Here’s how the US Elections are affecting the tech industry ??
Rupert McSheehy
Partner with high-growth companies helping them find the right talent to ensure success. ?? Helping startups grow and scale ???? Helping Enterprise Level Companies with Digital Transformation ??? Podcast Host ??
Read time: 2.5 mins…
Welcome back to the newly named Tech Talent Times by rmg digital ??
This week’s TTT covers:
Let’s go… ??
?? Economic Uncertainty & Investment Hesitation
The tech industry is no stranger to cycles of economic uncertainty, but the current landscape is particularly interesting...?
Several factors, including geopolitical tensions, inflation concerns, and the upcoming election, are contributing to widespread hesitancy among investors…
This caution is causing significant ripple effects throughout the industry.
But how are the upcoming US elections affecting the market today?
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Election Year Impact ??
Election years often bring heightened volatility to markets, as investors and companies alike prefer to adopt a wait-and-see approach.???
The uncertainty surrounding potential policy changes can have a profound impact on investment decisions.
A KPMG survey found that 62% of CEOs planned to delay major investments until after the 2024 election due to policy uncertainty…
?Ref: KPMG 2024 CEO Outlook Survey
This delay is particularly pronounced in industries like technology, where policy changes can drastically alter the landscape.
Here are some other key stats from the KPMG CEO Outlook survey.
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Cash Reserves: The "Money on the Bench" Phenomenon ??
We spoke to a CTO recently who confirmed what we’ve been seeing in the market: many tech companies are now sitting on significant cash reserves!
…a situation often referred to as "money on the bench."?
This capital, which could otherwise fuel innovation and growth, is instead being held in reserve as companies navigate uncertain times.
?? Apple, for example, reported cash reserves of $167 billion in its latest financial quarter, while Google (Alphabet) holds around $118 billion. ?? According to Moody’s Analytics, U.S. non-financial corporations collectively held over $2 trillion in cash reserves as of mid-2024, with tech companies accounting for a significant portion of this. This is a 7% increase from the previous year, indicating growing caution. ?? Berkshire Hathaway has a record high of cash reserves after selling over 400 million shares this year alone. Currently sitting on $280bn of cash (an increase of $100bn in the last 3 months)?
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How Does This Impact The Job Market? ????
Despite a lot of companies being in a risk-averse mindset, projects still need to be delivered on time…
…It’s why despite seeing big layoffs at the start of the year, a few big companies are also opening their doors to new hires!
Companies like BT, Coinbase, Artsy, Deliveroo, Tesco, ASOS and?more are all hiring.?
?? For Job Seekers: If you’re looking for a new role, feel free to contact Shelbie from our delivery team.
We have a comprehensive job board and would love to help you find a position that suits your skills!?
?Contact Shelbie - [email protected]
?? For Employers: If you’re currently cautious about taking risks, consider exploring the contract market.
Keep your projects on track with the help some highly skilled contractors.
Reach out to our senior consultant, Lauren, who can provide insights into our talent pool!?
p.s. The average turn around for a contractor placement is only 3.3 days ??
?Claim a free 15 minute call with Lauren here!
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Like what you’re reading so far? Want some more FREE information?
Download a copy of our 2024 Career Insights Report [+ 3 other exclusive reports] for FREE here!
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???[Exclusive Interview] Navigating the Challenges of Fundraising for Founders and VC Funds
We just released a new episode of our podcast featuring Jonathan Hollis from Mountside Ventures. Listen and learn about: ?? Effective Fundraising Strategies: Discover essential tactics for successful fundraising, including how to prepare, target the right investors, and strategically manage investor conversations. ?? Creating Urgency in Fundraising: Learn how to create a sense of urgency and FOMO (Fear of Missing Out) to keep investors engaged and motivated throughout the process. ?? Understanding Term Sheets: Get a deep dive into the key elements of term sheets, along with expert tips on negotiating favourable terms during fundraising.
Navigating the Challenges of Fundraising for Founders and VC Funds with Jonathan Hollis at Mountside Ventures
?? Listen now!