Despite Time Square’s New Year’s Eve celebration approaching, many parts of the business world remain clouded in mystery, especially for HR teams and hiring managers trying to figure out what the next few quarters will look like.
On the one hand, widespread layoffs are hitting some seemingly immune-to-everything logos such as Facebook, Amazon, Twitter, and Salesforce.
When these giants tighten their belts, you know the world’s in a tough spot.
On the other hand, the technology and IT industry is growing.
In fact, between 2021 and 2030, the global IT professional services market size is expected to grow at a compound annual growth rate (CAGR) of 11.2%.
With such growth slated for the next few years, technology and IT companies are uniquely positioned to look toward the future with confidence—a luxury not available to all.
This extends to HR teams and hiring managers who are gearing up to make key hiring decisions over the next few quarters.
Here are 3 IT and technology hiring trends to keep in mind in 2023.
IT and Technology Hiring Trends for 2023
1. Hiring for Fit is the Top Priority
Most layoffs impacting technology and IT companies right now stem primarily from one thing: reckless growth.
For years, but especially during the pandemic, many companies prioritized growth over anything else.
The only way to grow—at least in their minds—was to hire more people. Just look up any big technology company on LinkedIn and see how much its headcount has increased in the past few months.
This go-go-go strategy is fine during high-growth times when the economy is firing on all cylinders; the high labor costs get buried beneath flashy revenue numbers.
But the perpetually rising headcount isn’t sustainable when the business world slows. Nine times out of ten, people are the first line item to get cut.
This unfortunate industry trend doesn’t have to equate to job cuts and hiring freezes. In reality, it brings out one of the industry’s biggest hiring trends: Hiring for fit.
In 2023, the downward-trending economy will force technology and IT companies to maximize their workforce by doing more with less. That starts with shifting hiring strategies to focus on quality over quantity, i.e., hiring candidates who mesh with the company culture and mission but also who possess the specialized skills required to fill the most pressing organizational gaps.
This will require more alignment between leadership teams, hiring managers, and third-party recruiters to ensure that the right candidates come to the table and the best ones get offer letters.
2. No Games Allowed
Much has been said about candidates and employees having leverage over employers for the first time, well, ever.
The New York Times went as far as to publish an article titled: Workers Are Gaining Leverage Over Employers Right Before Our Eyes.
The unprecedented dynamic results from an equally unprecedented workforce supply and demand, especially in the wake of the Great Resignation.
The pandemic may be waning, but the aforementioned leverage isn’t going away. Frankly, it’s here to stay in 2023, forcing technology and IT companies to accelerate their recruitment and hiring strategies.
The key: When a right-fit candidate is available, go get them.
With the demand for talent likely to remain high throughout 2023, technology and IT companies will have to have their ducks in a row and be ready to move when a good fit becomes available.
This need will further intensify the spotlight on active recruiting, or the practice of constantly being on the lookout for right-fit candidates, regardless of their current status in the job market.
In 2023, technology and IT companies will shift their recruitment strategies to focus on their talent pools to ensure it’s full of right-fit candidates before they even need them. By doing so, they can accelerate the hiring process and fill organizational voids before the competition can swoop up the top talent.
3. Generation Z Expects More
Generation Z is taking over the technology and IT workforce—and as they do, they’ll make up the bulk of the talent pool.
While this is the normal evolution of hiring—hiring managers are fresh off the process of figuring out how to appeal to Millennials—Generation Z is a bit different.
Hiring and recruitment strategies must evolve quickly to woo this talented generation.
At the core of these strategies will be a steadfast commitment to more “out-of-the-box” perks.
For this generation—and likely any forthcoming ones—financial perks and compensation packages aren’t the be-all-end-all they once were.
While the finance angle is important, a big trend in 2023 will involve bringing personal growth opportunities, company values, and diversity efforts to the forefront of recruitment pitches.
Not only will this be the bare minimum to get candidates to hop on a Zoom interview, it’ll be the only way to retain the employees who are having a measurable impact.
The Final Say on Technology & IT Recruiting in 2023
Right-fit hiring, active recruiting, and Generation Z will be at the forefront of technology and IT hiring strategies in 2023. Committing to them will be a make-it-or-break-it decision for most companies.
Although these 3 technology and IT hiring trends received the spotlight in this article, other trends will continue to impact the efficacy of hiring strategies, including an investment in diversity, equity, and inclusion (DEI), flexible work, and a focus on mental health in the workplace.
The technology and IT companies that can bring these trends together in 2023 will win the recruitment war and retain their employees for years to come.