Three months into 2024, 229 tech companies have already laid off over 57,000 employees (source: layoffs.fyi). Will the nightmare of 2023 with mass layoffs, turbulent macroeconomic conditions, and job uncertainty continue casting a shadow on 2024? Or can we expect the table to turn?
In this issue, we delve into the intricacies of the current hiring landscape, highlighting the shifts, challenges, and strategies that will define tech leadership hiring in 2024 and beyond.
Tech Hiring will be More Nuanced
While recent news of layoffs in the tech sector might suggest an abundance of available talent, the reality of hiring, particularly for tech leadership positions, is far more nuanced.
The job market, if you’ve noticed, is gradually tilting towards the crème de la crème. On the flip side, due to job uncertainty, lesser salary hikes, and hire & fire culture; the choicest candidates are either postponing job switch plans or expecting more than just salary compensation.
Tech Leadership Hiring Will Bounce Back
To answer the question we proposed at the onset of the article, hiring is projected to bounce back this year. After a tepid 2023, experts predict a 5-8% improvement in hiring for tech leaders in the first half of 2024 compared to the same period last year. This indicates a gradual recovery, with the possibility of significant growth in the latter half (source: Deccan Herald)
Furthermore, funding is picking up – invariably impacting the hiring trend. Global venture funding reached $64.6 billion in Q3’23 — an 11% increase from the previous quarter.
Restructuring of Jobs
The impact of AI extends far beyond simple productivity boosts or job cuts. The introduction of AI is fundamentally reshaping the landscape of work, leading to a restructuring of jobs beyond the oversimplified assumption of productivity boosts or job cuts. This reshaping manifests in three key ways:
- Human-AI Collaboration
With AI automating repetitive, rule-based tasks, tech leaders can focus on higher-order skills like critical thinking, creativity, problem-solving, and complex decision-making.
- Hybrid Skillsets
Businesses are looking for a blend of technical and soft skills while hiring tech leaders. As job requirements continue to evolve, adaptability becomes a critical leadership quality.
- Focus on Strategic Leadership
Companies are planning to automate 70% of tasks by 2030 that are currently performed by mid-level managers, allowing senior leaders to dedicate more time to long-term strategic planning.
This new landscape presents both challenges and opportunities as employers are reassessing their hiring needs and modifying the roles & responsibilities of desired tech leaders. The current hiring landscape is defined by value instead of mere vacancy.
Renewed Hiring Processes and KPIs
Not only the roles and responsibilities, but the hiring process itself is going to drastically change. Recruiters are focusing on the following key performance indicators (KPIs):
- Quality of Source: Employers are eyeing technocrats who have rich industry experience, educational qualifications, and esteemed organizations in their portfolio.
- Time to Hire: The competition for these crème de la crème talents is fierce. Reducing the time between spotting the perfect candidate, interviewing, and hiring is the key to winning a competitive edge.
Further, various companies are building AI recruitment platforms that can screen candidate data from online job boards. While sole dependency on AI platforms might be questionable, AI-powered talent search engines can be used to help recruiters save time and resources.
On the other hand, the crowd of AI-manicured profiles is making it challenging to assess the right fitment. Recruiters are now leaning more towards a data-driven and strategic approach to talent acquisition. So, what are the key metrics to look for while hiring a tech leader? We’ve outlined these here to help you look beyond AI-polished resumes.
Salary is NOT the Sole Determinant
While a competitive salary remains a key consideration, it’s no longer the sole driver of talent acquisition. Today’s candidates are increasingly prioritizing factors that contribute to their overall well-being and sense of purpose at work:
- Stability and Growth: Tech leaders are showing interest in companies with a strong track record of stability and a clear path for growth.
- Autonomy and Decision-Making Power: Tech leaders are willing to move to companies where they can enjoy authority to implement their vision and make strategic decisions. A Gartner study revealed that 64% of high-performing IT leaders believe their organizations empower them to make independent decisions.
- Company Culture: A positive and inclusive culture that fosters collaboration, work-life balance, and professional development is highly sought after. Tech leaders are looking for workplaces that align with their values and offer a sense of belonging.
Companies that recognize these evolving priorities have a distinct advantage in attracting and retaining exceptional tech leaders.
Closing Thoughts
2024 is expected to notch up the tech leadership hiring landscape. Gone are the days of rote hiring processes and reactive solutions. Companies that embrace change by creating data-driven hiring processes, valuing soft skills alongside technical prowess, prioritizing a positive work culture and balancing newer technology adoption will be well-positioned to attract and retain premier tech talents in this new era.
If you are in search of a suitable tech leader for your team, reach out to us at interact@purplequarter.com
Authored by Soumi Bhattacharya
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