Linda Brooks is the CTO for Atlanticus, a fintech company powering more inclusive financial solutions for everyday consumers.
getty
The recruitment landscape is evolving as Silicon Valley continues to lay off some of the nation's best tech talent. While the circumstances are unfortunate, there is an opportunity for both talent and tech alike. Due to the market's volatility, tech leaders are now forced to adapt to this new landscape, and in order to adapt to the changing environment, recruitment strategies will need to be improved and expanded upon.
According to TrueUp, there have been 700 rounds of layoffs at tech companies in 2023 alone, with 175,560 people impacted (2,251 people per day). In 2022, there were 1,535 layoffs at tech companies with 241,176 people affected. Tech companies of all sizes are laying off tech workers at a rapid pace, due to factors including economic conditions, inflation, higher interest rates, overhiring and Covid-19 pandemic job correction.
As tech workers are being laid off, this is an opportunity for tech leaders to take advantage of the progression occurring in the space. Here are three things to consider when filling your tech roles in light of the rapidly changing talent landscape.
Applicants From New Professional Backgrounds
With more top talent with great experience in the market than ever, there is an opportunity for leaders to pull talent from a larger applicant pool. While there are more applicants at our fingertips, during times of change, it’s common for laid-off workers to consider switching verticals and try something new. With this in mind, hiring managers may have a great selection of candidates, but they might not have the same areas of experience that typical candidates use to have. This doesn’t mean they shouldn’t be invested in. Creating a solid onboarding process that prioritizes education and long-term growth is vital to help set new hires from different areas of the industry up for success.
Managing Increased Demand
As tech layoffs continue, the demand for current open roles is increasing. So how can leaders manage this influx of applicants? To manage this high volume, tech leaders can utilize a number of methods to bolster their hiring process, including enhancing their job descriptions, tapping tech to help screen resumes and implementing a quick-moving hiring process. An enhanced hiring process that focuses on specific skills important to your open roles will allow you to parse through high quantities of applicants, gain the best talent for your organization and hire quickly in a competitive landscape.
With so much talent moving around the marketplace, time is of the essence. According to ZipRecruiter, 79% of laid-off tech workers found a new job within three months of starting their search. Therefore, leaders must act urgently before talent is recruited by other competitors.
Meeting Compensation Expectations
The increased demand for open roles and wider talent pool present new opportunities specifically for smaller tech companies that might not have been able to catch the attention of talent from larger tech companies in the past. However, they can only bring them in by offering them pay that is competitive and on par with their experience at larger companies. If the pay doesn’t compare to what they’ve made in the past, smaller tech companies and startups will struggle to recruit top talent at this time.
To meet the compensation expectations, leaders may need to rethink their compensation strategy. With factors such as rate interest increasing, inflation and a recession on the rise, many companies are also thinking outside of the box on how to appeal to new candidates, including through a strong benefits package. Benefits such as paid time off, a flexible schedule or remote working options, paid family leave and professional development opportunities are more important than ever for workers today and can work in conjunction with salary expectations. The most impactful strategies strike a balance between competitive compensation and a healthy benefits package.
Endless Opportunities
While the ongoing layoffs are unfortunate for all who are impacted, we can create opportunities, both for the talent and for your organization. These are talented individuals who can evolve and grow, and leaders should evaluate their team and think about areas in which they would like to prioritize growth. Are there skills and abilities that fresh talent could bring to the team? Are your members up-to-date and knowledgeable on the latest trends? In our industry, there is always value in bringing on individuals with new skills and expertise, and this is the moment to recruit those with new and unique experiences.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
