Tech’s Shifting Hiring Landscape: Demand, Skills Gaps, and Rising Costs
Is the candidate-led market over? High vacancies and record-breaking salary averages don’t paint the whole portrait. As pockets of tech take-off (data science jobs are growing at warp speed), the demand for specialised skills continues to outstrip supply.
Organisational management is changing and the shift towards adaptability, leaner teams, and deep tech enablement is more apparent than ever before – it’s making employers more selective when it comes to candidates.
While we’re certainly noticing a re-balance of the hiring market as the dynamics edge closer to pre-COVID conditions, the emphasis on high-demand skills like machine learning, security, and cloud engineering will lend top-tier talent significant leverage.
It doesn’t mean it’s the worst time to look for jobs in tech, but it does mean it’s a bit harder to find your footing without a strong candidate profile.
A Nuanced Market
Business leaders are still struggling to find the talent they need to evolve, and yet many workers are trapped in underemployment (being stuck in a low-paying, low-skilled job).
London tech jobs are a prime example – the market has recovered nicely over the last few months, but there’s still a noticeable gap between the skills employers seek and the experience and qualifications of the candidates on the market. It’s estimated that the UK’s digital skills gap costs the nation £63 billion per year.
There is another dimension to this – employers are often slow to rethink their recruitment process when the market evolves, leaving them in the dark when it comes to identifying, accessing, and ultimately, retaining their talent.
This surge partially reflects growing investor confidence and the relentless demand for technological advancement. It can put smaller firms in a tight position, especially those that lack the resources to do a thorough search of the market.
That said, faith in big tech is still dwindling, and plenty of market-savvy employers are offering enticing, targeted benefits to snap up talent (the value of providing remote jobs in tech cannot be understated).
Company equity is a popular offering among startups, although be warned job seekers, it’s fairly rare to see this pay off at the moment. If you’ve been offered equity in your compensation package but you’re unsure about the deal, our specialist consultants are happy to advise you for free – give us a call here if you’d like help: https://www.trustinsoda.com/get-in-touch/contact-our-offices
Navigating the Rising Cost of Hiring
When competition for top talent heats up, so does the cost of the hiring process. Skimping on these costs can lead to even worse outcomes, including a bad hire that halts your processes, hurts company culture, and can cost your business an estimated three times the candidate’s salary.
Why do these costs rise? It’s typically because the time it takes to fill the open position extends, salary packages increase in value, and advertising becomes more expensive (more channels, more ads, etc.).
Specialist recruiters are uniquely placed to help hiring managers reduce these costs by reducing the risk of drawn-out processes and bad hires, and they could be a key differentiator in the never-ending quest to secure talent in today’s market.
