According to Gartner, 49% of HR leaders do not have a clear strategy for the future which is concerning when we consider the volatile world that we are currently living in. By 2023 the number of hired tech talent will soar by 22% compared to 2020. It means approximately 189,000 roles for software developers each year for over a decade since 2020 and aggressive searching for the best talent. Recruiters already have on average 30 to 40 unfilled positions on a consistent basis. One-third of them will hire over 100 developers this year. However, they receive on average 10 fewer applications for IT positions.
Since the beginning of the pandemic, the workforce has changed a great deal. Employees have different expectations (remote mode, flexibility, benefits), want to work in other ways, and do not feel obligated to work for a decade for one employer. The market is now an “employee market” and recruiters will have to deal with this.
1. Hiring and working from anywhere is here to stay
The COVID-19 pandemic has reduced the importance of geographic location. Since 2021, coders have started to work more internationally, half of them have searched for a job globally, a 15% increase in comparison to 2020. When developers decided to be open to remote positions they saw a 20% increase in recruitment requests.
Thanks to the ‘anywhere’ working model not only can the employees obtain more flexibility, but HR departments are able to become more adjustable as well. Job posts with the keyword ‘flexibility’ received 35% more engagement on LinkedIn. More than ever before, companies are able to hire from anywhere, which in turn, entails a more diverse staff. Surprisingly, one-fifth of employers don’t even look at the same time zone when sourcing talent. 54% of employers consider remote hiring as a possibility to receive CVs from a wider range of qualified candidates. According to Devskiller’s report, employers are widening the talent net to include regions with as yet untapped potential such as the Middle East and Northern Africa.
2. Growing retention, growing problem
The immense legacy of the ‘Great Resignation’, caused by the pandemic, is the increasing importance of retention and candidates’ mobility. According to Robert Half, a hefty 88% of tech leaders are concerned about the most qualified employees leaving their workplace. The effect of the Great Resignation is increasing staff turnover in the IT industry with the US seeing a 13.2% rise in this metric. In addition, it costs an employer 50 to 250% of the tech professional salary for each replacement. This trend has been shown by Gartner when a huge 91% of respondents are somewhat or significantly concerned about rising turnover.
The LinkedIn study showed that in October 2021, the global average for changing jobs was 25% with Asia seeing a 60% YOY rise. The younger an employee is, the less likely he or she will stay with their current employer. Gartner found that only 19.9% of IT talent aged 18 to 29 are not likely to change jobs. In Poland, 71% of tech specialists were open to changing jobs in 2021.
3. Employer branding is king
It was highlighted by a LinkedIn study, that nowadays 40% of job seekers see ‘colleagues and culture’ as a priority during the hiring process. In 2022 an increasing number of people around the world state that an employer’s brand is an important factor when selecting a job. The Dutch are especially company’s culture conscious, with half of them seeing a company’s brand as a priority during the hiring process.
What’s more, it seems that smaller companies (especially startups) are increasingly confident and active on the job market. There was a 15% increase in their job requests. Startups are perceived as more attractive because of substantial funding and rapid growth. Employers are attempting to be more attractive, with 61% stating that they invest in a LinkedIn presence, 48% engage in in-person events and 24% utilize the TikTok platform. This approach can be advantageous because posts which mention ‘culture’ received 67% more engagement. Consequently, as many as 62.7% of recruiters perceive that employer branding has a great impact on hiring.
4. E-learning may trump degrees
A total shift in the learning paradigm is taking place. Right now, 75% of coders hold at least a bachelor’s degree. At the same time, 86.7% of developers admitted that they are self-taught. Many companies still require a full four-year degree, but others have decided to be open to candidates without an academic background. One study showed that only one in ten recruiters use university resources to locate talent. According to Robert Half, 89% of the tech leaders surveyed would hire coders without an academic education with 39% doing this on a regular basis. Only 5.2% of engineering managers evaluate tech candidates based on a university background. This is understandable when one considers that people, especially those from the younger generations, are learning in boot camps and online courses rather than at university.
Another significant challenge that respondents mentioned was the reskilling of the workforce (26%). 49.16% of recruiters admitted that their company currently invests in reskilling technical profiles with 66.32% seeing investment in upskilling these profiles. Tech leaders in 56% of examples use upskilling programs to create more advanced or senior roles. Furthermore, over half subsidize IT training and certificates for entry and junior talent.
5. Money is not enough
With companies using a wider net to attract talent, other factors come into play. Of course, tech talent still wants to be suitably rewarded. Over one-fifth of developers felt dissatisfied with the salary that they received, hence 55% of employers are increasing payroll to attract talent. But as was highlighted above, factors such as company culture are also becoming significant. 53% of developers admitted that the company which prioritizes their experience is a more attractive place to work. Every year, Google receives 3 million applications because of the non-salary benefits that Google offers as well as the company’s strong reputation.
Developers are most willing to change their job because of money (65% of examples), 60% due to compensation and benefits. However, 39% want to work in new tech, and 36% are seeking a better work-life balance. Furthermore, 35% of them focus on the possibilities of professional growth and a leadership position in the future. 76% of job seekers consider a diverse workplace as an important factor in choosing a job. According to Gartner, if by 2023 companies do not propose a strong employee value proposition then they will experience further problems in covering IT talent needs.
6. Next chapter: the Great Resignation legacy
Gartner found that globally approximately one-third of workers want to stay with their current employer. Moreover, this factor is even more marked in Asia where it was a shocking 19.6%. Employers utilize everything at their disposal to retain talent. Half of them offer remote work options, 44% provide signing on bonuses, and 41% increase paid time off.
The ‘Great Resignation’ might seem like a dramatic situation for the jobs market and especially the tech industry with a widening talent gap. Nevertheless, it is believed that it can also be an opportunity. People want to work in a better, more attractive, and business-supportive environment.
For sure, this change is wreaking havoc, with 40% of HR leaders finding it difficult to build skill development solutions to meet skills needs. At the same time, 59% are attempting to create key competencies and skills for their company. According to Gartner, over half of the workforce is fatigued because of all these changes. But the future is a more refined workplace for all of us, with more flexibility, trust, and transparency in our organizations. As many as 42% of HR executives highlighted that in 2022 their priority is the ‘Future of work’ strategy. In general, these changes are good news for everyone, and the IT sector will lead the way in this shift of working patterns.