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Market Trends in the Tech Sector

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BCBusiness + IT/IQ Tech Recruiters

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Credit: IT/IQ Recruiters

IT/IQ Tech Recruiters, a national tech recruitment firm, shares employment market insights for hiring top talent

IT/IQ is a BC-based provider of specialized Information Technology (IT) recruitment and staffing solutions. Since 2002, the company has grown into a national organization with offices in Vancouver, Calgary and Toronto.

IT/IQ’s team is placing 1.6 IT professionals per business day, and as a result has its finger on the pulse of real-time industry trends and insights.

One major trend is that tech companies have over hired in anticipation of continued market demand and are quickly changing their outlooks as they recognize a looming recession. “Simultaneously, venture capitalists have hit the brakes on funding for two reasons: market instability and overvaluations,” says Feras Elkhalil, president of IT/IQ. “It’s because of these shifts that we have seen layoffs throughout the tech sector over the past year and a resulting influx of tech talent in the hiring market.”

To be fair, there’s always been a gap between the supply of IT talent and the demand for it—mainly because there haven’t been enough graduates entering the field. The recent talent influx is narrowing that gap but has not come close to closing it, and employers have had to rethink their recruitment strategies.

“In the past, hiring centered around offering perks and benefits, such as lucrative stock options, signing bonuses, unlimited vacation, company culture and higher salaries,” Feras says. “Companies were desperately trying to attract talent from competitors during a period of severe talent shortage. Companies successfully attracting and hiring candidates moving into 2023 are focused on selling stability.”

Employers are having to prove their financial stability with year-over-year profitability and are constantly innovating to create sustainable demand, making their companies stable places for candidates to grow. On top of stability, employers are offering flexibility and autonomy, strong culture, training, professional development opportunities and competitive compensation packages.

Salaries haven’t dropped amid industry layoffs. Instead, they’ve leveled off as rising inflation rates have counterbalanced the influx of talent supply. “To stay competitive over time, employers must stay up to date on real-time salary trends for relevant positions and adjust compensation structure accordingly,” Feras says.

For roles that consist primarily of individual contributions, such as programming and development roles, candidates expect to work 100% remotely—another key trend. Meanwhile, IT candidates occupying management positions are expected to return to the office as companies opt for hybrid work models.

“Industry trends fluctuate frequently,” Feras says. “As specialized IT recruiters, our team at IT/IQ Tech Recruiters is constantly working with top IT professionals, documenting compensation data and observing industry trends in real time. This information has been invaluable to the clients we work with for attracting, hiring and retaining the industry’s top candidates.”

Learn more | it-iq.com

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Created by BCBusiness in partnership with IT/IQ Tech Recruiters