How to maximise tech hiring in a candidate driven market

CWJobs’ 2022 Confidence Index webinar in partnership with techUK presented key research insights from UK IT professionals. CWJobs Director, Dominic Harvey, was joined by Candice Charles, Head of Talent at TPXimpact, Anthony Walker, Deputy CEO at techUK, and Siobhan Stericker, Lead Talent Intelligence with Talent Acquisition at HMRC.

The panel discussed the findings from the research and the current trends in tech recruitment. They also shared actionable advice to help organisations understand how to navigate tech worker demands and ultimately attract, hire and retain top tech talent.

Confidence trends in the UK tech industry

Dominic began the webinar by sharing some statistics from the 2022 Confidence Index, which surveyed 1,000 tech workers and over 500 IT decision makers. He revealed that 77% of tech professionals feel confident in the state of the industry, despite a slight decline year-on-year. He also shared that only 24% of workers plan to stay in their current role.

The main concerns among tech professionals are the impact of Brexit on hiring talent, world events like the war in Ukraine, and the impact of cost-of living on the sector.

Sharing his view on the industry’s confidence, Anthony said:

‘‘There’s a huge demand for the products and services that the UK tech sector is producing. There’s also a real sense that the UK is committed to digitisation, which will continue to drive the demand for tech skills amongst many customer bases.

Despite the dip, we got through Brexit and COVID, but what’s concerning, is the possibility of price rises and long-term structural inflation in the economy. We haven’t had that for a long time and companies need to get their heads around what that will mean for their business.’’

Candice added that the industry is experiencing the most turbulent and competitive market we’ve ever seen. She said it’s a concern that only 24% of workers plan to stay in their current job and that it will be challenging for companies to consider the bigger picture of how to retain talent.

Looking at the tech industry from the Government’s perspective, Siobhan said it’s important for HMRC to acknowledge that it can’t compete with the external labour market. The Government is facing the challenge of meeting candidate salary expectations and the question of why tech skills in the Government aren’t paid well.

She said that there’s a lot of pressure around pay and budgets, and so HMRC is focused on making the department a great place to work by offering benefits like flexible working packages.

The confidence drivers in UK tech

Dominic revealed that the top confidence driver in the industry is the technology being produced in the UK, followed by the skills in the sector, and the importance of technology in maintaining business continuity during the pandemic. Job salary and job security are also listed as top confidence drivers.

In exploring how the tech sector is reacting to pay expectations, he shared that 57% of tech workers expect their salary to increase over the next 12 months, and 30% of senior leaders plan to offer pay increases to help combat the rising cost of living. What’s more, 55% of UK tech workers believe that IT will be one of the most resilient industries over the next 12 months.

Speaking about the resilience of the industry, Candice said:

‘‘In this day and age, I can’t see tech slowing down. Tech is the future and there’s always going to be room for it. People will always look for new ways of doing things and tech is an example of innovation at its best’’.

Siobhan added that at HMRC, the department is focused on making tax digital and is always looking for innovative ways to conduct business. She says that technology will always be developing and that businesses will come to need a full array of supported tech roles, which will make for a resilient market.

The impact of the rising cost of living

Discussing the concerns of the tech sector, Dominic shared that 44% of senior leaders are less confident about their ability to weather the storm than tech workers, with only 15% saying they believe their organisation is unlikely to be impacted. He also revealed that 30% of IT decision makers will consider more remote work options to save costs.

Anthony added that the UK is seeing a correction in stock prices around leading companies due to rising interest rates and inflation. He said that although there’s a large shift happening, he doesn’t think it will have a huge impact on the trajectory of tech, although he acknowledges that the industry can’t ignore the impact of inflation on the economy.

Candice said that 44% of senior leaders are less confident about the future because they’re in a space that they’re uncomfortable with, and that it’s understandable that they feel less confident. The key is for companies to ensure they have a solid plan of action to weather the storm. She said it’s important for businesses to keep their eyes and ears on the market, to look at what other companies are doing and to have open and honest conversations.

Reflecting on the Government’s position, Siobhan said:

‘‘I’m surprised that only 15% say they’re unlikely to be impacted. At HMRC, we need to carry on regardless – there’s tax that needs to be collected and we need to improve our services to make tax more digital. We’ll be resilient in the sense that there’s no threat to us closing down, but we do need to adopt a broader mindset and look at what other organisations are doing. We need to learn from companies that are using analytics and data to build a long-term strategy and take action.’’

Attracting and retaining talent in turbulent times

Dominic emphasised the need for companies to tailor their recruitment strategy in order to hire efficiently when the market is volatile. He shared that 39% of IT decision makers will put a stronger focus on tech hiring to remain as competitive as possible. Companies will experiment with new recruitment channels (32%) and turn to low-code technology platforms (29%), to plug short-term talent gaps.

He revealed that 38% of IT decision makers will focus on building diverse and equitable teams and they’ll need to support their workforce better as employees feel their company should be more mindful of their financial situation (49%) and mental health (47%).

Reflecting on these insights, Anthony said:

‘‘This chimes with what we’re seeing more broadly. The biggest change in larger companies is a willingness to embrace the different routes into the sector and the recognition that they need to create more pathways that enable people from diverse backgrounds.

Companies need to consider how they can onboard people that don’t necessarily have the skills but do have the attributes. Large companies have the resources to do that. Mid-size and smaller companies might find it more difficult. Can they really get apprenticeships to work for them? Do they have the tools to train people themselves?’’

Candice added that there needs to be capacity for employees in positions of leadership to invest in development and upskilling. Tech is fast moving and managers rarely have time to train people. Employers need a shift in strategy to make investment in their teams.  She added that employers also need to invest in bringing candidates in from apprenticeships, graduate schemes, and internships.

Siobhan said that outreach is also important to reach diverse candidates. She added that companies should hone in on what they have to offer and pro-actively go searching for candidates that would be a good fit. A lot of people don’t know what a job in tech entails, so an outreach strategy could involve reaching out to schools and universities, or using analytics to see what genders and ethnicities are in certain areas, and using these insights to attract diverse talent.

Actionable advice to attract, hire and retain tech talent

To wrap up the webinar, Dominic summarised some of the actionable advice that the panel shared throughout the webinar:

1. Focus on developing in-demand skills – To futureproof their business, companies need to look at what skills are in demand now, and organise training and upskilling programmes to bridge skills gaps.
2. Understand employee financial pressures and support their wellbeing – The rise in the cost-of-living means that candidates are more financially aware than ever before. Employers should consider tailoring benefits packages that provide financial discounts, and allow for flexibility to improve work-life balance.
3. Communicate company direction – Candidates appreciate transparency, so employers should be open and honest about the challenges they’re facing and what strategies they have in place to overcome them.
4. Place importance on developing a strong employer brand – Top candidates want to work for companies that shares their values. Building a strong brand and communicating ideals is a great way to attract like-minded candidates.
5. Focus on recruiting a diverse workforce – Companies need to think outside the box when it comes to recruiting for specialist skills. Candidates that don’t have a background in the tech industry often have attributes that can add value to the sector.
6. Make better use of recruitment technology – Smart tools like Equality Boost, the Gender Bias Decoder and MYA can help employers reach the right type of candidates.

You can watch the webinar in full here.