2024 Top Tech Hiring Trends
As we step into 2024, the tech landscape continues to evolve quickly. Last year began with uncertainty in the wake of high-profile tech layoffs and a cautious approach to spending due to rising interest rates.
In 2024, businesses have a more positive outlook. The Fed’s signals that it will cut interest rates multiple times throughout the year has many companies breathing a sigh of relief. And the remarkable entrance of generative AI into everyday life has almost all businesses considering how they will harness the technology for productivity and efficiency gains.
According to DICE, however, 60% of tech professionals say they plan to switch employers in 2024. Hiring managers are feeling a pinch. Robert Half research shows that 90% of tech managers say finding top talent remains a challenge.
In this blog, we explore the key trends shaping tech hiring in 2024. An understanding of these trends will help hiring managers and recruiters attract and retain top tech talent.
Top Tech Hiring Trends to Watch in 2024
1. AI will drive recruiting, hiring, and upskilling
According to a survey from the IBM Institute for Business Value, four in five executives say generative AI will change employee roles and skills. Executives estimate that 40% of their workforce will need to reskill as a result of implementing AI and automation over the next three years. This is particularly true in procurement, risk and compliance, and finance. Indeed concurs, positing that increased usage of generative AI and other technologies— in addition to an increase in jobs developing those tools — could reshape the broader labor market.
More companies are capitalizing on AI in recruitment. Two recent studies showed that 35% to 45% of companies are utilizing AI recruitment tools. AI saves recruiters time by automating the process of sifting through hundreds of resumes, sending texts, emails, and cold calling to find candidates. What took hours now takes five minutes. Talent acquisition leaders agree, saying generative AI will help them do their jobs more efficiently and effectively, allowing them to focus on strategic and relationship-driven aspects of the job.
Goldman Sachs estimates about two-thirds of current jobs are exposed to some degree of AI automation, and generative AI could substitute up to one-fourth of current work. While AI could replace jobs, it also has the possibility of creating new roles and complementing current roles. Organizations such as Center for American Progress are pushing the federal government to take a worker-centered approach to the impact of AI.
An explosion of generative AI has left talent reconsidering their career paths and the skills required to succeed in a rapidly changing world. Employers must take a proactive role in finding and nurturing AI-savvy talent. According to Harvard and Boston Consulting Group, millions of workers may need to be not just upskilled but reskilled. Their interviews with leaders at 40 organizations around the world that are investing in large-scale reskilling programs unveiled paradigm shifts, with organizations understanding that reskilling is an imperative for organizations that want to successfully adapt to the rapidly evolving new era of automation and AI.
2. Employers will invest in cybersecurity
Businesses remain focused on protecting themselves and their customers from outside threats and hacks. Gartner estimates that global spending on cybersecurity is projected to total $215 billion in 2024, an increase of 14.3% from 2023. The Bureau of Labor and Statistics (BLS) estimates the market for information security analysts will grow 32% between 2022 and 2032 compared with just 14% for all computer occupations. This high demand is driven by a shift to remote work, the rise of ecommerce, and significant growth in digital health services and telehealth.
According to ISC2, the nonprofit member organization for cybersecurity professionals, 2023 saw a shortage of four million cybersecurity workers, despite that workforce growing by 10% the prior year. That same survey of more than 14,000 cybersecurity professionals revealed that 92% of respondents reported skills gaps at their organizations, the most common being cloud computing security, AI/ML, and zero-trust implementation. An inability to find people with the right skills (44%), struggling to keep people with in-demand skills (42%), and lacking the budget to hire people (41%) are the biggest causes for these skills gaps.
To address such gaps, organizations are investing in strategies including recruiting skilled workers, upskilling current workers, providing more flexible working conditions, and diversity, equity, and inclusion (DEI) initiatives.
3. Employers will look to gig and contract workers for skilled talent.
Robert Half’s survey of tech professionals indicates that 62% of tech managers will bring in more contract professionals to gain specialized skills and critical support for key projects. Almost half (43%) of IT workers are open to such roles. Contract workers offer many benefits, including cost savings, flexibility, and the ability to scale quickly. To meet their tech skills needs, employers will embrace a combination of independent contractors, contingent workers, and full-time employees.
4. Organizations are turning to nearshoring.
In the face of staffing shortages and rising salaries in the U.S., businesses are looking to nearshoring to fill positions such as application developer and software engineer. Nearshoring brings a host of benefits, including cost savings, higher retention, and similarities in time zone, language, and culture. Additionally, Latin American countries are investing heavily in STEM education, significantly strengthening their talent pipeline. Learn more about the benefits of nearshoring tech talent.
5. DEI will gain footing in 2024
DEI positions in tech were hit disproportionally by layoffs in 2022 and 2023. Cutting investments in DEI is short-sighted, especially for companies looking to attract the best talent. Investing in DEI will drive innovation and creativity; bolster financial results; enhance your ability to attract and retain talent; improve customer engagement; and enhance corporate reputation. Our recent blog delves into how companies can move forward with DEI in 2024.
Women in tech are underrepresented
Women remain underrepresented in tech, with CompTIA estimating that only 26% of U.S. tech jobs are held by women. According to Lean In, for every woman promoted past the director level, two women leave director positions. This exodus is negatively impacting gender equity efforts, especially in tech.
Top tech talent isn’t out of reach. Staying on top of these trends will help you attract and keep talent with the skills you need to succeed in 2024.