TECHTONIC GROUP BUILDS ITS OWN LABOR SUPPLY

Techtonic Group, a software development company based in Boulder, Colorado,

originally met its demand for app developers by offshoring the work. Founder and CEO
Heather Terenzio said they arranged to have the work done in Armenia, and she flew there
often to oversee the work. Originally, the setup seemed like a practical way to keep costs
down, but eventually, salaries in the region began to rise, and the distance made the work
hard to control.

After several years of increasing difficulty, Terenzio decided Techtonic needed a

different way to meet its talent needs. The solution came to her when she was visiting a
Boulder vocational school to talk about technology careers. A young man from the catering
team approached her and described how, in spite of having no education beyond a GED, he
had taught himself coding. She realized that for the same amount of training and supervision
as she was devoting to the workforce in Armenia, she could hire average coders in the United
States and develop them into excellent employees.

Terenzio took the young man's pitch seriously and hired him. He learned quickly and
got along with his co-workers. Soon Techtronic was wondering if they could plan a system to
recruit nontraditional job candidates.

The solution they introduced was a six-week training program called Techtonic
Academy. Through social media and Craigslist, the program recruits a diverse group of
would-be software developers to learn the basics. The program emphasizes hiring at-risk
youth, minorities, women, and military veterans-groups that traditional recruiting channels
often overlook. Graduates can apply for an eight-month paid apprenticeship at Techtonic or
for other jobs in the area. Techtonic hires most of them. The program is free, and the number
of applicants far exceeds the space. Trainers can observe which trainees excel in problem-
solving skills, which helps Techtonic bring onboard those with the most potential. Now
employees who had been apprentices in the early years of the program are mentoring the
newer apprentices, creating a career path they value.

Terenzio was so pleased with the results of Techtonic Academy that she applied for
and received a state government grant to expand the program to more cities. More recently,
the Markle Foundation funded the Skillful State Network, which is using Techtonic Academy
as a model to expand to other states.
QUESTIONS

1. Briefly describe the labor supply and demand facing Techtonic Group.

2. What basic options did Techtonic have for addressing a labor shortage? What is your
evaluation of the approach Techtonic established?