Surveying Trends in Talent Acquisition Across the Tech Industry: Four Big Findings

Smoothstack
Surveying Trends in Talent Acquisition Across the Tech Industry: Four Big Findings

Download our complete Trends in Technology Talent Acquisition report

The pandemic was a forcing function for every industry’s recruitment methods – and tech is no exception. Since Covid struck, new and interesting trends in talent acquisition have emerged across the industry. These trends have been driven by the shrinking talent pool of IT professionals, the growing popularity and adoption of remote and hybrid work, bigger pay demands, and more.

To take the temperature of this new era, we surveyed IT and IT talent acquisition executives to get their experience of the new dynamics of tech talent acquisition.

You can get the full report here.

And to give you a taster, here are four of our big findings: 

  1. Acquisition strategies are falling short, but companies aren’t adapting.

Despite a growing demand for tech workers such as software engineers and developers, a narrow majority of respondents say their current acquisition methods aren’t effective in attracting and hiring IT talents.

The Smoothstack survey reveals that 52% of business and HR leaders in tech companies don’t see their current tech talent acquisition strategies as effective. And 56% of tech employers struggle to attract and hire top tech workers because of the shrinking talent pool.

In turn, it’s a worry that new trends in talent acquisition in tech, driving a substantial tech talent shortage, have been met with little response from large companies. Only 16% say they are currently evaluating their talent acquisition strategy, while 33% report no plans to reconfigure their recruitment models.

  1. The tech talent shortage is the biggest challenge facing tech recruiters.

Demand for tech talent in the US is soaring, and there are no signs of it slowing down. Our survey reveals the lack of candidates ranks as the biggest challenge (56%) for enterprises when it comes to acquiring technology personnel.

The unemployment rate among tech professionals is at a very impressive 1.7%, close to the all-time low of 1.3% recorded in May 2019. However, this tech talent shortage means stiff competition for IT personnel among top companies.

The constant need for tech workers has also placed much leverage in candidates’ hands. Previously, employers wielded so much negotiating power. In today’s economic climate, candidates can dictate salaries, perks, and other benefits.

This development puts the onus on tech organizations to reassess the work demands of candidates in order to attract them.

  1. Remote work isn’t going anywhere.

Perhaps the biggest of the newer trends in talent acquisition in tech is the rise of remote work. Candidates want to work remote, and companies looking for the best are under pressure to offer it.

Working remotely, rapidly normalized during the pandemic, is now a norm for 77% of respondents, allowing them to hire from a much wider candidate pool than just their local geography.

On top of this, 83% said the hiring of remote workers has been successful. 65% of our survey respondents see remote work as their major initiative in hiring tech talent.  

The picture isn’t simple; recent studies suggest that 34% of IT professionals want to return to the office at least some of the time. In response, tech giants such as Google, Apple, Tesla, and Microsoft have released statements requiring employees to work on-site at least three days a week. The hybrid model promises to be a good alternative to fully remote work. It’s an excellent balance for employers and employees, especially with 48% of tech workers preferring a hybrid setup.

  1. News flash: Salary and equity are the biggest draw for candidates.

Aside from offering remote work, tech organizations are also looking into increasing salaries (55%) and offering equity (49%) to entice IT professionals to join them. 

Unsurprisingly, candidates tend to be enticed by such offers! Salaries for tech professionals have risen by 6.9% across the board. Key tech positions – web developer, technical support engineer and database administrator, and data analyst – have seen a significant pay bump recently. Employers that lag in keeping pace with market rates will see their tech hiring efforts struggle.

The idea of sharing company stock with employees to reward them for their hard work is worth considering. Stock options have become an increasingly popular method among companies. The State Of Equity Plan Management 2022 Report revealed that this is second only to higher pay as the most effective way of reducing turnover and attracting new hires.

High Time to Rethink Tech Hiring Efforts

The new trends in talent acquisition show that companies need to reevaluate their tech talent acquisition strategies. Failing to do so will hurt their ability to attract top talent and hamper their revenue potential and overall growth.

Download the Trends in Technology Talent Acquisition report now to discover more tech hiring trends impacting the tech sector and gain valuable insights into the future of work in tech.

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