If you are craving some stability and have had enough adventures, then you are definitely not alone. Over the last 3 years, I’ve had enough of rollercoaster rides – metaphorically and literally. Seeing the post-COVID hiring frenzy descend into chaos has not been easy for me or others in the recruiting community.
With tech companies laying off more employees in Q1 ’23 (more than the entire 2022), good news has been hard to come by. For my first update in 2023 – a new endeavor I decided to take up this year – I would have liked the industry to be in a much better place than where it currently stands, but we’ll take the cards we’ve been dealt.
All of us in tech know that this downturn will change in a heartbeat as soon as the markets stabilize. What remains to be seen is if it’ll have a lasting impact on how we hire engineering talent, similar to the move to remote hiring post-pandemic.
There is a bright-eyed-bushy-tailed focus on productivity among the Valley people. Gone is the massive workforce that came to a workplace boasting three-course meals in the cafeteria and needed yoga rooms and sleeping pods to function. In many ways, tech is going back to the basics – show up, use your skills, and be productive.
Companies across the board are reviewing their team structures, looking for removable cushioning, cutting down on middle management, and wanting to do more with less. Public companies have been motivated by their stock performance and the rest are emboldened, seeing the giants lead the charge. Retrenching has been a buzzword around the valley. Tech leaders are relooking at their performance review processes and reformulating their hiring.
While some cutbacks were long overdue (for instance, Google more than doubled its workforce from 2018 to 2022), as an industry we might have been a little overzealous with this wave of austerity. Markets will bounce back, like they always do, and companies will go on a hiring spree to fuel the growth — but who we hire, and how we hire, would have changed.
Despite this recessionary period, the demand for specialized skills like data science, AI, and ML has remained stable. However, the hiring urgency we saw right after the pandemic is replaced by a muted, prolonged hiring process where the focus is not on filling roles faster but on hiring for the right skill sets. Developers reading this should be aware that the Great Over-Correction in tech companies also signals a death knell of the bargaining power they have held since COVID.
Talking of skills…
There are two important ongoing skill-related conversation starters in the tech world which have directly impacted HackerEarth. First is the emergence of ChatGPT and other generative AI and their use in candidate assessment tests.
I’m sure you’ve all seen the LinkedIn posts about how ChatGPT has been acing entrance tests and accumulating certificates. While the models are already very good at such structured tests, they will only get better with more data. Unless regulated, this may mean the end of the traditional fact/information-based testing methodology. That testing as a concept will have to evolve and completely move away from testing information retention and formula application to real problem-solving.
Generative AI, while extremely powerful, is still extremely poor at problem-solving. These models can efficiently solve well-defined problems but are incapable (at least for now) of solving real-world problems. Tech assessments are no different and there is a lot of concern around the use of ChatGPT in coding assessments in their current form. Particularly because a lot of companies have so far relied on complex algorithmic coding tasks as a measure of competency. This will get completely undermined by systems like ChatGPT.
One school of thought is that every software developer is going to use generative AI for coding in the near future, so it only makes sense to provide generative AI systems as part of the assessments to not only enable them to use it for problem-solving but in some cases to even test if they know how to effectively use a generative AI system. However, there is an alternative opinion that even though most of the code can be generated, to be a good software developer you must understand the fundamentals, and hence people should demonstrate that skill as part of the assessments. And since ChatGPT can undermine that, it comprises the assessments.
It is an ongoing debate, and as a facilitator of technical assessments, we at HackerEarth can see the argument from both ends. We have always aligned our assessment methodology to be aligned to how work gets done in real life, but we appreciate that an engineering manager would want to know how good a developer is sans AI assistance. So, instead of taking sides, we decided to support both personas.
We built a unique proctoring feature that creates a constrained environment for the test taker and hence blocks the use of not just ChatGPT, but any other support tool. Smart Browser, the new addition to our flagship Assessments product, is now live, and you can read more about it here. At the same time, we have embedded generative AI into our code editors. Like the Smart Browser, it’s an optional setting. When turned on, the test takers will be able to use generative AI right there in the test interface and answer their questions using such a system. We are also investing in questions that are better suited for situations where a developer has access to a generative AI technology while writing their code.
Okay, that’s enough about AI now!
The second skill-related conversation starter I referred to was the need to up- and re-skill tech teams. Upskilling programs have existed for a long while, and we all know how they have fared. I recently wrote a piece for Fast Company in which I went into great depth on why traditional upskilling initiatives do not work.
To recap:
– there is a significant gap in measuring ROI from current upskilling platforms
– there is a lack of social contract in these learning models, which hampers the 70% of upskilling that happens organically within a team
– these models lack an application-based learning pathway, so most of the time, course completion cannot be taken as a signifier of skill enhancement
I believe upskilling is integral to the skill-first tech ecosystem we are trying to build. Continuous learning not only helps engineers find a better pathway for career growth but also enables companies to address skill gaps and predict productivity outcomes. HackerEarth has always favored ROI-based learning pathways that do more than just help your engineers attain a certificate.
We have worked hard to create a platform that can merge real-world needs for developer upskilling with business outcomes, and we are close to completion. You can check out our Learning and Development platform here or write to me to learn more. This is a conversation I’d love to have with you!
And with that, this first quarterly update is out to print. I feel inclined to say something cliche like we’re all in the same boat and la di da, but I’m sure you all know that. Tech has lived in a unique bubble during COVID (that got built over the previous decade), but that bubble has now burst. The only way forward is through experimentation, exploration, and innovation, and that, as always, starts with who and how you hire.
Before you invest in hiring an employee, you need to ask yourself this one question: “What is the cost of hiring a new employee?”
The costs involved in every organization are different. For some, the costs are lower and for some, they are higher. If the cost per hire for your new hires is lower, you’re doing it right.
But if it’s the latter, you need to revisit your recruitment costs and optimize them. And how to do it?
Well, this article outlines everything that you need to know:
What is cost-per-hire?
What is the cost-per-hire formula?
How to calculate this metric?
How to use cost-per-hire data?
Which factors influence the cost per hire?
How can you reduce your cost per hire?
Let’s read.
What is cost-per-hire?
Cost-per-hire is a recruiting metric that measures costs associated with hiring employees. These expenses include:
To calculate the cost-per-hire, you need to follow the following steps:
Step 1: Collect the cost data
First, locate the cost report for a specific period. Divide them into monthly reports to calculate monthly expenses.
If you don’t have the report, ask your finance team to get it for you.
Also, get cost data for your entire recruitment team separately.
For example, HR and talent acquisition cost data should be separate.
Step 2: Record your internal costs
Capture all the costs of your in-house recruitment team. Next, list all the expenses in one column and the associated expenses in the second column. Add up all internal expenses and calculate the total cost.
Internal costsMarch (in USD)Cost of sourcing3000Talent acquisition team cost5000IT equipment and support800Training and development1000Office1300Total cost11,100
While listing down these expenses, be mindful of the total number of people in your department you’re calculating the costs for.
For example, if you can’t find the separate cost data for your recruitment team, and only have the cost data for HR, calculate the total number of people you have in HR including the talent acquisition team.
Here’s the breakdown:
Suppose you have 10 HR team members, 4 of which are from talent acquisition. Now, to calculate costs, divide the number of talent acquisition team members by the HR team members i.e., 4/ 10 = 0.4
If you convert the result to a percentage, it means 4% of the internal costs are related to the talent acquisition team.
Step 3: Add your external costs
Similarly, list down all external expenses in one column and their costs in the second column, and calculate.
So now you know how to calculate the cost-per-hire. What next?
Ask yourself these two questions:
What will you do after getting the cost-per-hire for each hire?
What will you do with those insights?
Know this: knowing how to calculate cost-per-data is futile for you is you have no idea on how to use it to optimize the hiring process. So, here are a few ways you must know to use cost-per-hire data the right way.
1. Track the cost-per-hire regularly
Keeping track of your cost-per-hire helps you do two things: build your budget for each hire realistically and understand how your business is performing.
As calculated above, the cost-per-hire for each employee you hire is $5,600. However, your budget is only $4,500. Clearly: you’re over budget and spending far beyond your budget on new hires. This can directly impact your business performance too, as the budget allocated for other aspects of your business will get affected.
It’s like tracking your personal expenses. When you don’t track your spending, you don’t know how much you’re spending. But the reality is, you’re overspending. Now you can calculate your tech hiring ROI.
2. Calculate the cost data for each department
Cross-examine the cost-per-hire for each department and position. This helps you identify areas where you may be able to lower costs without damaging current processes or increasing them if necessary.
3. Estimate your cost-per-hire for future spending
When budgeting for personal expenses, you calculate the fixed expenses for the next month beforehand. You already know the salary credited to your account each month. Based on that, you’ll budget for your expenses, investments, and needs.
It’s the same with cost per hire costs. If you know the fixed estimate of the number of candidates you’ll need in each department beforehand, you can calculate the expenditure and budget for it. This will avoid the surprise of unexpected expenses.
Once you’ve calculated the fixed estimate of the number of candidates for each department, identify the average cost-per-hire for each department. Multiply this by estimated hires. This way, you’ll already know how much you’re spending on each hire if you hire a specific number of hires in a specific month.
Measure your cost-per-hire against other metrics like quality of hire, or source of hire such as employee referrals, and optimize your hiring process.
What factors influence your cost-per-hire?
The main factors that influence cost-per-hire include industry, staff size, location, and position level and type.
Industry
If you have shopped at a local store and a premium brand, you know the difference in costs. To some people, apparel purchased from a local shop may seem costly whereas apparel purchased from high-end malls may be cost-effective.
This simply means that what seems costly to one may be cost-effective for another. The same applies to the cost per hire as well.
The cost-per-hire for different industries varies, which means if the cost per hire for one industry seems higher, it could be moderate for another industry.
Staff size
Larger companies, usually 200 and above aim for a lower cost-per-hire than smaller companies. Reason? Small and midcap companies don’t have enough resources to hire on a larger scale which makes each hire costly.
However, larger companies have the resources and budgets to hire. With a lower cost per hire, their hiring processes are more efficient with a lower time to fill—leading to a lower cost per hire.
Location
Bigger cities equal larger talent pools. When candidates live in such a large city, it is easier to access and hire them. But when you hire candidates remotely, or from another city, you must bear relocation and additional travel expenses. This simply adds up the recruitment costs making the cost per hire costly.
In such cases, two options work better: hiring employees from the same locations as yours where the company operates or working remotely. So, all you have to do is bear the charges for the laptop and accessories, and the software.
Position level and type
Which position the candidate is hired for matters.
Here’s the thing. The cost-per-hire for an entry-level or junior role will be lower than for an executive or leadership role. It simply boils down to the responsibilities they take on and the years of experience they have.
Evidently, that’s a huge difference, right? It simply boils down to the position, responsibilities, and years of experience that affect the cost-per-hire.
How can you reduce your cost-per-hire?
At this point, you know everything about the cost-per-hire to the formula and how to calculate it. But, that’s only half-baked information. So, what more?
Well, you need to know how to reduce the increasing recruiting costs for your company? Here are 5 ways you can do it:
Define the job role and responsibilities—What responsibilities will the candidate handle? List them down in detail
Consider company culture and values—Do your company values and the ideal candidate’s values align? Include the values your company abides by and those the candidate should share as well.
Define hard and soft skills—What technical and soft skills do you look for in this ideal candidate’s profile?
Take a look at how HackerEarth has outlined the key role and responsibilities of the next engineering manager they are hiring.
The company has used keywords like ‘responsible for’ to highlight the key responsibilities of the job profile.
They emphasize technical skills like Java and Python, and soft skills like building relationships and collaborating with others.
Screen candidates with skill assessments
Companies that use manual screening methods invest enormous time and effort increasing the cost-per-hire.
But by replacing manual screening with skill assessments, you automate the hiring process, further reducing the cost-per-hire.
And so, you need to start integrating technology in your screening process. One way to do it is by leveraging skill assessments to evaluate and screen candidates based on their skills instead of scanning through their resumes.
With their traditional recruitment method, technical recruiters had to go through each developer profile manually, and then interview the candidate, making the entire process cumbersome.
When developers attend interviews, we dedicate a lot of time. For instance, for each role, we get at least ten candidate applications. Normally, for each candidate, we would end up investing an hour in interviewing. Imagine doing that for ten people. Also, in the end, only 20% of candidates are selected, which means a lot of time is wasted.
– Phuong Huynh, Technical Recruiter, ZALORA
Due to this manual recruitment process, it used to take a month to close the offer. This made scaling the recruitment process and interview-to-hire ratio harder for Zalora.
👀Result: The quality of candidates and the interview process at Zalora was streamlined which improved the company’s interview-to-hire ratio and overall recruitment productivity.
When you build a solid employer brand, your social media channels highlight the company’s values and culture, current employees and projects, and the company’s overall progress.
By learning about the company’s vision and how they value their employees, a candidate is attracted to the company and applies.
Take a look at Evernote’s LinkedIn page where they have a section called Life where they showcase their company culture.
Under the section Life, they have subsections: Life at Evernote and Engineering at Evernote.
Life at Evernote—Under this subsection, you’ll see Evernote’s culture, values, company photos, and employee testimonials.
Engineering at Evernote—Under this subsection, you’ll see what Evernote engineers do, their engineering leaders, and testimonials from employees.
This section on Evernote’s company’s page gives a glimpse of their work environment and how they operate. Plus, testimonials by employees are an effective way to strengthen a candidate’s trust in the company bringing in inbound candidates.
When you automate your recruitment process, you can streamline several low-value and high-value tasks that would have taken you hours and hours. By automating these tasks, you can focus on more critical tasks that need your attention.
For example, Moengage relied heavily on manual screening and interviews. It was time-consuming especially when recruiters and hiring teams wanted to reach their hiring targets. That’s when they decided to take the automation route and opted for HackerEarth Assessments.
They could invite more candidates to take the tests and filter out the top performers. Finally, the company had to interview only 5-6 candidates instead of 15 candidates. It could complete the entire recruitment process from sourcing to onboarding in just 10-12 days.
Just like online shopping via social media, social recruitment has spread its wings across major social media channels like LinkedIn and Twitter.
According to CareerArc’s 2021 Future of Recruiting Study, 86% of job seekers use social media in their job search for relevant jobs. They apply for jobs directly on social sites and engage with job-related content.
Clearly: recruiters who are active on social media have a big advantage. Because they are active on social media, they can share job posts on their social media handles and reach candidates who’re already following them.
When more employees from their company share the hiring post on their social media channel, the reach increases, giving the job-related post more visibility.
Here’s how Emil Hajric, CEO at Helpjuice shared a hiring post on his LinkedIn profile.
When a prospective candidate uses the keyword ‘hiring a developer’ or follows Emil, they’ll see this post shared by him and apply for the job.
Furthermore, if recruiters have a strong hand in social recruiting, they won’t have to spend money on job boards to publish job posts and attract candidates. How much does it cost to hire a new candidate?
Optimize your recruitment costs
It’s easy to get lost and overspend on your recruitment costs unless you’re aware of your internal and external costs. So, the best way is to take note of these recruitment costs, analyze your recruitment budget and optimize these costs (internal and external) based on your budget.
At the time of writing this, we’re all in the middle of a meltdown in the tech industry. Companies like Meta have had to lay off up to 13% of their workforce, and Amazon had to trim the salaries of 50% of its employees this year to manage budgets.
If you’re one of these companies that had to lay off members of your tech team or are finding it hard to hire due to fiscal constraints, then you’re undoubtedly facing a talent crunch.
Now, you have two choices:
Choice 1. Hire employees on a tight budget
Choice 2: Ask existing employees to take on the responsibilities handled by the employees who had to be laid off
The problem? Your existing employees don’t have the skills to take on those extra responsibilities. This results in halting the organization’s overall progress.
Upskilling and reskilling can be your weapons in such struggling situations. They put you at the forefront in helping your employees adapt to the new changes in the recession.
In this article, we’ll uncover:
The difference between upskilling and reskilling
Benefits of upskilling and reskilling
Examples of companies leveraging upskilling and reskilling programs
An important drawback of most learning platforms that employers need to be aware of
What is upskilling and reskilling?
Upskilling and reskilling sound very similar, but they both have different business goals. Your company needs processes for both in order to bridge the skill gap and boost growth.Let’s understand them in detail.
Upskilling
Upskilling refers to the process of acquiring new or advanced skills that are relevant to one’s current or future job, profession, or industry. It involves learning new techniques, technologies, or approaches to work that can help individuals increase their productivity, efficiency, and effectiveness in their roles.
Upskilling can be done through a variety of methods, including formal training programs, online courses, on-the-job training, mentorship, and self-directed learning. It is often pursued by individuals who want to stay competitive in their careers, keep up with industry trends, or advance their professional goals.
For example, a backend developer can join a full-stack development program that teaches them about React and Node JS in order to transition to a full-stack role.
The three key reasons why an engineering leader might want their team to go through an upskilling program are:
Helping employees perform better in their current job
Helping the workforce adapt to new and future changes in the industry
Helping the workforce stay confident in their skills and adapt to new industry changes
Upskilling is no longer a luxury—it’s a survival skill,” says Riccardo Ocleppo, founder and director of the EU-accredited Open Institute of Technology (OPIT). “Our flexible online MScs in Computer Science and Data Science let professionals earn a recognised degree without pausing their careers.”
Reskilling
Reskilling refers to the process of learning new skills that are different from one’s current job or profession, with the aim of switching to a new career or industry. It involves acquiring a completely new set of skills that are relevant to a different job or profession. However, the skills employees learn may or may not overlap with their current role.
Reskilling may involve pursuing formal training programs, apprenticeships, internships, or other learning opportunities to gain the necessary skills and knowledge required for a new profession. It may also require significant investment in time, effort, and resources, as individuals may need to start from scratch in a new field.
One example of reskilling in the tech world is when a software developer decides to transition to a career in cybersecurity. This would involve acquiring a completely new set of skills and knowledge, such as understanding different types of cyber threats, security protocols and measures, and the tools and technologies used to mitigate these risks.
Scenarios in which engineering leaders might ask their team members to reskill include:
Transitioning to new projects or initiatives that require skills that are different from the current expertise.
Adapting to new technology such as when rewriting their code base or changing their underlying infrastructure.
Retaining high-performing existing employees whose roles have become redundant
Filling vacant roles in the organization through lateral hiring.
How are upskilling and reskilling different?
Now you know what exactly upskilling and reskilling mean. So let’s weigh in the differences both the terms have for better clarification:
UpskillingReskillingIt helps employees learn additional skills to perform better in their current job.It helps employees to learn new skills to perform a different job.The skills they learn are relevant to their current job.The skills they learn are not related to their current job.It involves employees polishing their current skill sets.It usually involves a change in career.More employee-focused. Upskilled employees can get new opportunities and develop talent for personal growth.More employer-focused. It helps organizations retain their best talent by providing them with growth paths
It is vital to give your top people the support they need, especially during economic downturns” because a “well-trained and skilled workforce will be instrumental in supporting organizations during the downturn as well as after economic recovery and growth resumes.
The author talks about a survey conducted by Boston Consulting Group and the European Association of People Management that found cutting down the training and development costs during the recession can have a serious impact on the organization in the longer run.
Clearly: upskilling and reskilling of employees is crucial for the individual’s growth as well as the organization’s growth, and it becomes even more important during a recession. According to The Future of Jobs Report 2020, companies say that about 40% of workers will require six months of reskilling, and 94% will have to learn new skills on the fly. Why? Because tech leaders anticipate the in-demand skills to change in a few years, and the current hiring freeze has left them without the option of onboarding specialized talent.
This is not to say that skill improvement has benefits only during an economic downturn. The pandemic taught us that technology and business needs can change on a dime, and tech teams need to be prepared for more such “out of the left field” moments. However, it is true that learning and development programs have significant value in keeping the product pipeline churning during a hiring freeze.
With that said, let’s look at some of the ways in which timely learning programs can help your tech teams during crunch situations (with real-life examples):
#1— It can reduce skill gaps (the IBM example)
In 2009, the global recession significantly impacted IBM’s revenue and growth. To overcome this challenge, IBM decided to launch a program called the Skills Initiative that aimed to train and retrain IBM employees in high-demand skills, such as cloud computing, data analytics, and cybersecurity.
As part of the program, IBM offered employees a range of learning opportunities, including online courses, virtual classrooms, and hands-on training. The company also provided financial incentives for employees who completed training programs and achieved new certifications.
The Skills Initiativehelped IBM to retain its workforce during the recession and equipped its employees with the skills and knowledge needed to meet the changing demands of the market. By upskilling and reskilling its tech team, IBM was able to remain competitive and even expand its business into new areas, such as cloud computing and data analytics.
#2— It can boost productivity and retention (the AT&T example)
During the 2008-2009 recession, AT&T faced a decline in its revenue and was forced to lay off a significant number of employees. To reduce costs and remain competitive, the company decided to upskill its remaining workforce to improve productivity and retain employees.
AT&T implemented a comprehensive training and development program called Workforce 2020, which aimed to upskill its employees in emerging technologies, such as cloud computing, big data analytics, and machine learning. The company invested heavily in online training programs, workshops, and mentoring to help employees learn new skills and apply them to their jobs.
The upskilling program had several benefits for AT&T, including heightened productivity, reduced errors and defects, and improved customer satisfaction. Additionally, the program helped AT&T retain its employees during the recession by offering them new opportunities to grow and develop their careers within the company.
#3— It definitely can save your budget! (the Microsoft example)
Imagine hiring a new employee during a recession. The process of starting from scratch is time-consuming. Instead, it is always easier to bridge the skill gap through learning programs than conducting the hiring process from scratch and bringing in the new hire.
In 2018, Microsoft announced a new initiative called Microsoft Leap, which aimed to reskill and retrain thousands of its existing employees who were at risk of being displaced by automation and artificial intelligence. The program included a four-month training course that covered both technical and soft skills and provided hands-on experience with emerging technologies such as machine learning, data science, and artificial intelligence.
Through the Microsoft Leap program, the company was able to reskill more than 10,000 of its employees and retain them in new, high-demand roles within the company. According to an article in Forbes, Microsoft was able to save approximately $30 million in recruitment fees alone by reskilling its existing employees instead of hiring new ones. The company also reported that the reskilling program led to a 38% increase in employee satisfaction.
The drawback of most upskilling and reskilling programs
While the upskilling and reskilling programs are commendable initiatives taken by organizations, they come with a drawback: no measurable ROI, which means there is no clear way to see real skill development.
To understand this further, I sat down with our Founder, Sachin Gupta to understand skill benchmarking and why it is critical in today’s world. Here’s what he said:
The technology landscape is changing so rapidly that organizations have to continuously adapt to the cumulative skills of their employees—to keep them in line with the tech innovation curve.
Large organizations find it challenging to have an accurate picture of the skill map of their teams and data in HCM tools.
While many organizations have learning programs, they struggle to measure the ROI from such programs.
While employees intend to upskill, they may not always have a sense of their skill baseline as they may not know how they are progressing in their skill development journeys.
How to develop an upskilling and reskilling strategy for your employees?
According to LinkedIn’s 2023 Workplace Learning Report, 89% of L&D pros agree that proactively building employee skills for today and tomorrow will help navigate the evolving future of work. That’s the reason organizations need to double down on their efforts to upskill and reskill their employees. But how?
Here’s a 5-step process you can use to develop an upskilling and reskilling strategy.
Step #1—Conduct a skill gap analysis
A skill gap analysis is an assessment conducted by HR teams to identify whether or not the current skill sets of employees can meet the overall needs of the company.
For example, the organization conducts a survey where they ask questions to their employees about the current skills they possess and how they have upskilled themselves. Employees fill out the survey, and the HR team analyzes submitted data.
To conduct a skill gap analysis:
Plan
Perform skill gap analysis at two levels—individual and team.
For individuals, identify the skills a job needs and compare them to the employee’s actual skills.
For teams, determine whether employees have relevant skills to work on a new project or will the company need to hire externally.
Identify key skills
What skills do we value as a company? What skills do employees need to do their work well and will need in the future? Answering these two questions will help you understand the skills you require.
Measure your current skills
Create a skills spreadsheet for each position, and list the skills employees in these positions have.
Step #2—Integrate upskilling and reskilling into your employee development plans
Emphasize the importance of learning and reskilling for employees. There may be times when employees cannot upskill themselves due to their key responsibilities. That’s where you as an organization need to integrate learning and development programs into employees’ annual goals and objectives.
For example, offering eLearning assets to employees every quarter, such as an eBook relevant to their expertise.
These employee learning programs can fuel knowledge and skills in employees, and help them stay prepared for the future.
So, make sure the goals are:
Specific
Obtainable
Time-bound
For example, developers on the engineering team need to learn at least two skills within the period of 6 months.
Step #3—Choose your training methods
There are several training methods to choose from:
But before choosing a specific training method, make sure the learning and development team understands employees’ learning styles and uses the right format for them.
For example, the L&D team uses group activity learning format for employees who prefer learning one-to-one.
Step #4—Leverage technology
To streamline the development of your employee development program, you need to amplify technology. Here are two primary technologies you’ll need when you plan to create your own learning and development programs.
1. Learning management system
A learning management system handles all aspects of employee training—from creating to delivering and tracking training material. It helps both the organization and employees by:
Tracking employee’s progress toward meeting their learning goals
Collecting data for improving the learning process.
For example, Paycore, a corporate LMS helps administrators organize learning programs for individuals, teams, or departments. With this software, administrators can create interactive online course content with surveys, quizzes, and assessments.
2. Digital adoption platform
A digital adoption platform integrates with the company’s training program applications. It helps employees navigate the platform by offering step-by-step instructions to complete a specific task.
For example, Whatafix is a digital adoption platform that helps L&D teams create in-app content such as step-by-step guidance, walkthroughs, task lists, and smart tips to guide employees through complex digital processes.
Step #5—Follow up and track progress
The ultimate goal of the upskilling and reskilling program is not just to get your employees to upskill but to check if they have learned new skills. That’s where you need to measure the training program’s effectiveness and monitor KPIs. Some of the KPIs include:
Course completion rate
Training progression rate
Assessment score
Lowering skill gap analysis
Improving proficiency.
So, use the following metrics to measure the effectiveness of the learning and development program:
Employee feedback
Once the training program is complete, ask employees about their experience with the training program. What have they learned from the program? Was the program in-depth or did they need more resources to strengthen their skill development? How are they planning to use these skills in their job?
Skill assessments
A skill assessment platform helps L&D teams see whether or not employees have learned the subject and topic well from the training program.
For example, HackerEarth’s learning and development program offers an assessment platform.
This is where L&D teams can create their assessment platform for their employees to take assessments after completing the training program. Further, the platform also provides employees’ progress reports to their managers.
Post-training job efficiency
Observe your employees and see how they have executed the newly learned skills on the job. But the problem with tracking the employee’s progress?
Even after observing their work, there is no documented data of how much of the newly learned skills they implemented and whether or not they are ready to take up the additional role or move to an entirely different role.
The product introduces a layer of objectivity to their upskilling program
It creates a guided learning path where they can see their progress firsthand
According to Sachin, there are 4 things users can expect from this L&D product:
Employees will get real-time and objective feedback on their skill development. Starting with baseline evaluations, through continuous evaluations, and ultimately a summative assessment. Over time, we will be able to recommend to learners what specific areas of skill development they should focus on.
Employers will be able to measure ROI on their upskilling programs.
Employers will be able to create a skill map for their organization. They can understand the current skill set in their team and plan for skill development over time.
Accurate skill data can help employees and employers match people to opportunities they are most suited to.
All these things lead to greater output but also more engaged and retained teams.
You see? The goal here is for both employees and organizations to get a clear view. For organizations, it’s about whether or not employees have developed their skills, and if so, are they ready to take on more specialized roles?
For employees, it’s about seeing whether they have a clear career path to move forward on.
Use learning and development tools to upskill your tech teams
To sum up, learning and development programs should be an important facet of every tech team’s culture on any given day. However, during troubling times such as a recession, it can become a crucial weapon in fighting the wolves at the door.Upskilling and reskilling programs can help you:
Retain your high-performing engineers
Provide them paths to grow their skill sets and their career prospects
Help your tech team stay ahead of time.
And so, choose the right learning platform to empower your employees in keeping up with changing technologies and on-demand skills. See their progress in real-time with HackerEarth’s learning and development platform that offers curated assessments and learning paths to your internal employees, and helps you quantify the benefits of every certification.
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.
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.
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 2025?
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.
What types of companies are prone to tech layoffs?
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:
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.
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 2025, 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 2025.
So recruiters, let’s join arms, distribute those layoff lists like there’s no tomorrow, and help all those in need of a job! 🙂
The business world has seen more paradigm shifts in the last couple of years than typically seen in a decade. We have seen everything from rising demand for remote work to mass layoffs.
Amidst all this, talent acquisition teams face several recruitment challenges to find suitable candidates for their organizations.
With changing needs of employees, changing technology, and ever-evolving recruitment strategies, recruiters have their work cut out for them. Therefore, companies must be proactive in attracting and retaining the best talent.
It is essential to understand the challenges faced by recruiters and the strategies they can use to ensure successful talent acquisition.
This blog post spells out the challenges faced in talent acquisition, changing needs of the employees, reasons for failing recruitment strategies, and five tips by recruiters to fix recruitment strategies in 2023.
Challenges faced in talent acquisition
As recruiters and employers continue to look ahead to 2023, one of the most significant recruitment difficulties they face is successfully managing talent acquisition. Among these hiring challenges, the following are the most prominent ones:
Not meeting the changing needs of employees
Recruiting expectations continue to evolve as the workforce changes.
For example, employers are looking for candidates with better education, more experience, and the right technical skills to get the job done.
This means that recruiters must have the necessary tools and processes in place to ensure they are identifying the best possible candidates. We will focus more on these changing needs of employees in the next section.
Failure of existing recruitment strategies
Recruitment failure is often a product of too long or cumbersome processes, which can lead to missed opportunities to hire the right people.
Additionally, if recruiters don’t have the right tools, they may struggle to identify suitable candidates or find enough time to assess them properly, leading to a major increase in the time-to-hire metric. This can result in a high turnover rate, which can cause further disruption and strain on resources.
Employers want to ensure they can source and hire the best candidates. As a result, there’s a great deal of competition when it comes to hiring top talent. This means you need to have a recruitment strategy that is both proactive and agile.
Additionally, recruiters must be prepared to act quickly when suitable candidates become available. This is vital to capitalize on any potential opportunities.
Now let’s learn more about the changing needs of employees.
Changing needs of the employees
Today’s employees are looking for more than just a paycheck. They want a job that offers them meaningful work and opportunities to grow their careers.
Some more things on the checklist to derive more value from work include:
Committed to creating a workplace that values diversity and inclusion
Allows for flexible hours
Provides opportunities for personal development
Employees want to avoid being confined to a corporate position that will kill their energies. Additionally, businesses are reconsidering their positions’ benefits and considering how these candidates would see them in the post-pandemic society.
To achieve this they must identify potential hires’ desired skills, roles, and experiences and build recruitment strategies around those criteria.
By recognizing the unique needs of today’s employees and investing in technology-driven solutions that cater to those needs, businesses can increase their chances of finding the perfect candidate for the job.
But before that, it’s vital to identify the reasons behind your current recruitment strategy that is not bringing in results.
Reasons why your recruitment strategy is failing
Recruitment strategies can fail due to a variety of reasons. Some of these might be out of your control as a recruiter. However, there are some that you can identify and work on.
Some of the most common, fixable reasons behind a failing recruitment strategy are as follows:
Lack of focus on building an employer brand
Establishing a competitive advantage in the labor market depends heavily on your ‘Employer Brand.‘ Nowadays, prospective employees frequently read reviews of a company before applying. According to CareerArc’s 2021 Future of Recruiting Study, 82% of candidates consider the employer brand and reputation of a company before applying for the job.
So, if they discover that you have a weak employer brand, it may discourage them from sharing their application.
Content marketing can be an insanely successful approach to increase brand recognition and amplify it. That’s why recruiters need to identify its value. Publishing insightful and helpful information for users can aid in creating enduring relationships with applicants.
The people who meet the criteria for a given post regarding applicable skills, qualifications, work experience, and values are your target audience as a recruiter.
Before starting a recruiting drive, it is crucial to identify your target audience. It aids in the creation of recruitment messages that are relevant to the target talent. Additionally, it gives you access to places with a higher probability of locating potential employees.
Making a candidate persona for each position you’re trying to fill will help you pinpoint your target market. The candidate persona is a fictitious depiction of the ideal applicant for a given job.
Building a recruitment strategy that attracts suitable candidates is simpler when you know your target audience. This results in a more productive workforce.
Lack of focus on candidate experience
One of the most common reasons recruitment strategies fail is a lack of focus on the candidate’s experience.
As the job market has become increasingly competitive, recruiters must ensure that candidates have a positive experience throughout the recruitment process.
This means providing clear communication and ensuring they understand their roles and responsibilities before taking on a job.
If this isn’t done correctly, candidates may feel discouraged and look elsewhere for opportunities. Good candidate experience is non-negotiable!
This can be especially true when recruiting remotely. Without appropriate methods of reaching out to potential candidates, recruiters could miss out on top talent that would otherwise be interested in their positions.
Additionally, without proper outreach, recruiters may lose qualified applicants overwhelmed by competing offers from other companies.
Things to consider when fixing your recruitment strategy
Talent acquisition solutions must keep up with employees’ changing needs to attract top talent. Companies need to invest in solutions tailored to their industry and flexible enough to meet the unique requirements of each potential hire.
Fortunately, some proven tips can help you fix your talent acquisition issues in 2023.
Here are five tips from recruiters to help you fix your recruitment strategy:
Leverage technology
Technology has made it easier for recruiters to find qualified candidates quickly and efficiently. Utilize the latest tools such as Applicant Tracking Systems (ATS) and more to streamline the recruitment process and save time.
For instance, you can turn to a leading plug-and-play technical recruitment solution in HackerEarth.
HackerEarth comes with the integration of major ATS providers. You can drive true innovation with the assortment of virtual tech hiring tools offered by HackerEarth.
Analyze data
You can’t make the right hiring strategy without analyzing data. Use analytics to gain insight into past recruitment efforts and develop strategies based on the data you find.
By understanding the information provided by your current recruitment methods, you can create a plan that fits your goals.
Make sure everyone involved in the recruitment process is on the same page. Be sure to communicate your desired outcomes and expectations. This is vital to allow each team member to better understand what success looks like.
Offer training opportunities
Train new hires on their roles and responsibilities to ensure they have the skills necessary for success. Ongoing training and development are critical for retention, so investing in employee growth can pay off in the long run.
HackerEarth understands the value of upskilling employees and provides tailored learning paths.
Diversity in backgrounds, experience, and perspectives can open up opportunities for better candidates, which will ultimately help your organization thrive.
Conclusion
The best way to turn your failing recruitment strategy around is by identifying the possible challenges you might face. Once you have identified the major challenges of internal recruitment in your company, you can take the required steps.
By using the above-mentioned tips, you should be able to develop a comprehensive recruitment strategy.
Don’t fear taking risks and embrace innovation as you try new strategies – they could be the key to a successful recruitment campaign!
Indeed it’s true that 2020 was a tough year for the whole world to handle. However, the adverse effect of the pandemic also created new opportunities for people. It changed the way companies work. Remote working suddenly became the talk of the town. Even after the pandemic, the craze of remote working only kept growing. There are plenty of benefits and flexibility that remote work provides employees and companies with.
Employers started to use online management tech to efficiently manage their employees who were working remotely. Furthermore, remote hiring or online recruitment has also grown simultaneously with remote working. It has become a priority for recruiters and the HR team, but mainly, it has become a priority for job seekers. To land talented candidates, you need to offer them the flexibility of working from home. This is where tools like applicant tracking systems, online coding assessments, recruiting CRM software, and so on step in to make hiring easier and quicker.
Also, good talent acquisition software provides a recruitment marketing platform for your recruiting team to efficiently source, attract, engage, and hire the best suitable candidates.
Hiring top-tech talent is the highest priority of companies nowadays. In addition, the two factors, tech recruiters and online recruitment software have become an indispensable part of the process. Let’s understand what tech recruitment is and how to market it.
What is tech recruitment?
Tech recruitment is the process of sourcing, attracting, screening, engaging, and hiring talent for IT and technical roles. Recruiters need to have the technical knowledge and the ability to deal with technical people to interact with them.
Generally, tech recruiters approach recruitment by discovering and assessing suitable candidates and presenting them to hiring managers to reach realistic technical recruitment goals.
AI-powered recruiting software, such as applicant tracking systems, remote coding interview tools, and recruiting CRMs, has become a boon for recruiters and hiring teams. This recruitment automation software also helps in recruitment marketing.
Tech recruitment marketing is practiced by tech recruiters to prepare to source, attract, engage, and hire candidates for tech roles. Following are the top tech recruitment marketing practices that you can implement to hire qualified talent.
Top tech recruitment marketing strategies for 2025
Tech recruiters need to have two essential skills, technical knowledge of the particular role and people skills. These skills are vital for tech recruiters who want to hire the best talent. Besides these two vital skills, recruiters must know the strategic approach to market their tech recruitment to hire top-notch talent.
1. A tech-savvy career page makes a difference
Nowadays, almost every candidate goes through the website of a company before applying to it. A survey by HR Dive found that 61% of job seekers visit company sites before applying. It is essential for recruiters to put compelling content on the career page of the website.
Recruiters can creatively produce and post videos of current employees talking about the positive work culture of the company, or they can put refreshing memories of company outings or a trip. A career site is a great way to convey the company’s culture. Additionally, visual elements such as creating a logo that reflects the company’s mission and culture can help build a stronger identity that resonates with prospective candidates.
The structure of the site is essential to attract tech talent. The blog page of the company could be a great help in giving an overview of the company’s values. Recruiters can send those blog articles to the applicants to show what the company really made of.
2. Effectively promote your employer’s brand
A survey by Glassdoor found that 69% of job seekers say that a company’s reputation is a vital factor, and they would not accept a job offer from a company with a bad reputation. Also, shockingly, 84% would consider leaving their current jobs if offered another role with a company with an excellent reputation. Hence, it is incredibly important for every organization to showcase a positive image to attract and retain top talent. Recruiters can encourage current employees to add a good review about your firm on a review platform as candidates look at it while applying for a job.
In addition, there are many ways to enhance employer branding. The following are the ways to create a powerful employer brand.
Create a strong onboarding and personalized training process for new hires.
Focus on improving the company’s values, vision, and culture.
Build a strong diversity, equity, and inclusion initiative.
Leveraging social media to promote the values and unique beneficial points your firm offers.
Share videos on social media platforms and job boards of your current employees talking about your amazing work culture.
Engage and interact with the candidates often while hiring and provide a positive candidate experience.
Offer the opportunity to learn new skills and development programs.
Companies must participate in local social events that tech talent is known to attend. This way, the company can increase its brand visibility and build better relationships with its target audience.
On the other hand, online communities like GitHub are hotbeds of talent, and tech recruiters should spend some time scouting for suitable candidates here.
According to a StackOverflow survey, over 90% of developers use GitHub and recommend that it is a profound tool for developers. You need to increase engagement and interaction on such platforms to source and hire top-quality talent.
4. Organize in-person or virtual tech events
Recruiters can also arrange local and virtual tech fairs and invite tech talent to join these informative and educational events. These virtual or local events are essential for tech recruiters and companies to build and strengthen their network, which they could use in the future to hire the best people for growth.
Tech recruiters can use online tools such as vFAIRS to organize online or hybrid career events to connect with tech talent.
5. Create exciting employee referral programs
Indeed, it’s true that skilled people know skilled people. According to a survey by Recruiter – an employer solution providing web found Employee referral programs can save companies $3,000 or more per hire! Recruiters or employers must set up employee referral programs by providing benefits and perks to those who recommend suitable candidates to the company. Also, one thing employers must keep in mind is that they must keep the employee referral transparent for the employees.
6. Build practical social recruiting strategies
Social recruiting has become the talk of the town because almost everyone uses social media nowadays. According to CareerArc, 86% of job seekers use social media in their job search to search for relevant jobs, apply to jobs directly from social sites, and engage with job-related content. Hence, recruiters must build practical strategies for social media and job boards to reach diverse candidates. A key aspect of social recruiting is ensuring compliance with communication regulations while engaging with potential candidates. Implementing FCC lead generation strategies can help recruiters connect with job seekers through consent-based outreaches while staying compliant with FCC guidelines. This approach ensures ethical recruitment practices while improving engagement rates.
Following are some key strategies recruiters and HRs can apply to get the maximum advantages to advertising tech recruitment.
Increase the visibility (traffic) of your website
Post content on your site to attract the relevant audience. In this case, tech-related content can attract more people who are curious and passionate about technology.
Build strong relationships with candidates on social media platforms
Arrange educational and informative virtual or local events for job seekers
Indeed, it’s true that skilled people know skilled people. Thus, you must use your employee network wisely to find and hire the most suitable people.
Recruiters can reach a new relevant audience through social media and advertising campaigns on platforms such as Facebook touch and Instagram to raise the company’s awareness. They can run Ads and target users based on the factors such as their current job titles, education level, interests, and location. This Ad campaign helps the hiring teams to target the prospects they want to attract in that specific location.
8. Develop and nurture a strong talent pool
Recruiters actively discover and engage with suitable candidates even if the company is not hiring at the moment. Recruiters add the data of potential candidates to the talent pool database. When a specific requirement or a post is open, they can easily reach those candidates. Also, it allows them to engage with prospects who are passive candidates. Recruiters and HR teams can use recruitment software such as an Applicant Tracking System.
To manage the talent pool efficiently. Also, they can add candidates to the talent from employee referral portals in ATS. This way, recruiters can effectively manage the talent pool.
With the rising evolution of technology, the hiring industry has transformed exponentially. Indeed, it’s true that leveraging the right strategy to advertise your job efficiently is incredibly important. It provides you with plenty of benefits for your company. For example, it allows you to hire top candidates and stay ahead of cut-throat competition. Recruitment marketing will enable you to attract a diverse range of candidates.
In this article, we’ve covered key marketing strategies that will be immensely helpful to recruiters in marketing their open positions to candidates far and wide. These strategies will enable them to attract, hire, and retain quality candidates within the company.
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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 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 “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 is the Director of International Recruitment at
Shortlister, a platform that connects employers to wellness, benefits, and HR tech vendors.
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 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 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...
#3 What top 3 skills would you like HR professionals/engineering managers to add to their repertoire in 2023 to deal with upcoming challenges?
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.
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.
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!
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.
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.
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.
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.
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.
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.
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.
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”.
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.
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.
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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?
“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:
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:
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.
Provides a broad selection of assessments, including skill tests, personality assessments, and cognitive ability tests. They offer customizable solutions and cater to various industries.
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.
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.
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.
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.
What types of companies are prone to tech layoffs?
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:
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.
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! :)
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.
