The tech industry is stuck. So, why is now a good time to hire?

In the tech industry, now really is the time to hire. While the initial flurry of layoffs in 2023 made it much easier for hiring managers to find quality talent without paying inflated compensation packages, things are going to start to get more difficult.

As tech companies start become more optimistic (and they will), the number of job vacancies will naturally start ticking up again. This means you’ll be facing more competition for good talent.

A golden opportunity to find great talent

I believe there’s a three-to-six-month window when hiring managers can find great talent with limited competition before the market creeps back towards its 2022 levels.

Tech companies are still offering fewer sales roles than previously. This has created a more company-driven market than a candidate-focused one, which means candidates are still willing to accept more reasonable compensation packages.

But it’s more than limited competition; there’s a golden opportunity to find great talent to elevate your sales team's performance and help proactively grow your company despite the current economic conditions.

Given the state of the economy in both the US and UK, it’s natural to expect that businesses’ procurement practices will change.

CFOs now scrutinise each penny/cent they spend as they try to optimise their finances during the economy's recovery. Due to this change in approach, the sales cycle has only become more complicated and hard for tech companies to navigate.

Ultimately, your sales team skills are more important than ever.

So, what should you look for?

Youth is excellent for any organisation, and I fully believe in developing the next generation.

However, experienced salespeople who have already developed a network and have a track record of treating potential buyers will have a significant advantage in a down market and the recovery stage.

In my experience, if a sales rep has spent three years or more in a single organisation since 2021 and has experienced success, they’ll have built an extensive network of concrete business relationships to navigate a more challenging market.

In other words, the skills they’ve developed to perform well in a down-market will only lead to more success when the market fully recovers.

The tech market is on its way back, although slowly. Once we clear the uncertainty that 2024 has brought, we can expect the recovery to speed up.

But that doesn’t mean you should wait; there’s now a golden window to find effective and talented sales professionals without paying the inflated compensation that comes with a healthy market.

Of course, that’s just my opinion, but we’ve also collected some key data on the state of the market if you’d like a longer read (just drop me a line).

What's been happening in the UK and US market?

It’s been more than two years since the tech market peaked in early 2022. Since then, there have been some “false dawns”, such as the initial hype driven by the emergence of AI, but we’ve yet to see a full recovery.

The best way to describe the tech market in the US and UK is “stuck”. The number of job vacancies fell in 2022 and bottomed out by April 2023. We have yet to see these bounce back fully.

The UK market saw a slight uplift after the election due to growing stability; however, this recovery has stalled as uncertainty looms around the Labour government’s October budget.

In the US, the market has remained unchanged for most of the year as businesses await the results of the November election before making any hiring decisions. All signs point to a fully-fledged recovery that begins after the election and as things start to stabilise.

If you’d like a chat, please give us a call on 07702 568685 or 704 574 5408.