As layoffs continue to make headlines, the tech industry is the most affected of all the job sectors. According to The Challenger Report, the tech industry increased its layoffs by 649% in 2022, which is the highest since the dot-com bubble more than a few decades ago. This means that more tech employees were laid off in 2022 than in 2021 and 2020 combined.
Some of the factors contributing to big tech layoffs include economic downturn, inflation, higher interest, investor pressure, maturation of the industry, overhiring and the post COVID-19 pandemic job correction among others. Furthermore, companies like Amazon and Google are constantly seeking new and innovative ways to grow their businesses and stay ahead of the competition. This has resulted in discontinuing older and less profitable products and services, inevitably leading to layoffs in some areas.
According to Layoffs.fyi, tech companies such as Meta,Twilio and Docusign have laid off more than 275,000 workers since last year. Since most tech giants have many employees, a small percentage of layoffs will still translate to thousands of people losing their jobs. As of February 2023, Twitter engaged in yet another round of layoffs, reportedly cutting a further 10% of the remaining staff.
It should be noted that although it has been reported that there have been more tech company layoffs so far in 2023 than during all of last year, there is still a growing need to recruit IT talent.
Why You Need to Hire IT Talent
Cutting jobs is associated with leaving the company understaffed which is inefficient, reduces customer service and further handicaps a business’ performance.
It is also short term thinking for tech companies that face a still competitive market for workers, and will presumably need to get back into the process of IT talent headhunting. Here is why now is the best time for your tech company to recruit and hire IT talent.
Bridging the Gap
Mass layoffs don’t always improve the financial or business performance of the tech company. In some cases, cutting jobs is associated with decreases in subsequent company profitability. This is as a result of the remaining employees being overwhelmed and overworked, hence reducing their productivity and morale. Hiring IT talent bridges the gap and facilitates even distribution of the tech workload.
New IT talent brings new perspective and skills
Technology is evolving per second with what is considered to be a new skill today being marked as obsolete tomorrow. Hiring IT talent in 2023 is beneficial to the overall growth of the company as the new employees bring a fresh perspective, different set of skills and a deeper understanding of technical skills and tools on board.
Facilitates a competitive edge
In today’s business world, if you want to stay ahead of the competition, you need to make sure that you hire the right IT talent. The right tech talent will keep your organization on the cutting edge, ensuring that your company is always a step ahead of the competition and updated on the ever changing technology.
Technology can be a huge drain on your company budget. Hiring the right IT talent for your team can save your business a lot of money, since the employees will know to use technology in a cost effective way which minimizes the likelihood to make mistakes.
Increase in revenue
Recruiting and hiring the right IT talent can help increase the revenue of your tech company. The right tech talent can develop new products and services, and market them effectively to consumers. This in turn maximizes your company’s revenue and potential for growth.
Hiring the right IT talent can mean the difference between success and failure for your organization. Although big tech layoffs are happening globally, it is essential that the headhunting for IT talent never stops in order to give your business the competitive edge.
Is your tech business recruiting IT talent to gain advantage over the competition?
Let the experts at ASB Resources help your team with the process of headhunting IT talent. Schedule a call with one of our experts today!