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Opportunities for Tech Talent Beyond the IT Industry

By João Nunes - PageGroup
Managing Director-Head of Strategic Markets Latam

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João Nunes By João Nunes | Managing Director-Head of Strategic Markets Latam - Tue, 04/04/2023 - 11:00

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The technology working world is experiencing a challenging moment. After the big boom sparked by the pandemic, several technology companies have announced layoffs in recent months. 

According to the platform Layoffs Tracker, from January 2022 to date more than 420,000 people  from more than 1,200 companies around the world have lost their jobs. The layoffs trend saw its worst moment at the beginning of this year and even though February numbers were better, it seems that the end is not yet near. 

In a scenario that looks complicated for the world of work, companies and human capital specialists have the opportunity to demonstrate their more empathetic side, while finding the match between their talent needs and how the people available in the labor market can add value to companies in all the industries. 

Understanding the Causes

The actual situation in the technology industry does not respond to a structural problem in the sector, but to a market adjustment. Almost three years ago, it was unthinkable that technology firms would grow in months what would usually take  10 years.

But, in a scenario where remote working was consolidated and in which companies, regardless of their type of business, had to go digital, the technology industry found it was necessary to recruit talent in order to meet demand.

Not only the big technology companies were driven by the haste of digitalization. Startups also grew by leaps and bounds; that is, those ventures that have a technological component in their operation, such as fintech, edtech or healthtech.

However, the pandemic levels have dropped, safety measures have changed and 2023 became  a year of stabilization  in which all companies are already at full operations, some of them are asking employees to go back to the office, while others are working remotely and most in a hybrid mode. For technology companies, there are not enough resources ahead to help them invest in the large number of workers they hired in 2020.

Opportunities for IT Talent

It seems like a chaotic environment for those who have left a tech company as a result of this situation, but it's not. The talent emanating from the technology sector have profiles that can have a great impact in other sectors.

And there are still many companies that are continuing their digital transition processes. The PageGroup's LATAM Perspectives Report 2022, found that 6 out of 10 organizations estimated an increase in investment in digital tools and IT. That means companies will need the required talent to implement and supervise new processes oriented to going digital. But it’s not just that; they can also offer a new perspective to help solve problems through technology. 

The challenge for these companies has been to find trained people. For example, according to the report Fintech in Latin America: Opportunities and challenges from IT talent, 47% of companies in the fintech sector do not exceed 10 employees because the shortage of talent in the Latin region amounts to 48%. But now, after months of gaining experience in several tech companies, talent can spread their knowledge in other industries. 

Selection and Hiring

Today, the profiles most sought-after by companies are Full Stack Developer, Scrum Master and Mobile Engineers Developers, with an average tenure in the position of one year. Software Architect follows with an average tenure of two years in the position.

Regarding the selection and hiring of IT talent, it remains virtual in most cases and, depending on the industry, they will be hired in remote or hybrid work models. The selection process is usually agile in communication and presentation of candidates, and very oriented to a 70/30 weighting between skills and technical knowledge.

These processes are also usually very assertive in considering applicants and quality is prioritized over the quantity of profiles evaluated. In addition, the salary is higher when compared to other professional careers, considering the specialized knowledge required for the position. 

Hence the importance of taking advantage of the talent that came from a technology company. It is important to understand, however, that even if there's a larger offer of talent in the market, companies need  to consider knowledge and skills to value a fair price for their work. The integration of these profiles into other industries must be through a plan to continue with their professional growth and their value must be recognized.

Thinking About the Future

On the side of the candidates, they should know that the economy and the labor market are cyclical, but that does not mean that professional growth must be delayed. Their experience is valuable in other sectors, since technology is currently transversal and also, working in other industries will give them a different vision and help them to create a more complete professional profile.

For companies in all industries, having the best talent is key. It’s time to open the door to the experts in the new digital era and to talent that can contribute with a new vision to the different areas in a company. 

Finding an equilibrium again in the IT market depends on empathy but, above all, on the openness of both companies and professionals in the sector to share their talent amid new labor challenges.

Photo by:   João Nunes

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