Hold onto your hats, tech recruiting teams: it’s about to be a bumpy ride. Layoffs ricocheted across the sector in 2022, and this year has proved to be no different. A total of 161,411 employees in tech were laid off last year, and a staggering 125,677 found their roles on the chopping block in 2023 thus far.
The impact of layoffs has left tech hiring teams in disarray, uncertain of what their next moves should be amid the rocky economy and hectic hiring landscape. But don’t stress just yet; we’re here to help identify the way forward.
After surveying 531 talent acquisition leaders across sectors for our 2023 Hiring Insights Report, we’ve released the report’s technology edition. Based on responses from 103 talent leaders in tech, the report highlights how they’re attracting and retaining talent amid today’s obstacles.
Our report’s data shows that while layoffs hit the tech sector hard, hiring teams have uncovered keys to success. If you want to rebuild your operations and stand the greatest chance at thriving once hiring rebounds, read on.
Layoffs Hit Tech Hard
If you’ve spent time skimming the latest headlines (or scrolling through your LinkedIn feed), you’re likely all too familiar with the tech sector’s mass layoffs. The rapid growth of many tech companies, followed by plummeting stock prices, led tech companies to reevaluate their expenses—often resulting in workforce reductions.
In total, 57% of companies from our survey reported layoffs in the past 12 months, with 44% saying the cuts affected 15-19% of their headcount and 22% reporting cuts of over 20% of their company’s total workforce.
Challenges Bear Down on Hiring Teams
The far-reaching impacts of these layoffs on both an individual level and an organizational level cannot be overstated. Yet teams have contended with far more tech hiring challenges than just workforce reductions.
The top challenge that dealt a blow to teams’ hiring efforts: mental health and wellness concerns (34%). This should come as no major surprise; the constant threat of layoffs and budget and resource cuts isn’t a recipe for health and prosperity. “Difficulty adapting to remote interview process” (30%) and “applicants whose skills do not match their resume” (28%) round out the top three responses.
Tech might be known as a sector that quickly adapts to the latest trends, but evidently, not all tech recruiting teams have mastered the remote world. Embracing remote interviewing undoubtedly comes with growing pains, as recruiters learn how to uplift the candidate experience through a Zoom screen.
For tech companies that are still hiring in full force, having to sift through inflated resumes can be a major time-sink. The disconnect between real skills and resume content only further emphasizes the importance of rigorous screening.
Personalization and Efficiency for Hiring Success
Amid the rocky economy and difficult hiring landscape, talent teams at tech companies are on the road to recovery with personalization and efficiency by their side.
Our data shows that increasing personalization throughout the hiring process is a key focus area for talent leaders in tech (46%). Personalization helps to make candidates feel valued as unique individuals, effectively meeting their high expectations of the hiring process.
Coming in second place, talent leaders also intend to improve their hiring efficiency (44%). Streamlining the hiring process by zeroing in on efficiency helps fill the gaps following hiring team layoffs and turnover while providing some much-needed relief to reduced teams.
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No matter if your team is still looking to fill open roles or if you’re in the midst of a hiring freeze, the fact is that efficiency drives present and future hiring success, including improved time-to-hire and increased offer acceptance rates. When you combine efficiency with personalization, you get an engaging, high-quality hiring process that can withstand anything the landscape throws its way.
Strategies for Winning Tech Candidates
Successfully hiring skilled tech talent in 2023 means catering to what candidates value the most. When asked what they convey to candidates to win them over, most talent leaders say that they communicate employee well-being (56%). Employee well-being was the top response for the second year in a row among our Hiring Insights Reports.
To candidates, emphasizing employee well-being can be an indicator of a positive work environment. A company that prioritizes well-being is also likely to prioritize other values that are on candidates’ wishlists, such as a satisfying work-life balance and an attractive company culture.
Ranking in second place is flexibility (53%). However, there’s a major difference between conveying flexibility and actually practicing flexibility. One of the most impactful ways to put flexibility into action is by offering talent remote or hybrid work. Yet flexibility can take many forms. Tech companies could allow employees to work from anywhere within the office, take lunch when they’d like, or skip lunch to head home early.
Hey, Tech Recruiting Teams: Want More Insights?
2022 brought a rocky economy, sweeping reductions in force, and a difficult hiring landscape, creating a perfect storm for tech recruiting teams this year. The pressure is on to find and attract qualified candidates, deliver an efficient hiring process, and leverage hiring tools that drive teams toward success. Are you ready to conquer 2023?
To dive deeper into these insights and much, much more, get the tech report today.