Businesses are facing a dynamic shift when it comes to hiring talent. Tech companies are not only facing challenges finding suitable candidates, but also retaining those they’ve hired.
Historically, workers would spend at least five years at a company before even considering getting another job. Now, Millennial and Gen Z workers spend an average of 2.75 years at one company before moving on.
Companies are now investing in freelance and contingent workers to fulfill their open roles. However, looking for freelance talent can be just as, if not more, overwhelming than looking for a potential full-time employee. Because of this, tech companies are shifting from finding their own talent to working with outside vendors.
Companies and job seekers are gravitating towards managed services more and more each day. These changes are affecting the tech landscape and evolving the hiring process. Continue reading to learn more.
The New Tech Landscape
With employees rapidly jumping from job to job, it is much more expensive for companies to replace, train, and retain brand new employees. Because of this, the tech industry has been forced to lay off thousands of people to help cut costs and keep up with these changes.
The Great Reshuffle, plus the prevalence of the gig economy, have led to a situation where contingent workers are representing almost half the total workforce at many businesses. This offers companies a huge opportunity to modernize.
The desire to have better work/life balance and more flexibility is shifting traditional office culture. Remote work is just one example of how the tech industry is adapting to these new changes. Whether a company offers a hybrid model or 100% remote, the days of long hours and complimentary pizza parties are of the past.
Even though employees are expecting more from their company than happy hours, there is still a desire to be embedded within the company culture. This is another reason why companies are working with agencies to help them hire contingent workers.
An outside vendor, or managed services agency, hires their own talent specifically for potential clients. These agencies do most of the vetting and take on all human resources for that particular team member. This allows tech companies to take advantage of the employees talent without having to pinch pennies on new team members.
A managed services team is there to ensure that all needs are being met. The outside vendors offer support for not only the company, but also for team members. These days, employees require much more from their place of work and have become more open about their expectations.
The Great Reshuffle
In the wake of 2020, a new movement surfaced amongst employees referred to as, The Great Reshuffle. Workers everywhere started to rethink their futures and their 9-5 careers.
Quiet quitting, or putting in the bare minimum with the hopes of getting fired, is on the rise amongst Gen Z and Millennial workers. Employees are no longer staying at a job they aren’t fulfilled by. Instead, they’re on the hunt for more flexible work environments, title promotions, and huge career changes.
Employees are changing their roles more frequently, quitting (or quiet-quitting) their jobs after a short lifespan, and making significant career changes to better fit their needs. In fact, more than 47 million people walked away from their current positions in 2021 to find new jobs with these factors in mind.
With the amount of job seekers now tripled and flooding the tech job market, where are these workers going and what jobs are they looking for? Employees have made it clear that what they want most is better work/life balance, more opportunities for professional development, and higher compensation.
Today’s talent pool is hungry to learn more. Instead of mastering one position in one industry for years and years, it’s more common to explore a multitude of positions and industries. A full-stack marketer, for example, has experience marketing a variety of different products and services, making them a very desirable candidate.
With this in mind, it’s safe to say that many workers are trying their hands at contingent work. A contingent worker is anyone hired into the business for a contracted period of time or on a specific project basis outside regular full-time employment.
Contingent work can give an employee, as well as the employer, everything they need during this Great Reshuffle. These types of positions can offer flexibility, high compensation, and opportunities to learn and explore different positions.
With the Great Reshuffle in full effect, the tech landscape continues to change when it comes to staffing; making more of an effort to work with contingent workers and managed services.
Fluid Talent – Contingent Workforce as a Managed Service
If you’re a tech company noticing these changes in the workforce, you’ll want to work with a managed services agency that can help you find the right talent.
Fluid Talent of Ledger Bennett is an agency placement within a client’s team.
The Fluid Talent team allows talent to fully immerse themselves into the client business and add consistent value.
Contact us today to discover the many benefits of implementing a managed service approach to get the most out of your contingent workforce program.