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9 steps to write a detailed employee handbook

An employee handbook, as the name suggests, is a handy communication tool that informs and creates awareness about an organization’s guidelines and policies and gives insight into the company’s vision and culture.

Since Indian labor and employment laws are considered to be one of the most complex ones in the world, most companies use an employee handbook as a convenient measure to ensure compliance with these laws.

While most organizations opt for the tried-and-tested-route when it comes to drafting an employee handbook, some companies breathe inspiration and creativity into theirs.

A poorly drafted employee handbook is also said to be an effective sedative in the treatment of insomnia (right alongside my 9th-grade history textbook)!

So, let us focus on how not to create such a potent draught and instead try and make it an effective and beneficial communication tool!

9 steps to write a detailed employee handbook –

1. The disclaimer

A disclaimer is what defines the nature of the employee handbook and should at the very outset state that the employee handbook is not a contract of employment.

Not including this critical point in the handbook could leave your organization vulnerable to lawsuits by terminated employees.

2. Introduction and a welcome note

Most employee handbooks start with the customary “introduction and welcome note” that introduces employees to the company’s principles, goals, and core values.

An important point to remember while drafting this is to avoid figurative language, for instance, referring to the organization as a family, as it could imply indefinite employment!

Instead, provide them with a general overview of the work environment and hierarchy.

Another critical point to include is regarding the at-will employment relationship which states that the employee can be terminated at will anytime with or without notice by the employer or employee.

Valve, a gaming software company’s employee handbookis an excellent example of one that communicates its work culture, a brief description of how it started and its lack of hierarchy in an upbeat, empathetic yet effective manner.

This ensures an effective communication of what the employee can expect from the company and its management and what is expected of them.

3. Company’s mission statement

A successful business is one where all its employees are aligned with the company’s vision and goals and work toward bringing the same to fruition.

The first step toward this is to state in lucid terms what these goals are so that it imparts a sense of purpose and duty to the employee.

Brimming with personality and written in a conversational style is the much talked about handbook of Disqus, an online blog comment hosting service company.

The Disqus handbook covers everything from the mission statement, product overview, and milestones to their favorite phrases and life at Disqus, and all done in an engaging and lighthearted manner.

4. Sexual harassment and anti-discrimination policies

It is important to expressly state in your handbook your company’s zero-tolerance policy toward harassment or discrimination of any kind.

It is advisable to take professional legal advice while drafting this section since it requires you to define harassment in the workplace and how to identify it.

The employee must also be made aware of the contact details of the person to whom such an incident can be reported.

The Infosys employee handbookhas a detailed section dedicated to its harassment and discriminatory policies where they appeal to everyone to respect each other to create a safe workplace.

5. Leave policies

Most companies these days are quite accommodating of their employees’ leave requirements.

Whether you have a strict policy regarding it or are more relaxed when it comes to your employees taking time off, clearly mention the kinds of leave permissible such as vacations, sick days, maternity leave, etc.

Do not neglect to disclose any restrictions on leaves of absence such as termination of employment or revoking of employee benefits due to excessive time off.

It is important to mention a timeframe within which employees can apply for vacation or other leaves.

Motley Fool’shas a rather straightforward “take what you need” attitude with regard to its vacation policy as clearly mentioned in their handbook.

6. Disciplinary policies

A company’s employee handbook is a valuable document not only when it comes to introducing the employee to the organization’s work culture and important policies, but also as a deterrent to inappropriate and unprofessional behavior.

Clearly define what constitutes employee misconduct while explaining the consequences of such actions. It has to be made clear, however, that inappropriate actions/behavior would be judged on a case-by-case basis by the organization.

The language used in explaining such sensitive topics must never be threatening as that would lead the employees to be in a constant state of fear of being disproportionately punished.

An important point to be included under this section is a disclaimer that states “or any other behavior proven to be detrimental and harmful to the company” so that the misconduct mentioned are not limited to only the ones listed.

7. Social networking and blogging

With social media pervading our everyday lives, it is crucial to specify what the organization’s policies are regarding accessing social media account while at work.

If this is strictly prohibited, then mention that in the handbook along with the disciplinary action that accompanies such insubordination.

There should be strict rules regarding posting of confidential or proprietary company information and photos of colleagues taken at the workplace.

8. Employee benefits

Most organizations go on to give descriptions of employee benefits that they offer and this could include information related to health insurance, company retirement plans, compensation, disability coverage to name a few. It is not recommended, however, to give a detailed account of the benefits, since most companies typically have separate benefits plans that explain these in greater detail.

All that is needed here is a brief description of the benefits offered and eligibility criteria along with contact information.

Some companies offer stock options as a way to motivate their employees and it is proven to be quite an effective way to cultivate a sense of ownership toward the company’s success. states it thus, “Every Fool is an owner of The Motley Fool. Shortly after joining the Fool, you’ll be granted shares in the company. There are also periodic opportunities for Fools to buy more shares or sell what they own.”

It is crucial to include a disclaimer in this section in the event of any inconsistencies between the handbook and any oral or written document describing the plans and benefits offered by the company.

It is advisable to ensure that the handbook’s description of benefit plans aligns with the company’s formal plan documents.

9. Termination policies

This section pertains to policies regarding voluntary termination of employment.

Depending on your organization’s policies, clearly, state the period of advance notice that the employee is expected to provide before terminating his employment.

Provide information, although brief regarding your company’s termination policies including final paychecks, what employees need to do, whether there would be an exit interview etc.

While some organizations include this under the companies policy section, others draft this as a separate section in their handbook.

A few tips to consider before writing an Employee Handbook

An employee handbook is a living document and not something that is to be written and then forgotten soon after. It needs to be updated frequently, reviewed and personalized per your company’s policies and values.

Avoid making your handbook bulky and unmanageable. With most companies going digital with their handbook, it is even more of a necessity to make it a light yet effective read.

Most handbooks come with a signed acknowledgment form which the employee is expected to sign. Failing to do so will not provide any ‘legal protection benefits’ in the event of a lawsuit by the employee.

The above-mentioned points should help guide you in the right direction while drafting your own employee handbook.

Whether you choose to take the more conservative approach to draft it or allow creativity to guide you down that path, keep in mind that a handbook is essentially a document that communicates to a new employee what you expect from him/her and what he/she can expect in return from you.

Your language and design should reflect this in as clear a way as possible. It is also advisable to seek legal counsel to ensure there are no legal loopholes that can be exploited before publishing it in print or online.

While your team works toward creating a great employee handbook, it is important to ensure that you hire the right candidate for your company.

With growing technology, sourcing candidate is not a major issue. For every opening, you receive thousands of application.

What is important is to assess these candidates based on their skills, without being biased.

Using Talent Assessment software like HackerEarth not only helps you scale your hiring process by evaluating thousands of candidate with a single click, it also shares a detailed comparison report of candidates. Giving a detailed report, before you interview a candidate.

So make sure only the right candidate reads your Employee Handbook, while you put so much effort into it. Use a Talent Assessment Software.

Talent Acquisition strategy, talents, talent assessment, skill based assessment, assessing skills, assessment, talent assessment software, hiring developer, how to hire, best way to hire, Write Employee Handbook

A brief history of recruitment and hiring

Why did Spartans have only an army of 300? Because they said,
“Good people are always hard to find!”

I started hunting for my first job in 2008 and always believed recruitment was synonymous with the Internet and Linkedin.

Some late night thoughts made me think on how did people hired “Ninjas” for their teams before the world wide web became as popular as it is today? Recruitment is something I always classified as new or modern. To my dismay, when I foraged the web, I realized it was as new as the Queen.

A long weekend in the public library, some meetings with sociology professors and several GBs of high-definition on YouTube made me realize that recruitment is as old as the civilization.

The first instance of a resume can be found on rock and wooden tablets, dating back to ancient Rome, which had an engraving of what a person worked on, which is the first listing of the professional details of people.

Another early evidence of recruitment can be seen in the history of imperial China. Imperial exams were a way of recruiting civil service candidates during the Han dynasty era around 1500 BC. These were considered one of the toughest assessments for centuries and often termed ‘exams from hell’ by the Britishers.

Impressed by the scale of assessment and its positive impact on hiring excellent talent, the Queen’s army took along with them this ideal method of hiring excellent talent when it went to the United States of America.

During World War II, Uncle Sam gave a call to the best in America, wanting them to join the army and help maintain peace throughout the world (pun intended!). With more and more youngsters joining the armies, the number of efficient people who could work in production declined. Despite high demand to produce arms and ammunition, there was a serious shortage of workforce.

Understanding this labor crisis, recruitment agencies come forward to help. These agencies would source people through job boards, print media, interview, or assess them and then lead them to the right set of companies.

It was during this period, during WWII, when recruitment agencies played a major role in empowering women across the country. Due to lack of manpower in industries, it was up to the women left behind to assume the responsibility of running the nation. Most of the job agencies opened up for women, helping them reach important places like NASA and BRL (they developed the first computer- ENIAC). Read this amazing publication - Women workers in wartime

Post the capture of Eagle’s Nest, the war veterans returned home.There were millions of people who had immense talent but had no jobs. Recruitment Agencies came forward again as the savior; they asked these veterans to create a resume, sharing all details of their skills. Once done, these resumes were shared with industries across the state based on their requirements. Recruitment agencies not only helped fill the job vacancies but also turned out to be the ideal bridge between candidate and industries.

With the increase in globalization, industrialization, consumerism, and economic growth, the need for the right talent increased many-fold. While these agencies were helping candidates by looking for the right kind of job for them, they realized it made more sense to hire candidates for companies—candidates who had special skills and were required for a particular industry.

It was at this time when recruitment agencies started to tie-up and collaborate with industries and companies to hire the candidate for them specifically. They used to get job requirements or job descriptions, post them on media and job boards, interview candidates, and hire only the impressive ones.

By late 1970s and early 1980s, database and online storage were introduced to the companies, giving them an immense supply of candidates who were interested in working with them. With the huge database and development in the telecom industry, suitable candidates could be found within a few minutes, making it easy for companies to invite them to the hiring process.

In 1994, the first public job search engine went live. Monster Job board was created, a place where job seekers could search the job database with the web browser. Monster Job disrupted the recruitment industry with its vision and ease of use. With the explosion of job boards and the movement of recruitment from print media to online channels, print ads for job requirements have almost become outdated.(Read - Brief history of Job Boards)

The explosion of e-recruitment agencies gave recruiters new ways to reach a global market of candidates. With e-recruitment agencies helping globalize, a new requirement solution to automate the available database popped up, giving way to what we call the ATS (Applicant Tracking System).

By the end of the 1990s, the Application Tracking System became a common industry term. The principal function of an ATS is to provide a central location and database for a company's recruitment effort where the complete information from sourcing to hiring for the candidate was floated. Most of the e-recruitment agencies decided to upgrade themselves to evolving requirements, converting them into a fully automated recruitment solution — ATS.
Recruitsoft -> Taleo -> Oracle

Recruitmax -> Vurv -> Taleo

Brassring -> Kenexa -> IBM

With Web 2.0 and growth of social media and the use of mobile technology, the recruiter's ways to approach candidates changed. Now a Twitter/Facebook post with a URL link to the job description was shared with the candidates. Employers were wooing employees by video ads and slides.

Many consider this recruitment to be broken, but I believe it has been always broken. Moving from pen-and-paper to agencies to ATS doesn’t fix the recruitment.

A social recruitment strategy doesn’t mean posting a URL, rather it would mean an end-to-end recruitment cycle via social channels or the least by a cell phone. A fixed recruitment process would mean a process where a smart system screens candidate performance, an automated system evaluates their knowledge without any bias and an ATS that hires a candidate in a “true social sense” from social media.

Internal Recruitment In Tech: 4 Key Benefits For IT Companies

This article was updated on 3rd April 2023.

Do you speak the language of Gen Z? Their lingo consists of ‘slay’, ‘bet’, ‘vibing’, etc. If that seems alien to you, you wouldn’t be surprised to hear that everything they do is different. From the way they speak, and their dressing styles to the way they approach their careers.

Regardless of growth opportunities, appreciation, or rewards, long careers within a company aren’t a priority for Gen Z. Unlike their/our predecessors who would have continued working for a firm, despite all that. Gen Z just doesn’t ‘vibe’ like that!

So how do you ensure that the current workforce is continuously engaged and willing to stay loyal to your company? How do you enable candidates to see themselves growing and advancing the corporate ladder so that they are not tempted to leave?

By creating a culture of internal recruitment in tech, of course. Whether it is filling a role with a current employee, a promotion, or through a lateral transfer, internal mobility is a great opportunity to improve employee engagement, productivity, and retention.

What is internal recruitment in tech?

Internal recruitment in tech refers to filling vacant job positions with existing employees of a company either through promotions or lateral transfers. It involves looking inward to fill positions rather than hiring someone from the outside.

But why has internal recruitment become so crucial in the last few years and why do companies need to consider it seriously?

One reason why is the growing shortage of skilled talent. The market has become fiercely competitive.

Secondly, post-pandemic, employees are looking for far more than compensation to be satisfied with their job. 52% questioned their purpose at their day-to-day job in a recent Gartner survey.

They are looking for personal value at work. Employees want to make an impact. They also want companies to invest in their growth, provide learning and development opportunities, mental well-being resources, and transparency in company operations.

Indeed, our latest 2022-2023 State of the Developer Ecosystem shows that nearly 16% of developers would like a clear path for career growth in terms of upskilling opportunities.

The key to attempting to retain an employee for a longer duration is by marketing a career with longevity and growth. Let’s look at how internal mobility plays a key role in this.

Also read: Why are Recruiters Switching to Lateral Hiring?

4 key benefits of internal recruitment over external recruitment

Internal Recruitment In tech Vs External Recruitment: The Pros And Cons

Internal hiring is super beneficial for your TA team! They get to add even more qualified candidates to their existing pool of candidates and could potentially, close open roles quickly.

It’s simple math. Assessing internal employees along with passive and active talent outside the company means more people for your recruiters to pick from. Here are some more important benefits of recruiting internally –

#1 Improves employee morale, productivity, and engagement

When employees know that they can apply for positions and take control of their career advancement, it automatically improves productivity fueled by a desire to perform better on the job. This motivates them and further boosts employee morale.

On the contrary, positions that are predominantly filled externally send a message to employees that no matter how hard they work, their credentials and experience are just not good enough to grow within the company.

It’s easier for internal employees to succeed in a new role as they have pre-established connections and knowledge of how things get done in the company.

They also tend to work harder if they know that the company believes in promoting from within. Internal recruitment also helps build a collaborative and agile company culture, which are key aspects of improving employee engagement.

Also read: 7 Employee Engagement Strategies For WFH Tech Teams

#2 Carries low risk of making a bad hire

Companies that prefer recruiting internally understand that the risk with internal hires is lesser compared with ones recruited externally.

They have detailed records of employee performance reviews, compensation, recognition, or awards, along with peer and manager reviews that are reliable predictors of performance. Since they know the no of employees, it helps to avoid employee overload.

Since these jobs are usually filled via self-nomination where candidates express their interest in moving to a new role, the risk of turnover is also considerably lower as employees tend to stay longer.

#3 Costs less than recruiting externally

It is common knowledge that hiring is an expensive activity. The cost per hire is estimated to be around $4000.

This includes external costs such as agency and recruiter fees, job board fees, and internal expenses like recruiter salaries and the money spent on the referral program.

When companies hire from within, they skip all the external costs and most of the internal costs. Internal recruitment in tech is significantly easier on the company’s pockets.

There is also the cost of a bad hire, the likelihood of which is higher with an external recruit.

This is because, unlike an internal hire, there isn’t first-hand information on the employee’s work ethic, critical thinking, leadership abilities, etc., making it difficult to predict the employee’s performance.

#4 Provides quicker results and reduces time-to-hire

Internally hired employees tend to assimilate and deliver results faster.

They are either nominated by the hiring manager or might know someone from the team, which helps them get comfortable with the team faster.

For projects that have imminent deadlines, hiring someone internally results in quicker turnaround times as they are already aware of the processes, systems, and company expectations. Companies also spend less time on-boarding them which saves a lot of time and associated costs.

Also read: Optimize Your Hiring Process With Recruitment Analytics

But what’s the catch with internal recruitment in tech?

If internal hiring is cheaper, faster, and less risky, why aren’t companies able to successfully utilize it more often? There are many internal factors responsible for this.

This can lead to compliance issues

Companies fear that if they continue to select candidates from an internal pool, there is a higher chance of disgruntlement, complaints, and lawsuits filed by employees who are not selected.

Thus, companies rely on self-nomination where employees proactively apply for jobs or positions of interest. While this might sound like a safe alternative, it is also not the best one because in this case very little is done to educate those who might not be actively looking for movement but might be an excellent fit for open positions.

Create resentment among employees

Secondly, the very thing that internal recruitment in tech is supposed to boost can sometimes get adversely impacted – employee morale.

Employees not picked for positions or promotions might feel disheartened and end up looking externally for growth opportunities.

Thirdly, restrictive policies that were once meant to enhance productivity and reduce turnover may become restrictive and claustrophobic to high-caliber employees.

For instance, some companies make it mandatory for employees to have a tenure of one year in their current positions before applying for other roles within the same company.

Sometimes, the employee needs to get additional sign-offs from their managers. Loyal employees who would rather avoid uncomfortable discussions with their bosses are quite unlikely to apply for an internal role. Instead, they would rather take up an external opportunity.

Also read: 10 Key Employee Retention Strategies In Tech

Leave a gap in your existing workforce

Lastly, and probably the biggest factor is pressure from current managers to restrict mobility.

Every manager has those stellar employees on their team who have been around for a long time. They know the processes in and out and are excellent at their jobs.

They are hesitant to nominate them for a different position. Mainly because they are worried about the void that will be created once they leave. It could take ages to fill that role. Managers are not discussing employees’ career advancement plans for fear of losing them.

Also read: How You Can Identify And Close Skill Gaps In Software Development

How to build an effective process to recruit internally?

A lot of the above-mentioned issues arise because companies are being short-sighted in their approach. They focus solely on filling positions rather than investing in candidates.

Let’s change that, shall we?

Speak to your managers – As seen above, managers may not be the best promoters of internal mobility. Educate your managers and conduct training sessions to explain why internal recruitment is beneficial to the company. Also, focus on pointing out how it is directly correlated to employee productivity.

Nomination by the manager – Consider doing away with the clause that a manager has to nominate high-performing team members as candidates for internal roles. This could lead to unconscious bias and favoritism causing further resentment among employees. Your most promising internal candidates may not be able to apply.

Make internal transfers easy – Create a flexible internal transfer policy where the company itself can grant a transfer to a candidate who may be the best bet for an open internal position. Encourage your TA teams to keep the paperwork minimal during an internal transfer.

Create a succession plan – Succession plans refer to internal pipelines maintained by the HR team. They keep a track of skills, training, and performance reviews of existing employees. This helps in pinpointing which employees are ready to fill jobs when they become vacant. HR has the responsibility of building and updating these plans taking into account current and future business needs.

For internal hiring to give positive results, there needs to be a culture that promotes employee development. Encourage internal promotions, open communication with employees about their individual development plans, and a system to close gaps that arise when employees move to different roles.

The Ultimate Playbook For Better Hiring | FREE EBOOK

Internal recruitment vs. External recruitment – Key differences

Internal recruitment: This refers to the process of filling job vacancies within a company with current employees who are seeking new positions or promotions. In tech companies, this might involve shifting a developer to a project management role or promoting an IT analyst to a more senior position.

External recruitment: External recruitment is about hiring candidates from outside the organization. For tech companies, this often means scouting talent from other firms, universities, or through online job portals to find individuals with specialized skills or fresh perspectives.

Comparison:

  • Speed and Cost: Internal recruitment is generally faster and less costly than external, as it skips parts of the hiring process like advertising and initial screenings.
  • Talent Pool: External recruitment offers a broader talent pool, potentially bringing in new skills and ideas, while internal recruitment is limited to existing staff.
  • Employee Morale: Internal recruitment can boost morale and motivation by offering career advancement opportunities. In contrast, external recruitment might sometimes lead to internal dissatisfaction if employees feel overlooked.
  • Onboarding and Adaptation: Internal recruits are already familiar with company culture and processes, requiring less onboarding time compared to external hires.

Internal recruitment is not without its challenges!

Internal recruitment in tech companies is limited to the existing workforce, which might not always have the required skills or experience for certain advanced or specialized roles. This can also lead to:

  • Inbreeding of ideas: Relying solely on internal recruitment can lead to a stagnation of ideas. In tech, where innovation is key, this can be particularly detrimental.
  • Potential for internal conflict: Internal recruitment processes can create competition and conflict among employees, potentially leading to workplace disharmony or feelings of unfairness.
  • Issues with career progression for lower-level employees: If positions are frequently filled internally, it can create a bottleneck where there are no openings for lower-level employees to advance, potentially leading to employee dissatisfaction and turnover.

Look inwards for top talent!

No successful strategy is reliant on any one method. Recruiting externally will never go out of fashion but that doesn’t mean internal recruitment is not beneficial too. Strike a balance between both methods of recruitment to land the best candidates out there.

Here’s the low down.The most promising talent could be right under your nose should you choose to tap into it! Moreover, internal recruitment in tech shows your employees you care about their careers. Your actions show you are willing to put in the effort to retain them.

Since tomorrow’s workforce, mainly Gen Z looks for companies that truly invest in their employees, this is no longer a good-to-have perk. It’s become a high priority.

Let your employees know you want to see them grow in your company 🙂

10 steps guide on how to manage remote teams

Technology has been an enabler at workplaces. With the advent of solutions such as the Cloud, employers are now empowered to hire and manage a workforce that is no longer confined to brick-and-mortar offices.

Gone are the days when organizations had to follow an office-based work culture and suffered losses when the employees couldn’t make it to the office.

Technology helps teams stay connected irrespective of their location. This has helped organizations keep their employees happy and productive and has also encouraged diverse hiring policies.

Even though the transformation has many advantages, it has also created new challenges for leaders in Talent Acquisition and Learning & Development. Leaders now find it difficult to ensure training and reskilling sessions for employees working remotely.

The need for remote hiring and talent management tools has increased like never before.

The “Why” of Remote Team

According to a recent survey by Gallup, 43% of the 15,000 employees surveyed claimed that they spent at least some time working remotely in 2016, whereas this number was just 4% in 2012.

There has been a lot of debate over why we need a remote workforce despite various facts and figures being presented in favor.

You can only experience the positive benefits of remote work if you have all your ducks in a row. Here's a useful resource that highlights the 7 Don'ts of remote management, and what to do instead.

Emergency Preparedness

Offices in cities like Mumbai and Chennai had to shut down due to heavy downpour. Organizations with remote work policies continued business operations, while others suffered losses.

Building Independent Critical Thinking Skills

Remote working helps groom employees into critical thinkers by promoting individual accountability and decision-making.

Building Trust

Managers and employees must trust each other. Remote workers often show increased responsibility and productivity.

Diversity and Inclusion

Remote work enables those who can't commute—like new parents or older professionals—to contribute meaningfully. It helps build a multi-generational, inclusive workforce.

“While the thought of working remotely appeals to a lot of people, it’s not for everyone... it takes a certain kind of person.” — Krisha Buehler, HR Head at BELAY

10 Steps to Managing Remote Teams Effectively

1. Invest in the Right Technology

Use AI-driven hiring tools like Recruit or Zapier for better screening and tracking of applicants. Free eBook

2. Chalk Out the Right Processes

Share clear hiring processes and onboarding kits to ensure candidates understand the company culture and expectations.

3. Explain Your Vision Well

Sell your organizational vision with purpose, especially since remote hires don’t experience daily in-office culture.

4. Focus on Transparency

Set honest expectations during hiring. Ensure candidates understand both the flexibility and responsibility of remote work.

5. Set Reasonable Expectations

Define work hours, responsibilities, and deliverables clearly for remote employees.

6. Ensure Data Security

Use encrypted WANs, VPNs, and security protocols to protect sensitive data. Free eBook

7. Deploy Experts Wherever Needed

Consult experts when implementing new tech and strategies for remote workforce management.

8. Build a Sense of Community

Keep remote workers engaged with recognition programs and simple appreciation gestures. Learn more

9. Don’t Ignore Their Learning & Development

Use e-learning and Learning Management Systems (LMS) to offer consistent development opportunities. More info

10. Don’t Forget Face-to-Face Interaction

Organize in-person meetings occasionally to build stronger team relationships.

Challenges of Managing Remote Teams

1. Communication Barriers

  • Lack of face-to-face interaction may cause misunderstandings.
  • Time zone differences slow down decision-making.

2. Cultural Differences

  • Diverse work ethics and communication styles can lead to friction.
  • Language nuances impact clarity.

3. Monitoring and Productivity

  • It’s difficult to assess remote employee performance directly.
  • Balance issues may lead to burnout or disengagement.

4. Team Cohesion and Culture

  • It’s harder to create team spirit without regular personal interactions.
  • Isolation can affect mental well-being.

5. Technology Dependence and Issues

  • Heavy reliance on tech means failures can disrupt work.
  • Not all employees may be comfortable with digital tools.

6. Data Security and Privacy

  • Remote setups increase risk exposure.
  • Privacy protection becomes more complex.

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Hire remote developers effectively, with HackerEarth Assessment

Referral recruitment - the most effective way of recruitment and how you can improve it

“Let’s just say I know a guy…who knows a guy…who knows another guy.” – Saul Goodman

Can you fathom what might have happened if Saul Goodman hadn’t said these words on the hit TV series “Breaking Bad”?

While it might have saved us some tears at the season finale, it got the protagonist Walter White in touch with Tuco Salamanca, and without spilling any spoiler beans, we can safely say that it took the show to a whole new level.

In the corporate world – referral recruitment is the equivalent of that.

But what exactly is referral recruitment?

Simply put, it is a strategy where current employees of a company are encouraged to refer contacts for vacant positions within the company.

It is a tactic where companies empower employees to become brand advocates and through word-of-mouth attract top talent from their peer networks to work for the company.

This is not a new concept – referral programs have existed since the time of Julius Caesar’s rule in 55 B.C, who apparently offered 300 sestertii to any soldier recruiting another into the Roman army.

The amount was far from measly as it amounted to almost one-third of a soldier’s annual pay.

Fast forward many centuries later, companies continue to harness the power of referral recruitment to get high-potential candidates to work for them.

In this article, we will explore how referral recruitment is better than most other recruitment methods and ways in which companies can make it more efficient.

5 Benefits of having a referral program

  1. Higher retention of employees

    Retention is a top concern for talent leaders all over the world. Referrals are the perfect vessels with which to wade the murky waters of talent acquisition and retention.

    This is because the turnover rate of referred employees is found to be lesser than non-referred employees who are hired through other recruitment mediums.

    Research shows that 56% of referred employees stay for over five years in their current position, and over 70% stayed in the same position as the time of hire, which indicates higher job satisfaction.

  2. Higher employee productivity

    A study by Stanford found that referred employees have higher productivity compared to employees hired through alternative channels.

    They were also found to have better company fitment, which is a top priority for employers, as the referred candidates are aware of the company culture and working conditions at the time of joining the company.

  3. Costs a fraction of other recruitment methods

    When your employees recruit top talent for you, you cut your talent acquisition costs significantly.

    You save on advertising costs for job boards, the cost of hiring an RPO or a staffing agency, recruitment drives, and more.

    The financial incentive that you pay employees when a referral gets hired is only a fraction of other recruitment costs.

  4. Leads to higher innovation

    Yes, you read it right — referrals were found to boost innovation according to the study titled “You’d be perfect for this: Understanding the Value of Hiring Through Referrals.”

    The social synergy at a workplace where employees have more friends leads to more innovative ideas compared to a workplace with fewer referrals.

  5. Saves time

    Referrals skip the Awareness and Consideration stages of the recruiting funnel (depicted below) and skip straight to the Selection or Interview stage.

    This cuts a big chunk of the total time taken to hire the candidate.

    The larger the percentage of your workforce you hire through referrals, the more time you save on recruitment.

    Image Source: Glassdoor.com

5 steps to improve your referral recruitment

Is referral programmes good as it sounds? In a word, yes! But it’s slightly more complex and involves examining areas that need to be enhanced to get the full benefit of employing referral programs.

  1. The incentive structure for referring candidates

    The report by ICIMS titled “The impact of successful employee referral programs” shows that out of a whole range of program characteristics, one of the top areas of improvement in companies included an appropriate incentive structure for referring candidates.

    Caesar understood the importance of incentivizing the process back in his time.

    But things have changed since then. Money is no longer the chief motivator for employees to refer their peers; their motivations are more altruistic in nature.

    The biggest incentive for employees is helping their friends followed by helping the company (as seen in the image below).

    The incentive structure of a company should account for these intentions.

    While employees might appreciate small monetary perks, recognition from the company and the team for their contributions are far more likely to appeal to them and will encourage them to continue referring more talent.

    Image Source: Linkedin.com

  2. Educating employees on the positive impact of referrals

    Employers assume that employees understand the importance of referrals, however, that might not be the case.

    It is important to let employees know the positive impact of referrals and highlight any specific contributions and recognize their efforts by giving first-hand examples from the team.

    A great way to do this is to set reminders to discuss any examples or reinforce the positive impact of referrals in team meetings or during one-on-one sessions.

    Referrals must be proactively encouraged by employees to attract passive top talent in their networks who might not be looking to switch roles or jobs.

  3. Leveraging technology to support the referral process

    While companies recognize the importance of tracking via technology, this is an area where they are severely debilitated according to the ICIMS report.

    Companies need to invest in applicant tracking systems (ATS) with a built-in employee referral program that keeps tabs on the hiring process.

    These systems also track the financial incentives paid to employees when referrals become new hires.

    To get true ROI from this technology, consider investing in one that also gathers important statistics, such as the tenure of new hires within the company.

    Some companies are also implementing out-of-the-box solutions to track the referral process better.

    Dropbox, for instance, built an app where employees can enter their referral into the system and can track the various stages of the hiring process using the app.

    Integrate with marketing

    The report by LinkedIn titled Global Recruiting Trends 2016 showed how talent acquisition needs to partner with marketing to get brand excellence.

    This will help increase awareness and educate employees and passive candidates about the company culture and brand.

  4. Timely communication with the referral

    The biggest reason for referrals not converting to hires is “untimely communication.”

    While passive candidates might not mind waiting for an organization to tell them of their progress, candidates who are actively looking for opportunities have a higher chance of accepting competing offers and prefer a company that keeps them informed on their application status.

    Timely communication at every stage of the hiring process is key to retaining the interest of referrals.

  5. Ensure the talent pool is diverse

    According to LinkedIn’s report on Global Recruiting Trends 2017, recruiting more diverse candidates is one of the top three important trends that will define the future of global recruiting.

    When it comes to referral recruiting, companies must be careful not to recruit a homogenous workforce as there is a chance that people would refer to others who are most like them.

    So, companies that don’t have a diverse workforce, to begin with, might not have a diverse employee referral pipeline and might end up with a more standardized workforce.


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Referral recruitment is old but not obsolete

Referral recruitment has not lost its luster in the recruiting world as almost 48% of the world’s talent leaders get quality hires using employee referrals, as per LinkedIn’s report on Global Recruiting Trends 2017.

In India, at least 65 percent of recruiters are reported to be using employee referral programs to attract quality talent.

This is a trend which might have started centuries earlier but is here to stay as 26% of employers considered employee referral programs to be a long-lasting trend.

To provide true ROI though, employers must ensure that they have a robust system in place to educate and empower employees and a system to track the referral process while striving to make the process more transparent and convenient for them.

Hire talent in your pipeline unbiased with HackerEarth Recruit

Why do so many engineers hate their jobs?

It wouldn’t be too presumptuous to say that half the population considers their jobs are just to get them by. Forbes says 52.3% are unhappy at work, and 63% are not engaged in their jobs. People who are over 35 (says Robert Half) seem to be more listless and unhappy than their younger colleagues who still have some of the stardust in their eyes. Alright, so most people don’t enjoy their jobs. Not news, is it?

Engineers don’t have a better story to tell either. The ennui or disillusionment seems to be a part of their work lives. Even as we are moving from a reactive economy to a predictive one, engineering remains one of the more coveted professions. It now offers degrees that are quite versatile, with enough job roles waiting for you to try. However, many engineers have voted for job dissatisfaction for various reasons, in informal polls .

What makes them unhappy?

Overworked, over-enthusiastic

Most engineers will agree that they tend to feel burned out faster because of a number of hours they put in, especially in the initial days of the job. Long work hours can take a toll on their personal lives, fitness, health, and mental well-being. Although some people simply aren’t willing to put in more than 40 hours a week, there are a few eager beavers trying to impress management or the truly passionate ones who spend a lot of focused hours at the office. The upside is that these engineers who “outwork” their colleagues do typically get ahead quicker. The downside is that they can become disenchanted in no time if they don’t see any tangible results, not to mention becoming unwell over time.

What the company can do:

Appreciate the engineers who show up early and stay late, doing productive work to meet deadlines. But encourage a healthy work-life balance for all your employees by providing exercise access, company outings, recreational areas, community engagement activities, flexible schedules, team building events, training or workshops, and childcare facilities. In the long run, your company will be more attractive to potential hires. Also, you can improve employee retention and be home to loyal, better-quality workers.


Conduct accurate coding assessments with HackerEarth.


Underpaid, undervalued

Engineers in big tech firms may not identify with this because they tend to enjoy several benefits above-market compensation brings. On the whole, we recognize the engineering profession as one that guarantees financial security. And many engineers feel that they are, more or less, being paid adequately for the job they do. But in fledgling firms, this isn’t always the case. Apart from the insane hours, engineers are on their toes all the time trying to fix issues, whether it is complex machinery or code, before they escalate. The young engineering graduates often complain that their appraisals follow a bell-curve. In this infographic, 50.4% of engineers said they were qualified enough to make more money.

What the company can do:

Offer qualified engineers a decent compensation; a griping lot will negatively impact productivity and company morale. As an engineering firm, ensure that you have proper work scheduling and project management in place. In startups, engineers often feel that they are grossly underpaid (some are overpaid!) after working almost 70 to 80 hours per week. Losing skilled tech talent to the competition is easily avoided by ensuring fairness in your hiring practices and in your efforts to retain, recognize, and reward.

Under-prepared, confused

Young graduates come into jobs excited and hoping to become Q (from James Bond) and change the world. But in reality, they become disgruntled by having to deal with dull tasks like checking for inconsistencies in sheet numbers across design drafts. Some of them even quit the profession few months after realizing that either they were ill-informed or that engineering was much better at the Uni. According to Michael MacRae (ASME), engineers are “tasked with projects that require technical skills without also providing an environment offering collaboration, problem-solving, and other perks that satisfy the engineering mind and soul.”This is also cited as a reason, because these graduates are not prepared enough for all that the job requires them to do.

What the company can do:

Remember to outline the exact responsibilities that define a role at the outset. Make them understand that along with interesting tasks, some gray jobs will be part of the position. Tell them what opportunities for upward mobility exist. Clearly chalk out a plan for advancement for technical staff. Create a positive work environment with helpful, patient senior staff or experts to smoothen any wrinkles. Invest in your employee, and you will see how their appreciation translates into personal and company growth. Also, remember to have dedicated personnel to liaise with the engineers and other non-technical staff to minimize conflicts and lack of clarity between requirements and expected solutions.

Apart from these, what else can companies do to keep their engineers happy?

Cultivating a cooperative and positive workplace atmosphere

Encourage professional growth and skill advancement among your team. Foster a climate that prioritizes teamwork and the exchange of knowledge to resolve conflicts and boost collaboration. Establish an environment grounded in mutual respect, where each member feels appreciated and supported. Promote transparent and collaborative communication within the team. Explore literature like “Radical Candor” by Kim Scott, and “Extreme Ownership” by Jocko Willink and Leif Babin for further inspiration.

Elevating code quality and sustainability

Begin by instituting code review methodologies (such as mob/pair programming or pull requests) to guarantee adherence to best practices and superior code quality. Prioritize automated testing to identify issues early and confirm code accuracy. Plan for ongoing enhancements and allocate time for substantial refactoring and addressing technical debt to boost code sustainability. Encourage, or even mandate, comprehensive documentation in everyday tasks to improve clarity and ease of ongoing maintenance.

Refining recruitment and interview techniques

Recognize that many engineers struggle with conducting interviews. Select and train a group specifically for interviewing, focusing on effective and impartial methods. Develop a structured interview process that assesses candidates on relevant skills and problem-solving capabilities, steering clear of irrelevant challenges. Always offer constructive feedback to applicants to guide their development, regardless of hiring decisions.

Advocating for work-life harmony and employee wellness

Promote a culture that values the balance between work and personal life, and supports employee well-being. This includes refraining from late-night communications and offering flexible working conditions, especially as many in software engineering find remote or adaptable work more productive and enjoyable. Encourage breaks, physical activities, and screen-free time in innovative ways, such as scheduling meetings for slightly shorter durations. Provide support and resources for mental and physical health.

Encouraging ongoing improvement and learning

Highlight the significance of innovation, experimentation, and staying informed about industry developments. Build a learning-focused culture, offering groups for skill development, book clubs, and open training sessions. Motivate staff to embrace new technologies and enhance their abilities, potentially incorporating learning into performance reviews. Ensure there are methods to objectively evaluate and recognize continuous learning and skill development.

Streamlining operations and minimizing bureaucracy

Assess and refine internal processes to cut down on unnecessary meetings, bureaucratic hurdles, and inefficient practices. Give teams more autonomy in decision-making and reduce unnecessary approval steps, handoffs, reviews, or other procedural inefficiencies. Adopt agile methodologies to foster a more flexible, efficient, and adaptable work environment.

Championing diversity and inclusivity

Work towards creating a welcoming atmosphere for people from various backgrounds. Actively pursue diversity and inclusivity within the organization. If not already in place, implement policies and practices that ensure equal opportunities for all employees.

Although the perks and compensation for tech-related jobs in big companies can be really attractive, cookie-cutter corporate environments may not work for some. Respect your engineers and empower them. Along with flexible work schedules, give them some autonomy and listen to their opinions. Give them the freedom to solve problems via innovative approaches in a results-driven culture. Groom them for leadership roles and train them on the managerial skills required to climb the ladder. Support their work-related interests and give them opportunities for career progression via access to and training on new tools and technologies. Conduct internal hackathons and other challenges to boost employee engagement by helping employees showcase their skills and foster collaboration and innovation. Recognize their contributions and ensure they see what difference their work is making to the company or the community.

If none of these work, then ask them what they need to be happy and productive. That has to work!

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Forecasting Tech Hiring Trends For 2023 With 6 Experts

2023 is here, and it is time to look ahead. Start planning your tech hiring needs as per your business requirements, revamp your recruiting processes, and come up with creative ways to land that perfect “unicorn candidate”!

Right? Well, jumping in blindly without heeding what this year holds for you can be a mistake. So before you put together your plans, ask yourselves this—What are the most important 2023 recruiting trends in tech hiring that you should be prepared for? What are the predictions that will shape this year?

We went around and posed three important questions to industry experts that were on our minds. And what they had to say certainly gave us some food for thought!

Before we dive in, allow me to introduce you to our expert panel of six, who had so much to say from personal experience!

Meet the Expert Panel

Radoslav Stankov

Radoslav Stankov has more than 20 years of experience working in tech. He is currently Head of Engineering at Product Hunt. Enjoys blogging, conference speaking, and solving problems.

Mike Cohen

Mike “Batman” Cohen is the Founder of Wayne Technologies, a Sourcing-as-a-Service company providing recruitment data and candidate outreach services to enhance the talent acquisition journey.

Pamela Ilieva

Pamela Ilieva is the Director of International Recruitment at Shortlister, a platform that connects employers to wellness, benefits, and HR tech vendors.

Brian H. Hough

Brian H. Hough is a Web2 and Web3 software engineer, AWS Community Builder, host of the Tech Stack Playbook™ YouTube channel/podcast, 5-time global hackathon winner, and tech content creator with 10k+ followers.

Steve O'Brien

Steve O'Brien is Senior Vice President, Talent Acquisition at Syneos Health, leading a global team of top recruiters across 30+ countries in 24+ languages, with nearly 20 years of diverse recruitment experience.

Patricia (Sonja Sky) Gatlin

Patricia (Sonja Sky) Gatlin is a New York Times featured activist, DEI Specialist, EdTechie, and Founder of Newbies in Tech. With 10+ years in Higher Education and 3+ in Tech, she now works part-time as a Diversity Lead recruiting STEM professionals to teach gifted students.

Overview of the upcoming tech industry landscape in 2024

Continued emphasis on remote work and flexibility: As we move into 2024, the tech industry is expected to continue embracing remote work and flexible schedules. This trend, accelerated by the COVID-19 pandemic, has proven to be more than a temporary shift. Companies are finding that remote work can lead to increased productivity, a broader talent pool, and better work-life balance for employees. As a result, recruiting strategies will likely focus on leveraging remote work capabilities to attract top talent globally.

Rising demand for AI and Machine Learning Skills: Artificial Intelligence (AI) and Machine Learning (ML) continue to be at the forefront of technological advancement. In 2024, these technologies are expected to become even more integrated into various business processes, driving demand for professionals skilled in AI and ML. Companies will likely prioritize candidates with expertise in these areas, and there may be an increased emphasis on upskilling existing employees to meet this demand.

Increased focus on cybersecurity: With the digital transformation of businesses, cybersecurity remains a critical concern. The tech industry in 2024 is anticipated to see a surge in the need for cybersecurity professionals. Companies will be on the lookout for talent capable of protecting against evolving cyber threats and ensuring data privacy.

Growth in cloud computing and edge computing: Cloud computing continues to grow, but there is also an increasing shift towards edge computing – processing data closer to where it is generated. This shift will likely create new job opportunities and skill requirements, influencing recruiting trends in the tech industry.

Sustainable technology and green computing: The global emphasis on sustainability is pushing the tech industry towards green computing and environmentally friendly technologies. In 2024, companies may seek professionals who can contribute to sustainable technology initiatives, adding a new dimension to tech recruiting.

Emphasis on soft skills: While technical skills remain paramount, soft skills like adaptability, communication, and problem-solving are becoming increasingly important. Companies are recognizing the value of these skills in fostering innovation and teamwork, especially in a remote or hybrid work environment.

Diversity, Equity, and Inclusion (DEI): There is an ongoing push towards more diverse and inclusive workplaces. In 2024, tech companies will likely continue to strengthen their DEI initiatives, affecting how they recruit and retain talent.

6 industry experts predict the 2023 recruiting trends

#1 We've seen many important moments in the tech industry this year...

Rado: In my opinion, a lot of those will carry over. I felt this was a preparation year for what was to come...

Mike: I wish I had the crystal ball for this, but I hope that when the market starts picking up again...

Pamela: Quiet quitting has been here way before 2022, and it is here to stay if organizations and companies...

Pamela Ilieva, Director of International Recruitment, Shortlister

Also, read: What Tech Companies Need To Know About Quiet Quitting


Brian: Yes, absolutely. In the 2022 Edelman Trust Barometer report...

Steve: Quiet quitting in the tech space will naturally face pressure as there is a redistribution of tech talent...

Patricia: Quiet quitting has been around for generations—people doing the bare minimum because they are no longer incentivized...

Patricia Gatlin, DEI Specialist and Curator, #blacklinkedin

#2 What is your pro tip for HR professionals/engineering managers...

Rado: Engineering managers should be able to do "more-with-less" in the coming year.

Radoslav Stankov, Head of Engineering, Product Hunt

Mike: Well first, (shameless plug), be in touch with me/Wayne Technologies as a stop-gap for when the time comes.

Mike “Batman” Cohen, Founder of Wayne Technologies

It's in the decrease and increase where companies find the hardest challenges...

Pamela: Remain calm – no need to “add fuel to the fire”!...

Brian: We have to build during the bear markets to thrive in the bull markets.

Companies can create internal hackathons to exercise creativity...


Also, read: Internal Hackathons - Drive Innovation And Increase Engagement In Tech Teams


Steve: HR professionals facing a hiring freeze will do well to “upgrade” processes, talent, and technology aggressively during downtime...

Steve O'Brien, Senior Vice President, Talent Acquisition at Syneos Health

Patricia: Talk to hiring managers in all your departments. Ask, what are the top 3-5 roles they are hiring for in the new year?...


Also, watch: 5 Recruiting Tips To Navigate The Hiring Freeze With Shalini Chandra, Senior TA, HackerEarth


#3 What top 3 skills would you like HR professionals/engineering managers to add to their repertoire in 2023 to deal with upcoming challenges?

6 industry experts predict the 2023 recruiting trends

Rado: Prioritization, team time, and environment management.

I think "prioritization" and "team time" management are obvious. But what do I mean by "environment management"?

A productive environment is one of the key ingredients for a productive team. Look at where your team wastes most time, which can be automated. For example, end-to-end writing tests take time because our tools are cumbersome and undocumented. So let's improve this.

Mike: Setting better metrics/KPIs, moving away from LinkedIn, and sharing more knowledge.

  1. Metrics/KPIs: Become better at setting measurable KPIs and accountable metrics. They are not the same thing—it's like the Square and Rectangle. One fits into the other but they're not the same. Hold people accountable to metrics, not KPIs. Make sure your metrics are aligned with company goals and values, and that they push employees toward excellence, not mediocrity.
  2. Freedom from LinkedIn: This is every year, and will probably continue to be. LinkedIn is a great database, but it is NOT the only way to find candidates, and oftentimes, not even the most effective/efficient. Explore other tools and methodologies!
  3. Join the conversation: I'd love to see new names of people presenting at conferences and webinars. And also, see new authors on the popular TA content websites. Everyone has things they can share—be a part of the community, not just a user of. Join FB groups, write and post articles, and comment on other people's posts with more than 'Great article'. It's a great community, but it's only great because of the people who contribute to it—be one of those people.

Pamela: Resilience, leveraging data, and self-awareness.

  1. Resilience: A “must-have” skill for the 21st century due to constant changes in the tech industry. Face and adapt to challenges. Overcome them and handle disappointments. Never give up. This will keep HR people alive in 2023.
  2. Data skills: Get some data analyst skills. The capacity to transfer numbers into data can help you be a better HR professional, prepared to improve the employee experience and show your leadership team how HR is leveraging data to drive business results.
  3. Self-awareness: Allows you to react better to upsetting situations and workplace challenges. It is a healthy skill to cultivate – especially as an HR professional.

Also, read: Diving Deep Into The World Of Data Science With Ashutosh Kumar


Brian: Agility, resourcefulness, and empathy.

  1. Agility: Allows professionals to move with market conditions. Always be as prepared as possible for any situation to come. Be flexible based on what does or does not happen.
  2. Resourcefulness: Allows professionals to do more with less. It also helps them focus on how to amplify, lift, and empower the current teams to be the best they can be.
  3. Empathy: Allows professionals to take a more proactive approach to listening and understanding where all workers are coming from. Amid stressful situations, companies need empathetic team members and leaders alike who can meet each other wherever they are and be a support.

Steve: Negotiation, data management, and talent development.

  1. Negotiation: Wage transparency laws will fundamentally change the compensation conversation. We must ensure we are still discussing compensation early in the process. And not just “assume” everyone’s on the same page because “the range is published”.
  2. Data management and predictive analytics: Looking at your organization's talent needs as a casserole of indistinguishable components and demands will not be good enough. We must upgrade the accuracy and consistency of our data and the predictions we can make from it.

Also, read: The Role of Talent Intelligence in Optimizing Recruitment


  1. Talent development: We’ve been exploring the interplay between TA and TM for years. Now is the time to integrate your internal and external talent marketplaces. To provide career experiences to people within your organization and not just those joining your organization.

Patricia: Technology, research, and relationship building.

  1. Technology: Get better at understanding the technology that’s out there. To help you speed up the process, track candidate experience, but also eliminate bias. Metrics are becoming big in HR.
  2. Research: Honestly, read more books. Many great thought leaders put out content about the “future of work”, understanding “Gen Z”, or “quiet quitting.” Dedicate work hours to understanding your ever-changing field.
  3. Relationship Building: Especially in your immediate communities. Most people don’t know who you are or what exactly it is that you do. Build your personal brand and what you are doing at your company to impact those closest to you. Create a referral funnel to get a pipeline going. When people want a job you and your company ought to be top of mind. Also, tell the stories of the people that work there.

7 Tech Recruiting Trends To Watch Out For In 2024

The last couple of years transformed how the world works and the tech industry is no exception. Remote work, a candidate-driven market, and automation are some of the tech recruiting trends born out of the pandemic.

While accepting the new reality and adapting to it is the first step, keeping up with continuously changing hiring trends in technology is the bigger challenge right now.

What does 2024 hold for recruiters across the globe? What hiring practices would work best in this post-pandemic world? How do you stay on top of the changes in this industry?

The answers to these questions will paint a clearer picture of how to set up for success while recruiting tech talent this year.

7 tech recruiting trends for 2024

6 Tech Recruiting Trends To Watch Out For In 2022

Recruiters, we’ve got you covered. Here are the tech recruiting trends that will change the way you build tech teams in 2024.

Trend #1—Leverage data-driven recruiting

Data-driven recruiting strategies are the answer to effective talent sourcing and a streamlined hiring process.

Talent acquisition leaders need to use real-time analytics like pipeline growth metrics, offer acceptance rates, quality and cost of new hires, and candidate feedback scores to reduce manual work, improve processes, and hire the best talent.

The key to capitalizing on talent market trends in 2024 is data. It enables you to analyze what’s working and what needs refinement, leaving room for experimentation.

Trend #2—Have impactful employer branding

98% of recruiters believe promoting company culture helps sourcing efforts as seen in our 2021 State Of Developer Recruitment report.

Having a strong employer brand that supports a clear Employer Value Proposition (EVP) is crucial to influencing a candidate’s decision to work with your company. Perks like upskilling opportunities, remote work, and flexible hours are top EVPs that attract qualified candidates.

A clear EVP builds a culture of balance, mental health awareness, and flexibility—strengthening your employer brand with candidate-first policies.

Trend #3—Focus on candidate-driven market

The pandemic drastically increased the skills gap, making tech recruitment more challenging. With the severe shortage of tech talent, candidates now hold more power and can afford to be selective.

Competitive pay is no longer enough. Use data to understand what candidates want—work-life balance, remote options, learning opportunities—and adapt accordingly.

Recruiters need to think creatively to attract and retain top talent.


Recommended read: What NOT To Do When Recruiting Fresh Talent


Trend #4—Have a diversity and inclusion oriented company culture

Diversity and inclusion have become central to modern recruitment. While urgent hiring can delay D&I efforts, long-term success depends on inclusive teams. Our survey shows that 25.6% of HR professionals believe a diverse leadership team helps build stronger pipelines and reduces bias.

McKinsey’s Diversity Wins report confirms this: top-quartile gender-diverse companies see 25% higher profitability, and ethnically diverse teams show 36% higher returns.

It's refreshing to see the importance of an inclusive culture increasing across all job-seeking communities, especially in tech. This reiterates that D&I is a must-have, not just a good-to-have.

—Swetha Harikrishnan, Sr. HR Director, HackerEarth

Recommended read: Diversity And Inclusion in 2022 - 5 Essential Rules To Follow


Trend #5—Embed automation and AI into your recruitment systems

With the rise of AI tools like ChatGPT, automation is being adopted across every business function—including recruiting.

Manual communication with large candidate pools is inefficient. In 2024, recruitment automation and AI-powered platforms will automate candidate nurturing and communication, providing a more personalized experience while saving time.

Trend #6—Conduct remote interviews

With 32.5% of companies planning to stay remote, remote interviewing is here to stay.

Remote interviews expand access to global talent, reduce overhead costs, and increase flexibility—making the hiring process more efficient for both recruiters and candidates.

Trend #7—Be proactive in candidate engagement

Delayed responses or lack of updates can frustrate candidates and impact your brand. Proactive communication and engagement with both active and passive candidates are key to successful recruiting.

As recruitment evolves, proactive candidate engagement will become central to attracting and retaining talent. In 2023 and beyond, companies must engage both active and passive candidates through innovative strategies and technologies like chatbots and AI-powered systems. Building pipelines and nurturing relationships will enhance employer branding and ensure long-term hiring success.

—Narayani Gurunathan, CEO, PlaceNet Consultants

Recruiting Tech Talent Just Got Easier With HackerEarth

Recruiting qualified tech talent is tough—but we’re here to help. HackerEarth for Enterprises offers an all-in-one suite that simplifies sourcing, assessing, and interviewing developers.

Our tech recruiting platform enables you to:

  • Tap into a 6 million-strong developer community
  • Host custom hackathons to engage talent and boost your employer brand
  • Create online assessments to evaluate 80+ tech skills
  • Use dev-friendly IDEs and proctoring for reliable evaluations
  • Benchmark candidates against a global community
  • Conduct live coding interviews with FaceCode, our collaborative coding interview tool
  • Guide upskilling journeys via our Learning and Development platform
  • Integrate seamlessly with all leading ATS systems
  • Access 24/7 support with a 95% satisfaction score

Recommended read: The A-Zs Of Tech Recruiting - A Guide


Staying ahead of tech recruiting trends, improving hiring processes, and adapting to change is the way forward in 2024. Take note of the tips in this article and use them to build a future-ready hiring strategy.

Ready to streamline your tech recruiting? Try HackerEarth for Enterprises today.

Code In Progress - The Life And Times Of Developers In 2021

Developers. Are they as mysterious as everyone makes them out to be? Is coding the only thing they do all day? Good coders work around the clock, right?

While developers are some of the most coveted talent out there, they also have the most myths being circulated. Most of us forget that developers too are just like us. And no, they do not code all day long.

We wanted to bust a lot of these myths and shed light on how the programming world looks through a developer’s lens in 2021—especially in the wake of a global pandemic. This year’s edition of the annual HackerEarth Developer Survey is packed with developers’ wants and needs when choosing jobs, major gripes with the WFH scenario, and the latest market trends to watch out for, among others.

Our 2021 report is bigger and better, with responses from 25,431 developers across 171 countries. Let’s find out what makes a developer tick, shall we?

Developer Survey

“Good coders work around the clock.” No, they don’t.

Busting the myth that developers spend the better part of their day coding, 52% of student developers said that they prefer to code for a maximum of 3 hours per day.

When not coding, devs swear by their walks as a way to unwind. When we asked devs the same question last year, they said they liked to indulge in indoor games like foosball. In 2021, going for walks has become the most popular method of de-stressing. We’re chalking it up to working from home and not having a chance to stretch their legs.

Staying ahead of the skills game

Following the same trend as last year, students (39%) and working professionals (44%) voted for Go as one of the most popular programming languages that they want to learn. The other programming languages that devs are interested in learning are Rust, Kotlin, and Erlang.

Programming languages that students are most skilled at are HTML/CSS, C++, and Python. Senior developers are more comfortable working with HTML/CSS, SQL, and Java.

How happy are developers

Employees from middle market organizations had the highest 'happiness index' of 7.2. Experienced developers who work at enterprises are marginally less happy in comparison to people who work at smaller companies.

However, happiness is not a binding factor for where developers work. Despite scoring the least on the happiness scale, working professionals would still like to work at enterprise companies and growth-stage startups.

What works when looking for work

Student devs (63%), who are just starting in the tech world, said a good career growth curve is a must-have. Working professionals can be wooed by offers of a good career path (69%) and compensation (68%).

One trend that has changed since last year is that at least 50% of students and working professionals alike care a lot more about ESOPs and positive Glassdoor reviews now than they did in 2020.


To know more about what developers want, download your copy of the report now!


We went a step further and organized an event with our CEO, Sachin Gupta, Radoslav Stankov, Head of Engineering at Product Hunt, and Steve O’Brien, President of Talent Solutions at Job.com to further dissect the findings of our survey.

Tips straight from the horse’s mouth

Steve highlighted how the information collated from the developer survey affects the recruiting community and how they can leverage this data to hire better and faster.

  • The insight where developer happiness is correlated to work hours didn’t find a significant difference between the cohorts. Devs working for less than 40 hours seemed marginally happier than those that clocked in more than 60 hours a week.
“This is an interesting data point, which shows that devs are passionate about what they do. You can increase their workload by 50% and still not affect their happiness. From a work perspective, as a recruiter, you have to get your hiring manager to understand that while devs never say no to more work, HMs shouldn’t overload the devs. Devs are difficult to source and burnout only leads to killing your talent pool, which is something that you do not want,” says Steve.
  • Roughly 45% of both student and professional developers learned how to code in college was another insight that was open to interpretation.
“Let’s look at it differently. Less than half of the surveyed developers learned how to code in college. There’s a major segment of the market today that is not necessarily following the ‘college degree to getting a job’ path. Developers are beginning to look at their skillsets differently and using various platforms to upskill themselves. Development is not about pedigree, it’s more about the potential to demonstrate skills. This is an interesting shift in the way we approach testing and evaluating devs in 2021.”

Rado contextualized the data from the survey to see what it means for the developer community and what trends to watch out for in 2021.

  • Node.js and AngularJS are the most popular frameworks among students and professionals.
“I was surprised by how many young students wanted to learn AngularJS, given that it’s more of an enterprise framework. Another thing that stood out to me was that the younger generation wants to learn technologies that are not necessarily cool like ExtJS (35%). This is good because people are picking technologies that they enjoy working with instead of just going along with what everyone else is doing. This also builds a more diverse technology pool.” — Rado
  • 22% of devs say ‘Zoom Fatigue’ is real and directly affects productivity.
“Especially for younger people who still haven’t figured out a routine to develop their skills, there is something I’d like you to try out. Start using noise-canceling headphones. They help keep distractions to a minimum. I find clutter-free working spaces to be an interesting concept as well.”

The last year and a half have been a doozy for developers everywhere, with a lot of things changing, and some things staying the same. With our developer survey, we wanted to shine the spotlight on skill-based hiring and market trends in 2021—plus highlight the fact that developers too have their gripes and happy hours.

Uncover many more developer trends for 2021 with Steve and Rado below:

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Best Pre-Employment Assessments: Optimizing Your Hiring Process for 2024

In today's competitive talent market, attracting and retaining top performers is crucial for any organization's success. However, traditional hiring methods like relying solely on resumes and interviews may not always provide a comprehensive picture of a candidate's skills and potential. This is where pre-employment assessments come into play.

What is Pre-Employement Assessment?

Pre-employment assessments are standardized tests and evaluations administered to candidates before they are hired. These assessments can help you objectively measure a candidate's knowledge, skills, abilities, and personality traits, allowing you to make data-driven hiring decisions.

By exploring and evaluating the best pre-employment assessment tools and tests available, you can:

  • Improve the accuracy and efficiency of your hiring process.
  • Identify top talent with the right skills and cultural fit.
  • Reduce the risk of bad hires.
  • Enhance the candidate experience by providing a clear and objective evaluation process.

This guide will provide you with valuable insights into the different types of pre-employment assessments available and highlight some of the best tools, to help you optimize your hiring process for 2024.

Why pre-employment assessments are key in hiring

While resumes and interviews offer valuable insights, they can be subjective and susceptible to bias. Pre-employment assessments provide a standardized and objective way to evaluate candidates, offering several key benefits:

  • Improved decision-making:

    By measuring specific skills and knowledge, assessments help you identify candidates who possess the qualifications necessary for the job.

  • Reduced bias:

    Standardized assessments mitigate the risks of unconscious bias that can creep into traditional interview processes.

  • Increased efficiency:

    Assessments can streamline the initial screening process, allowing you to focus on the most promising candidates.

  • Enhanced candidate experience:

    When used effectively, assessments can provide candidates with a clear understanding of the required skills and a fair chance to showcase their abilities.

Types of pre-employment assessments

There are various types of pre-employment assessments available, each catering to different needs and objectives. Here's an overview of some common types:

1. Skill Assessments:

  • Technical Skills: These assessments evaluate specific technical skills and knowledge relevant to the job role, such as programming languages, software proficiency, or industry-specific expertise. HackerEarth offers a wide range of validated technical skill assessments covering various programming languages, frameworks, and technologies.
  • Soft Skills: These employment assessments measure non-technical skills like communication, problem-solving, teamwork, and critical thinking, crucial for success in any role.

2. Personality Assessments:

These employment assessments can provide insights into a candidate's personality traits, work style, and cultural fit within your organization.

3. Cognitive Ability Tests:

These tests measure a candidate's general mental abilities, such as reasoning, problem-solving, and learning potential.

4. Integrity Assessments:

These employment assessments aim to identify potential risks associated with a candidate's honesty, work ethic, and compliance with company policies.

By understanding the different types of assessments and their applications, you can choose the ones that best align with your specific hiring needs and ensure you hire the most qualified and suitable candidates for your organization.

Leading employment assessment tools and tests in 2024

Choosing the right pre-employment assessment tool depends on your specific needs and budget. Here's a curated list of some of the top pre-employment assessment tools and tests available in 2024, with brief overviews:

  • HackerEarth:

    A comprehensive platform offering a wide range of validated skill assessments in various programming languages, frameworks, and technologies. It also allows for the creation of custom assessments and integrates seamlessly with various recruitment platforms.

  • SHL:

    Provides a broad selection of assessments, including skill tests, personality assessments, and cognitive ability tests. They offer customizable solutions and cater to various industries.

  • Pymetrics:

    Utilizes gamified assessments to evaluate cognitive skills, personality traits, and cultural fit. They offer a data-driven approach and emphasize candidate experience.

  • Wonderlic:

    Offers a variety of assessments, including the Wonderlic Personnel Test, which measures general cognitive ability. They also provide aptitude and personality assessments.

  • Harver:

    An assessment platform focusing on candidate experience with video interviews, gamified assessments, and skills tests. They offer pre-built assessments and customization options.

Remember: This list is not exhaustive, and further research is crucial to identify the tool that aligns best with your specific needs and budget. Consider factors like the types of assessments offered, pricing models, integrations with your existing HR systems, and user experience when making your decision.

Choosing the right pre-employment assessment tool

Instead of full individual tool reviews, consider focusing on 2–3 key platforms. For each platform, explore:

  • Target audience: Who are their assessments best suited for (e.g., technical roles, specific industries)?
  • Types of assessments offered: Briefly list the available assessment categories (e.g., technical skills, soft skills, personality).
  • Key features: Highlight unique functionalities like gamification, custom assessment creation, or seamless integrations.
  • Effectiveness: Briefly mention the platform's approach to assessment validation and reliability.
  • User experience: Consider including user reviews or ratings where available.

Comparative analysis of assessment options

Instead of a comprehensive comparison, consider focusing on specific use cases:

  • Technical skills assessment:

    Compare HackerEarth and Wonderlic based on their technical skill assessment options, focusing on the variety of languages/technologies covered and assessment formats.

  • Soft skills and personality assessment:

    Compare SHL and Pymetrics based on their approaches to evaluating soft skills and personality traits, highlighting any unique features like gamification or data-driven insights.

  • Candidate experience:

    Compare Harver and Wonderlic based on their focus on candidate experience, mentioning features like video interviews or gamified assessments.

Additional tips:

  • Encourage readers to visit the platforms' official websites for detailed features and pricing information.
  • Include links to reputable third-party review sites where users share their experiences with various tools.

Best practices for using pre-employment assessment tools

Integrating pre-employment assessments effectively requires careful planning and execution. Here are some best practices to follow:

  • Define your assessment goals:

    Clearly identify what you aim to achieve with assessments. Are you targeting specific skills, personality traits, or cultural fit?

  • Choose the right assessments:

    Select tools that align with your defined goals and the specific requirements of the open position.

  • Set clear expectations:

    Communicate the purpose and format of the assessments to candidates in advance, ensuring transparency and building trust.

  • Integrate seamlessly:

    Ensure your chosen assessment tool integrates smoothly with your existing HR systems and recruitment workflow.

  • Train your team:

    Equip your hiring managers and HR team with the knowledge and skills to interpret assessment results effectively.

Interpreting assessment results accurately

Assessment results offer valuable data points, but interpreting them accurately is crucial for making informed hiring decisions. Here are some key considerations:

  • Use results as one data point:

    Consider assessment results alongside other information, such as resumes, interviews, and references, for a holistic view of the candidate.

  • Understand score limitations:

    Don't solely rely on raw scores. Understand the assessment's validity and reliability and the potential for cultural bias or individual test anxiety.

  • Look for patterns and trends:

    Analyze results across different assessments and identify consistent patterns that align with your desired candidate profile.

  • Focus on potential, not guarantees:

    Assessments indicate potential, not guarantees of success. Use them alongside other evaluation methods to make well-rounded hiring decisions.

Choosing the right pre-employment assessment tools

Selecting the most suitable pre-employment assessment tool requires careful consideration of your organization's specific needs. Here are some key factors to guide your decision:

  • Industry and role requirements:

    Different industries and roles demand varying skill sets and qualities. Choose assessments that target the specific skills and knowledge relevant to your open positions.

  • Company culture and values:

    Align your assessments with your company culture and values. For example, if collaboration is crucial, look for assessments that evaluate teamwork and communication skills.

  • Candidate experience:

    Prioritize tools that provide a positive and smooth experience for candidates. This can enhance your employer brand and attract top talent.

Budget and accessibility considerations

Budget and accessibility are essential factors when choosing pre-employment assessments:

  • Budget:

    Assessment tools come with varying pricing models (subscriptions, pay-per-use, etc.). Choose a tool that aligns with your budget and offers the functionalities you need.

  • Accessibility:

    Ensure the chosen assessment is accessible to all candidates, considering factors like language options, disability accommodations, and internet access requirements.

Additional Tips:

  • Free trials and demos: Utilize free trials or demos offered by assessment platforms to experience their functionalities firsthand.
  • Consult with HR professionals: Seek guidance from HR professionals or recruitment specialists with expertise in pre-employment assessments.
  • Read user reviews and comparisons: Gain insights from other employers who use various assessment tools.

By carefully considering these factors, you can select the pre-employment assessment tool that best aligns with your organizational needs, budget, and commitment to an inclusive hiring process.

Remember, pre-employment assessments are valuable tools, but they should not be the sole factor in your hiring decisions. Use them alongside other evaluation methods and prioritize building a fair and inclusive hiring process that attracts and retains top talent.

Future trends in pre-employment assessments

The pre-employment assessment landscape is constantly evolving, with innovative technologies and practices emerging. Here are some potential future trends to watch:

  • Artificial intelligence (AI):

    AI-powered assessments can analyze candidate responses, written work, and even resumes, using natural language processing to extract relevant insights and identify potential candidates.

  • Adaptive testing:

    These assessments adjust the difficulty level of questions based on the candidate's performance, providing a more efficient and personalized evaluation.

  • Micro-assessments:

    Short, focused assessments delivered through mobile devices can assess specific skills or knowledge on-the-go, streamlining the screening process.

  • Gamification:

    Engaging and interactive game-based elements can make the assessment experience more engaging and assess skills in a realistic and dynamic way.

Conclusion

Pre-employment assessments, when used thoughtfully and ethically, can be a powerful tool to optimize your hiring process, identify top talent, and build a successful workforce for your organization. By understanding the different types of assessments available, exploring top-rated tools like HackerEarth, and staying informed about emerging trends, you can make informed decisions that enhance your ability to attract, evaluate, and hire the best candidates for the future.

Tech Layoffs: What To Expect In 2024

Layoffs in the IT industry are becoming more widespread as companies fight to remain competitive in a fast-changing market; many turn to layoffs as a cost-cutting measure. Last year, 1,000 companies including big tech giants and startups, laid off over two lakhs of employees. But first, what are layoffs in the tech business, and how do they impact the industry?

Tech layoffs are the termination of employment for some employees by a technology company. It might happen for various reasons, including financial challenges, market conditions, firm reorganization, or the after-effects of a pandemic. While layoffs are not unique to the IT industry, they are becoming more common as companies look for methods to cut costs while remaining competitive.

The consequences of layoffs in technology may be catastrophic for employees who lose their jobs and the firms forced to make these difficult decisions. Layoffs can result in the loss of skill and expertise and a drop in employee morale and productivity. However, they may be required for businesses to stay afloat in a fast-changing market.

This article will examine the reasons for layoffs in the technology industry, their influence on the industry, and what may be done to reduce their negative impacts. We will also look at the various methods for tracking tech layoffs.

What are tech layoffs?

The term "tech layoff" describes the termination of employees by an organization in the technology industry. A company might do this as part of a restructuring during hard economic times.

In recent times, the tech industry has witnessed a wave of significant layoffs, affecting some of the world’s leading technology companies, including Amazon, Microsoft, Meta (formerly Facebook), Apple, Cisco, SAP, and Sony. These layoffs are a reflection of the broader economic challenges and market adjustments facing the sector, including factors like slowing revenue growth, global economic uncertainties, and the need to streamline operations for efficiency.

Each of these tech giants has announced job cuts for various reasons, though common themes include restructuring efforts to stay competitive and agile, responding to over-hiring during the pandemic when demand for tech services surged, and preparing for a potentially tough economic climate ahead. Despite their dominant positions in the market, these companies are not immune to the economic cycles and technological shifts that influence operational and strategic decisions, including workforce adjustments.

This trend of layoffs in the tech industry underscores the volatile nature of the tech sector, which is often at the mercy of rapid changes in technology, consumer preferences, and the global economy. It also highlights the importance of adaptability and resilience for companies and employees alike in navigating the uncertainties of the tech landscape.

Causes for layoffs in the tech industry

Why are tech employees suffering so much?

Yes, the market is always uncertain, but why resort to tech layoffs?

Various factors cause tech layoffs, including company strategy changes, market shifts, or financial difficulties. Companies may lay off employees if they need help to generate revenue, shift their focus to new products or services, or automate certain jobs.

In addition, some common reasons could be:

Financial struggles

Currently, the state of the global market is uncertain due to economic recession, ongoing war, and other related phenomena. If a company is experiencing financial difficulties, only sticking to pay cuts may not be helpful—it may need to reduce its workforce to cut costs.


Also, read: 6 Steps To Create A Detailed Recruiting Budget (Template Included)


Changes in demand

The tech industry is constantly evolving, and companies would have to adjust their workforce to meet changing market conditions. For instance, companies are adopting remote work culture, which surely affects on-premises activity, and companies could do away with some number of tech employees at the backend.

Restructuring

Companies may also lay off employees as part of a greater restructuring effort, such as spinning off a division or consolidating operations.

Automation

With the advancement in technology and automation, some jobs previously done by human labor may be replaced by machines, resulting in layoffs.

Mergers and acquisitions

When two companies merge, there is often overlap in their operations, leading to layoffs as the new company looks to streamline its workforce.

But it's worth noting that layoffs are not exclusive to the tech industry and can happen in any industry due to uncertainty in the market.

Will layoffs increase in 2024?

It is challenging to estimate the rise or fall of layoffs. The overall state of the economy, the health of certain industries, and the performance of individual companies will play a role in deciding the degree of layoffs in any given year.

But it is also seen that, in the first 15 days of this year, 91 organizations laid off over 24,000 tech workers, and over 1,000 corporations cut down more than 150,000 workers in 2022, according to an Economic Times article.

The COVID-19 pandemic caused a huge economic slowdown and forced several businesses to downsize their employees. However, some businesses rehired or expanded their personnel when the world began to recover.

So, given the current level of economic uncertainty, predicting how the situation will unfold is difficult.


Also, read: 4 Images That Show What Developers Think Of Layoffs In Tech


What types of companies are prone to tech layoffs?

2023 Round Up Of Layoffs In Big Tech

Tech layoffs can occur in organizations of all sizes and various areas.

Following are some examples of companies that have experienced tech layoffs in the past:

Large tech firms

Companies such as IBM, Microsoft, Twitter, Better.com, Alibaba, and HP have all experienced layoffs in recent years as part of restructuring initiatives or cost-cutting measures.

Market scenarios are still being determined after Elon Musk's decision to lay off employees. Along with tech giants, some smaller companies and startups have also been affected by layoffs.

Startups

Because they frequently work with limited resources, startups may be forced to lay off staff if they cannot get further funding or need to pivot due to market downfall.

Small and medium-sized businesses

Small and medium-sized businesses face layoffs due to high competition or if the products/services they offer are no longer in demand.

Companies in certain industries

Some sectors of the technological industry, such as the semiconductor industry or automotive industry, may be more prone to layoffs than others.

Companies that lean on government funding

Companies that rely significantly on government contracts may face layoffs if the government cuts technology spending or contracts are not renewed.

How to track tech layoffs?

You can’t stop tech company layoffs, but you should be keeping track of them. We, HR professionals and recruiters, can also lend a helping hand in these tough times by circulating “layoff lists” across social media sites like LinkedIn and Twitter to help people land jobs quicker. Firefish Software put together a master list of sources to find fresh talent during the layoff period.

Because not all layoffs are publicly disclosed, tracking tech industry layoffs can be challenging, and some may go undetected. There are several ways to keep track of tech industry layoffs:

Use tech layoffs tracker

Layoff trackers like thelayoff.com and layoffs.fyi provide up-to-date information on layoffs.

In addition, they aid in identifying trends in layoffs within the tech industry. It can reveal which industries are seeing the most layoffs and which companies are the most affected.

Companies can use layoff trackers as an early warning system and compare their performance to that of other companies in their field.

News articles

Because many news sites cover tech layoffs as they happen, keeping a watch on technology sector stories can provide insight into which organizations are laying off employees and how many individuals have been affected.

Social media

Organizations and employees frequently publish information about layoffs in tech on social media platforms; thus, monitoring companies' social media accounts or following key hashtags can provide real-time updates regarding layoffs.

Online forums and communities

There are online forums and communities dedicated to discussing tech industry news, and they can be an excellent source of layoff information.

Government reports

Government agencies such as the Bureau of Labor Statistics (BLS) publish data on layoffs and unemployment, which can provide a more comprehensive picture of the technology industry's status.

How do companies reduce tech layoffs?

Layoffs in tech are hard – for the employee who is losing their job, the recruiter or HR professional who is tasked with informing them, and the company itself. So, how can we aim to avoid layoffs? Here are some ways to minimize resorting to letting people go:

Salary reductions

Instead of laying off employees, businesses can lower the salaries or wages of all employees. It can be accomplished by instituting compensation cuts or salary freezes.

Implementing a hiring freeze

Businesses can halt employing new personnel to cut costs. It can be a short-term solution until the company's financial situation improves.


Also, read: What Recruiters Can Focus On During A Tech Hiring Freeze


Non-essential expense reduction

Businesses might search for ways to cut or remove non-essential expenses such as travel, training, and office expenses.

Reducing working hours

Companies can reduce employee working hours to save money, such as implementing a four-day workweek or a shorter workday.

These options may not always be viable and may have their problems, but before laying off, a company owes it to its people to consider every other alternative, and formulate the best solution.

Tech layoffs to bleed into this year

While we do not know whether this trend will continue or subside during 2023, we do know one thing. We have to be prepared for a wave of layoffs that is still yet to hit. As of last month, Layoffs.fyi had already tracked 170+ companies conducting 55,970 layoffs in 2023.

So recruiters, let’s join arms, distribute those layoff lists like there’s no tomorrow, and help all those in need of a job! :)

What is Headhunting In Recruitment?: Types & How Does It Work?

In today’s fast-paced world, recruiting talent has become increasingly complicated. Technological advancements, high workforce expectations and a highly competitive market have pushed recruitment agencies to adopt innovative strategies for recruiting various types of talent. This article aims to explore one such recruitment strategy – headhunting.

What is Headhunting in recruitment?

In headhunting, companies or recruitment agencies identify, engage and hire highly skilled professionals to fill top positions in the respective companies. It is different from the traditional process in which candidates looking for job opportunities approach companies or recruitment agencies. In headhunting, executive headhunters, as recruiters are referred to, approach prospective candidates with the hiring company’s requirements and wait for them to respond. Executive headhunters generally look for passive candidates, those who work at crucial positions and are not on the lookout for new work opportunities. Besides, executive headhunters focus on filling critical, senior-level positions indispensable to companies. Depending on the nature of the operation, headhunting has three types. They are described later in this article. Before we move on to understand the types of headhunting, here is how the traditional recruitment process and headhunting are different.

How do headhunting and traditional recruitment differ from each other?

Headhunting is a type of recruitment process in which top-level managers and executives in similar positions are hired. Since these professionals are not on the lookout for jobs, headhunters have to thoroughly understand the hiring companies’ requirements and study the work profiles of potential candidates before creating a list.

In the traditional approach, there is a long list of candidates applying for jobs online and offline. Candidates approach recruiters for jobs. Apart from this primary difference, there are other factors that define the difference between these two schools of recruitment.

AspectHeadhuntingTraditional RecruitmentCandidate TypePrimarily passive candidateActive job seekersApproachFocused on specific high-level rolesBroader; includes various levelsScopeproactive outreachReactive: candidates applyCostGenerally more expensive due to expertise requiredTypically lower costsControlManaged by headhuntersManaged internally by HR teams

All the above parameters will help you to understand how headhunting differs from traditional recruitment methods, better.

Types of headhunting in recruitment

Direct headhunting: In direct recruitment, hiring teams reach out to potential candidates through personal communication. Companies conduct direct headhunting in-house, without outsourcing the process to hiring recruitment agencies. Very few businesses conduct this type of recruitment for top jobs as it involves extensive screening across networks outside the company’s expanse.

Indirect headhunting: This method involves recruiters getting in touch with their prospective candidates through indirect modes of communication such as email and phone calls. Indirect headhunting is less intrusive and allows candidates to respond at their convenience.Third-party recruitment: Companies approach external recruitment agencies or executive headhunters to recruit highly skilled professionals for top positions. This method often leverages the company’s extensive contact network and expertise in niche industries.

How does headhunting work?

Finding highly skilled professionals to fill critical positions can be tricky if there is no system for it. Expert executive headhunters employ recruitment software to conduct headhunting efficiently as it facilitates a seamless recruitment process for executive headhunters. Most software is AI-powered and expedites processes like candidate sourcing, interactions with prospective professionals and upkeep of communication history. This makes the process of executive search in recruitment a little bit easier. Apart from using software to recruit executives, here are the various stages of finding high-calibre executives through headhunting.

Identifying the role

Once there is a vacancy for a top job, one of the top executives like a CEO, director or the head of the company, reach out to the concerned personnel with their requirements. Depending on how large a company is, they may choose to headhunt with the help of an external recruiting agency or conduct it in-house. Generally, the task is assigned to external recruitment agencies specializing in headhunting. Executive headhunters possess a database of highly qualified professionals who work in crucial positions in some of the best companies. This makes them the top choice of conglomerates looking to hire some of the best talents in the industry.

Defining the job

Once an executive headhunter or a recruiting agency is finalized, companies conduct meetings to discuss the nature of the role, how the company works, the management hierarchy among other important aspects of the job. Headhunters are expected to understand these points thoroughly and establish a clear understanding of their expectations and goals.

Candidate identification and sourcing

Headhunters analyse and understand the requirements of their clients and begin creating a pool of suitable candidates from their database. The professionals are shortlisted after conducting extensive research of job profiles, number of years of industry experience, professional networks and online platforms.

Approaching candidates

Once the potential candidates have been identified and shortlisted, headhunters move on to get in touch with them discreetly through various communication channels. As such candidates are already working at top level positions at other companies, executive headhunters have to be low-key while doing so.

Assessment and Evaluation

In this next step, extensive screening and evaluation of candidates is conducted to determine their suitability for the advertised position.

Interviews and negotiations

Compensation is a major topic of discussion among recruiters and prospective candidates. A lot of deliberation and negotiation goes on between the hiring organization and the selected executives which is facilitated by the headhunters.

Finalizing the hire

Things come to a close once the suitable candidates accept the job offer. On accepting the offer letter, headhunters help finalize the hiring process to ensure a smooth transition.

The steps listed above form the blueprint for a typical headhunting process. Headhunting has been crucial in helping companies hire the right people for crucial positions that come with great responsibility. However, all systems have a set of challenges no matter how perfect their working algorithm is. Here are a few challenges that talent acquisition agencies face while headhunting.

Common challenges in headhunting

Despite its advantages, headhunting also presents certain challenges:

Cost Implications: Engaging headhunters can be more expensive than traditional recruitment methods due to their specialized skills and services.

Time-Consuming Process: While headhunting can be efficient, finding the right candidate for senior positions may still take time due to thorough evaluation processes.

Market Competition: The competition for top talent is fierce; organizations must present compelling offers to attract passive candidates away from their current roles.

Although the above mentioned factors can pose challenges in the headhunting process, there are more upsides than there are downsides to it. Here is how headhunting has helped revolutionize the recruitment of high-profile candidates.

Advantages of Headhunting

Headhunting offers several advantages over traditional recruitment methods:

Access to Passive Candidates: By targeting individuals who are not actively seeking new employment, organisations can access a broader pool of highly skilled professionals.

Confidentiality: The discreet nature of headhunting protects both candidates’ current employment situations and the hiring organisation’s strategic interests.

Customized Search: Headhunters tailor their search based on the specific needs of the organization, ensuring a better fit between candidates and company culture.

Industry Expertise: Many headhunters specialise in particular sectors, providing valuable insights into market dynamics and candidate qualifications.

Conclusion

Although headhunting can be costly and time-consuming, it is one of the most effective ways of finding good candidates for top jobs. Executive headhunters face several challenges maintaining the g discreetness while getting in touch with prospective clients. As organizations navigate increasingly competitive markets, understanding the nuances of headhunting becomes vital for effective recruitment strategies. To keep up with the technological advancements, it is better to optimise your hiring process by employing online recruitment software like HackerEarth, which enables companies to conduct multiple interviews and evaluation tests online, thus improving candidate experience. By collaborating with skilled headhunters who possess industry expertise and insights into market trends, companies can enhance their chances of securing high-caliber professionals who drive success in their respective fields.

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