Technical Talent Remains in High Demand

The disparity between technical talent demand and qualified candidates remains massive – as high as 2:1. In just the first 10 months of 2022, postings for technologists grew 25% overall. Since 2021, postings for data analysts, scientists, and engineers are up more than 40%, and for software development engineers, they’re up almost 140%.

Some reports indicate there will be fewer IT job openings in 2023, but Mark Roberts, CEO of TechServe Alliance, disagrees. His organization believes IT staffing will continue to increase this year, albeit more slowly – around 5%-7%.

Either way, technical expertise remains in high demand, and the challenges of finding the people and skills you need are as tough as ever. Even more so in some ways.

Lack of Qualified Tech Talent

You can look for qualified candidates among US citizens, those with a green card or H-1B status. Even taken together, though, there still aren’t enough skilled tech workers to meet demand. US immigration attorney Robert Webber recently suggested that 2023 may be the worst year in history for the H-1B cap lottery. Some experts think there will be as many as 500,000 registrations this year but only about 85,000 new H-1B visa approvals.

This dramatic shortage of work visas exacerbates the existing lack of new candidate talent. In addition, if a sub-contractor agency or company holds a technical employee’s visa, it becomes very difficult for that candidate to move jobs, in part because it’s a costly, time-consuming process for the hiring employer.

You need to pull out all the stops

The more doors you reach out to open, the more candidates you can connect with. There are lots of steps you can take to build your team and your prospective candidate pool:

Sharpen your job postings
Create or expand your referral program
Consider hiring interns for entry-level positions

But the fact is, you need great people right now.

You can create more attractive job postings, but they are still likely to be lost in the sea of similar announcements. Passive candidates (the folks you want most) will never see them anyway. And if you’re still focused only on FTEs, you’re missing out on a growing segment of the tech pool – contingent tech workers.

Big tech’s losses can be your gain

These are IT professionals with tremendous skills and experience, many excited to consider new options in non-tech industries as diverse as health care, manufacturing, banking, or retail. Many are strongly motivated to use their skills in challenging environments where they can make a difference. Whether your company is a big name in your industry, an SMB, or a sassy startup, these are people who can bring your company a significant competitive advantage.

And many of them are embracing their new-found freedom by making the switch from employee to independent contractor. By tapping into the pool of technical contractors, you’re far more likely to find the talent you need, ready to get to work on your projects right now.

Contractors can be your hiring salvation

Whether the economy continues to cool or turns red-hot, contingent staffing is a strong – even preferable – option.

Worried about a possible recession and resulting hiring freeze or budget reductions? Dealing with a chronically slow hiring approval process? TechServe Alliance’s Mark Roberts warns, “if [companies] want to succeed in the war for talent they can’t take too long in making hiring decisions or offer pay rates that are too low.”

There are ways to speed up your hiring process, but contract labor is not only less costly than FTEs. It can be easier and faster to get approval for finite, project-based hiring. So consider this:

Using contractors secures needed skills without increasing the official headcount

Contractors do not require added time or expense for onboarding, payroll taxes, benefits, etc.
Contractors can step right into their role, productive right away
Experienced IT retirees can return as consultants to maintain momentum on key projects cost-effectively
Knowledge transfer from contractors/consultants can be a tremendous value-added benefit, boosting skills within your permanent team, whether it’s in the use of Salesforce, cloud migration and management, etc.
Using contractors gives companies the flexibility to quickly scale up or down, which is especially crucial in an uncertain economy

Hassle-free recruitment

The number of companies looking for contractors to fill vital technology roles is increasing. As of October 2022, 20% of tech job postings were specifically aimed at contractors. If you aren’t one of those forward-thinking employers, you will steadily fall behind in your ability to find and attract the right people with the right skills to keep your company moving forward.