Optimism for Hiring in Information Technology for 2024
Recent layoffs at companies like Google and Microsoft have many Information Technology (IT) workers cautious about making a job change.1 Company leaders note recession fears and a hiring spree to meet demand during COVID-19 as key reasons for downsizing. This cooling trend will continue into 2024 – yet there are bright spots.
There’s still high demand for highly qualified roles like data analysts, process automation, and software development specialists, as well as more mid-level roles. Silicon Valley’s loss may also be everyone else’s gain. Tech companies in growing markets like Texas, North Carolina, and Florida, as well as non-tech industries like insurance, healthcare, and banking, can benefit from layoffs of qualified employees.
The long-term outlook for technology overall is positive and IT professionals still have a low unemployment rate at around 2%.2 For employers aiming to find talent in this tight market, showcasing a strong brand reputation and financial stability can attract job candidates seeking more security. Here are more trends for hiring in information technology for 2024:
Wages Remain a Key Recruiting Driver
For most candidates considering a job change in the coming months, wages remain the number one incentive.3 That’s a challenge for many companies that have faced reduced revenues and hiring budget cuts over recent months. But amid well-publicized tech staff reductions, job candidates are starting to become more open-minded on salary negotiations. Companies that emphasize other benefits like job security, a positive corporate culture, and education opportunities are better positioned for hiring.
Flexibility Getting Squeezed
A year ago, tech workers flocked to fully remote work – now they are competing for jobs that may offer one to two days of remote work, if they are lucky. It’s a tectonic shift accelerated by tech industry leaders like Elon Musk and Mark Zuckerberg who cite productivity concerns and decreased collaboration as
reasons to bring employees back to the office. But most technology professionals still prefer hybrid work, with flexibility ranking higher on their priorities than pay. Baby boomers are the generation that most prefer remote work, while Gen Z wants to go into the office to make connections and take advantage of opportunities for mentorship.4
Communication is Crucial When Hiring in Information Technology for 2024
Communication skills continue to be one of the most valued skillsets in the IT sector, yet the most lacking. 83% of managers struggle with employees who have poor soft skills.6 Some of the most important skills that employers seek include active listening, clear and concise written and verbal writing and speaking, as well as non-verbal communications. This is an issue with many candidates but can especially be a challenge with non-native English speakers. More than half of the creative jobs in many IT innovation clusters are held by foreign born workers.7 Companies who help facilitate improvement of communication skills as well as English language skills may find greater success in attracting and retaining top talent.
This article features trends for hiring in information technology for 2024 from Addison Group’s 2024 Workforce Planning Guide.
For industry-specific trends and salaries for various roles across 20 metro area locations, download your free guide today!
1 CRUNCHBASE, TECH LAYOFFS TRACKER, 2023
2 COMP TIA, 2022
3 BUSINESSWIRE, IT SALARY OUTLOOK POSITIVE, 2023
4 EDEN, WHERE TECH WORKS REPORT, 2022
5 EDEN, WHERE TECH WORKS REPORT, 2022
6 TECHNATIVE, HOW SOFT SKILLS CAN RAISE THE BAR FOR TODAY’S IT EMPLOYEES, 2023
7 MONTHLY LABOR REVIEW, TRENDS AMONG NATIVE- AND FOREIGN-ORIGIN WORKERS IN U.S. COMPUTER INDUSTRIES, 2017
