Mass layoffs and high staff turnover are turning the tech industry on its head
The tech industry has experienced some of its highest highs and lowest lows in the past two years and nowhere is this more evident than in its high staff turnover and more recently mass employee layoffs.
Globally in 2022 more than 130,000 tech jobs have been cut, according to the Layoffs.fyi website, with companies like Twitter, Lyft, Meta and Stripe all being impacted.
While each company seems to be dealing with its own unique challenges, many seem to have over-invested during the pandemic tech boom, only to find markets crashing and recessions looming as 2022 comes to a close.
At the same time, the high staff turnover in the tech industry – at 13.2%, estimated to exceed the industry average of 10.5% according to Devskill – means many workers are likely to be snapped up by an industry still hungry for talent.
But the race will be on to see which businesses can offer the most attractive packages to a raft of workers who are demanding a higher standard of work experience.
Since the great resignation of April 2021 when a record-setting 3.99 million U.S. workers voluntarily left their jobs, it’s become apparent that employees are no longer willing to accept toxic workplaces or sacrifice their wellbeing to meet targets. For many tech workers, the pandemic put into stark realisation the importance of self-care and more time at home with family. The shift to remote work gave many employees the flexibility and freedom they craved and now they won’t settle for anything but a remote or hybrid role.
There are other reasons tech workers are looking for new opportunities too.
As the global economy has become less stable and costs of living have soared, workers are seeking better pay. A lot of tech workers find that their jobs become mundane and they crave more responsibility or creativity in their role and so, they move on. One thing employees are striving for is a better working experience day to day with less stress, pressure and toxic management. These factors have been shown time and again to send the best tech talent packing.
Ironically, the mass layoffs seen now will have a direct impact on those left behind, who will have to pick up the slack and could potentially result in even more resignations, leaving many of tech’s biggest players in a staff vacuum.
Tech brands will need to up their game and demonstrate genuine value to their potential employees to capture the top talent. They will need to prioritise mentorship, in-house training, career development, flexible working and real-world wellness benefits if they want to retain quality staff in the long term.
It’s likely that laid off workers looking for more flexibility and freedom will turn to freelancing or contract work which can benefit tech businesses during this time. It makes sense for businesses to turn to MSPs that can supply a steady stream of freelance IT talent to plug the gaps in their teams.
At the same time, it frees companies up to offer more meaningful roles to their most valued staff while the day to day tasks are taken care of by freelancers who dictate their own schedules.
Platforms like NerdApp can be a powerful resource for both tech workers and tech employers in this time of instability. Freelancers have the opportunity to earn income remotely or in-person and be searchable to a wide range of individuals and companies that may be looking for someone just like them. Businesses benefit from an all-in-one on-demand solution that allows them to affordably scale their team up or down depending on their requirements.
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