Between layoffs, talent shortages, and an ever-increasing list of new technologies, the tech job market has come to be defined by turbulence. Any hiring manager would be forgiven for struggling to navigate these issues to attract and retain the skills their company needs.
To help you out, we’ve collected insights from Greg Tomasik, the founder of four job boards for software engineers, and Matt Doucette, Director of Technical Recruitment at Deliveroo. We explore the state of the market now, predictions for the future, and tips for how you can prepare.
The state of the tech job market & into the future
In recent years, the tech job market has been facing what seems like a paradox — increasing numbers of people are being laid off and yet many companies are struggling to find employees with the right skills.
The talent gap issue becomes easier to understand when we look more closely at the types of skills that are in demand. While companies increasingly need specialized skills such as machine learning and security operations to leverage emerging technologies, artificial intelligence is automating more routine work. Tomasik says, for example, “AI has reduced the demand for Junior Engineers by 80-90%.”
This doesn’t necessarily mean AI will automate tech work completely, but rather that there’s an increased necessity for employees who are able to work alongside it. Tomasik points out that “interest rates are starting to come down which means startup funding will grow and more jobs will be created for skilled workers.”
At the same time, increased competition for specialized workers means these employees can demand more flexibility and higher compensation. But, as Doucette identifies, this doesn’t always mean companies are willing to pay: “In this economy, companies aren’t willing to take risks. They want to find the perfect match while driving the most revenue.”
To keep costs down in the coming years, more companies will invest in upskilling programs. Luckily, almost 70% of workers report a willingness to learn new skills to fill gaps.
Adapting your hiring strategies in line with the trends
Bracing yourself against a chaotic job market means implementing careful strategies to pinpoint, attract, and hire talent. Here we explore some of the tactics you should consider.
Shift towards skills-based hiring
By focusing too much on educational background or qualifications rather than carefully defining skills profiles, companies can miss out on high-quality talent. As Doucette describes, “One of the biggest reasons why people can’t find the skills they need is that they don’t know exactly what those skills are.”
To avoid cultural mismatch with your hire in their first few years, your skills-based hiring approach should also focus on building a clear picture of soft skills. Doucette gives the example of speed of execution and decisiveness, saying: “These traits are crucial in many tech roles, but many companies overlook them in favor of past experience.”
Give employees what they want
Tomasik’s organization GermanTechJobs.de ran a survey and found that now, perhaps more than ever, candidates want more transparency over pay and increased flexibility. In fact, 80% of them said they preferred jobs with the option to work from home.
Compensation in tech remains high in certain regions, but you can balance your budget against employees’ desires by introducing flexible work policies. Not only do these allow you to cut back on the costs of office space, but you can offer lower compensation in exchange for enhanced work-life balance.
The backlash against Return to Office (RTO) mandates suggest that increasing numbers of tech organizations will implement flexible work policies in the coming years.
Facilitate easy hiring with an Employer of Record
The tech job market might necessitate that you look for specialized skills, find talent that can work alongside emerging tech, or work with employees who are on flexible work schedules. This means you need to be able to easily hire, onboard, and manage a distributed team.
Even while high numbers of companies are hiring internationally, global tech recruitment is still thought of as being complicated and stressful. However, the reality is that it is possible to hire in another country without setting up a local entity, taking on tons of extra admin for your HR team, or losing your mind!
An Employer of Record (EOR) solution like Multiplier acts as the legal employer of your global hires, handling compliance, payroll, benefits, and more so you can move in and out of markets easily.
Found the tech talent you need? We can generate a locally complaint contract in minutes. Speak with one of our team to find out more.
