Tech Hiring Trends of 2023

Geopolitical obstacles, rising inflation, economic downturn, and the phenomena of "The Great Hesitation" and "The Great Resignation" have been widely discussed. It is important to note that the battle for talent, often referred to as the #WarOnTalent, is far from over. It is crucial to remain aware and informed in light of these prevailing factors.

Despite the recent wave of significant tech layoffs, it has had minimal effect on the supply-demand gap in the digital talent market. As of March 2023, the tech unemployment rate stood at 2.2%, lower than the national average of 3.5%.

Open tech positions saw a substantial increase of approximately 77,000 month-over-month, marking the highest level of employer hiring in seven months. In total, there were nearly 316,000 unfilled tech jobs across various sectors in March.

According to a comprehensive report by BCG (Boston Consulting Group), over 75% of UK recruitment agencies predict growth in 2023. Additionally, 60% of them plan to expand their recruiter teams. This indicates that the competition for candidates is expected to intensify rather than ease in the upcoming year.

To successfully attract and retain tech employees, it is crucial to comprehend their distinct values and priorities. This article dives into the specific and individual requirements of digital talent. Forward-thinking companies are already leveraging this knowledge to bridge the digital talent gap through innovative approaches.

Global Tech Hiring Trends

Tech Hiring Trends in the United States:

There is a strong demand for senior tech talent in the US, regardless of the stage of a business, from startups to companies undergoing IPOs.

It's noted that approximately 4.5 million software developers are in the US, but with an unemployment rate of 1.4% among IT talent, filling roles remains challenging.

In terms of specific roles, the demand growth ranges from 45% for data engineers to an astounding 1,400% for AR/VR engineers.

Salaries for tech roles have seen an increase. The average tech salary in the US is $152k annually, which represents a 1.1% reduction compared to the previous year, but remote salaries increased by 4.6% to $143k annually. The global average salary also rose by 6.2% to $138k annually.

If denied an expected pay raise in the next six months, 74% of American tech workers will look for a new job.

Recruiting technologists and filling open tech positions is a key challenge for 73% of IT leaders as the impact of COVID-19 continues to reshape the workplace​​.

Tech Hiring Trends in India:

The tech industry in India has demonstrated solid growth. In FY2023, the revenue of India's technology industry, including hardware, is estimated to cross $245 billion, marking an 8.4% year-on-year growth. This growth is a testament to the country's technological advancements and its status as a global IT hub.

 The IT industry in India employs a significant portion of the population, with 1.8 million women making up 36% of the overall workforce.

This signifies the industry's commitment to gender diversity and inclusivity as it continues to empower women and enhance their participation in the tech workforce.

Tech Hiring Trends in Poland:

Moving to Poland, the Polish Information Technology Market reached a value of $22.3 billion, demonstrating strong growth in the tech sector.

In the previous year, global technology giants like Google, Amazon, and Microsoft, along with numerous local and international firms, significantly invested in establishing local data centers in Poland. As a result of these substantial investments, it is anticipated that by 2026, Poland could emerge as a leading hub for colocation data centers in Central and Eastern Europe.

 Moreover, the number of active technology-related job postings, despite a slight decrease, still amounts to 12,461 as of April 2023, indicating a high demand for tech skills​. 

Tech Hiring Trends in Germany:

Germany's tech industry has experienced exceptional growth, with sales revenues in the tech industry anticipated to grow by more than 20% by 2022, reaching up to 280 billion euros. The industry's growth is projected to continue, with the market expected to reach a staggering value of $133.02 billion in 2026​​.

Currently, Germany lags behind many nations in terms of technology specialists, making businesses eager to snatch up any talent that lands in their interview room. 

The shortage of skilled workers has risen to a new high in Germany, affecting 49.7% of companies in July. The new level is much higher than the previous record. 

“More and more companies are having to cut back on business because they simply can’t find enough staff,” says Stefan Sauer, a labor market expert at the IFO Institute.

Tech Hiring Trends in the UK:

The UK tech industry has proven its resilience by reaching a combined market value of $1 trillion in 2022. With over 3 million people working in the UK tech sector and the continued growth of fast-growing UK tech companies, the UK has established itself as a leading ecosystem for innovation.

The UK tech industry is ahead of its European peers and is worth more than double Germany's and three times more than France's, further demonstrating the UK's dominance in the tech sector​.

What will the Global talent market look like in 2023? 

A hotter talent market in 2023 sounds paradoxical. But it makes perfect sense. While businesses may be hesitant to scale up, the “Great Attrition” of talent continues apace across industries, with no sign of slowing down. 

Global financial caution seems to have strengthened existing trends.

 Candidates are more open to new opportunities than ever before, and less willing to compromise on key demands: Compensation and work-life balance. 

Higher Opportunities

We'll see employers being hesitant to invest and cutting costs, including in recruitment. Simultaneously, they are witnessing an unparalleled rate of talent loss, which poses a significant challenge for talent acquisition teams that are expected to achieve more with fewer resources.

The existing trend of employees frequently changing jobs is further intensified by the rising "natural" attrition due to an aging workforce. This, coupled with the demand for unique roles to adapt to a rapidly evolving technological environment, growth objectives, and heightened competition, requires talent acquisition teams to exhibit exceptional agility.

SmartDreamers' fully automated social recruitment software can serve as a solution to these challenges. It efficiently targets the right passive candidates, eliminating the usual overheads and facilitating effective talent acquisition.

Talent will continue to search for new opportunities

The propensity for job changes among candidates is expected to increase in 2023.

A McKinsey survey conducted in September revealed that one-third of the European respondents intend to switch jobs within the upcoming 3-6 months. Furthermore, 40% of the global workforce anticipates making a job change within the following year.

4 steps to be ahead of your competition in this #WarOnTalent

The COVID-19 pandemic has permanently transformed the workplace, with remote work and hybrid workforce models becoming the new norm in 2023. This has extended the talent pool beyond geographical boundaries, enabling companies to tap into global tech talent. However, it has also ushered in new challenges related to remote collaboration, employee engagement, and work-life balance.

  • Promote your jobs on social media, strategically

According to a Recruitment Industry Report, a staggering 79% of agencies plan to harness the power of social sourcing strategies to attract potential candidates. However, the anxiety persists regarding the potential costs and complexities involved. SmartDreamers' automated software proves to be a game-changer in this scenario. It effortlessly links you with the ideal candidates on popular platforms such as Facebook, LinkedIn, Instagram, and even Snap Chat, enabling a swift, large-scale talent acquisition at just a fraction of the usual costs.

  • Invest in your Employer Brand

The importance of employer branding in 2023 cannot be overstated. In an increasingly competitive job market, a strong employer brand is instrumental in attracting and retaining top-tier talent. A compelling employer brand not only helps organizations stand out from the crowd, but it also fosters a sense of belonging and commitment among employees. It's a potent tool for communicating your company's values, culture, and mission, which can significantly influence a candidate's decision to join or stay with your organization.

Successfully reaching large talent pools is crucial. It also serves as a strategy to secure top candidates in instances where money isn't the primary competitive factor. Moreover, it creates a positive ripple effect on your B2C marketing as clients and consumers increasingly value the ethical practices of the organizations they support.

Through SmartDreamers CMS, you can make your career website your employer brand porta-voice. You can fully customize it and have entire autonomy without any need for technical skills.

  • Focus on Diversity and Inclusion

In 2023, the tech industry has shown a renewed commitment to diversity and inclusion. Companies are increasingly recognizing the value of diverse perspectives in driving innovation and enhancing problem-solving. Efforts are being made to break down barriers and create inclusive work environments that attract and retain diverse tech talent. This includes strategies aimed at increasing gender diversity, promoting racial and ethnic inclusivity, and ensuring equal opportunities for people with disabilities.

  • Emphasis on Upskilling and Reskilling

With technology evolving at a breakneck speed, the skills needed to thrive in the tech industry are constantly changing. In 2023, there is a pronounced emphasis on upskilling and reskilling initiatives. Companies are investing in continuous learning programs to equip their workforce with the latest tech skills, from AI and machine learning to cybersecurity and cloud computing. This not only helps in bridging the talent gap but also fosters a culture of lifelong learning and adaptability.

Conclusion

In conclusion, the global landscape of tech talent acquisition is both exciting and challenging. As we navigate through the remnants of the pandemic and the repercussions of 'The Great Resignation', it is becoming abundantly clear that traditional recruitment strategies are no longer sufficient. The competitive nature of the tech industry, coupled with the specific needs and priorities of digital talent, calls for innovative and adaptable approaches. Employer branding, diversity and inclusion, continuous learning and reskilling initiatives are some of the critical areas that demand our attention. It's also important to acknowledge the rising trend of remote work and the resultant expansion of the talent pool beyond geographical boundaries, which offers new opportunities and challenges.

In this complex landscape, SmartDreamers emerges as a powerful ally for businesses. Its fully automated social recruitment software is designed to navigate these complexities efficiently, targeting the right passive candidates and drastically reducing overheads. Furthermore, SmartDreamers facilitates the promotion of your employer brand, helping your organization to stand out and attract top-tier talent. Through its comprehensive solutions, SmartDreamers is well-positioned to aid your organization in leading the #WarOnTalent, turning these challenges into opportunities for growth and success.