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Tech Hiring Trend Predictions for 2023

Tech sectors hiring in 2023
Integress Inc 27 Mar 2023

Late 2022 and early 2023 has seen seemingly significant change in the tech hiring landscape. Rising interest rates and inflation have fed widespread uneasiness about the overall state of the global economy, and the news has been full of rounds of layoffs in the tech industry. However, despite gloomy macroeconomic conditions, technical talent is still in high demand, both for new openings and for filling existing positions. Even among companies that have done layoffs, there are engineering job openings in need of the right candidate.

What changes are we seeing in the tech job market?

In light of ongoing economic uncertainty, tech candidates actively looking for work are showing a preference for large enterprise companies rather than faster growing but riskier startups. Stable employment with predictable income and benefits is seen as a safer bet than a large payout that might not ever materialize.

The good news for companies looking to hire is that there is more technical talent on the market at the moment than there has been in some time, including candidates with great experience. While it may not exactly be a buyer’s market, now is the time for companies who’ve had trouble finding engineers or developers with the right skills and potential for hard-to-fill roles to renew their efforts.

Here are some predictions for what we expect to see in tech hiring for 2023:

The interview process will matter:

Traditional interview processes can be inefficient and awkward, and it affects how candidates view an organization. According to Glassdoor, on average only 55% of candidates rate their interview experience as positive. To attract top talent, companies will need to improve their interview processes to make them quicker, more flexible, and transparent for candidates.

It’s about potential, not just credentials: It’s natural for companies to focus on a candidate’s existing skills and experience in the interview process, as that is easier to measure and compare when you’re deciding on who to hire. However, forward-looking companies will move beyond simply considering what a potential hire has done and look at their ability to learn and grow in their role. As businesses and technology evolve and grow, the ideal candidates will be able to evolve their skills to meet new needs—smart companies will be on the lookout for them.

Morale will drive productivity:

If hiring tech talent may be getting slightly easier, that doesn’t mean it’s easy. Engineers are critical to a business’s ability to operate, and they’re still in high demand. Organizations that want to attract and retain top talent will need to invest in their engineers’ morale not just by providing competitive compensation and benefits, but by ensuring that their work is meaningful, valued, and contributing to strategic decision-making.

Talent won’t have borders:

In the past, global hiring for technical talent was often driven by cost considerations. However, the ongoing scarcity of experienced, skilled candidates has shifted that mindset—companies are still looking abroad, but to find the best possible talent, not bargains. Companies positioned to expand their search beyond the U.S. will have more options.

Diversity initiatives will continue:

When companies cut back on operating expenses in challenging times, what they view as expendable is often the first thing to hit the chopping block. However, top-performing companies are showing no indications that efforts to recruit a more diverse technical workforce will be one of those nice-to-have items that has to wait for sunnier economic conditions.

Flexible recruiting will be an advantage:

Scaling in-house recruiting teams up and down chasing the market can lead to waste and lost opportunities. A more flexible recruiting strategy, including consulting industry-specific specialists to hire for key roles, can help companies stay ahead of the curve instead of simply reacting.

Your Technical Hiring Solution

At Integress, we’ve helped our clients hire for critical tech and engineering roles in all kinds of market conditions. As a boutique technical search firm, we specialize in finding engineering and IT talent for companies in the manufacturing, industrial automation, logistics/materials handling, and information technology sectors. Our hiring expertise gives you the edge in not only finding the right person to fit your company’s needs and culture, but effectively persuading them to come work for you. To find out more about how Integress can help solve your tech hiring challenges, contact us here.

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