most crucial distinction is that it is outdated and lacks modern support or features. The system still meets the business needs but doesn’t allow for growth and adequately cannot be integrated with new processes or applications.

For a functional definition, a legacy system can refer to any piece of software, incumbent technology, or an entire system that blocks or slows down an organization’s ability to grow, shift and adapt in the face of changing market dynamics.

Gartner defines a legacy application as “an information system based on outdated technologies but critical to day-to-day operations. Replacing legacy applications and systems based on new and different technologies is one of the most significant challenges for information systems (IS) professionals. Enterprises upgrading or changing their technologies must ensure compatibility with old systems and data formats still in use.”

What are the main characteristics of a legacy system?

Insufficient support by the system vendor
Inadequate to meet the growing business needs
Costly and complex to customize
Implemented on old technologies and platforms
Difficult to scale
Cumbersome to operate
Nearly impossible to update and expand
Hard to integrate with other systems
Decreased productivity
Increased maintenance costs
Vulnerability to security breaches
Broken down unexpectedly
Having no integration tests
Not properly documented
Bad unreadable code
The shortage of qualified technical personnel

There are many examples of legacy systems. Some are:

Operating systems: Android 1 to 6 (Marshmallow), Windows XP, Windows 7
Enterprise Resource Planning (ERP): Tradecard, Baan ERP, SAP R/2, AS/400
Programming languages: OptimJ, FoxPro, PL/B, COBOL
Health software: Google Health, MyWay, Allscripts

Why do companies continue to use their legacy systems?

A study conducted by Dell revealed that more than 70 percent of federal IT decision-makers in the USA, Germany, the UK, Japan, Brazil, India, and China use outdated software. Furthermore, half of the government representatives surveyed said their legacy software exceeded its end-of-life date. COBOL is the most popular language among federal governments, even though it was initially developed almost 60 years ago.

You will be surprised to learn that many large companies use legacy systems, even though businesses are expected to be up to date to survive in the market. There are two types of organizations where legacy software is more common:

1. Large organizations, such as healthcare organizations, government bodies, and logistics companies, that operate on numerous complex, multi-layered workflows

2. Organizations in which safety and system uptime are critical factors, such as Energy generation and distribution companies, nuclear defense departments, space exploration agencies, banks, and financial institutions

Here are the significant reasons why legacy systems are still in around.

Work well enough: The legacy systems still fulfill a company’s business need or are mission-critical.

Investment Costs: Although maintaining a legacy system is expensive over time, upgrading to a new one requires an up-front investment, both in money, time and staff. Often top management is either reluctant or lacks the financial resources to provide the necessary budget to upgrade legacy systems. Also, the cost of replacing is higher than the benefits of an old system.

Recovering for ROI: Because deploying a company’s IT systems is expensive, organizations need to use them for a certain period to recover such investment.

Risks to replace: Legacy systems are still used by some companies because they think a changeover may cost them a lot, and there is a potential risk of business interruption associated with data migration.

According to a recent article from Deloitte:
“Many banks are still reluctant to upgrade their core platforms and apps. One reason is the central position those systems occupy in the overall banking architecture, which makes it likely that any changes to a bank’s core platforms and apps will have a widespread impact throughout the bank’s channels and operations.

The fear of uncertainty: Many businesses subscribe to a “don’t fix what’s not broken” line of thinking. There’s always a risk that a modernized system won’t meet the business’s needs or will work even worse because of technological defects, which often prevent legacy software owners from modernizing. At the same time, the wide variety of modernization options confuses businesspeople who are searching for better results for a fair price.

Resistance to change: Change is hard, and moving a whole company —or even a single department — to a new system can inspire some internal resistance.

Difficulty in migrating: The legacy software may be built with an obsolete programming language, making it hard to find personnel with the skills to migrate. There may be little documentation about the system, and the original developers have left the company. Sometimes simply planning data migration from a legacy system and defining the scope of requirements for a new one are overwhelming.

In other cases, software systems can’t be modernized because of tech specifics, lack of tech documentation, or an inability to extract data in situations where data loss is unacceptable. Such circumstances cause complications, and engineers must find ways to fix the problem. Such searches take time, and the results are hardly predictable, so companies prefer to use legacy software until something changes, for instance, the launch of a new development tool.

The fear of taking operational risks: Legacy software modernization is a timely process, and the fear that it will disrupt the business prevents many companies from going through with it. After the modernization process is successfully completed, a company can face employees struggling with the new technology and requiring more time to perform regular tasks. Consequently, the company loses time and money because the team is considered inefficient during their learning period.

According to McKinsey research, only 30 percent of companies succeed while trying to implement modernized technology, and the adaptability of employees to the new technology is an integral part of their success.

Security concerns: In some cases, computers that are obsolete at first glance happen to cope the best. NASA’s computer hardware onboard the Orion runs on two IBM PowerPC 750X single-core processors. These dinosaur chips have been used since 2002 and are no faster than modern smartphones. But despite this, NASA uses them not because of budget constraints. The thing is, IBM computers are reliable, and that is the most crucial requirement in space.

The lack of tech staff: The firms sometimes lack the necessary tech skills to migrate the legacy system. Similarly, organizations often lack the technical specifications to create a new system with the same features as the legacy system.

Challenges in finding and retaining tech talent for legacy systems

A Dell and Intel study found that 80% of millennials said workplace tech infrastructure would influence when deciding to take a job.

According to the State of Software Happiness Report 2019, more than 50% of employees are unhappy due to the tools they need to use at work, and around 24% of employees state that the software they are forced to use at work makes them consider a job change. As it implies, utilizing legacy software will make hiring and retaining talents harder and thus require more and more resources to compensate for legacy-related inconveniences.

A new study from IT services provider Advanced shows that 89 percent of large enterprises worldwide are worried they won’t have access to the right IT talent to maintain and manage their legacy systems. There is a substantial lack of sufficient skillsets to maintain the legacy systems.

Legacy asset management technology hinders your search for available tech talent. Even you might lose your some tech professionals. Wise people will invest time and energy in learning new systems with the long-term application. They will spend less time learning to master your old systems. Job applicants will go to companies that embrace new technology—considering that, what will happen when existing talent leaves the company? Who will replace their legacy technology know-how? So, maintaining or upgrading legacy systems is one of CIOs’ most significant challenges.

The problem is that IT professionals are eager to upskill consistently to stay ahead of the ever-changing technology curve. As such, they want to work with the most innovative technology. And working with modern technology is key to growing, maintaining, and utilizing these skills.

On the other hand, as companies continue their constant march to modernize systems and processes, much of the technological infrastructure remains in place—and aging rapidly. That makes legacy technology experts increasingly valuable as time goes on.

How to find the legacy system talent seamlessly?

A survey from Computerworld found that, while 65 percent of businesses aren’t looking for legacy skills, 35 percent still seek workers with legacy programming skills to support critical legacy systems.

Companies face increasing challenges in recruiting and retaining software engineers due to a highly competitive landscape, rapid technological advancement and changing employment culture. These professionals are in high demand because more specialized jobs are available than individuals with the expertise to fill them. With these realities, prospective employees have advantages over companies looking to hire top talent.

According to the Bureau of Labor and Statistics, these tech jobs are expected to grow 22 percent through 2029, while the US population will only increase by 0.8% annually. So, this uneven growth shows that the tech jobs market will most likely get more competitive in the coming years.

Today, when finding talent for legacy systems is even more challenging, companies must go beyond traditional ways of doing business and recruiting methods. Most businesses don’t have access to a vast, qualified candidate pool, and the passive approach of posting jobs and waiting for people to apply isn’t always working. It is essential to realize the paradigm shift toward more disruptive solutions in today’s world, where there is great scarcity, and it isn’t easy to find and retain all technical skills. Here are our prominent pieces of advice, especially for talent acquisition managers, to find and retain rare tech skills for legacy systems.

Make room for remote working in your workplace

Thanks to the pandemic, two tectonic shifts are changing the way we look at work and work: the Great Resignation and the remote work. These are massive changes in the recruitment landscape and are only gaining momentum with time. Read more to capture why remote work increases worldwide for IT jobs especially.

Make room for remote work in your company to reach a larger talent candidate pool. If you’re only recruiting from regions close to your own company’s operating location, your access to legacy systems experts in the qualification you want will be more limited. To overcome the hurdle here, you should build a work environment in your company that allows for remote work, especially for technical positions.

You have created a remote working environment in your company. Limiting remote work only to those residing in your own country will again narrow your talent pool. Suppose you build a business culture that facilitates the employment of technical talents worldwide with the remote working method. In that case, you will diversify your existing talent on a global scale. You also get the opportunity to hire much better talent at a much more affordable cost. Establishing the practice of hiring remote talents worldwide seems a vital initiative during recession periods when companies are hesitant to allocate an investment budget to modernize their legacy systems.

Build a flexible workplace

Today’s tech workers demand flexibility and work-life balance that allows them to continue to focus not only on work but also on the family. Flexible working conditions enable people to tailor their work hours per their lifestyle. Companies that build a flexible working environment can more easily find and hire top technical talent. Read more about what tech talent motivates and how to retain them.

Search for talent in emerging tech markets

Promising and emerging IT markets may be the alternative for looking for great tech talent for your legacy systems. The growing IT industry combined with the vast population in these countries allows you to be selective and to choose from many candidates. Look to fill positions in areas where the talent pool is large and hungry for new opportunities. African countries with specific technology infrastructure, Central European countries, and largely populated countries of the Asian continent have invaluable talent pools for recruiters to find and hire great tech professionals.

iXTalent, an IT recruitment agency based in Virginia, makes contract-based hiring for companies in the USA. Most of its talent pool comes from Turkey, with tremendous technical talent, no language barrier, and an out-of-box mind. Read this article to learn more about Turkish technical professionals’ competitive advantages.

Mobilize internal referrals

Recruiting managers must demonstrate the ability to move beyond conventional methods and mobilize current employee resources when finding and hiring high-skilled technology workers. They should announce their recruitment needs more firmly within the company, strengthen internal communication, promote the employees, and provide alignment.

Senior employees have an extensive network surrounding themselves with other competent professionals. A well-developed employee referral program can encourage employees to refer the best talent they know. Think of providing referral incentives with bonuses and contests to create excitement around the program.

Hunt for talent in nontraditional channels

Social media is a robust recruiting tool for tapping into that sought-after pool of potential candidates who aren’t actively seeking a new role but would be open to change if the right opportunity came along. This is particularly important when recruiting top tech professionals with a general skills shortage. You can also get valuable information to evaluate potential candidates by reviewing their feeds, posts, and resumes.

Social media allows you to share job postings, highlight your company culture with your entire network, and promote a two-way conversation. Even if the people you reach aren’t interested in the role you’re hiring for, they may likely know someone who is a good fit.

Tech talent isn’t just going to job sites; be active in nontraditional channels to reach out proactively to top tech candidates, such as hackathons, open-source media, and specific curated sites for different skills. For some companies, GitHub is their best-recruiting channel.

The people you want to hire are usually not looking for jobs. Recruiting managers should proactively reach out to top tech professionals rather than relying on inbound applications.

LinkedIn Recruiter is a valuable tool to reach out to the candidates to find and hire, irrespective of whether their profiles note that they are open to new opportunities or not. They are often available to talk with you and don’t have competing offers.

The essential actions to retain and motivates tech talents

According to a survey conducted by Talent LMS and Workable with 1200 technology employees in September 2021 as shown below picture , tech employees seem to highly value having room for growth. When looking at the reasons why tech workers leave their job, 41% responded that they do so because it doesn’t offer them opportunities for career progression.

An emphasis on education is vital for firms reliant on legacy tech to survive. AT&T, for example, has spent $250 million on employee education and professional development programs to retrain and, ultimately, retain its staff in the changing technology landscape.

Seniority level is valuable for 81 percent of developers. Therefore, employers identify the unique goals of their staff and provide clear support and guidance every step of the way for those who want to progress.

These career planning efforts are significant for developers with legacy code and systems. They may feel, for instance, that because their work is not “cutting edge,” their skill set and future career path will be left behind.

As business leaders, you must create an attractive work environment to motivate IT talents, enable them to work efficiently, and retain them at work. Here are some essential actions:

1) Offer attractive and above-average salary – benefits

2) Make better options for learning new skills and development.

3) Keep constantly learning and training activities

4) Create career progression opportunities

5) Become flexible in location, schedule, and management style

6) Provide remote working options, at least hybrid working models

7) Offer a better work-life balance

8) Build a peaceful and healthy working environment

9) Nurture your existing employees and show them your appreciation while making efforts to attract new talents

Read more gaining more in-depth insight on how you can retain and motivates tech talents.

Solid reasons to hire tech talent by iXTalent for the legacy systems

If you have legacy software applications and severe trouble finding tech professionals who maintain and enhance them, iXTalent, an IT recruiting agency in the USA, has outstanding teams with a solid background in this field.

Our dedicated teams:

*) have 15+ years of legacy systems such as Cobol-based mainframe, AS400, RPG, key modules written in C/C++ or Perl, core systems based on ASP.NET or Java 5, Oracle PL/SQL etc.

*) have a team leader managing and monitoring all processes and ensuring high-qualitative outcomes.

*) have a backup talent pool that can quickly replace the quitter with an experienced employee.

*) have access to a large talent pool of candidates with varied backgrounds, skill sets, expertise, demographics, and preferences.

*) initiate comprehensive training programs to develop new skills

*) operate a separate office in Istanbul, Turkey, to deliver remote services.

Leave the maintenance and enhancement of your legacy software apps to us. Outsource the enormous burdens of searching, selecting, onboarding, payrolling, training, backing up, and retaining tech professionals. Enjoy our seamless services by focusing on your core business and clients.

Do not hesitate to book a free consultation with our Founder to unlock the collaboration opportunities on hiring the top tech talent for your legacy systems.

Need to recruit best tech talent?

Please feel free to book a free meeting with our CEO. Let’s explore the new business opportunities and tailored recruitment solutions your company needs.

The post How to Find and Retain Tech Talent For Legacy Systems? first appeared on iXTalent.

Best 12 Ways for Recruiters to Find and Hire Top Tech Talent

admin — Thu, 01 Sep 2022 16:39:28 +0000

By Bayram Kont | Executive Consultant

The competition for technology talent is getting fiercer, with software and technology becoming mission-critical for businesses throughout the economy. Pandemic conditions have further fueled the digitalization process of companies already on an upward trend. Companies’ demand for technical professionals has already exceeded the supply of tech talent. According to a McKinsey survey of more than 1,500 senior executives globally, 87 percent say their companies are not adequately prepared to address the skill gap. And according to another McKinsey survey, 61 percent of HR professionals believe hiring developers will be their biggest challenge in the years ahead. Hence, after the pandemic, talent strategy has emerged as a top priority for boards of directors and C-suite leaders. It is currently a more compulsive task for recruiters to find and hire top tech talent than ever.

Global tech companies are hiring top talent at excessively high rates, leaving smaller businesses with less qualified and experienced candidates. Start-ups and non-tech companies struggle to attract top tech talent the most. The situation is reversing; potential tech talent is any longer evaluating companies as closely as companies are considering them. Businesses must proactively show candidates that they not only provide lucrative work opportunities but that they also are open to embracing the expectations of skilled tech talent. Today, successfully recruiting engineers, programmers, data scientists, and other advanced technical workers is more important than ever but also more challenging. In this article, we introduce 12 ways recruiters can effectively find and hire top tech talent for their business.

1. Attend Industry-related Meetups

Job fairs can help you find talented candidates. Non-recruiting-specific events are also great opportunities to meet industry professionals eager to network and advance in their field. For instance, if you’re looking to hire a tech professional, find a local group, meetup or association focused on technology and attend a local meeting. It’s fruitful to talk to people and get some ideas about what’s happening in the local tech industry.

2. Allocate Resources to Campus Recruitment

Campus recruiting is a program conducted within universities or other educational institutions to provide jobs to students nearing completion of their studies. In this program, the educational institutions partner with corporations that wish to recruit from the student population.

Born between 1997 and 2012, Gen Z’s are the most recent generation to enter the workforce. More and more companies are looking to meet them mid-way and are transforming the recruitment and selection process that has existed for years. You can review this article for the benefits of campus recruitment.

3. Make More Room for Remote Working

Microsoft’s Work Trend Index (published in March 2021) found that 66% of employers worldwide are redesigning their workplaces to accommodate hybrid work arrangements. Remote working is a permanent global trend, especially for IT jobs, one of the best fields to find remote work.

Hybrid working models that combine on-site and remote working are trendy these days. Remote working provides companies with a cost advantage and vastly expands the options for hiring the most talented technical professionals worldwide. The proliferation of remote work enables organizations to source candidates from a much wider pool. It would be best if you tried to find world-class tech talent everywhere, not in “obvious” places. It’s only about giving passionate people with unexpected backgrounds a chance and expanding the locations where you look for them.

For many highly skilled candidates today, the ability to work remotely has become a critical deciding factor when applying for a new job position. Businesses should make more room for remote work in their workforce models to attract talented tech workers and create more diverse teams.

For this, online workforce platforms and recruitment agencies such as Crossover, Upwork, Turing, iXTalent, which bring together software developers from all over the world with global companies with a remote working model, should be considered an alternative channel to find and hire top tech talents.

4. Look For Talent in Emerging IT Markets

Promising and emerging IT markets may be the alternative for looking for great tech talent. The growing IT industry combined with the vast population in these countries allows you to be selective and to choose from many candidates. Look to fill positions in areas where the talent pool is large and hungry for new opportunities. African countries with specific technology infrastructure, Central European countries, and largely populated countries of the Asian continent have invaluable talent pools for recruiters to find and hire great tech professionals.

iXTalent, an IT recruitment agency based in Virginia, makes contract-based hiring for companies in the USA. Most of its talent pool comes from Turkey, where there is a tremendous technical talent with no language barrier and an out-of-box mind. Read this article to learn more about Turkish technical professionals’ competitive advantages.

5. Think of A Distributed Workplace

Distributed work is not the same as remote work. A distributed workplace consists of teams where a group of technical experts works in separate geographical locations from one another but are each hired because of a specific skill set or knowledge base. The distributed work requires a new way of company thinking about how things get done – focusing on collaboration.

Firms having the distributed workplace model and mentality also increase their opportunities to find and recruit more skilled technical personnel in a much wider geography. Businesses that force employees to work in only one or a few locations also narrow their potential talent pool.

6. Build A Smart Hiring Process

Most highly skilled professionals have many jobs offers. The increasing competition in the tech talent market has forced corporate leadership to scrutinize the hiring process. Operationally, companies with sophisticated talent strategies are now focused on candidate experience and emphasizing quality-of-hire metrics over speed-of-hire. Being fast, simple, and easily accessible takes you one step ahead of your competitors. Keep job interviews simple – four interviews at most and not exceeding three weeks and leverage digital meeting technologies.

Uncertain, time-consuming, frustrating, and bureaucratic recruitment processes will cause tech talents to disconnect from you at the start and accept your agile competitor’s offer. So, focus on your company’s needs in determining the best candidates and build a carefully structured, hassle-free interview process.

Candidates also look favorably for transparency in the hiring process. This includes pay and better guidance and communication at various stages, such as preparation for interviews or sharing company updates during the process. It is also essential to give candidates a clear answer of acceptance or rejection immediately after interviews.

7. Include Peers in The Interview Process

We establish faster and stronger ties with similar people and run in the same lane. Their work experiences and different perspectives create more robust inspirations for us. Sometimes the best person to interview a candidate is someone already working in the same or similar role. Tech talent wants to meet other technologists, so ensure that engineers and different relevant roles are part of your interview team. Hence, include peers in the interview process to share their firsthand knowledge and help them understand what they can expect if hired. Even bring your best people to online events and conferences.

8. Highlight The Meaning and Challenge of The Job

After wages and benefits, technological talents primarily seek answers to the following questions for the work: What is the meaning of the job? Is it worth doing? Is it exciting and challenging enough? Will this job improve my skills and career? Does the company have a diversity, equity, and inclusion (DEI) strategy?

Therefore, if you want to attract and retain top tech talents to your company, you should clarify the answers to these questions for each job position and highlight these issues in job interviews and even job postings. Talented employees are always thrilled to work on exciting and inspiring problems, be part of a meaningful whole, and invest in their careers. They also give special care to diversity, equity, and inclusion (DEI) values.

Gender-diverse companies are 25 percent more likely to financially outperform less diverse companies, while ethnically diverse companies are 36 percent more likely to do so. Technology talent expects a diverse work environment. We have found that prized digital talent will often refuse a job offer or even refuse to apply to companies it perceives as noninclusive. One-third of recruiters say applicants are inquiring about DEI. (Source: McKinsey)

The employee value proposition (EVP) is critical in addressing these points. One European public-sector institution was having trouble filling 400 tech roles. It refocused its EVP on its mission to work for the “greater good,” such as establishing digital services for all citizens, improving the citizen experience, and making services provided by the administration faster and more reliable. It significantly increased the number of applications received and thus shortened the process to fill positions to a matter of weeks rather than the many months it used to take.

9. Mobilize Internal Referrals

Senior employees have an extensive network surrounding themselves with other competent professionals. A well-developed employee referral program can encourage even more of your employees to refer the best talent they know. Think of providing incentives for referrals with bonuses and contests so you can create excitement around the program.

10. Be Active in Nontraditional Channels

Social media also allows you to share job postings, highlight your company culture with your entire network, and promote a two-way conversation. Even if the people you reach aren’t interested in the role you’re hiring for, they may likely know someone who is a good fit.

The people you want to hire are usually not looking for jobs. Recruiting managers should proactively reach out to top tech professionals rather than relying on inbound applications. LinkedIn Recruiter is a valuable tool to reach out to the candidates to find and hire, irrespective of whether their profiles note that they are open to new opportunities or not. They are often available to talk with you and don’t have competing offers.

11. Design A Flexible Workplace

Today’s workers demand flexibility and work-life balance that allows them to continue to focus not only on work but also on the family. Flexible working conditions enable people to tailor their work hours per their lifestyle. Companies that build a flexible working environment can more easily find and hire top technical talent. They know that excellent performance is not about work time but outcomes. Such companies are keen to go beyond the traditional 9-5 routine working hours and five days a week in the office and create talent-specific and flexible working conditions, making remote working options and on-site working.

Read more about what tech talent motivates and how to retain them.

12. Create Opportunities For Career Progress

Top tech talent wants to work for companies that invest in them with comprehensive upskilling and reskilling programs and care about their career growth. It is vital to make your company’s proposition as compelling as possible. For graduates, this means offering them not just a “job” but a future. The mission is not just about recruiting the best tech talent but nurturing young talent to help them become top-notch professionals.

According to a survey conducted by Talent LMS and Workable with 1200 technology employees in September 2021, being offered more training/learning and flexible working hours are the two primary motivators among tech workers.

Therefore, you should create a work environment that nurtures talent through diversity and supportive culture within hybrid and remote models. You should also provide different career paths to help talent develop their skills.

Summaries

Here are briefly the 12 best ways we recommend tech recruiters follow to find and hire top tech talent:

1. Attend Industry-related Meetups

2. Allocate Resources to Campus Recruitment

3. Make More Room for Remote Working

4. Look For Talent in Emerging IT Markets

5. Think of A Distributed Workplace

6. Build A Smart Hiring Process

7. Include Peers in The Interview Process

8. Highlight The Meaning and Challenge of The Job

9. Mobilize Internal Referrals

10. Be Active in Nontraditional Channels

11. Design A Flexible Workplace

12. Create Opportunities for Career Progress

References:

https://www.forbes.com/sites/forbestechcouncil/2021/11/15/16-strategies-for-finding-and-recruiting-the-best-tech-talent/?sh=18da1ad3ba87

https://www.indeed.com/hire/c/info/10-recruiting-strategies-for-hiring-great-employees

https://fortune.com/2021/12/28/how-to-hire-tech-talent-in-2022-remote-work-diversity-and-inclusion/

https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/tech-talent-tectonics-ten-new-realities-for-finding-keeping-and-developing-talent

https://hbr.org/2021/11/how-to-attract-top-tech-talent

Need to recruit best tech talent?

Please feel free to book a free meeting with our CEO. Let’s explore the new business opportunities and tailored recruitment solutions your company needs.

The post Best 12 Ways for Recruiters to Find and Hire Top Tech Talent first appeared on iXTalent.

Indonesia’s New Digital Nomad Visa Allows Remote Workers to Live Tax-Free

admin — Wed, 13 Jul 2022 09:07:17 +0000

ASEAN’s largest economy, Indonesia, has recently announced “Digital Nomad Visas.” Indonesia aims to entice more remote workers to the country with a new digital nomad visa which allows its holders to stay in Indonesia for five years tax-free.

Digital nomads generally combine remote work and travel for various reasons. Passionate about new adventures, they know how to make the most of new technologies and only need an internet connection to work from anywhere in the world. Unlike other remote workers who usually stay in one place and do work, digital nomads travel and explore while working.

Many countries have started offering a version of the “digital nomad” visa to raise tourism figures back to pre-pandemic level. These visas allow remote workers to settle for extended periods, working from home and contributing to the local economy. Indonesia has become the most recent country to offer such a visa.

What offers Indonesia’s New Digital Nomad Visa?

ASEAN’s largest economy, Indonesia, has announced “Digital Nomad Visas.” Indonesia aims to entice more remote workers to the country with a new digital nomad visa. This exclusive nomad visa allows its holders to stay in Indonesia for five years. They also remain in the country tax-free as long as they derive their income from outside of Indonesia. With this legislation, this visa has won the title of the longest-term visa in the world. This new application hopes to incentivize digital nomads to work from popular tourist destinations like the island of Bali.

The visa policy was announced by Indonesia’s Tourism Minister Sandiaga Uno to boost tourism in the country and to get over 3.6 million overseas travelers into the country over the next year.

According to a Bloomberg report, Uno said that getting millions of travelers through this visa will create a million jobs for Indonesians as the borders have now opened for foreign tourists.

Sandiaga Uno also said the new permit was part of a move away from sunseeker tourism toward a more sustainable model.

He further emphasized he took this decision after a survey that showed Indonesia was “top of mind” for 95% of the remote workers. He also informed that similar plans were in the last year for digital nomad visas, which had to be postponed due to the covid-19 pandemic.

“In the past, the three “S” was: sun, sea, and sand. We’re moving it to serenity, spirituality, and sustainability. This way, we’re getting better quality and impact on the local economy,” Uno said to Bloomberg.

This strategy ensures that residents won’t be displaced from their jobs and that travelers will be longer-staying, higher-spending individuals more invested in the area. Uno explains that they’re interested in not just the quantity of tourists but the quality and the industries their spending will contribute to most.

The government has not yet declared guidelines on when and how to apply for the visa.

Current Visas for Digital Nomads in Indonesia

Indonesia, especially Bali, is already a favorite destination for remote workers and digital nomads with its warm climate and low living costs.

Nowadays, digital nomads can apply for a temporary visa to work from Indonesia. Options include the Visa on Arrival (VoA), valid for 30 days, the tourist visa, which can be renewed to last 60 days, or a business visa that can be extended to 180 days.

That’s why the recent Digital Nomad visa regulation radically offers attractive options for digital nomads and remote workers compared to current visa applications in Indonesia.

The post Indonesia’s New Digital Nomad Visa Allows Remote Workers to Live Tax-Free first appeared on iXTalent.

Top 10 Reasons for Digital Nomads to Move to Turkey

admin — Mon, 11 Jul 2022 16:19:46 +0000

By Bayram Kont | Executive Consultant

If there is a digital age, there will also be travelers of this revolution: Digital Nomads. A new working model and a new lifestyle are taking place on the stage. Digital nomadism is an undeniably increasing trend worldwide. There are over 35 million digital nomads in 2021 worldwide. Digital nomads generally combine remote work and travel for various reasons. Passionate about new adventures, they know how to make the most of new technologies and only need an internet connection to work from anywhere in the world.

The world is globalizing and digitalizing; internet and online meeting technologies are developing rapidly. Now, doing business remotely from anywhere worldwide has become a common practice. The Covid-19 pandemic has both ignited the method of working remotely and made it more permanent.

If there is a digital age, there will also be travelers of this revolution: Digital Nomads. A new working model and a new lifestyle are taking place on the stage. Digital nomadism is an undeniably increasing trend worldwide. There are over 35 million digital nomads in 2021 worldwide. Digital nomads generally combine remote work and travel for various reasons. Passionate about new adventures, they know how to make the most of new technologies and only need an internet connection to work from anywhere in the world.

Talented professionals have become more demanding to work remotely and flexibly. Highly skilled employees not only choose the projects and companies they want to work with but also decide which country in the world and which fascinating cities to work in. It can be a seaside, a forest in green, the summit of a mountain, an extraordinary historical place with its cultural texture, or a holiday resort famous for its crazy entertainment.

What Makes Turkey Attractive Hotspot for Digital Nomads?

At the heart of 3 continents, Turkey, the cradle of hundreds of civilizations in the past, hosts more than 30 million tourists a year. Turkey, a wonderful country for digital nomads to move to, is recently one of the rising and popular digital nomad destinations, whether of the weather, the remote working infrastructure, the cost of living, or the exhilarating lifestyle the country offers.

Turkey, which has a free exchange regime, convertible currency, and a free-market economy open to the world, ranks 21st in terms of economic size. As a member of NATO, Turkey seeks to join the European Union soon and is carrying out membership negotiations. It is a country of prosperity and possibilities for a person with an income who can easily access all kinds of products and services.

Turkey has a modern and highly developed banking infrastructure and payments system at European standards. You can freely transfer money from anywhere, spend as you wish with your credit card, and quickly withdraw money from bank ATMs.

In this article, we put forth the top 10 reasons why Turkey should be on digital nomads’ radar.

1. Ease of Obtaining a Visa

Even though there is no dedicated digital nomad visa program in Turkey, digital nomads can move to Turkey quickly. Citizens of countries with an e-visa agreement with Turkey may apply seamlessly and get the visa online. The e-visa is for touristic purposes only and is not valid for working or student visas. After your e-visa is issued, you can print or save the document sent to your e-mail and present it at the airport and border control.

There are 16 countries where citizens can enter Turkey with their national IDs and 8 countries with their expired passports. (Useful link: https://www.mfa.gov.tr/general-information-about-turkish-visas.en.mfa )

A Turkish tourist visa allows you to visit and stay in Turkey for up to 90 days within any 180 days. To stay longer than this, you will need to apply for a one-year Turkish residency visa, which involves staying at one address, getting rental contracts, and providing you have the income to sustain your life. While on a tourist or residency visa, you cannot work, but many digital nomads already have their work stream, which comes from online sources worldwide, and their bank accounts in their home country.

2. Low Costs of Living

Turkey is a heaven for digital nomads who earn the valued currencies (dollars or euros etc. ) because the cost of living is relatively low compared to developed countries. The low value of the Turkish lira against other foreign currencies is a determining factor in this.

Most preferred by digital nomads, Istanbul is also one of the most expensive cities in Turkey. As you go to the Aegean and Mediterranean coasts, the cost of living decreases relatively. The accommodation expense takes up the most space in the monthly budget in Istanbul. With 1,000 USD per month, a digital nomad makes a living in Istanbul without difficulty. While living a pretty good life with an income of 2,000 USD, he enjoys a luxurious life with a revenue of 3,000 USD monthly. According to Numbeo data, the cost of living in Istanbul is 75 percent lower than in New York, 60 percent lower than in Berlin and Sydney, 66 percent lower than in London, and 50 percent lower than in Beijing. Read more to get detailed information about the cost of living in Turkey.

Alanya and Kuşadası, among Turkey’s most famous holiday resorts, are the most popular destinations for people from European countries to spend their retirement. The income-based on EUR, meager living costs, mild climate, fascinating natural beauties, and secular local culture significantly impact this preference.

3. Reasonable Internet Speed

According to Speed Test Global Index, Turkey’s wi-fi speeds on mobile and fixed broadband are average 51, and 54 Mbps download speed as of May 2022. Turkey ranks 61st country in the world on mobile internet speed. Turkey also has 4G technology infrastructure in mobile internet. The instantaneous bandwidth that internet operators in Turkey can offer is limited to a maximum of 100 Mbps as of July 2022.

If you’re living in one of the major cities, such as Istanbul, Ankara, İzmir, Antalya, Bursa, your internet speeds are likely to be reliable and stable. You can benefit from fiber internet infrastructure reaching 100 Mbps download speed. However, the more rural you go, the more unpredictable it may become, as with most countries. You can also quickly obtain a SIM card in Turkey from three primary telecommunications providers, Turkcell, Vodafone, and Turk Telekom.

4. Amazing Workplaces

Especially in big cities, there are many modern co-working and office spaces, excellent cafes, fabulous restaurants, and open-air spaces where digital nomads can efficiently work remotely. In these places, the wi-fi infrastructure is quite common, secure, and uninterrupted. There are many venues and networking venues to make new friends and attend enjoyable social events for digital nomads.

You can find a thriving community in major cities such as Istanbul, Izmir, Antalya, etc., with many digital nomads and ex-pats working for international companies. You can go to events such as movies, theater, opera, concerts, or open-air cultural activities throughout the year.

5. Stunning Cities to Live

With over 84 million inhabitants as of the 2021 year spread over two continents, Turkey is the meeting point between East and West – the place where civilizations, mentalities, and cultures fuse. There are many destinations in Turkey where digital nomads can move to and live in, and most lay on the Aegean and Mediterranean coasts. Hardly anyone lives in the eastern region because it is more conservative than the Western side of the country.

Turkey has fascinating cities and places where digital nomads can work remotely while enjoying their holidays. The main ones are Istanbul, Bursa, Yalova, Izmir, Mugla, Antalya, Bodrum, Cesme, Fethiye, Marmaris, Alanya, Kusadasi. Take a look at this article for reading details. Among the factors that make these cities attractive are technological infrastructure suitable for remote working, well-kept and clean beaches, extraordinary natural beauties, a mild climate, diversity of accommodation opportunities, multicultural lifestyle, lively entertainment venues, historical and cultural artifacts, and transportation facilities.

Although a Muslim-majority country, Turkey feels pretty secular and close to Europe. It’s more evident in big cities with their vast shopping malls and supermarkets, global coffee houses, and liberal women’s fashion. There are a variety of different types of lifestyles one can carve for themselves in Turkey. People in Turkey are friendly, extremely social, and hospitable by nature.

Turkey, a member of NATO, has six cities in user-generated database Numbeo’s safety index rankings as of 2021 year. Student-populated Eskişehir ranked number eight on the list with a safety rating of “high.” Bursa, Ankara, Izmir, Antalya, and Istanbul were also on the list, with “moderate” and higher safety rankings.

6. Affordable Accommodation

It is easy to find flexible temporary and long-term housing. Accommodation opportunities for digital nomads in Turkey are diversified and highly developed. The quality of service in hotels in Turkey is well above the world average, and hotels suitable for all budgets are widespread in big cities. If staying in hotels is expensive, alternative housing options are available for rent: Airbnb flats and furnished apartments for 1 to 6 months.

In most rural areas, housing is more affordable and offers options such as standalone homes, whereas most accommodation in most cities is more expensive, smaller, and competitive. In cities and most coastal towns in Turkey, you won’t need a car, but private transportation might be a near-necessity in areas off the beaten path. That said, every village in Turkey is serviced by a “dolmuş” minibus system, so it is possible to live immersed in nature yet still connect to your local community and beyond.

7. Moderate Climate and Outstanding Natural Beauties

Turkey’s weather is glorious and one of the rare geographies where someone experiences four seasons simultaneously. The climate in the coastal cities of Turkey, surrounded by seas on 3 sides, is extremely mild. Surrounded by open seas and mountains, the country offers thousands of natural wonders to its inhabitants. It is possible to swim for 6 months in Antalya, Turkey’s tourism capital.

With more than 4,000 vegetation, Turkey is reminiscent of Paradise in terms of natural diversity and beauty. A digital nomad moving to Turkey cruises the stunning authentic beauties of historical mansions at the junction of two seas and two continents with a Bosphorus tour in Istanbul, skis in Bursa Uludağ, breathes a tropical climate by viewing hundreds of shades of green and blue in the Eastern Black Sea Region, witnesses the legendary sunrise on Mount Nemrut, watches exotic fairy chimneys soaring in a balloon in Cappadocia, and enjoys the sea on the enchanting beaches and calm coves of the Aegean and Mediterranean Seas.

Thanks to its climate, Turkey is among the few countries that will organize various events throughout the year. Here are some of the leisure activities you can do: Sailing, swimming, hiking, safari, climbing, golf, paragliding, rafting, diving, mountain biking, forest trekking, historical and island tours, etc.

8. Delicious Turkish Cuisine

Thanks to the wide variety of cultures, Turkey has a rich, fresh, cheap, and healthy cuisine. With its local soups, kebabs, baklavas, Turkish delights, and appetizers suitable for all tastes, Turkish cuisine is diverse enough to make digital nomads experience great bites. It is also easy to access vegan and vegetarian menus in major cities and to taste the delicious dishes of Chinese and Italian cuisine.

Turkey is an agricultural country with many kinds of fruits and vegetables. You can affordably and efficiently find fresh fruits and vegetables all year round in Turkey.

9. Advanced Healthcare Sector

A recent study published in The Lancet ranks Turkey’s healthcare system 60th among 195 countries in the world. In Turkey, you can easily access all kinds of state-of-the-art medical services you need in modern hospitals anywhere at affordable prices. It’s easy to find well-educated and English-speaking medical professionals in Turkey. Health insurance is a must for non-citizens who come to Turkey as tourists.

Turkey is one of the world’s premier destinations for health tourism with competitive prices and successful operation rates, on top of its rich heritage as a cultural destination for tourists. It provides medical services to around 1.2 million medical tourists who come to Turkey most commonly opt for aesthetic surgeries, hair transplantation, heart surgery, orthopedics, oncology, dental health, and in vitro fertilization.

10. Quick Transportation

Digital nomads can travel to most destinations quickly, thanks to more than 55 airports across the country as of 2022. With the developed highways, it is effortless to reach the big cities by buses and cars. High-speed trains, extensive railway networks, and ferries make the city and inter-city journeys faster and more affordable.

All foreign driving licenses are valid in Turkey. You can review this article to learn how to drive in Turkey as a digital nomad. Like Turkish citizens, it’s possible to rent a car by digital nomads easily in Turkey. The concept of renting a vehicle nowadays has become so widespread in Turkey. Today, you can prefer car rental in all provinces of Turkey and all airports. Thanks to some mobile applications and websites, finding a unique and affordable price while renting a car is possible. To learn procedures for renting a car, read this article further.

Tax Review of Remote Working From Turkey to Abroad As a Software Developer

admin — Sun, 26 Jun 2022 04:57:12 +0000

By Bayram Kont | Executive Consultant

This article deals with one of the most frequently asked questions by software developers in Turkey. How will their earnings be taxed if they stay in Turkey and provide software services to companies abroad? Should they provide paid services, or should they set up a company? Is it possible to tax them according to self-employment earnings? What kind of tax deductions and incentives can they benefit from?

While looking for answers to these questions, we did not go into too much technical detail on taxation issues. We preferred the content of the text to be practical and easy to understand. In addition, in this article, we have taken the software developers residing in Turkey (with a residence permit) as a basis. Foreigners who are temporarily in Turkey and provide software services abroad without a residence permit are not included in the scope of this article.

We mainly need to determine the software developers’ service delivery status to examine how to tax their earnings.

Software developers can have three types of service status:

1) Delivering software services to foreign companies with paid status

2) Delivering software services to foreign companies as a freelancer

3) Delivering software services to foreign companies by establishing a company

Now, let’s examine how the taxation will be according to these statuses.

I – Delivering Software Services to Foreign Companies with Paid Status

In the Income Tax Law of Turkey, there is a notable exception provision (Art.23/14-a) for the wages received from employers in foreign countries. With this article, the wages paid in foreign currency by the foreign company/employer, whose legal and business center is not located in Turkey, to the service professionals employed in the liaison offices or regional management centers out of Turkey are exempt from income tax.

What are the conditions to benefit from this tax exemption? Those are:

1) The company abroad must be within the scope of the limited taxpayer. In other words, the legal and business center must be outside Turkey.

2) The company abroad should not engage in any activity in Turkey to generate profit.

3) Wages must be paid to the software developer in foreign currency over the employer’s earnings from outside Turkey.

4) The employee must be a service person, and the payment must be in the nature of wages, which must be documented when requested.

5) The paid fee should not be recorded as an expense in the accounts of the limited taxpayer institution in Turkey.

However, for a software developer to be called an employee of a foreign company, it may not be enough just to sign an employee-employer contract with the foreign company. In case of a dispute, the relevant tax administration in Turkey will receive a payroll, premium, social security number, etc., from the employee. It may also ask for documents like proof and some legal records of the company to which the service is provided. The situation of software developers who cannot provide a convincing justification can be considered consultants, not paid employees, and may be subject to tax accordingly.

Since the wage incomes obtained from abroad that do not meet the above conditions are not subject to withholding (deduction) within the scope of Article 95 of the Income Tax Law, it must be declared as wage income with an annual income tax declaration by the software developer.

II. Delivering Software Services to Foreign Companies as a Self-employed Person

According to Article 65 of the Income Tax Law of Turkey, earnings arising from all kinds of self-employment activities are self-employment earnings. Self-employment activity; It is the execution of non-commercial works based on personal work, scientific or professional knowledge or expertise rather than capital, under personal responsibility, on one’s own behalf and account, without being subject to the employer.

The income of a software developer residing in Turkey (ie, full taxpayer) from abroad is based on his time. In case of not being paid to the employer abroad, it will be considered as self-employment earnings. Taxation subject to self-employment income is in question if the person does not work as a paid employer.

If the software activity is given temporarily, it will be considered as the income obtained from the occasional self-employment activities per Article 82/4 of the GVK. Accordingly, if a net revenue of more than 58,000 TL is achieved in a calendar year (for the year 2022), the income above 58,000 TL will be declared with the annual income tax return and will be subject to tax. When calculating the net income, the costs and expenses incurred for this work will be deducted from the revenue obtained, provided that they are documented.

On the other hand, the income obtained as a result of performing the self-employment activity that we have described above on a continuous basis within a calendar year, not incidentally, will be considered as self-employment income in accordance with Article 65 of the Income Tax Law. In this case, all earnings in a calendar year will be declared and subject to tax.

III- Delivering Software Services to Foreign Companies by Establishing a Company

Mostly, companies abroad prefer to sign a fixed-term contract with the software developers instead of employing them for a fee in the remote working method. In the contracted remote working model, you need to issue an invoice for the service you provide so that the company abroad can pay you. The company abroad does not deal with your domestic tax obligations and takes no responsibility in this regard. It also states these issues in the contract.

Now, after discussing some preliminary information required to establish a company, let’s explain the taxation practices according to company types in Turkey and examine the tax exemptions and incentives in force for software developers.

How Can You Establish a Company in Turkey as a Software Developer? What are Tax Issues and Incentives?

Establishing a company in Turkey is subject to specific procedures. Generally, there are three types of company legal forms in Turkey. These are:

1) Sole proprietorship

2) Limited company

3) Incorporated company

Large-scale corporate companies generally prefer the incorporated company type in Turkey. It does not make sense for a software developer to establish an incorporated company that will provide remote service abroad. So, which one is the most advantageous to set up a sole proprietorship or a limited liability company? The table below compares these two types of companies for a software developer.

Sole Proprietorship

Limited Company

Setting up is as easy as filing a petition.

Although it is not very long and complicated to set up, it is subject to some procedures.

It is easy to liquidate the company.

The company’s liquidation is easier than an incorporated company, and it takes a little longer than a sole proprietorship.

There is no minimum capital requirement for setting up the company.

There is a minimum capital requirement of 10,000 Turkish Lira for setting up the company.

It is generally a one-person company. More than one natural person can also establish a sole proprietorship.

A limited company can also be established as a single person.

The founding partner/person is fully liable for the company’s debts.

The partners or / founder are only responsible for the company’s debts as much as the capital they have invested in the company.

The founder is subject to 4/b insurance system and must pay in premiums.

The founder or partners are subject to 4/b insurance system and must pay in premiums.

Earnings are subject to income tax. It is taxed on a progressive tax basis. The maximum tax rate is 40 percent.

Corporate incomes are subject to corporate tax at the rate of 23.5 percent.

There is a 50 percent income tax exemption in software exports.

There is a 50 percent corporate tax exemption in software exports.

Software services delivered to foreign companies have the right to VAT exemption and VAT refund.

The founder can spend as he wishes after paying all income tax.

Income and profit belong to the company. There is a 10 percent withholding tax for distributing company profits to partners. The partners or founder cannot spend the company’s money as they wish.

Expenses incurred for company activity are tax-deductible. If the VAT charged is more than the VAT to be deducted, a VAT refund may be requested.

The Financial Advisor service fee is lower than a limited company.

The Financial Advisor service fee is lower than an incorporated company and higher than a limited company.

Tax Exemption For Young Entrepreneurs Under 29

The government provides incentives to the young entrepreneurs who meet some conditions. These conditions are:

a) Being a full taxpayer natural person for whom income tax liability has been established for the first time

b) Not complete the age of twenty-nine as of the commencement date of the taxation

c) For their commercial, agricultural, or self-employed activities

d) Notifying the tax office so that you are affiliated within 10 days from the date of employment

e) Overseeing the work yourself.

The portion of these earnings, up to 75,000 Turkish lira, is exempt from income tax during the three taxation periods starting from their activities’ calendar year. In addition, optional insurance (“BAĞKUR” in Turkish) premiums are also exempted for one year.

Entrepreneurs who will provide software services abroad by working remotely can establish a sole proprietorship by fulfilling the above conditions.

Tax Exemption on Software Export

With the additions to both the Income Tax Law and the Corporate Tax Law, 50% of the revenues obtained from the following services provided to those residing abroad from Turkey can be deducted from their income and/or corporate income:

Architecture
Engineering
Design
Software
Medical reporting
Accounting record keeping
Providing call center and data storage services
Education and health services provided subject to the permission and supervision of the relevant ministry.

To Benefit From the Tax Exemption

1- The services mentioned must be provided by companies residing in Turkey, to persons not residing in Turkey, and to companies whose workplace, legal and business center are located abroad.

2- It is necessary to benefit from the service provided abroad. In other words, the service provided should not be related to the activities in Turkey of the company originating abroad. The service provided must be fully utilized abroad.

Services within this scope should be provided to individuals and companies not settled in Turkey, and to non-resident individuals and institutions.

3- To benefit from this exemption, an invoice or similar document must be issued on behalf of the customer abroad.

4- Software and design services should be specified among the main fields of activity written in the articles of association of your company.

Companies that provide design and software services also offer services to people residing in Turkey do not constitute an obstacle to benefiting from the discount. On the other hand, 50% of the income obtained from the design and software services provided only to foreign individuals and institutions is discounted.

5- In addition, as a rule, the service fee must be brought to Turkey in foreign currency. A foreign currency purchase document must be obtained for the service to be exported.

6- Service exports are also exempt from VAT. However, the exception can be used in the period when the foreign currency is brought to the country, not at the time the invoice is issued. In other words, even if the invoice is issued on a date before the export value of the foreign currency was brought into the country, the service export exception will be declared in the declaration of the period in which the foreign currency was brought into the country.

Within the scope of these rules, the revenues of sole proprietorships and capital companies providing software services to foreign companies from these activities are exempt from tax at 50 percent. In addition, VAT will not be calculated for invoices issued for this activity.

Like an export company, companies exporting software can request a refund of the VAT amounts they have incurred for company activities from the tax offices, as they are subject to VAT exemption.

The mentioned 50% discount is also applicable in establishing a business within the scope of Self-Employed Activity.

Which Company Should Be Established? Sole Proprietorship or Limited Company?

Sole proprietorships are subject to income tax law, and their earnings are taxed from 15 percent to max. 40 percent with a progressive tax system. As of 2022, net incomes exceeding 170,000 TL are subject to 35 percent income tax, while net revenues exceeding 880,000 TL are subject to 40 percent income tax. For example, in 2021, a sole proprietorship with an average monthly net revenue of 50,000 TL and a total annual net revenue of 600,000 TL pays 183,500 TL income tax with a progressive tax system. The average tax rate he pays is around 30 percent. Moreover, the sole proprietorships company’s founder can spend the remaining profit as he wishes after paying the income tax. The founding partner is also fully liable for the company’s debts.

On the other hand, limited companies are subject to 23.5 percent corporate tax on their net earnings as of 2022. There is also an additional withholding tax of 10 percent on the distribution of the profits to the company’s partners because the profits earned belong to the company. This way, limited company partners’ tax burden increases up to 33.5 percent. In addition, the founders of limited companies have limited liability for the debts and commitments of the company.

The tax burden of sole proprietorships companies is much less than limited companies. A fifty percent exemption from corporate tax is valid for both company types.

The most crucial advantage of sole proprietorships is that they can be established and liquidated quickly. However, establishing a limited liability company and the follow-up of accounting records and tax liabilities under the consultancy of a financial advisor will mitigate operational burdens on the software developer.

In the light of all this information, it seems more advantageous for a software developer to establish a sole proprietorship as long as his monthly net income does not exceed 1.000,000 TL.

Read Also These Featured Articles

We advise you to review this Turkish article (if you know Turkish) to grasp an in-depth look at the tax aspects of remote working from Turkey to abroad as a software developer.

You may also like the following article in a similar topic:
How to Work Remotely From Turkey For US Companies As a Software Developer?

The post Tax Review of Remote Working From Turkey to Abroad As a Software Developer first appeared on iXTalent.

How to Work Remotely From Turkey For US Companies As a Software Developer?

admin — Sun, 26 Jun 2022 03:44:48 +0000

By Bayram Kont | Executive Consultant

This article comprehensively reveals one of the most curious subjects. How do software developers deliver remote work from Turkey to companies in the USA? The scope of this article is not limited to the US companies but also includes providing the essentials of remote working from Turkey to all companies worldwide.

Today, when the world is going through the industry 4.0 revolution, the remote working model, especially for the software industry, has started to become a general industry practice worldwide, pushing the pandemic conditions. The nature of the software business has also given the remote working a global character. The age of digital nomads began on the back of a laptop that now stays locally and serves companies anywhere in the world and earns globally.

I – Pros and Cons of Working Remotely from Turkey

There are many advantages of remote software development for US companies by staying in Turkey locally. In addition, you may have to consider some disadvantages as well. Now let’s look at these in detail.

Pros of working remotely from Turkey

Here is the list of these advantages:

(+) Attain attractive earnings boosted by the depreciation of the Turkish Lira

(+) Benefit from job diversity opportunities to suit your talents and expectations

(+) Seize opportunities to do business with companies in the USA

(+) Expand your global business capabilities and experience

(+) Invest in your future and boost the strength of your CV

(+) Enhance your business network and skills by connecting different talents

(+) Gain a culture of doing business globally

(+) Update with current developments in your IT business

(+) Enjoy the comfort of remote working and master your own time

Cons of working remotely from Turkey

You need a social security number to serve as a registered employee on a company’s payroll in the United States. You cannot obtain this by residing in Turkey. So, you can work remotely for an American company on a contract basis, not on a payroll basis.

In the contracted working model, the fees paid for the software service you deliver are considered within the scope of earnings, and you have to pay the tax for this in Turkey. Hence, you should establish a company, issue an invoice for your service to the company you serve abroad, and tax your earnings within Turkish financial legislation. Operational processes such as establishing a company, hiring financial advisors, keeping track of your company’s accounts, and closing the company when you no longer provide services abroad can be tedious and time-consuming for you.

On the other hand, you pay insurance premiums according to the 4/B insurance option when you establish a company. This may affect the amount of monthly income you will receive when you retire.

Another issue is the aspect of the job related to socialization and the physical working environment. In the continuous remote working model, you may be deprived of the satisfaction provided by the physical working environment and friendship relationships.

II – Is it Easy for Turkish Software Developers to Find Remote Jobs Abroad?

The digitalization process, which the pandemic has brought to its peak, has ignited the demand for talented and experienced software developers all over the world. On the other hand, the wave of job turnover, known as “The Great Resignation,” results in a considerable skills scarcity in the job market. We advise you to look at this insight to learn further about the great resignation phenomenon for IT talents.

The talent gap in question further increased the bargaining power of talents against employers in determining wages and working conditions. Employers have been keen to implement many talent-valued practices, including remote working models, to attract and retain top talents.

One of the most significant human resources trends of recent years in developed countries, especially in the USA, is also Diversity & Equality & Inclusion. As a result, companies prefer to include employees from different geography and culture in their teams, especially with a remote working model.

We can say that, recently, remote working has been so prevalent in the software industry. Besides the leading trends mentioned above, other dynamics also make it easier for Turkish software developers to find remote jobs abroad (USA, Canada, European Countries, etc.). These are in summary:

(*) The software industry in Turkey is advanced compared to other developing countries, prominently in the finance, telecommunications, healthcare, and retail sectors.

(*) Turkish software developers have a smooth and understandable English accent.

(*) The software developers from Turkey have developed their out-of-box thinking skills and are supportive of doing the right job by using initiative.

(*) The software developers from Turkey quickly adapt to developed Western countries in terms of cultural and business mentality.

(*) The depreciation of the Turkish lira created competitive opportunities on a global level for software developers from Turkey.

III – What is Needed to Work Remotely in a US Company?

1. Finding a company with remote jobs

First, you need to find a company with open remote job positions accepting software developers from abroad. There are several ways to find a company to work for remotely:

a) Obtain a reference from your colleague working in the USA

b) Apply to the online advertisements given by the companies on famous labor marketplace, such as Glassdoors, Indeed, etc.,

c) Research marketplace websites that match software developers with companies in the US

d) Get contacted to recruitment agencies that make contract-based hiring for companies in the USA. iXTalent, an IT recruitment agency, serves in this 4th category. If you are a software developer confident in your skills, you can open the door to a new business life by registering here and leaving your CV.

2. Making job interview

It takes your resume into pre-evaluation after sending it to the company or recruitment agency that suits your expectations, needs, or experiences. If you pass the pre-evaluation stage, you will be included in the shortlist of candidates to be interviewed. Although job interview processes generally differ in each company a bit, the main steps are as follows:

a) English is a must to be able to work remotely for a company abroad. Hence, you can take some online tests to measure your English level. An online meeting can then follow.

b) After you pass the language barrier, online tests that assess your personality and professional competence are usually available. Some firms may also want to conduct a live interview with you to see your technical proficiency and problem-solving approach.

c) In general, recruitment agencies conduct an online interview after the first (a) and (b) stages before allowing the software developer to meet with the company they will serve. The candidate who passes all these stages is included in their pools.

d) At the last stage, the candidate conducts a one or two-stage online job interview with the company staff to whom he will serve. In general, the people he will interview are human resources recruitment managers, the relevant department manager he will work with, and those who work in a higher position.

3. Signing a contract

After the job interviews, if the company has determined you as a suitable candidate for the position, they will make you a job offer. At this stage, you mutually discuss salary, benefits, working hours, annual leaves, business ethics rules, the contract provisions, invoicing, and salary payment issues with the company you will make a contract. After reaching an agreement on these topics, you can start working remotely by signing a mutual agreement.

Sometimes, the party to the contract may be a recruitment agency instead of the company you will serve directly. In this case, the job placement agency continues its relationship and communication with you throughout the service period.

4. Establishing a company in Turkey

In the contract-based remote working model, you need to issue an invoice for the service you provide so that the company in the USA can pay you. In terms of US legislation, issuing invoices is not subject to form requirements as in Turkey. Therefore, the company in the USA does not care about the form of the invoice you issue. You will be solely responsible for billing and taxation. The company states this in the contract it has made with you.

We advise you to review this comprehensive article to grasp an in-depth look at how to establish a company in Turkey and the tax aspects of remote working from Turkey to abroad as a software developer.

IV – How Can We Help You Work Remotely For US Companies?

iXTalent is an IT recruiting agency delivering hassle-free recruitment services. We match the best global talents with remote jobs in US companies primarily based in the Virginia region. We are a problem-solving and easily accessible company with more than 20 years of experience in the IT business, with only IT-focused solutions, providing dedicated and tailored on-site services. We have an extensive experience in the business market in the USA and closely follow the software sector of Turkey as well. Please take a look at our website to learn further about us and our services.

Applying to remote jobs through a local recruitment agency in the USA will increase your acceptance because American companies value receiving service through primarily on-site partners. As iXTalent, we are not just a classical recruitment agency that places candidates in job position and ends the relationship. IT talents and companies are our business partners. We sustain a long-term business relationship with them to get happy outcomes together. We sign a hiring agreement with the software developer and the US company separately. This business model means uninterrupted and supportive services for companies in the United States and encourages their willingness to work with us. Join our elegant community of IT talents by signing up for this page and start building your future with better career growth.

The Reasons Driving a Rise in Remote Working for IT Jobs

admin — Tue, 07 Jun 2022 12:00:03 +0000

By Bayram Kont | Executive Consultant

According to data scientists at Ladders, 25% of all professional jobs in North America will be remote by the end of 2022, and remote opportunities will continue to increase through 2023. Microsoft’s Work Trend Index (published in March 2021) found that 66% of employers worldwide are redesigning their workplaces to accommodate hybrid work arrangements.

The fact is that the vast majority of people don’t want to be in the office every day, and many don’t want to be in at all. Remote working is a permanent global trend, especially for IT jobs, one of the best fields to find remote work.

A quick scan of Google Trends for the last five years indicates that the topic of remote work continues to grow considerably (shown below).

Now, let’s briefly look at the leading reasons remote work is rising globally, especially for IT jobs. I want to emphasize that the reasons stated below in IT jobs also apply to all other jobs that are compatible with the nature of remote working.

1. Industry 4.0 and Digital Transformation

Industry 4.0 is a vision that evolved from an initiative to make the German manufacturing industry more competitive (‘Industrie 4.0’) to a globally adopted term. Industry 4.0 is the digital transformation of manufacturing/production, related industries, and value creation processes.

The deepening Industry 4.0 revolution and accelerating digital transformation lead to differentiation in traditional working methods and make remote working models more efficient and manageable. Advancements in digital technologies (high-speed internet, online-meeting applications, clouding technology, project management tools, etc.) have made it easier to keep in touch with teams, communicate with colleagues, and have work presentations virtually.

2. Pandemic Effect

The COVID-19 pandemic disrupted labor markets globally in 2020 and 2021. Millions of people lost jobs, and others rapidly adjusted to working from home as offices closed. 2021 was the year the world stayed remote. Perhaps the most apparent impact of COVID-19 on the labor force is the dramatic increase in employees working remotely. Many companies realized the benefits of remote work and, as a result, are adopting hybrid work models for the long haul. Covid has dramatically accelerated the rise of remote work. Before Covid, remote work was a nice to have. Now, it’s a must-have for especially IT jobs.

As businesses look ahead to a post-pandemic world, many have already leaned into their recently added work-from-home flexibility. Companies such as Facebook, Slack, and Twitter, for example, have even given employees the go-ahead to work from home permanently.

3. The Growing Talent Gap

The wave of job turnover, known as “The Great Resignation,” results in a considerable skills scarcity in the job market. Boosted by the pandemic and the resulting workplace changes, this wave sets out, affecting some tech workers more than others. We advise you to look at this insight to learn further about the great resignation phenomenon for IT talents.

The accelerated digitalization by the pandemic created upward pressure on the demand for tech professionals. There’s much competition for skilled talent. In a competitive market, hiring great people is the key to growing, which most companies want. The talent gap in question further increased the bargaining power of talents against employers in determining wages and working conditions. Employers have been keen to implement many talent-valued practices, including remote working models, to attract and retain top talent.

Remote work is one of the top perks a company could offer its employees. What happens if the employers provide this perk to some employees but not everyone? It’s only a matter of time before other employees demand it, employers can’t stand up to these demands, and remote work becomes widespread throughout the company.

4. The Rising Demand for Flexible Work

Today’s workers demand flexibility and work-life balance. Millennials want the flexibility to work and travel, while a parent with 3 kids may want to work from home twice a week. Fully flexible roles are desirable for the working parents, mainly working mothers, who are statistically more likely to bear primary caregiving responsibility. Remote work allows people to tailor their work hours per their lifestyle.

Remote work provides flexibility and allows people to work when they are most productive. Compared with having a desk job or a day job, people are inspired to work when they can balance their time between work, family, and recreational activities. As you can imagine, remote working sounds very attractive for someone who spends three hours/day in traffic.

5. Remote Offices

A common tendency in the tech industry is to scale office locations as the company grows. When you serve a global customer base, it makes sense to set up a location where you’ve achieved some level of customer density. For example, Google recently shared a statistic that almost 50% of meetings involve employees working from two or more buildings. As you might consider, this requires reconfiguration of how work gets done. Briefly, this “co-located” organization behaves similarly to remote working.

6. Cutting Costs and Boosting Productivity

A typical remote job can cut down a lot of office space and employee resources from a company’s perspective. Remote workers can also save money on the commute, food, and office wear—this is a considerable saving for both companies and workers.

Companies that have been forced to work remotely during the pandemic have closely experienced that remote working does not reduce employee productivity. Moreover, it provides significant cost advantages. This live experience increased their willingness to implement remote working models because performance is about the quality of output, not time spent in a chair.

According to the 2021 State of Remote Work Report from Owl Labs, 90% of the 2,050 full-time remote workers surveyed said they were as productive or more productive working remotely than when they toiled in the office. Another 74% said that working from home was better for their mental health after the pandemic, and 84% reported that remote working would make them happier, with many even willing to take a pay cut.

7. Nature of Software Industry

Software engineering is a profession with international standards. It has universal common languages that are valid everywhere and a professional formation that does not change according to geography and countries. Moreover, when compared to other professions, the time and location dependency is the least to perform this profession. These professional dynamics explain why remote work has become the most common among these occupational groups and is constantly on the rise.

8. Human Resources Trends

One of the most significant human resources trends of recent years in developed countries, especially in the USA, is diversity & equality & inclusion. For the forward-thinking employer, remote hiring vastly expands the talent pool, particularly in terms of diversity,

As a result, companies prefer to include employees from different geography and culture in their teams, especially with a remote working model.

References

https://www.forbes.com/sites/bryanrobinson/2022/02/01/remote-work-is-here-to-stay-and-will-increase-into-2023-experts-say/?sh=6e881ab620a6

https://www.mckinsey.com/featured-insights/future-of-work/the-future-of-work-after-covid-19

https://friday.app/p/rise-remote-work

https://www.forbes.com/sites/forbestechcouncil/2020/07/30/how-todays-work-dynamics-are-shifting-with-the-rise-of-remote-work/?sh=430a0cd24810

https://www.flexjobs.com/blog/post/remote-work-statistics/

https://www.twi-global.com/what-we-do/research-and-technology/technologies/industry-4-0

https://www.i-scoop.eu/industry-4-0/

https://www.hirehive.com/why-remote-work-is-becoming-more-popular/

https://www.zippia.com/employer/8-compelling-reasons-remote-jobs-are-on-the-rise/

https://careersidekick.com/

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Please feel free to book a free meeting with our CEO. Let’s explore the new business opportunities and tailored recruitment solutions your company needs.

The post The Reasons Driving a Rise in Remote Working for IT Jobs first appeared on iXTalent.

How can You Retain IT Talents at Work? What Motivates Them?

admin — Fri, 20 May 2022 13:56:46 +0000

By Bayram Kont | Executive Consultant

In today’s business world, where digital penetration is accelerating, one of the significant challenges for employers is to retain qualified IT talents and motivate them for productive business outcomes. Because replacing left talent is a much more costly process. According to a survey conducted by Talent LMS and Workable, 72% of employees working in tech / IT roles are thinking of quitting their job in the next 12 months in the USA. These quitting figures are significantly higher than the 55% rate of the overall US workforce.

In this article, we mostly summarize and evaluate the results of a survey conducted by Talent LMS and Workable with 1200 technology employees in September 2021.

Why are tech talents leaving their jobs?

The survey respondents were asked about the underlying factors that most affected they’re leaving the job, apart from salary and benefits. 41% of them declared that they would leave their jobs because their companies do not deliver the opportunities for their career progression. Two of the other top reasons tech employees consider a job change are respectively the lack of flexible working hours and a toxic work environment.

What matters most when selecting a job?

The option of salary & benefits is the top priority for all incomes and age groups. Skills development and flexibility in working hours are the other top factors for selecting a company.

What motivates tech talent?

More training – learning and flexible working hours are the primary motivators among tech workers.

The most critical skills for tech talent

Nearly half of those respondents claim to learn new skills and improve existing skills combined. The demand for IT talents to acquire new talents makes sense in today’s world, where technological developments are progressing rapidly.

The most demanded skills by tech talent

2 out of 3 respondents strikingly chose machine learning and artificial intelligence as their most-demanded skills. Cloud native development, blockchain, and UI design are also demanded skills for nearly half the respondents.

When are tech talents most productive?

Managers need to know the most productive working hours of tech employees. In this way, they plan meeting times and other activities, avoiding interfering with the workflow of their employees at the most productive times. More than half of the respondents said they feel more productive between 9 a.m. to 1 p.m.

How can employers retain tech talents at work?

As employers, you must create an attractive work environment to motivate IT talents, enable them to work efficiently, and retain them at work. This workplace environment should include the following in summary:

1) Offer attractive and above-average salary – benefits

2) Make better options for learning new skills and development.

3) Keep constantly learning and training activities

4) Create career progression opportunities

5) Become flexible in location, schedule, and management style

6) Provide remote working options, at least hybrid working models

7) Offer a better work-life balance

8) Build a peaceful and healthy working environment

9) Nurture your existing employees and show them your appreciation while making efforts to attract new talents

References:

Survey: Retaining Tech Employees in the Era of The Great Resignation

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The post How can You Retain IT Talents at Work? What Motivates Them? first appeared on iXTalent.

iXTalent

What is Quiet Quitting? Reasons and Solutions For Companies

Table of Contents

Abstract of Article

1. What is quiet quitting?

2. How did quiet quitting happen popularly?

3. Is quiet quitting a new trend or simply a trendy new name for worker dissatisfaction?

4. Is quiet quitting permanent?

5. What are the reasons driving employees to quiet quitting?

Reading Advice

6. How do we know when an employee is quiet quitting?

7. What are the risks of quiet quitting for the employees?

8. Is quiet quitting really a problem for companies?

9. What should businesses do about quiet quitting?

Reading Advice

References:

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Portugal Has Launched A New One-Year Digital Nomad Visa

What are the qualifications for the applicants? How to apply?

Is Portugal Attractive for Digital Nomads?

References:

You might also like these featured insights:

How to Find and Retain Tech Talent For Legacy Systems?

Legacy systems, such as financial institutions, are prevalent in large companies with a long history. A good example is MOCAS, a software that the US Department of Defense has continuously used since 1958.

What is a legacy system?

Why do companies continue to use their legacy systems?

According to a recent article from Deloitte:

Challenges in finding and retaining tech talent for legacy systems

How to find the legacy system talent seamlessly?

Make room for remote working in your workplace

Build a flexible workplace

Search for talent in emerging tech markets

Mobilize internal referrals

Hunt for talent in nontraditional channels

The essential actions to retain and motivates tech talents

Solid reasons to hire tech talent by iXTalent for the legacy systems

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Need to recruit best tech talent?

Best 12 Ways for Recruiters to Find and Hire Top Tech Talent

1. Attend Industry-related Meetups

2. Allocate Resources to Campus Recruitment

3. Make More Room for Remote Working

4. Look For Talent in Emerging IT Markets

5. Think of A Distributed Workplace

6. Build A Smart Hiring Process

7. Include Peers in The Interview Process

8. Highlight The Meaning and Challenge of The Job

9. Mobilize Internal Referrals

10. Be Active in Nontraditional Channels

11. Design A Flexible Workplace

12. Create Opportunities For Career Progress

Summaries

References:

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Need to recruit best tech talent?

Indonesia’s New Digital Nomad Visa Allows Remote Workers to Live Tax-Free

ASEAN’s largest economy, Indonesia, has recently announced “Digital Nomad Visas.” Indonesia aims to entice more remote workers to the country with a new digital nomad visa which allows its holders to stay in Indonesia for five years tax-free.

What offers Indonesia’s New Digital Nomad Visa?

Current Visas for Digital Nomads in Indonesia

Top 10 Reasons for Digital Nomads to Move to Turkey

What Makes Turkey Attractive Hotspot for Digital Nomads?

1. Ease of Obtaining a Visa

2. Low Costs of Living

3. Reasonable Internet Speed

4. Amazing Workplaces

5. Stunning Cities to Live

6. Affordable Accommodation

7. Moderate Climate and Outstanding Natural Beauties

8. Delicious Turkish Cuisine

9. Advanced Healthcare Sector

10. Quick Transportation

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I – Delivering Software Services to Foreign Companies with Paid Status

II. Delivering Software Services to Foreign Companies as a Self-employed Person

III- Delivering Software Services to Foreign Companies by Establishing a Company

How Can You Establish a Company in Turkey as a Software Developer? What are Tax Issues and Incentives?

Tax Exemption For Young Entrepreneurs Under 29

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