As we see the pandemic’s tail-end, the challenge is upon us to handle its lasting effects on how we work. Of course, most of us expected to return to normal by now. Yet, we still face the rise of new COVID variants, the war for the best candidates, record-high turnover rates, and spikes in inflation. In this article, we’ll explore the IT staffing trends that can help us navigate the volatile job market landscape this 2022.
IT Staffing Market Overview
This year, the IT staffing market is as competitive as ever, though highly fragmented. Many key players are operating in the market, serving the needs of various end-user segments. This can be attributed to the emergence of artificial intelligence (AI) and the Internet of Things (IoT). Introducing these technologies into the market is also expected to create demand for IT professionals.
Recruiters now focus on securing IT professionals to fill roles and significantly increasing the quality of hire by being on the lookout for the best candidates. Moreover, as the world experiences great economic uncertainty, trade tensions, and other macroeconomic conditions, tech organizations are forced to adopt unconventional and hybrid work practices to accommodate the needs of workers.
6 Key IT Staffing Trends in 2022
To stay on top of the job market and make it easier for your organization to attract the best candidates, here are six things to look out for and what to expect in the IT staffing trends this year:
1. Technology in Recruitment
There are hundreds of data-driven questions that human resources teams need to address. From recruitment to work processes, we’ve seen how automation and analytics play a huge part in work optimization. Technology also enables HR to build relationships with candidates and employees by offloading them the menial tasks.
- Natural Language Processing (NLP). This technology has been gaining momentum these past years as more and more recruiters use it to process large quantities of data. NLP can facilitate automated resume selection and processing to speed up hiring time and offload manual labor.
- Artificial Intelligence (AI). It automatically shortlists candidates who best match an organization’s job requirements. It also automates parts of the recruitment pipeline to ensure that the best candidates get recruited for roles.
- Virtual Reality (VR) and Augmented Reality (AR). VR refers to a computerized simulation where individuals can interact with a 3D environment. Employing VR and AR can make recruitment exciting and shows tech professionals what work they can expect to do for your organization.
- Programmatic Job Advertisements. Analytics and data mining are branches of AI used to purchase, locate, and optimize job advertisements. We can expect development in these technologies for broadening reach, improving branding, and optimizing candidate experience.
2. Hybrid Work in Retention and Hiring
Hybrid work is here to stay, and it will continue to shape work strategies this year. IT professionals are now putting significant thought into why, where, and how they want to work. This has made hybrid work the new norm and work setup flexibility being an organization’s competitive edge in the job market.
However, even with most organizations adopting a hybrid work setup, we still see high turnover rates in today’s IT staffing market. According to a Harvard Business Review article, the rate of turnover seen by most tech organizations will most likely stay the same if not increase due to two factors:
- Weaker Forces Keeping Employees in Seats. Due to the nature of remote work, it’s an inevitable fact that employees have fewer opportunities to make friends at work. This detachment leads to weaker social and emotional connections with coworkers, making it easier to leave jobs by reducing the social pressure that encourages employees to stay.
- Stronger Forces Enticing Employees Away. Remote work has expanded the geographic radius of organizations where IT professionals can work. Since most jobs don’t require you to be physically present, employees can now work for organizations they would otherwise not consider working if commute tolerance is in play. Also, with the increase of potential employers, employees are enticed to look for better opportunities actively.
These factors will lead to sustained high turnover rates. As organizations are forced to adapt to stay ahead in the job market, this IT staffing trend gave way for other trends to be seen this year.
3. Fairness and Equity’s Role in Organizational Culture
Issues around fairness such as diversity, climate change, vaccine mandates, and other societal debates have become the critical factors that drive the IT staffing market. With employees putting great thought into the way they work; organizations must address fairness and equity concerns at the core.
Answers to questions like these all play a huge part in leading IT professionals to decide whether to take or leave a job: Who has access to flexible work within an organization? What happens to current employees’ salaries when organizations are forced to increase compensation packages to attract new hires? How do organizations balance perks when each individual’s needs differ?
4. Wellness Has Become the Newest Metric in Understanding Employees
The days of treating wellness as a fun team-building exercise for your employees are over. From here on, it’s going to be an imperative and not just a perk. In 2022, organizations will adopt new well-being measures that capture their employees’ holistic state of health to predict performance and retention more accurately.
Mental, physical, and financial health and well-being will become metrics that businesses use to assess their entire employee base. Employees who don’t live healthy lifestyles might receive lower rankings on performance evaluations.
5. Some Organizations Will Shorten the Work Week Rather Than Increase Pay
To compete in the war for the best candidates, organizations are coming up with creative solutions in all possible ways. According to a Harvard Business Review piece, year-to-date pay increases have been more than four percent compared to the usual two percent in the US.
However, when inflation is considered, real wages decline. The purchasing power of employees in today’s cost of living will be less and less if inflation continues to rise. Most organizations might have the resources to compete in the IT staffing market through compensation alone, while others will have to reduce the number of hours worked by employees and keep compensation flat.
In terms of effectiveness, this strategy is gaining momentum as leisure time becomes more important and attractive to employees. Thus, offering 32-hour workweeks with the same compensation is one of the newest ways to compete for the best candidates.
6. The Rise of Non-Traditional Career Paths in Candidate Acquisition
With more and more organizations battling for IT staffing, one of the notable IT staffing trends we’ve seen is loosening degree requirements. There is a wide gap between skills learned in college and the competencies people need to stay future-proof. This paved the way for employers to focus more on soft skills over diplomas.
This shift in focus from resume and academic requirements to non-traditional backgrounds means that as potential employers expand, the potential pool of candidates increases. This candidate acquisition strategy also permits diversity and inclusivity, which are essential in building a positive workplace culture and driving innovation.
ACS PROFESSIONAL STAFFING HELPS YOU STAY AHEAD IN TODAY’S IT STAFFING MARKET
If you’re interested in making the most of today’s IT staffing trends to drive your business forward and get the best candidates, ACS Professional Staffing can help! Our team of specialized recruiters and consultants can help you adapt to today’s shifting business imperatives.
We understand the importance of having the best candidates at your side. ACS Professional Staffing offers a wide variety of staffing solutions to meet your short-term and long-term needs. We can connect you with the best people in IT, engineering, finance, administrative support, and more. Your goals are our goals! Connect with us today!