The pandemic lockdowns set off a tech hiring frenzy as companies scrambled to provide technology solutions to employees forced to work from home. Other companies needed to ramp up their e-commerce capabilities to handle the onslaught of online ordering. There were more positions than skilled candidates to fill them, and tech talent could choose the best place to work to further their career while demanding additional compensation and job flexibility.
Tech Companies Over-hired
Recent layoffs by Google, Meta, Twitter, Microsoft, and others reflect the new reality that tech companies aggressively hired to handle the surge in demand and are no longer able to support the large tech teams they assembled over the past couple of years. Over 40,000 workers across 150 companies have been laid off in the first weeks of 2023. The tech workers that are still employed are worried that their jobs are not as secure as they originally thought.
Tech Talent Is More Available
This does not signal the end of the tech talent shortage, but traditional companies that are not as affected by rising interest rates in an unstable economy can use this opportunity to recruit excellent tech talent for ongoing digital transformation.
Organizations that need to transform their business processes to be more flexible need employees with the tech skills to make that happen. Recently laid-off employees are looking for businesses that are more stable and sustainable. Many will gladly trade the excitement of a tech startup project for the security of a more traditional business.
Those who are still employed by the tech giants may also be open to a move. Employees with H-1B Visas need to find employment within 60 days of being laid off or they must abandon their visa and go home. Even if they weren’t laid off, they may well be nervous about their position.
No Crystal Ball
The December Jobs Report showed that the labor market is still strong with unemployment at 3.5%, matching pre-pandemic levels. Tech workers have had the upper hand in the hiring dynamic. Although the future of the labor market is unknown, it is possible that employers may regain some of their bargaining power in 2023.
We have mentioned before that talent acquisition and recruitment is a complex and dynamic process. It is imperative to create and maintain relationships with possible candidates so that when the time is right your company is in a position to recruit top talent. No matter what happens with the economy, technology is now part of every successful organization.