Last year, the dominant narrative in the tech industry was all about layoffs, particularly among the field’s biggest names. Google, Meta and Amazon led the list of more than 1,100 tech companies who let go of more than 250,000 employees tin 2023.
But anyone who works with tech talent can tell you that the demand for skilled workers hasn’t really declined — it’s just shifted. In an age where every company is a tech company to some degree, demand for workers with tech skills has continued to accelerate. New research conducted by General Assembly and Wakefield Research found that a majority of tech leaders expect hiring to pick up in the coming year. Even if some major employers are course-correcting after over-hiring during the pandemic, many other companies are still actively searching for the right tech talent.
The challenge of finding employees with the right tech skills has only grown more acute in the age of artificial intelligence (AI). Even in an industry that’s accustomed to a rapid pace of change, the rise of AI has been unusually fast — and it’s not slowing down. Generative AI programs like ChatGPT and Bard have enormous disruptive potential. A recent Goldman Sachs report suggested that generative AI could replace a significant share of workloads for many organizations in the U.S. and Europe. Simply put, businesses are starting to recognize that understanding and acquiring the skills to use generative AI effectively is becoming an operational imperative.
Now, companies whose recruiting efforts have lagged face an urgent new test. Entirely new technology tools have emerged that have given rise to a need for new skills and new roles to effectively use and manage those tools. To face up to this challenge, businesses should rethink their approach to training and talent development.
What does that work look like in practice? Here are five interconnected tactics that talent leaders should consider as they upgrade their tech talent pipelines:
1. Prepare for the Future Now
As the demand for AI and other tech skills continues to accelerate, company leaders will find themselves engaged in a never-ending war for talent. The best thing that tech and talent leaders can do today is assess their organizations honestly and accurately. What is the organization doing now? Where do you want it to go? What roles and skills profiles — and how many employees — are needed to set up teams and the company for success? Laying this groundwork now will make it easier to navigate a rapidly changing talent marketplace.
2. Explore the Potential of Automation
More and more basic tech work is being automated by AI. Companies that explore and adopt new copilots and AI-enabled productivity tools might be able to keep up with their hiring and training needs — or at least not fall too far behind. Of course, as impressive as many AI tools are, they still need plenty of human input and oversight — which is where new approaches to talent come in.
3. Develop Talent Internally
Too often, businesses in search of tech talent rely on poaching from their competitors and returning to the same tried-and-true sources. General Assembly found that 85% believe their organizations are recruiting from the same talent pool as every other company. But forward-thinking employers are beginning to invest in training programs designed to help current employees upskill and reskill. That includes providing workers in less tech-focused roles with training to enter more in-demand roles in fields like data science. Prioritizing internal talent is a cornerstone of an effective retention strategy, so keeping and developing talented employees in your organization can both relieve the pressure on recruiters — while also helping to fill critical tech talent shortages.
4. Recruit Nontraditional Talent
Looking inward, of course, isn’t the only place to find new sources of talent. Broadening the search for skilled workers beyond traditional sources also means looking in places you may not expect. Consider the way that a growing number of businesses and state governments have adopted skills-first approaches — which recognize job candidates not for the degrees or credentials they’ve earned, but the competencies and skills they possess. Removing degree requirements from job descriptions opens up opportunities for more than 70 million workers — half of the U.S. labor force. Many of these workers already have tech skills or the ability to gain them. To harness the full power of nontraditional talent, companies should invest in ongoing training that develops their capabilities.
5. Embrace the Hire-Train-Deploy Model
Hire-train-deploy models, which are also growing in popularity, enable organizations to access often-untapped pools of talent who are ready to perform on their first day on the job. The gist of the approach is that talent leaders source potential candidates overlooked by traditional hiring approaches, train them in specific tech skills and platforms, and place them in the roles where they’re needed. By identifying workers with essential workplace skills and helping them master technical skills, companies are rethinking the build-versus-buy paradigm for tech talent development — creating the talent they need, rather than getting stuck in a bidding war as demand continues to outpace supply.
The businesses that come out on top of the talent wars in the age of AI will be the ones that look long term. They must begin to address persistent and ever-evolving skills shortages now, and they should think differently about talent acquisition. There may always be a place for tried and trusted recruitment strategies, but emerging approaches — from upskilling and reskilling current employees to tapping into nontraditional talent pools — will help businesses set themselves up for success.
In an uncertain economy, one thing that seems clear is that the reach and capabilities of AI will only continue to speed up. If they hope to keep pace, tech and talent leaders must accelerate their training and talent development strategies, not just in response to, but in anticipation of the demands of a rapidly changing future of work.
