Crystal Ball - There's so many things I need to know

As IT Recruiters, we are often asked, “what are you seeing in the IT job market? Are conditions getting better or worse? Who is hiring?” The answer is often not straightforward. For example, during Covid, some companies benefited and were growing and hiring rapidly such as those in eCommerce. Others such as those in the airline or hospitality industries saw dramatic declines in their business and reduced their workforce accordingly. Today, the winners and losers are more difficult to identify. The IT labor market has become more selective. Many companies are hiring but at a moderate pace as attrition rates are some of the lowest we have seen in years and growth plans more cautious.

We recently read an article that really summed up what we have been hearing. This article shared by Tim Tolan from The Tolan Group on LinkedIN was titled “Expert Predictions for the Second Half”. One of the experts cited in the article is Lisa Simon, Chief Economist at Revelio Labs. Lisa’s comments about the job market in tech were spot on and matches what we at Broad Reach have been experiencing lately in our meetings and conversations with IT hiring managers and candidates.

Regarding her prediction, Lisa commented, “I will be watching whether the labor market, especially in the tech industry, regains some dynamism. We are seeing slight signs of hiring picking back up already. When hiring does come back, we expect attrition to rise more than hiring. Currently attrition rates in tech are at the lowest we’ve ever seen, coupled with very low employee sentiment. That combination makes me think we’ll see a strong rise in attrition when confidence in the market comes back. Employers may want to start thinking about strategies to retain talent where desired.”

We have heard from many very tenured IT professionals that they are not happy at work and are ready to make a change should the right opportunity be available. Should the IT job market improve in the slightest, many employers stand to lose key employees who have deep knowledge of the software applications and systems. There is this unusual inverse relationship of a high level of unhappiness with a relatively low level of attrition. The unhappiness could in part be attributed to the disconnection many employees experience when predominantly working from home. Or this could result from a simple lack of focus and effort to take measures to show employees their value to the organization. Whatever the cause, there is a pent-up desire for some tenured IT professionals to make a change. Too often retention measures are taken reactively instead of proactively. We agree with Lisa. Employers should be thinking and acting on measures to retain key talent before the market improves. 

Broad Reach has over 50 years of expertise in IT and Technical recruiting and staffing having placed thousands of individuals in all roles within IT.  To learn more about how Broad Reach can help you secure the right IT talent, email info@broadreach.net.