Recent changes have hit the tech industry hard, causing dramatic shifts in the job market.
While some companies are laying off employees, others are on a hiring spree. This has left tech professionals in a state of flux, unsure of what the future holds.
The Effect of COVID-19 on Tech Jobs
The pandemic has exacerbated the tech market's instability. As remote work becomes the norm, tech industry employees are facing novel challenges and opportunities.
At the same time, there's increasing demand for digital solutions, leading to job expansions in some tech areas.
Yet, despite this growth, other tech company segments are downsizing due to reduced income or changing tech needs.
Jobs That Are Seeing A Surge
Remote connection tools and solutions have seen a boom due to widespread remote work and remote learning. Companies that provide these services are ramping up their hiring initiatives.
Cloud-based services, digital payment platforms, and e-commerce enterprises are hunting for new talents to meet increasing demands.
Positions in cyber security have also seen an increase in demand, as cyber threats surge around the world.
The Opposite Side of The Coin
Simultaneously, a number of tech companies, particularly in the startup sector, are laying off workers due to fiscal challenges exacerbated by the pandemic.
These businesses are dealing with declining revenues and investor confidence. As a result, they are having to make tough choices to keep their doors open by downsizing.
In the customer experience fields, automation is replacing some jobs leading to layoffs.
Employment vs. Contract Work
COVID-19 has affected not only full-time employment but also freelance contract work. Many tech contractors who relied on project-based roles have seen work decline as firms cut back on their budgets and focus on core business capabilities.
However, some freelancers are experiencing more job opportunities as organizations outsource to manage costs.
The trend for hiring contractors vs. full-time employees varies greatly depending upon the firm's financial stability and industry.
Remote Work: A New Normal
The concept of remote work has been received positively in the tech sector. This spread may be facilitating hiring, especially for companies searching for specific skilled candidates.
The remote work trend allows opportunity for a broader pool of candidates. With geographical barriers brought down, companies can shift to talent-first hiring instead of relying on location-based hiring.
This has opened up new job opportunities for many tech workers who do not live in tech hubs.
A Shift in Skill Demand
As businesses adjust to the new normal, there's a noticeable shift in demand for certain skills. While programming and coding remain in demand, there's an increased call for cloud-based competency, data scientists, and cyber security specialists.
Skills related to the digital transformation of businesses, including virtual collaboration, digital project management, and e-commerce, are also seeing an upswing.
Even non-tech businesses are seeking this talent to digitally transform their services and processes.
Adapting Recruitment Processes
Many companies are altering their recruitment processes due to the pandemic. The traditional recruitment process - involving face-to-face interviews, group assessments, and onboarding, is being replaced by virtual processes.
Most tech companies are exploring ways to effectively recruit, hire, and onboard employees online. However, it remains uncertain how these changes will affect the overall hiring experience.
The pandemic is forcing recruiters to prioritize skillsets over pedigree and degrees. Applicants with the right skills, regardless of formal education, can now find opportunities in the tech world.
COVID-19 has turbocharged trends that were already shaping the tech sector. The pandemic has simultaneously resulted in increased demand in some areas while reducing job opportunities in others.
It is an uncertain time, but it also presents opportunities for innovations in recruitment, job roles, remote work, and in-demand skills.
This transition phase is likely to have a lasting impact on the tech job market.