February 20, 2023
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What should we expect from the technology industry during 2023?
Much has been said about the “booming” technology industry over the past few years. Since the end of the pandemic, the sector has reached an all-time high, with huge recruitment drives, skyrocketing salaries, and record company profits.
However, with a number of high-profile layoffs across the big names in the industry and the Bank of England forecasting a global recession, it feels like the Tech industry has had its day in the sun.
Understandably, people are worried, and this has caused uncertainty in the market, with some contractors moving into permanent work for stability and some ambitious projects being halted across the industry. Many people are asking what’s going to happen to the industry over the next 12 months and if we’re going to see another boom and bust cycle.
As a leader in the technology market, Jumar is expertly placed to provide accurate and timely market insight into what we can expect to see in the coming years.
Current trends and myth busting
The likes of Google, Amazon, Microsoft and other ‘tech giants’ announcing widespread layoffs in the past few weeks have made many people conclude that this is the end of the technology industry as we know it. But in reality, these layoffs (whilst incredibly painful for those affected) account for a small percentage of the industry.
Many large technology organisations have undertaken ambitious recruitment plans since the Coronavirus pandemic, sometimes doubling or tripling their headcount and these redundancies account for a small proportion of their employee base.
It’s also worth noting that the same level of redundancies hasn’t been seen across all of the market. Conversations with CTOs, Directors and CIOs from small and medium technology companies paint an entirely different picture. There seems to be a great amount of positivity and stability, with large deals secured and a focus on how they can continue to scale their teams responsibly over the next 12-18 months. More often than not, these businesses simply don’t have the budget to aggressively scale their teams, so the ‘hire and fire’ pattern is less prevalent.
Our own Jumar figures, also paint a positive picture. Since April 2022 We’ve seen a 35% average increase in job advert responses and over 4,000 applicants active per month. Many are still choosing to look for other opportunities and advancing their careers despite the economic instability in the market
Despite the increase in applicants, supply vs demand is an ever-present problem in the industry. With the increase of digital and automated solutions in our everyday life, more organisations are venturing into technology. In areas such as cloud computing, AI and Big Data, there’s a huge talent gap of over 30% with some vacancies remaining open for months, if not years.
Only companies that stand out, move with the times, and focus on employee retention will see success if this trend continues.
What’s going to be important for candidates in 2023:
Monetary compensation is the number one reason why technology professionals would consider moving jobs. Over 25% of all candidates surveyed have said that they are unhappy with their current salary package. With rising inflation, the energy crisis and the increase in cost of living, it’s no wonder that cold, hard, cash is the main motivator for job seekers.
In the technology industry especially, paying market rates is so important, due to the fierce competition around and high demand. At Jumar we do significant salary insight and market analysis so we can advise organisations on salary increases and overall packages. Wraparound benefits, such as company pensions, car allowances, and even one-off cost of living payments are all key things we can advise on to ensure that you’re competitive in the market.
Remote vs office working:
The allure of remote working is still a driving factor for many candidates, with technology professionals overwhelmingly choosing to work remotely. Whilst this working practice isn’t a possibility for all organisations… those that are able to offer remote or hybrid working receive over 7x more applications for open vacancies. When companies such as Spotify and Airbnb announced their ‘work from anywhere’ scheme they went viral, with over 1 million visits to their career sites. As times changes and remote working becomes more important for most candidates, it’s a great way to ensure you attract and retain top talent.
More than ever, employees want to work for a company that cares. Organisations that champion women in technology, inclusivity and social responsibility are able to distinguish themselves as an employer of choice. By adopting DE&I initiatives, pride committees and women in leadership progression plans, they will differentiate themselves from others in the market. Just look at Patagonia and how their “people first” ethos and environmental credentials have created a brand that outshines any of their competitors.
Now, it goes without saying, but I am not Mystic Meg and I don’t have a crystal ball. Nobody knows exactly what the future is going to hold, and if covid taught us anything, it’s that we can’t predict the future.
But, If I can change your mind on one thing, it’s that the state of the technology industry is not all doom and gloom. Smaller, lesser-known organisations are doing amazing things in the industry. They’re continuing to innovate and build passionate teams of people to deliver these solutions. I truly think that 2023 is going to be the year of the smaller tech organisation and the industry is going to continue attracting momentum and attracting inquisitive, passionate people.
Customer Success Manager, Jumar