As we dive into 2024, the tech industry stands at a crossroads, having weathered the storms of layoffs and economic challenges in 2023. The global and national employment landscape has undergone a significant transformation, with downsizing affecting 96% of organizations. Strategies like adaptability, remote hiring, skill-based evaluations, and the emergence of AI will define the talent landscape moving forward. The international talent pool has also become a focal point for global employers, emphasizing the need for cultural fit and the rise of hiring platforms. As businesses navigate uncertainties, a forward-looking approach to continuous learning and upskilling becomes essential for tech professionals to future-proof their careers.
Amidst the challenges, there are always opportunities for those who stay informed and agile. Let’s dive into 8 key trends impacting tech hiring.
8 Tech Hiring Trends to Watch in 2024:
1. Tech Jobs Still Outnumber Tech Talent – Despite layoff announcements in 2023, the tech job market remains robust, with an unemployment rate well below the national average. Notably, 79% of IT professionals laid off secured new positions within three months. A significant trend emerges as more tech workers transition into entrepreneurship post-layoffs. Furthermore, 71% of HR leaders cite growth as the primary reason for tech hiring.
2. Tech Workers Prefer Flexible (Remote) Work – Remote work preferences continue to shape the tech hiring landscape. Although remote IT job postings have declined, tech workers still express a preference for fully remote work. In response to the tech talent shortage, remote hiring is a viable solution, providing access to skilled and cost-effective talents worldwide. Even companies following on-site or hybrid workstyles are incorporating remote hiring for certain roles.
3. Compensation a Priority for Technologists – As the tech industry experiences stabilized growth, compensation becomes a top priority for technologists. While overall tech salaries increased by a modest 2%, 56% of tech workers prioritize salary in a job offer. However, job security (56%) and benefits (55%) also weigh heavily in their considerations.
4. IT Hiring Adjusts to the Market – Hiring practices are evolving, with a focus on improving candidate experiences. As 60% of candidates leave the interview process due to its length or complexity, hiring managers are reconsidering their approaches. Notably, top employers are exploring talented junior candidates, leveraging their potential for upskilling and cost-effectiveness.
5. AI Investments & Payoffs Skyrocket – Despite concerns about job displacement, AI investments are on the rise, with 45% of tech leaders prioritizing AI spending. Contrary to fears, AI enhances higher-level tech jobs, making them more efficient and fulfilling for developers. Software engineers with AI skills are experiencing 8%-12% higher salaries, indicating a growing importance of upskilling.
6. Global Talent Sourcing – For example, India is a significant hub for tech talent sourcing, with a consistent increase in its tech talent pool. Boasting a surplus of 2.5 million digital talents and a growing network in emerging technologies, India and other similar countries provide hiring options for global companies.
7. Skills-Based Hiring and Cultural Fit – A shift towards skills-based hiring is evident, with 92.5% of companies reducing mis-hire rates by focusing on skills. Qualifications are now defined by both hard and soft skills, with startups relying on vetting tools for tailored assessments. Culture-fit hiring becomes crucial for retention, as 73% of employees leave jobs due to poor cultural fit.
8. Rise of Hiring Platforms and AI Adoption – Hiring platforms are gaining popularity in the hiring landscape, offering advantages such as access to a skilled global pool, scalability, and time savings. However, this technology isn’t without some pitfalls as well, particularly regarding AI bias. Regular audits, proper training, and close monitoring of data and results are essential to ensure fair and unbiased outcomes in automated hiring systems.
In anticipation of 2024, the hiring landscape in the tech industry appears dynamic, shaped by the aftermath of 2023’s layoffs and industry fluctuations. While challenges persist, opportunities emerge on the horizon.
Stay tuned for our annual Tech Trends Reports for local Silicon Forest and Silicon Slopes insights and data on hiring trends, talent strategies, compensation insights, and more.
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