If you thought 2023 was a year full of changes, just wait until 2024 kicks into full gear. The tech sector is gearing up for even more innovations, challenges, and changes in the year ahead, and having the right people on your team will make all the difference. Let’s take a look at four of the most significant hiring, retention, and compensation trends that will have a significant impact on IT in 2024:
Widening salary ranges and pay transparency
Pay transparency laws, as well as an overall desire for more transparency among candidates, have led to more companies than ever sharing salary ranges on job postings. That trend looks to continue into 2024, but it’s a little more complicated than that regarding tech. Research from Indeed reveals that metro areas known for being tech hubs have some of the widest ranges in the country, and individual tech jobs rank among those with the widest individual ranges (for instance, software development ranks as the third-highest range, with a 35.3% spread). Wider ranges can make it harder for candidates to accurately assess if a role is right for them and to successfully negotiate a mutually beneficial compensation package.
Hiring managers in IT, cybersecurity, and other tech sectors will likely find themselves at the center of pay transparency conversations throughout the year. Companies that wish to stand out and attract top talent can set themselves apart simply by narrowing their stated ranges and sharing more information about additional benefits.
A need to counteract the effects of burnout
It isn’t news that tech can be a highly demanding sector, and IT burnout has been growing over the last few years. CIO reports that 44% of full-time employees are experiencing some degree of burnout, particularly due to oversized workloads and unrealistic deadlines without adequate support. Yerbo’s “The State of Burnout in Tech” report, meanwhile, revealed that two in five tech employees are at high risk for burnout. Among IT professionals with high levels of burnout, 42% are considering quitting their company within six months, and even among those with low-to-moderate burnout, 25% are also considering a job change.
IT professionals often feel overworked, under-supported, and unable to balance their workload with steps they need to take to advance their careers, such as pursuing new skills and certifications. To avoid the loss in productivity – not to mention the risk of significant and costly turnover – it’s essential for IT leaders to find ways to support employees’ top concerns, whether that’s by adding flexible work options, improving processes to reduce workload stress, supporting career development, or other solutions.
New challenges and possibilities with AI
Trying to predict where fast-moving AI technology will land is like taking a shot in the dark, but we can say with absolute certainty that this technology will have an enormous impact on hiring and work in the tech field and beyond. Deloitte, for instance, predicts that nearly all enterprise software will begin incorporating generative AI in 2024, leading to an increase of $10 billion in revenue. Workers with skills in AI-related areas are more in demand than ever. No area will be left untouched – but as exciting as the possibilities are, the rise of AI has also led to serious job anxiety, especially among professionals who fear that their own jobs will be downsized or replaced by machines.
As with most new and shiny things, the key to managing AI is a sense of balance. Look for ways to stay up-to-date on the latest developments and get involved with intriguing new horizons, but remember: AI can only do so much. Humans, with their unique expertise, judgment calls, and creativity, must continue to drive strategy. Finding the right balance between being at the cutting edge of tech and supporting human staff can help your company stand out from the crowd and become a true destination for top talent to grow and thrive.
Pulling back on job postings – for now
According to Indeed’s 2024 US Jobs & Hiring Trends Report, tech is one of the sectors where a sharp decline in job postings has become most apparent. As of November 2023, software development saw a year-over-year drop in job postings of 51.3%, while listings for IT operations and helpdesk roles declined by 33.5%. The decline in job postings can be attributed to successful hiring in 2023 and to companies pulling back on hiring sprees as they lean into economic caution during a time of uncertainty. Tech, in particular, saw attention, valuations, and investments soar in the last few years, and now it’s returning to a “normal” level, which means slower hiring.
That doesn’t mean 2024 needs to be a year of total hiring freezes; instead, it should be a year of a more robust and long-term-thinking talent strategy. Combine more targeted hiring pushes for key new initiatives with upskilling programs to develop in-house talent (often for less than it costs to go through a whole external hiring process), and you’ll be well-situated to respond to market trends while boosting your employment brand.
At Velocity, we’re committed to ensuring you have the tools, resources, and people you need to meet new challenges head-on and come out ahead. If you’re ready to bring transformative leaders to your team and get the year off to an exceptional start, reach out today to learn more about how we can support your goals for 2024!
By Daniel Midoneck