Understanding the latest trends in tech hiring
Small-and-medium-sized businesses (SMBs) are becoming more and more influential in the tech hiring market, a shift is driven by large enterprises like Microsoft, Google, and Amazon scaling back their recruitment efforts due to over-hiring during the pandemic and subsequent layoffs.
SMBs have a unique opportunity to attract talent that was previously absorbed by these tech giants.
In recent months, overall US hiring has slowed down. According to the latest ManpowerGroup Employment Outlook Survey, hiring outlooks have decreased by 4% from Q2 and are down 5% compared to the same period last year. Despite this general slowdown, the IT sector remains robust and is expected to continue strong hiring through Q3 2024.
SMBs benefit from this shift as they can offer more flexible work environments, including remote work options that are in high demand but often less feasible for larger enterprises. Flexibility makes SMBs more attractive to tech professionals who value work-life balance and adaptability in their roles.
AI’s influence on the skills employers want
The rapid integration of artificial intelligence (AI) into various business processes is changing the skills needed in the tech industry. Companies are increasingly seeking professionals with expertise in data science, analytics, and machine learning.
Experience with data science is the key for making best use of AI technologies and driving innovation and improving operational efficiency.
The adoption of AI is creating a heightened demand for tech talent capable of managing and analyzing large datasets, developing AI models, and integrating AI solutions into existing systems.
Tech talent shifts are evident in the rise of job postings requiring AI and machine learning competencies. Employers are prioritizing candidates who can understand AI concepts and apply them to solve real-world business problems.
Research from IDC complements this trend, predicting that by 2026, 90% of organizations worldwide will experience an IT skills crisis. This crisis, driven in part by the growing need for AI-related skills, could result in $5.5 trillion in losses due to product delays, reduced competitiveness, and lost business opportunities.
What economic indicators tell us about tech hiring
The latest data from the ManpowerGroup Employment Outlook Survey provides critical insights into current hiring trends. ManpowerGroup’s survey, which gathers information from over 6,000 employers across the US, explains that hiring outlooks are down 4% from Q2 and have decreased by 5% compared to the same period last year.
Despite these challenges, the IT sector remains a beacon of strength in the job market. The continued demand for tech talent, particularly in roles related to AI, data analytics, and cybersecurity, highlights the sector’s resilience.
Employers are looking to fill current gaps and to future-proof their organizations by investing in skills that will drive long-term growth and innovation.
The roles everyone’s looking to fill in tech
Software developers and IT generalists are among the most in-demand roles in today’s tech job market. Positions such as these are important for maintaining and advancing digital infrastructure, supporting new software initiatives, and giving smooth IT operations.
Although the demand for developers has decreased from the highs of 2020-2021, these roles remain important for organizations aiming to improve their digital capabilities and improve customer experiences.
Developers are needed to support a wide range of digital initiatives, from creating innovative applications to maintaining existing systems and ensuring their security and efficiency.
Bridging the skill gaps in tech
The tech industry faces a significant challenge in bridging skill gaps that impact revenue, product quality, and customer satisfaction. An IDC Research survey reveals that two-thirds of 800 North American IT leaders report experiencing a lack of essential skills within their organizations.
Shortages have led to missed revenue growth opportunities, quality problems, and lower customer satisfaction.
Looking ahead, the situation is expected to worsen. IDC predicts that by 2026, more than 90% of organizations worldwide will feel the strain of the IT skills crisis, resulting in financial losses, estimated at $5.5 trillion, due to product delays, impaired competitiveness, and the loss of business.
Organizations are increasingly recognizing the need to address these skill gaps proactively. Strategies include upskilling current employees, investing in continuous learning programs, and fostering partnerships with educational institutions to ensure a steady pipeline of tech talent.
Businesses must focus on developing a workforce equipped with the skills needed to adapt and to drive future growth and innovation.
The soft skills tech employers crave
The demand for soft skills in the tech industry continues to grow as companies recognize their importance in fostering effective teamwork, innovation, and leadership. According to SHL, the top soft skills sought by employers include:
- Considers strategic vision: Tech professionals who can think strategically are important for long-term projects and technical goals. Strategic vision skills include understanding market trends, forecasting future developments, and planning accordingly.
- Thinks broadly: Broad thinking helps in problem-solving and innovation by considering multiple perspectives and potential outcomes which is key for tech roles that require cross-functional collaboration and creative solutions.
- Motivates others: Leadership in tech is about inspiring and supporting team members. Professionals who can motivate their peers contribute to a more dynamic and productive work environment.
- Considers financial impact: Understanding the financial implications of technical decisions is vital. Professionals who can evaluate the cost-benefit analysis of projects contribute to more sustainable and profitable business practices.
- Drives improvement: A focus on continuous improvement and optimization is needed in the tech industry. Continuous improvement involves identifying inefficiencies and implementing solutions to enhance productivity and quality.
- Demonstrates empathy: Empathy helps in understanding and addressing the needs and concerns of team members and clients.
- Learns quickly: The tech industry changes quickly, and professionals who can quickly learn and adapt to new tools, technologies, and methodologies are invaluable. Agility helps organizations stay ahead of the curve.
What candidates and employers want in today’s market
The tech hiring market is experiencing a notable shift from a candidate-driven landscape to one shaped by various external factors, particularly the significant layoffs at major tech companies like Microsoft, Google, and Amazon.
Layoffs have flooded the market with experienced tech professionals, creating a more competitive environment. As a result, small and medium-sized businesses (SMBs) are seizing the opportunity to attract top talent that was previously exclusive to larger corporations.
Transitions are a direct consequence of over-hiring during the pandemic, where tech giants rapidly expanded their workforce to meet the surging demand for digital services. Subsequent layoffs have recalibrated the job market, making it more favorable for SMBs that can offer unique advantages to job seekers.
An influx of available talent is particularly beneficial for SMBs looking to close their skill gaps and drive innovation.
SMBs can now access a broader pool of experienced professionals who might have otherwise remained within the circles of major corporations. A shift that improves the talent acquisition strategies of SMBs and promotes a more diverse and dynamic workforce.
Why flexibility is key in tech job offers
One of the primary attractions for tech professionals considering positions with SMBs is the promise of greater flexibility. Unlike larger enterprises that often have rigid structures and policies, SMBs tend to offer more adaptable work conditions, including the highly coveted option of remote work. This flexibility is increasingly important to today’s workforce, who prioritize work-life balance and autonomy in their roles.
Remote work has become a critical factor for many job seekers in the tech industry. The ability to work from anywhere not only aligns with their personal preferences but also contributes to higher productivity and job satisfaction. SMBs that embrace flexible work arrangements are better positioned to attract and retain top talent, particularly as larger companies may struggle to provide the same level of flexibility due to their size and established policies.
Moreover, flexible work conditions can help SMBs stand out in a crowded job market. By offering remote work options and a more adaptable work environment, SMBs can appeal to a broader range of candidates, including those who may be looking to escape the traditional office setting and seek a more balanced approach to their professional lives.
How to effectively communicate your soft skills
Effectively communicating soft skills to potential employers can be challenging but is essential for job seekers in the tech industry. Here are some strategies to highlight these skills:
- Incorporate behavioral skills into job experiences on resumes: Rather than simply listing soft skills, job seekers should provide specific examples of how they have applied these skills in previous roles. Instead of stating “strong work ethic,” describe a project where dedication and hard work led to successful completion ahead of schedule.
- Use references to highlight soft skills: References from former managers, colleagues, or clients can provide concrete examples of a candidate’s soft skills in action. A reference that speaks to a candidate’s problem-solving abilities or leadership qualities can significantly bolster their application.
- Prepare real work examples for discussion during interviews: Candidates should come to interviews ready to discuss specific scenarios where they demonstrated key soft skills. Practicing these examples beforehand can help articulate their experiences more effectively during the interview process.
The new importance of education and certifications
Dropping degree requirements
There is a large change in the approach to educational qualifications. Increasingly, organizations, including the US federal government, are moving away from traditional four-year college degree requirements.
Instead, they prioritize technical skills, practical experience, and personality traits that align with the job’s demands. Changes like these broaden the talent pool, making it more inclusive and diverse.
Bootcamp graduates, particularly those from coding programs, exemplify the success of this approach.
Graduates often report high employment rates and significant salary increases shortly after completing their programs. Focusing on hands-on, practical training in bootcamps equips them with the skills necessary to excel in tech roles, often faster and more efficiently than traditional degree programs.
Eliminating degree requirements means companies can tap into a wider array of candidates who have gained their skills through alternative education pathways, such as online courses, certificate programs, and on-the-job training..
Why certifications matter more than ever
Certifications have become increasingly valuable. As the industry changes, there is a heightened demand for specialized skills, particularly in areas such as cloud computing, cybersecurity, and AI. Certifications in these fields serve as a credible validation of a candidate’s expertise and commitment to continuous learning.
Cloud and security certifications are especially sought after, as businesses prioritize secure and efficient digital transformation. Professionals with certifications in these areas are well-equipped to handle the complexities of modern IT environments, making them highly attractive to employers.
Additionally, the increasing need for AI and data skills has driven demand for certifications in data science, analytics, and data management. AI certifications demonstrate a candidate’s proficiency in handling large datasets, deriving actionable insights, and implementing AI-driven solutions. As organizations continue to integrate AI into their operations, certified professionals in these fields will remain in high demand.
Why experience equals skill in tech hiring
Experience continues to be a key factor in the tech hiring process. Organizations often use years of experience as a proxy for skill proficiency, understanding that seasoned professionals bring a depth of knowledge and practical insights that are invaluable to their operations.
Decreasing demands for less experienced workers are widely reported; from 40% of tech roles in 2021 to about 25% in 2023.
Emphasis placed on experience means that early career professionals may find it more challenging to break into the industry. Companies are looking for candidates who can hit the ground running, leveraging their past experiences to contribute immediately to the organization’s goals.
The hard skills that make you stand out
In addition to soft skills, experience and certifications, hard skills are an important requirement for tech professionals. According to SHL, the top hard skills currently in demand include:
- Project management: Effective project management is key for overseeing complex tech projects, making sure they are completed on time and within budget.
- Microsoft Excel: Proficiency in Excel is critical for data analysis, financial modeling, and reporting. Excel skills allow tech professionals to organize, manipulate, and analyze data efficiently.
- Python: Python is one of the most popular programming languages due to its versatility and ease of use. It is widely used in web development, data science, AI, and automation, making it a valuable skill for tech professionals.
- SQL: Tech professionals who can effectively use SQL are essential for handling large datasets and supporting data-driven decision-making.
- JavaScript: JavaScript is needed for front-end web development. It lets developers create interactive and dynamic web pages, improving user experience and functionality.
Final thoughts on the tech job market
Artificial intelligence is anticipated to create more jobs than it eliminates, contrary to common fears about automation leading to widespread job loss. AI is expected to generate new roles that require specialized skills in AI development, implementation, and maintenance.
Staying updated with the latest AI technologies and methodologies is key for seizing new job opportunities and advancing in one’s career. Organizations must invest in training and development programs to build a workforce capable of leveraging AI’s full potential.
As AI continues to grow, it will reshape the tech job market, creating numerous opportunities for those equipped with the right skills. The ability to adapt and learn continuously will be the defining factor for success in this dynamic environment.
