Hiring in the Embedded and IoT Technology Market
August 06, 2024
Blog
Many companies in the embedded and IoT technology markets have experienced flat or decreasing revenue since the pandemic. In the meantime, budgets have recovered, and AI-based innovations are coming thick and fast, all of which aim to make things better, faster, and more efficient. But one thing is clearly missing: qualified technical sales professionals who can bring all the new products to market.
Finding the Right Candidate
Companies’ desire to upgrade their sales staff is understandable—increase revenue from existing products with a stronger sales staff. Another way to bolster revenue is extending or reinforcing technical sales teams into different vertical markets, as well as different geographies.
Do you Really Speak Embedded?
Working in a highly technical market like embedded and IoT technology, the qualification of the salespersons is key for building up trust and generating revenue for the company.
There are a few rules of thumb to follow when beginning the search for an ideal candidate for any position:
- They understand the culture of where (and who) they’re working for, including how compensation and benefits packages are typically structured
- They understand the language, ways of communicating, and how to conduct business in their focus area or region
- They understand the domain they’ll be working in, inside and out
Finding technical sales professionals with experience and knowledge of the embedded and IoT technology markets can be difficult, especially if you’re looking for foreign workers such as a European company trying to hire US-based resources or vice-versa.
Hiring Across the Ocean – Local Challenges
Comparing North America to Germany in particular (where there is a concentrated embedded technology industry), there is a larger candidate pool in the U.S. based on sheer population but language also broadens the addressable market. Consequently, U.S.-based companies can draw from a global talent base, making it in theory easier to find candidates with the necessary skills and experience. Even with remote work becoming more acceptable in Germany, there simply aren’t as many German-speaking people in the world. But that’s usually a hard requirement of US companies in search of technical sales professionals in Germany, knowing that speaking in the native language is still crucial for effective communication and trust building within the local market.
In contrast, EU countries, including Germany, typically emphasize work-life balance over salary. This cultural difference presents a challenge for German companies aiming to hire U.S.-based employees. The higher salary expectations in the U.S., combined with the American focus on compensation as a key motivator, make it difficult for German firms to compete financially. As a result, finding experienced technical sales professionals within their budget becomes a significant hurdle.
Furthermore, the U.S. tech industry often emphasizes rapid growth and innovation, which can attract talent looking for dynamic and fast-paced work environments. In Germany, while innovation is certainly valued, there is a stronger emphasis on stability and long-term employment, reflecting broader cultural attitudes towards work and career development.
Understanding the Cultural Differences
When searching for qualified candidates abroad, there are several things to consider, regardless of the position. Cultural differences are an important factor. In the USA, business communication is direct and informal, reflecting a focus on efficiency and immediate results. There is a strong emphasis on individualism, valuing ambition, personal achievement, and individual freedom. Competitiveness is valued in business. Management style emphasizes individual decision-making and accountability. People tend to identify more with their companies.
So it is not surprising that particularly success-oriented people seek challenges in the USA. Here, they have the opportunity to exert greater influence and grow in their personal development, while in German structures, the concept of teamwork and community spirit usually takes precedence over personal goals.
European business communication is more formal and relationship-oriented, at least initially. It is true that respectful addressing with titles is expected in all new business relationships. However, once trust is established, interactions between German colleagues can turn to serious friendships, and the relationship with a particular supplier often becomes more important than the actual product. People buy from those they know and recommend others once they are satisfied with the performance. This underscores the importance of the native language and how it contributes to building trust, especially in sales.
European companies generally adopt a cautious approach, favoring thorough planning and risk assessment. This reflects a preference for stability and predictability. American companies have a high tolerance for risk, encouraging entrepreneurial ventures and viewing failures as learning opportunities.
Work-life balance is another important difference. In the USA, productivity, long working hours, and minimal vacation time are emphasized, with an expectation of availability outside standard work hours. In European countries, however, there are more vacation days, and work-life balance is prioritized, with weekends and personal time being highly valued.
These differences highlight the varying cultural values and operational approaches in the USA and Europe, demonstrating the importance of understanding and adapting to these differences for successful international collaboration and hiring processes.
Strategic Hiring Process
So, we know the problem. We know about the importance of understanding the cultural differences. But how to find the right candidate now? This short list might help as a start:
- It’s not all about the candidate. It begins even earlier. Before searching for new people, you need to understand the market, your company's needs, and how a competent hire might fit with your existing infrastructure and culture.
- Especially in such a small niche market like embedded and IoT technology, it's all about connections. Build, maintain, and leverage your network where you can find these employees— if you cannot do it yourself, plug into an existing network through specified recruiting firms that know the landscape.
- Make sure you know what questions to ask before engaging potential candidates so you can quickly narrow your search and make strong market-rate offers to the right candidates
Competition is High – Ask for Help to Get the Perfect Candidate
All of this can be overwhelming for any company, especially SMBs trying to compete in a competitive global job market such as the one that currently exists around German technical sales resources.
Sometimes an outside resource can help these companies define the candidate search and provide an outlet for plugging into the right network of candidates who can deliver real business value.
Tune in to the Embedded Executives podcasts featuring Marcus Webster of Webster & Webster Associates below:
Embedded Executive: Looking For a Job? Focus on Your Writing, Webster & Webster
Embedded Executive: We Have an Engineering Shortage, Webster & Webster
Webster & Webster Associates has specialized in the embedded and IoT technology market for more than 20 years, providing access to a broad international network of qualified and vetted candidates who already know your target customers and can have an immediate impact regardless of market conditions.
