Unveiling the Future of Tech Hiring in 2024: Insights from New Data

The tech industry experienced a surge in new tech jobs and hires in January, indicating a positive outlook for tech hiring in 2024. Since then, the industry has continued to grow steadily, with employers increasing their hiring efforts, adjusting talent strategies, and expanding their search for tech workers.

In April’s Bureau of Labor Statistics Jobs Report, around 6,000 new workers were added just last month—pushing the unemployment rate for tech occupations back down to 2.8%.

The technology industry is experiencing a revival in hiring, making it crucial for organizations to recognize and adapt their hiring strategies to remain competitive. To attract and retain top tech talent it's essential to take note of key industry trends in today's market. Our 2024 Technology Hiring Guide emphasizes the ongoing importance and challenges of recruiting and retaining talent—revealing that 26% of employers consider the IT department as most vital to their organizations, with another 26% stating that IT roles have been the most challenging to fill.

LHH surveyed 558 organizations ranging from 10 to 500+ employees, with 92% stating they had hiring authority. Their feedback provides valuable insights into the hiring priorities for technology talent in 2024 and how companies intend to implement these strategies to maintain a competitive edge.

When respondents were asked how they plan to execute key technology initiatives in 2024, the top three answers included:

• Adding additional full-time employees (30%)
• Leveraging existing team members (30%)
• Adding contract and interim resources (29%)

And, according to April’s BLS report, leading occupations for hiring include:

• Technology services
• Software development
• Cloud infrastructure

With survey respondents planning to bring on additional employees this year, it’s crucial for hiring managers to understand what tech workers are truly seeking, to attract the best talent for their organizations. Our Technology Hiring Guide revealed some discrepancies between what hiring managers believe tech talent wants and what they’re really looking for. For instance, while 34% of employers believe that increased compensation is a priority for workers (ranking third after benefits and remote work flexibility), 44% of employees cite increased compensation as the most important factor for attracting and retaining talent. Increased compensation ranked first, followed by improved benefits and bonuses.

When asked about their talent strategies for 2024, the survey respondents showcased an interesting split. A significant portion (255 votes) expressed intention to reduce headcount, while a slightly higher number (297 votes) aimed to either maintain or increase headcount. This nearly equal split raises questions about the outlook of the tech industry in the upcoming year. Todd Weneck, Vice President of Technology at LHH, weighs in.

“I'm optimistic about where the tech industry is headed. Despite some ups and downs like layoffs, we're seeing a lot of job growth overall, which is a really good sign. Many Big Tech companies continue to hire even when they are experiencing layoffs in certain areas. Tech hiring is changing, but it's definitely not slowing down.

The move towards AI in all industries is also creating new opportunities for tech workers. This plays a big role in the positive outlook for the tech job market. According to CompTIA, tech jobs are expected to grow twice as fast as overall employment in the U.S. over the next decade. So, there's a lot of room for growth and plenty of exciting opportunities for anyone looking to dive into the tech world.”

Creating a Hiring Strategy Built for Results

In our survey on Tech Priorities, we asked respondents about their primary hiring strategies for 2024. The three strategies with the highest percentage of respondents choosing them as their top choice were:

• Implementing advanced AI-driven tools for streamlined candidate sourcing and assessment (24.3%)
• Prioritizing candidates with traditional academic qualifications and degrees in relevant fields (23.6%)
• Emphasizing diversity and inclusion to foster innovation and creativity within the team (22.7%)

In contrast, a significant 41.7% ranked implementing structured upskilling programs to empower existing employees with emerging technologies, as their last choice.

Naturally, implementing upskilling and reskilling programs may be more feasible for larger organizations with greater time and resources. But even so, companies shouldn’t be so quick to dismiss this option.

“Upskilling and reskilling initiatives can add value beyond mitigating talent shortages. Such programs foster a culture of continuous learning, enhance employee retention, and future-proof organizations against rapid technological shifts. By overlooking the value of upskilling and reskilling, companies risk not only stagnation but also miss out on key talent attraction and retention opportunities.” - LHH National Practice Strategist for Technology, Joe FaQuin

Todd Weneck agrees, adding that “investing in upskilling and reskilling programs can indeed be more valuable than many companies realize, especially as they struggle to identify the right tech-based skill sets in future talent.”

Presently, there is a high demand for tech talent who can develop, implement, and optimize AI—people with the skills to train, maintain, and keep checks on this rapidly evolving technology. However, the current workforce falls short of meeting that demand. Our 2024 Technology Hiring Guide reveals that 30% of employers said technical skills are increasingly difficult to find in potential candidates. In fact, AI/machine learning, software development, and data engineering/analysis are all listed as the top skill sets that are most challenging to find in the right talent, according to survey results.

Despite periodic disruptions and uncertainties, the overarching trend is one that suggests sustained growth driven by relentless technological advancements. The dynamic nature of technology ensures a constantly evolving landscape, offering abundant opportunities for individuals to establish rewarding careers and contribute significantly to the ongoing digital transformation happening in our society.

“It’s important to recognize that in today's business environment, all companies, regardless of their size or industry, are undergoing some form of digital transformation. This presents exciting possibilities across the entire economic spectrum—not just within Big Tech. For instance, the survey shows that 59% of respondents (with 64% being SMBs) have plans to hire full-time employees or contractors this year to work on digital transformation projects. These initiatives include business systems upgrades or conversions, enhancements to web applications, and transitions related to Microsoft applications. This signifies that individuals will have the opportunity to thrive and contribute meaningfully to the ongoing advancement of technology within the broader business world—and that’s exciting.” - Joe FaQuin

For actionable insights to elevate your hiring strategy, take a look at our 2024 Hiring Guide for Technology.