The tech industry has seen its fair share of ups and downs when it comes to recruitment and retention.
Mass layoffs disintegrated the once-always-stable image of tech employment — yet created a new landscape of both tech entrepreneurs and evolving job expectations for prospective employees.
The result? On top of the layoffs, plenty of tech employees have also left their positions voluntarily for more favourable work conditions.
The Boston Consulting Group (BCG) recently conducted research to examine the changing landscape of tech talent and recruitment. Here are some highlights from their research:
Laid-off tech employees are thriving in new positions
BCG found that 9 out of 10 laid-off tech industry employees have found new positions, many still within the tech industries.
So, where did they go? The majority (94%) remained in various tech industries. Of those, 40% went to work for startups, possibly with the benefit of equity, autonomy, or impact over higher compensation.
Other points of employee satisfaction in these new roles included:
- Sense of employer support and employee autonomy: +23%
- Higher compensation: +17%
- Creative and innovative work environment: +15%
- Employer reputation: +14%
- Diversity: +12%
Employee support and employee autonomy are the natural result of greater work-life balance — something tech recruiters and employers must offer if they want to attract top talent.
Poor work-life balance among new deal breakers for tech workers
The COVID-19 pandemic made remote and hybrid work more commonplace across the tech industries. And with it, better work-life balance wasn’t just a perk — it was a demand.
That still rings true for many previously laid-off tech workers — 34% agree that a lack of work-life balance is a deal breaker in considering new roles. Additionally, more deal-breakers came even higher than desired compensation, like:
- Job security
- Company values
- Career development options
- Physical work environment
- Relationship with manager
- Feeling in control
- Learning opportunities
- Flexible hours, location or both
- Meaningful work
- Feeling supported
- Feeling listen to
Only after all those, compensation was the next deal breaker.
Retention should be a top priority for employers even after hiring talent
Despite the job satisfaction many laid-off tech workers feel in their new roles, 70% say they’re still open to new work. BCG explains this to be a result of constant inquiries from recruiters in trying to find top talent. Plus, an increased desire for meaningful work can explain the openness to new opportunities.
BCG lists a few strategies companies can use to retain top talent:
- Offer flexible work
- Present upskilling opportunities
- Streamline recruitment practices
- Follow through on declared employee value propositions (EVPs)
- Develop and train generative leaders and managers to improve work environments
Bottom line? Layoffs didn’t make tech workers desperate to accept less-than-desirable working conditions. If employers don’t prioritize meaningful and flexible work, these workers will find another who does.
Read BCG’s full report here.
