How Is the Tech Talent Market Changing and What to Expect in the Near Future?

In the past, the tech talent market was pretty simple. There were only a few major players in the industry, who were at the origins of the technological revolution, like IBM or Microsoft. But now, as technology evolves rapidly, the competition becomes more intense, especially when it comes to talent acquisition.

Since 2000, the number of tech jobs available has grown two times in the US only. As more people are getting into tech than ever, there are also many more companies looking to hire them. And this is not the only challenge the tech job market faces now and will face in the future. 

At Bridge, we are well aware of the problems modern companies have when hiring technical talent. We deal with tech talent sourcing hurdles day after day, keeping a hand on the pulse and helping businesses stay on top by helping them recruit the best software developers. We decided to take a comprehensive look at the current situation in the tech labor market and came up with our own projections for the near future. 

So, let’s take a deeper look at the current and future tech industry trends, and how they affect various companies. 

Main challenges the tech labor market went through in 2020-2022

From 2020 to 2022, the tech talent market was in a state of flux. Here are some major challenges the industry went through. 

• Post-pandemic switch. In 2020, 25% of companies  switched from a more location-focused approach to hiring people around the world. This shift was triggered by the pandemic, which made more companies realize that working remotely can be as effective as working in the office. 
• The Great Resignation. The Great Resignation was another challenge the industry faced. More and more tech workers resigned from their jobs looking for a better work-life balance, healthier working environment, and more thriving opportunities for their career growth. 
• Tech talent shortage. The demand for technical skills has never been greater – there are only 65 candidates for every 100 tech jobs available, and the tech talent gap is projected to grow. This means it’s more important than ever to stay up to date on the latest trends in hiring, recruiting, and training.
• Economic recession. The economic recession affected many people in different ways, but one thing is certain – it changed the way we work. With fewer jobs available and less money going around, many companies have found it necessary to offer remote work or contract positions to stay afloat.

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How do companies cope with current challenges and prepare for upcoming ones? 

Changes and challenges the tech industry faced in the recent two years were tough, so many companies were forced to come up with new strategies to attract, hire and retain software engineers and other tech-related specialists. Some of them were creative enough, so let’s review the examples of the companies with unique hiring practices. 

• Nike offers a $5000 bonus for attracting a referral for a tech job. Such a referral bonus is significant enough, especially for startups and small companies. What’s more, investing in a referral program has a high chance of being paid off – 45% of referrals stay within the company for more than four years. They are also more loyal to the company from the very beginning – this is how the power of social proof works. 
• IKEA sends so-called “Career Instructions”, describing open vacancies, with customers’ parcels. Following this practice, the company looks for potential employees among its current customers using its famous flat packs. It’s a great idea for B2C eCommerce brands, especially given that loyal customers can be both loyal employees and brand ambassadors. 
• Dyson established the Dyson Institute of Engineering and Technology. The company developed a degree apprenticeship program that combines learning and practice. There, the best tech graduates can start their careers and work hand-by-hand with seasoned engineers. In this way, the company builds a strong talent pool from a younger generation. 

The future of the tech talent market – what to expect

So, what can we expect in the future if the tech talent market trends are changing faster than the companies can adapt to them? At Bridge, we have helped dozens of enterprises overcome the struggles of remote hiring by sourcing top technical talent, leveraging data-driven hiring technologies, and providing our recruitment expertise. We can see how the requirements of our customers and the expectations of the candidates are changing, so below are the trends we believe will dominate the tech market in the upcoming years. 

Remote work will become the new normal

As stated by Bloomberg, in 10 years remote work will be the way people are used to work, not an alternative. And the same can be said about global hiring – when remote work will become a new and globally adopted norm, hiring international employees from different parts of the world will become a traditional approach, too. So it is safe to say that the hybrid work approach will dominate the tech market, offering a compromise for companies eager to cut hiring costs and employees willing to have a better work-life balance. 

The tech talent gap will grow, and so will the demands of software developers

In 2022, 70% of companies named tech talent shortage one of the main barriers to their digital transformation and the opportunity to keep up with constant tech industry shifts. For comparison, only 54% of companies faced this challenge in 2020. The tech talent gap is projected to grow, as well as the demand for software developers, and it’s not about salary in the first place. 

Modern tech specialists would be more eager to work with newer technologies in a healthier work environment with no bureaucracy and micromanagement. In the next few years, more and more of them will look for meaningful projects where they can make an impact and solve new challenges. 

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Companies will build more diverse teams

As more companies recognize the value of having a diverse team, they will be willing to invest in building one. The result will be an increase in companies that are able to hire people from different cultural backgrounds, including people of color and minorities. That’s why both corporate culture and hiring practices will also change. While more companies are expected to follow the Diversity-Equity-Inclusion (DEI) principle, they will also embrace diversity-first talent sourcing channels, and set diversity goals, among other practices to hire more diverse tech teams.

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Candidates will upskill and build nonlinear careers

Lifelong learning is at the heart of a software developer’s job, since they should always upskill to keep pace with technology evolution. In the near future, this trend will still be relevant. In addition to constant upskilling, the tech labor force of the future will be more focused on building nonlinear careers, accumulating their knowledge of different technologies instead of climbing a vertical career ladder with a single tech stack. 

What does it mean for businesses? It means that companies should be even more flexible with the projects they run, giving developers the opportunity to switch focus within the company they are working for. 

Automation will cut some jobs, while creating new opportunities

Automation changes the way people work. It is projected that by 2025, Robotic Process Automation (RPA) systems will replace 85 million jobs worldwide. That’s great news for businesses because it means they can do more with fewer people, cutting operational costs and achieving better efficiency—but it also means that companies will require completely new technical skills. Despite routine processes being automated, businesses will still need to hire tech specialists to develop and maintain automation software. 

Big Data and DevOps will be the most in-demand tech career fields

Big Data and DevOps will be the hot-career fields. We’ve seen these two areas grow exponentially in popularity over the last few years, and they’re not showing signs of slowing down any time soon. Big Data professionals have never been more in demand due to the increased demand for data analysis and the rise of IoT solutions, while DevOps professionals are needed to help companies manage their technical resources efficiently across teams and departments. 

SRE (Site Reliability Engineer) and cybersecurity specialists will be in high demand as well, because of the rising cybersecurity threats businesses face. As these fields continue to grow, so will the demand for workers who can fill the required roles. 

Companies will hire through metaverse

Sounds like science fiction, doesn’t it? Still, interacting using avatars and hiring through the metaverse can become a reality. Such companies as Samsung and Hyundai have already invested in metaverse development to train their employees, run workshops and corporate events, and…attract better talent. How does it become possible, you may ask? 

The matter is that metaverse hiring creates a one-of-a-kind environment, where candidates can take an immersive journey behind the scenes of the company they would like to work for. The onboarding experience with its interactive learning environment that metaverse can deliver is likely to be super-engaging, allowing the employees to get to speed faster and become loyal to the company from day one. 

Blockchain staffing solutions will replace traditional HRMS

The global blockchain market is projected to grow from $7.18 billion in 2022 to $163.83 billion by 2029, so there is no wonder that this technology will penetrate into different areas, including, but not limited to tech talent recruitment. Blockchain staffing solutions have the full potential to revolutionize human resource management, offering a fully-transparent and decentralized ledger instead of a traditional Human Resource Management System (HRMS). 

For example, with the help of a blockchain-based system, it would be easier for HR professionals to verify candidates’ credentials since everything, from education history to references from previous employees, will be stored in a single and ultimately secured place. 

Overcome the upcoming recruitment challenges with Bridge

Given the trends, changes, challenges, and tech talent market projections we’ve reviewed in this article, staying flexible with your talent sourcing practices and keeping pace with times becomes a first-hand necessity. Bridge can help you with both tasks, offering an innovative approach to hiring remote software developers. 

With our sourcing-as-a-service, you can leverage the power of our data-driven talent sourcing engine created to find the right candidates across the globe, using multiple filters by location, technology, experience, skills, and candidate background you are looking for. While it automates 80% of the talent sourcing process, the remaining 20% of the job is done by our human sourcers who reach out to the candidate directly and speak to them in their native language, ensuring cultural fit. 

Most of our customers subscribe to our sourcing-as-a-service on a monthly or yearly basis to get better prepared for the upcoming challenges the tech labor market expects. 

Find out more about our offer by talking to our recruitment experts now!