Are you looking to hire tech? Let us tell you that even if hiring tech talent might seem easy, it is quite paradoxical these days.
The tech industry is probably facing one of its most challenging times, and the issue is getting increasingly difficult to solve.
Hire tech talent in the advent of mass layoffs
According to a report published on Crunchbase “more than 135,000 workers at U.S.-based tech companies have been laid off in mass job cuts so far in 2023”.
The number has been making headlines for quite some time now, with companies such as Meta, Palantir and Eventbrite leading the way with their layoffs. Google, Amazon, Microsoft, Zoom and Yahoo are also on the list (which also includes small fintech startups and apps), cutting thousands of tech jobs.
In Europe, despite stronger labour laws, the scenario is also troubling. “Europe has not been spared from tech’s sweeping layoffs. Since March 2022, at least 42k people have lost their jobs”, according to an article published on Sifted.
Why is this happening?! Well, according to another article published on Techcrunch “the reasoning behind these workforce reductions follows a common script, citing the macroeconomic environment and a need to find discipline on a tumultuous path to profitability. Still, tracking the layoffs helps us to understand the impact on innovation, which companies are facing tough pressures and who is available to hire for the businesses lucky to be growing right now. It also, unfortunately, serves as a reminder of the human impact of layoffs and how risk profiles may be changing from here”.
However, even if the numbers seem scary, it still appears that there is still a considerable gap between the supply of tech workers and the demand for them.
So, this is where things get paradoxical. Even if layoffs are booming, this doesn’t mean that the tech talent shortage is solved.
With an increasingly demanding and competitive job market, new technologies playing a big part in this, and old-school recruiting methods, finding the best hires is getting even harder.
Why is it so hard to hire top tech talent even with so many layoffs and how to overcome this?
This is probably the first and main question that pops into your mind when considering the numbers.
Let’s consider some pointers:
1. Technology is evolving
Well, one of the main reasons for this shortfall is the rapid pace at which technology is evolving. With new technologies and platforms emerging all the time, it can be challenging for workers to keep up with the latest developments. As a result, companies often struggle to find candidates with the right combination of technical skills and up-to-date knowledge.
2. The demand for tech talent is coming from nearly every sector of the economy
Don’t be fooled. Tech professionals are not needed just in tech companies.
Thinking that only tech companies are looking for tech professionals is one of the biggest mistakes recruiting companies and/or professionals can make. Almost every company in every single sector works with technology these days and needs to hire tech talent.
Just give it a thought. Whether we are talking about a technological company, an industrial or a fashion one, trust us on this; technology is involved, and tech professionals are needed. So, yes! The demand is coming from nearly every sector, and tech talent is moving on to other industries, not traditionally considered tech but that are getting more competitive and attractive for professionals.
3. Out with the old recruiting methods
Technology evolves, and so do the recruiting methods. In this highly competitive and fast-paced job market, the traditional recruiting method can be an obstacle when looking to hire tech talent.
Think about it. Companies that keep following the old recruiting methods are getting behind. This happens because, in the current market, taking too long to hire makes it hard to keep up.
By now, it’s important to look beyond traditional recruitment methods and consider alternative sources of talent. This means looking for some IT recruiting alternatives to boost the chances of being successful, such as:
- Using technical recruitment agencies specialised in finding and hiring tech talent. This will help companies to simplify the recruitment process, have access to a wider list of candidates, and understand of the job market;
- Consider resorting to an Employer of Record (EOR), a third-party service provider that acts as the official employer for a worker on behalf of a client company. This is a good option, especially for companies thinking of recruiting abroad.
- Using a Recruitment Process Outsourcing (RPO). This is good for companies opting to outsource talent acquisition to an external service provider. RPO providers assume responsibility for some or all aspects of the recruitment process (starting from sourcing candidates to managing the interview process and onboarding new hires). An RPO provider works basically as an extension of the company’s internal recruitment function, providing additional resources and expertise to support the company’s hiring needs whilst improving the efficiency and effectiveness of the recruitment process, reducing costs and allowing the company to meet the needs and changes of the hiring demands ever so quickly.
4. Head hunters hire across borders
The current job market is not limited anymore. In this post-pandemic era, companies and recruiters no longer stay within borders. Many professionals have relocated, and cross-border hiring is a reality.
In this mass layoff and tech talent shortage paradox, considering going across borders to hire is a must-do!
This led us to the previous points. Companies now must consider new recruiting methods and use the technology to their favour by allowing them to recruit professionals in different countries, lowering their costs and still being legally compliant.
Mass layoffs as an opportunity to hire tech talent
Despite the massive layoff trend, hiring and retaining tech talent is still hard to do. But what if this might be an opportunity?
The hiring tide is shifting. No news so far! But what if these mass layoffs are now damaging these brands’ image and reputation, making them less attractive? Once considered to be safe and professionally promising, these big tech companies are no longer considered as such, which now poses an opportunity for other companies to stand out.
How? Easy: offering stability and perks (that professionals actually want) and acting quickly.
Let’s break this down.
Forget about gym discounts or free snacks at the office. Now professionals are looking for other kinds of perks, namely, health insurance, flexibility, and home-office budget (to name just a few). Things that might help them to have a better work-life balance and accommodate family obligations, for instance.
And then, you have to act fast. Keep in mind that the window to hire top tech talent is short. Laid-off workers tend to find jobs quite quickly after starting their search, so for companies wanting to make the best out of this layoff wave, now it’s time to get down to business and use their best tools to captivate the most experienced and skilled tech professionals.
“In the middle of difficulty lies opportunity”
The quote is from Albert Einstein and easily illustrates what we are saying here. It’s all about perspective. Yes, tech recruiting is not facing its best time, but it doesn’t mean companies aren’t meant to find their best hires. We can help you with that. Find more here!