As we step into 2024, it is impossible to ignore the widening tech skills gap that has been resonating across the globe. AI advancements and the gig economy will keep shaking up the tech job scene, affecting various business fronts. These changes will also impact how companies hire.
Here, we’ll dive into the current state of the tech industry and hiring strategies expected to see in 2024.
The COVID-19 pandemic has pushed the shift towards remote/hybrid work model. According to the 2023 Gallup report, remote work saw a rise from 8% in 2019 to 29% in 2023.
Remote/hybrid model will continue to gain popularity in 2024. Upwork projected that approximately 32.6 million Americans will work remotely by 2025. According to Deloitte, flexibility at work is one of the top strategies to retain high-performing tech talents.
Companies of different sizes have taken this initiative. For instance, Unilever trialed flexible work hours with a 4-day working week in New Zealand. This approach to a more flexible working model directly improved employees' work-life balance hence an increase in revenue.
Nick Bloom, a Stanford Economics Professor, and Co-founder at WFHresearch, stated:
"I would happily bet money that five years from now, the levels of remote distributed work will be higher than it is now."
These findings all point toward the notion that remote/hybrid work is here to stay.
The existing digital skills gap further explains the need for a remote/hybrid approach.
The McKinsey Technology Trends Outlook 2023 reveals a shortage of qualified candidates for in-demand tech skills. In the United States, 72% of businesses encounter challenges when trying to recruit individuals with digital competencies. Among them, 43% attribute this hiring hurdle to the lack of qualified applicants.
By leveraging the remote work concept, your organizations can gain access to a broader talent pool.
Embracing diversity, equity, and inclusion (DEI) means creating a workplace culture that appreciates differences and ensures equal treatment for individuals from diverse backgrounds.
The first step to leverage the DEI approach is through diverse hiring practices. This involves considering various races, genders, viewpoints, and sexualities.
The McKinsey & Company report highlights the tangible benefits of diversity, equity, and inclusion (DEI) for organizations. Companies that embrace diverse recruitment tend to outperform their peers by 35%.
In the tech industry, DEI principles have come to the forefront. Initiatives to address gender disparities like the "Women in Tech" campaign have gained traction in 2023. This momentum is predicted to persist into 2024.
This recruitment strategy opens doors for non-traditional candidates such as first-gen students, refugees, or women returners. Hence, breaks the evolving digital skills gap.
The tech world is changing fast due to AI advancement and digital progress. This means the skills needed for jobs are always evolving.
Kimbrough, an economist with experience at Bank of America and the New York Federal Reserve, stated that maintaining the same job five years from now would necessitate a 25% alteration in one's digital skillset.
Data science and artificial intelligence skills will continue to see a rise in demand in 2024. According to LinkedIn, job postings asking for AI skills in tech have gone up 21 times since November 2022.
Additionally, the frequency of cyberattacks makes cybersecurity a top priority. Global companies will require cybersecurity experts to safeguard their digital assets.
Cloud computing, particularly in the context of remote work, will continue to play a pivotal role.
AI advancements are set to handle repetitive everyday tasks. Yet, skills like critical thinking, communication, and problem-solving remain irreplaceable. In the AI-driven world, these soft skills will be key factors for hiring in the future.
In a discussion with editor-in-chief Dan Roth, Kimbrough brought up the discussion around soft skills. Pairing these power skills with digital know-how plays a pivotal role in achieving success in future professions.
As the digital skills gap continues to expand, employers are increasingly focusing on early career recruitment.
Given the growing demand among tech-savvy students for practical startup experience, companies and educational institutions alike must collaborate closely. Integrating work-based learning into academics is key to preparing the future workforce with career-readiness competencies and transferable skills.
Early career hiring not only facilitates skill development but also introduces fresh perspectives. Tapping into this pool of early career talent is a way for employers to stay informed about academic trends.
2023 has seen the rise in skills-based hiring with industry giants like Google, Microsoft, IBM, and Apple leading the way. Coming to 2024, this approach continues to be one of the key recruitment strategies.
This shift offers several advantages, particularly in terms of DEI, while also having impacts on businesses' long-term objectives.
While some roles may still require traditional degrees, there will be more opportunities for non-traditional candidates in 2024.
Larger companies will expand their talent pool through mentoring programs for high school students or bootcamp participants. Others will look to hire from technical and unconventional higher education institutions.
As a strategic move, companies might also opt to introduce interim hires into their workforce. These team members can assist in upskilling existing teams. This serves as a way for both parties involved to experiment with new roles before committing to permanent positions.
At Virtual Internships, we recognize the importance of staying ahead of these hiring trends.
We build global connections with educational institutions such as University of the People, Bridgewater State University, Botho University, Purdue University, Bay Atlantic University, etc. This means by becoming our host company, your organization can access a global pool of emerging professionals.
Central to our mission is a commitment to accessibility and inclusion. We partner with governments and non-profit organizations to enhance employability for non-traditional candidates such as women returners, refugees, etc.
Our innovative platform simplifies the recruiting process by letting you select candidates, conduct interviews, and make job offers - all in one place.
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