Experts say the huge talent shortage affecting the industry during the first half of 2022 may ease after layoffs, although employers have a new set of demands for employees.
From Amazon to technology companies in the last few months Shopify Letting go of a large number of its employees. According to pruning.fyi, In this year alone, more than 140,000 people have lost their jobs in the US, according to a startup that is tracking layoffs in the tech industry.
However, despite several layoffs, skilled technical talent is still in demand.
“Despite some of the headlines, and layoffs with some large tech companies, we are still seeing that the demand for skilled tech talent remains really high,” said Mike Schachtman, senior regional director Robert Half,
Shechtman said that after the pandemic, with volatility in the tech workforce and continued economic struggles, workers are redefining what it means to be an employee. He broke down the new demands into three parts: salary, career development and remote work.
“Salary remains the number one motivator for individuals as they seek a new position. They are feeling that their pay is really inadequate,” he said.
september report Bloomberg It was found that the technical staff feel that their salary is not increasing with the rising inflation. Salaries for people in the industry have actually increased, with US salaries rising 3.2 per cent to US$159,000, and engineering management roles are still the highest paying technical roles across Canada and the UK. Hired.com found that those surveyed said they would start looking for a job immediately if they were denied the expected raise in the next six months.
Firas Elkhalil, President of IT / IQ Tech Recruitersechoed a similar sentiment.
“You have to pay. You have to pay for those people. There’s always going to be a shortage of those talented, highly skilled professionals,” Elkhalil said.
The demand for this talent is going to continue, he added, so companies need to start filling those needs.
Employees also want career growth and trajectory.
“They feel they have limited growth potential in their role. So if I’m a hiring manager for an organization and I clearly define a pathway for someone who comes into my organization, it not only keeps those It’s a great way to keep those who are in your business… but also attract new talent. Career path is really important for a lot of professionals as they come up the ranks,” Shechtman said.
Career development is especially important for Generation Z, the new generation of workers, as they begin to enter the workforce. 1 October 2022 study by Workplace Intelligence and Amazon found that 65 percent of Gen Z and Millennial employees are leaving their current position because they can’t see a way to move to a new role or career path.
“They’re really looking for growth opportunities … ‘Can I get to the next level?’ What does my path look like?’ It is huge for them,” ElKhalil said.
The ultimate demand is for remote working options.
Recent research shows that 87 percent of respondents said that remote work options have improved their overall work-life balance.
a Gallup poll June of 2022 found that eight out of 10 people are working hybrid or remote, while only two out of 10 are fully on-site in their offices. And an AT&T study found that hybrid work models are expected to grow from 42 percent in 2021 to 81 percent in 2024.
Elkhalil said employers and employees disagree a bit about remote work.
“There’s a little bit of a power struggle going on right now between employers and technology professionals. Workers are just happy to work from home … But in some of those, now employers are pushing back, obviously and saying, ‘Hey ‘We want you to come in a day or two,’ and I see this struggle going back and forth.”
He added that he feels the hybrid working option will set the model for most organizations.
“But I see that hybrid model going forward, because you get remote but at the same time, you get that collaboration. Employers will get that culture back and they can build something from there.
To help with this discourse, Shechtman suggests that employers be open about the type of work culture they’re trying to create, whether remote or in-person. Communicating internally and externally to those interested in joining the company will help set the tone of the environment, he added. The issue of talent crunch and layoffs does not have a single solution at this point, as it is more than just an industry issue, but also an economic problem.
He said that migration of talent from abroad has stopped due to immigration backlog. The backlog is expected to reduce over the next year or so, this could allow for a larger influx of tech talent from different countries.
He also added that this position is a great opportunity to focus on enhancing the skills of the future workforce.
“There is a tremendous opportunity to really educate our future future when it comes to children, creating opportunities in school systems to further adapt and promote technology.”
