In 2022, hiring the right people has become harder than ever. In technology the working model has dramatically shifted, meaning that more people are prioritising finding work that allows them to work flexibly (whether that’s remotely, from home, or hybrid). There is a greater supply of employment opportunities than job seekers, and employers are struggling to attract top talent. With a record number of students now going to university, and a talented pool of people to choose from, attracting and retaining top talent might seem easy from the outset, but the reality is significantly different. We look at why it’s so hard for tech companies to hire in 2022, and what growth companies can do about it.
Increased funding for start ups
For bootstrapped startups or businesses that have yet to secure large funding rounds, the associated increase in salaries makes it even harder to attract top talent. One key way employers are attempting to redress the balance is by widening the talent pool and considering talent from a wider range of geographic locations.
The new remote work model
With the abundance of VC funding available, capitalisation in the market has been probably one of the main instigators behind the hiring challenges within the contemporary market. In 2021, VC funding reached a record with $621 billion invested in tech companies globally. With $294 billion recorded in 2020, the VC market has more than doubled in a year.
Post pandemic, most people probably agree that remote work is now not only possible but productive, cuts out long commutes into the office, and allows more flexibility and a better work-life balance. As of early 2022, the threat of the pandemic has dissipated but the need for remote work has not. Data scientists at Ladders have predicted that, by the end of 2022, a quarter of professional jobs in North America will be remote. During Q1 2022 more people applied to Remote first jobs on Linkedin than they did to location specific roles, even though these only represented 20% of the roles posted on the platform. With the rise of remote working, people have more choice when finding a new role. Applicants are no longer restricted by their geographical location but can apply to companies worldwide. To attract top talent, businesses are now competing on a global stage. European tech companies are now pitting themselves against highly funded startups in Silicon Valley and other exciting global tech hubs. On top of this, the remote work model has created a working benefits culture, where people are opting for roles which provide a greater level of flexibility. Many businesses that want their staff to remain in-office are losing talent to those companies that are willing to be more flexible.
What do people truly care about?
Every company wants to ensure their product/service is the best it can be. A working environment that features a It is fair to say that for all generations of employee’s, salary will always remain an important factor in deciding where to work. However, there has been a documentable shift particularly in younger generations of employee’s who have evolved additional key considerations when choosing who to work for. Companies who pay dynamic attention to factors such as commitment to the environment, diversity, and equal pay to attract and retain top people. These aspects probably require investment in robust training for and this can lead to the establishment of a new and evolved working culture. Soon Generation Z will surpass Millennials as the most populous generation. For forward thinking Tech brands it’s becoming increasingly important to evolve their behaviours to demonstrate a cohesive vision able to attract and stay relevant to this group.
Job hopping is on the rise
In 2021, employers saw the effects of “The Great Resignation” — the trend of employee’s quitting their jobs at historically high rates. In 2022, people are statistically less willing to commit to a job in which they aren’t happy, then ever before. This provides an added pressure for business leaders to ensure their employees remain happy and committed. Employers are evolving benefits packages to attract top talent, investing in mental health programs and other work-culture schemes in order to support and show appreciation for their employees.
Attractive benefits, higher salary, and a shift to flexible working
In 2022, tech sector employers are needing to innovate in order to attract and retain great people. Adopting new initiatives to adapt to the evolving market expectations becomes increasingly important. Companies that cannot raise salaries budgets have other more innovative options to help attract top talent.
More attention is being paid to work culture and benefits schemes which support mental health, diversity, kindness, and sustainability practices. Employers are also recruiting talent from different geographical areas, or from atypical educational backgrounds, and offering more flexible work models for people that value working from home.
Over the next couple of years, the power looks set to remain with employee’s so it’s ever important that business leaders adapt to make themselves attractive as possible and retain the best people.