Industry Trends and Insights: Technology

Tech Workforce Trends and Insights (December 2023)

In this month's industry insights article, we explore the current workforce trends of the tech industry. Whether you're a workforce leader or a hiring manager, we hope to bring you some news and fresh perspectives from around the market to help you navigate the challenges you are currently facing.

Taking Advantage of Tech Layoffs

More layoffs hit the tech industry this fall with certain companies laying off over 1/4th of their workforce. One Tech CEO was quoted saying "This year we took many steps to spend less," signaling that tech leaders have continued to focus on reducing cost and spend.

But it's not all doom and gloom. One major player in the AI space has spent millions to siphon talent away from some of the largest, most advanced tech companies in the US. They did it by offering compensation packages worth millions including large salary ranges, generous equity plans, and other benefits. It's seemed to have worked as they hired about 100 tech employees directly from their competitors.

It could be time to look around your industry, evaluate your current standing, and opt to act now on the surplus of qualified talent on the market.

Snacks are Back!

In a sign of good news, one tech giant has reinstated pre-pandemic perks to the offices. After rehiring many of the thousands of people recently laid off, this company has decided to also bring back things like snack bars, food vendors, free swag, and more. They've reported that this has dramatically boosted the morale of company employees, as they've started partaking in company happy hours again. Lately, one of the offices have noticed their fridges have begun running low on sparkling waters, proving that people are showing up and taking advantage of office perks.

Top In-Demand Skills for 2024

A recent survey laid out the top demanded skills for the upcoming year that hiring managers are looking for. Some of the most common skills mentioned included:

• Soft Skills
• Adaptability and Resilience
• Productivity Amid Uncertainty
• Collaboration Skills
• Excellent Communication
• AI Proficiency

Flexible Remote Work Policies = Revenue Growth

In a recent report, they found that the average public company that has a flexible remote work policy outperformed revenue growth by 16% in the last 3 years vs companies with more strict policies. Companies with fully remote policies had a 21% revenue growth, while companies with strict policies (ie mandating in office a few days a week) only had 5% revenue growth in the same time.

Industries excluding tech only outperformed by 13%, showing that flexible remote work policies could actually be more beneficial for tech companies than other industries.

Among the companies surveyed, 27% had fully flexible policies, 55% had hybrid policies, and 17% were full-time in office.

The debate around in-office vs remote work has, for the most part, relied on anecdotal evidence, and this is some of the first concrete data that can be linked to the conversation around working environment and productivity.

How can you adjust your work policies to not only attract better talent, but increase your company productivity and growth?

Attracting Talent in the Face of Adversity

According to a recent study, the proportion of C-suite executives who think their companies have a skills gap increased from 60% to 68% since 2021. While there might be a growing belief that there isn't enough talent to go around, almost 75% of employees say that they're ready to learn new skills or re-train to remain employable or gain more opportunities.

The top causes of these gaps are a lack of employee development initiatives and in-house resources for training and development. By helping companies close skills gaps, distinguish themselves from competitors and build more adaptive and innovative workforces, L&D will play an increasingly pivotal role in the years to come.

On a different note, the number of job recruitment scams are on the rise. In the US and Canada, about 14 million people are exposed to job scams every year, costing $2 billion in direct losses annually. Not only can a job scam affect candidates, but it leaves organizations susceptible to data breaches.

One of the ways you can gain the trust of potential candidates is having a branded, professional hiring site or using trusted staffing suppliers to do the outreach for you. Branded hiring sites can add legitimacy to your business and give candidates a seamless user experience. Additionally, many suppliers like Hays have pipelines of engaged individuals that have previous relationships with recruiters, giving candidates peace of mind when applying to your jobs. The combination of both can increase the credibility of your brand exponentially.

Learn how Hays can create a professionally branded experience for your candidates.

Artificial Intelligence (AI) and Employment Concerns

In a recent survey, around 1 in 5 college-educated workers are concerned about being replaced by AI, up 8% from 2021. This concern is especially prevalent younger workers and those who make less than $100,000 a year. According to the report, about a third (31%) of workers fear that they'll lose their job benefits in the near future, and almost a quarter (24%) worry about having their wages reduced.

In another report surrounding pessimism over artificial intelligence and employment, about 74% of employees believe that AI and automation will lead to higher unemployment, with 47% of those saying that automation could easily replace their job (up from 27% in 2017).

It also varies by industry. For instance, 56% of those in the industrial sector felt automation could easily replace their jobs, followed by 51% in engineering, IT and scientific fields and 48% in office and administrative roles. About 44% of those in professional or managerial roles and 39% of those in health care felt the same.

One of the ways to combat this fear is emphasizing how AI and automation can integrate into your work environment and how it can help employees accomplish more, in less time.

Want more insights into your industry? Reach out to an expert and see how we can help you reduce your costs while attracting the best talent available.