The tech hiring market isn’t ‘freezing’ – it’s returning to normal

By Nick Boulton, Client Server CEO

Why can’t a period of optimism last longer than six months? If it’s not Brexit, it’s a pandemic, ambushed by war in Ukraine, spiralling energy costs, inflation, the rising cost of living and more.

And if you’re in the tech hiring market, you’re hearing one word repeatedly: freeze. Hiring freeze, job freeze, promotion freeze. It’s Summer, and things are getting very chilly indeed.

But has winter arrived, or is there still some heat in the tech jobs market?

At Client Server, we’re keeping our eyes peeled on the horizon. It’d be churlish to think the hiring frenzy of the last 12-18 months will continue. I’ve been in this game too long to be that na?ve.

But we’re not hitting the panic button. What we’re seeing isn’t a collapse in the jobs market. It’s a return to ‘normal’ – whatever that is.

Here’s what that means for job seekers and employers in the tech scene.

How we got here

There has been a prolonged headcount expansion across all technology businesses over the last 18 months, but this was always going to happen after such a period of calm during the lockdown(s).

Every project across every business that had been put on hold was suddenly urgent and understaffed. So, we got a veritable feeding frenzy for talent, with some companies offering inflated salaries to get fingers on keyboards.

What we're seeing now is almost certainly a response to that. Those barmy days of high salaries for anyone who could spell "IT" aren't as abundant as before - but it bears remembering that things haven't shut down; they've slowed down.

The reported “tech hiring freeze” is true for some of the bigger companies, particularly those who benefitted from a pandemic-related jump in demand (Netflix, Amazon, Peloton, to name but a few). But they would always pay the price for gorging themselves on top tech talent (and some not-so-top) at inflated salaries.

The upshot? Tech’s big boys inadvertently drove up the cost of hiring the best people, and that’s simply not sustainable. 

Hello 'normal'

Let’s not forget that our lives are more dominated than ever by technology. Demand for the best people isn’t going to vanish any time soon.

We’re seeing a return to normality, whatever that is, where the silly season of offering middle-of-the-road candidates top-of-the-market salaries will stop.

The best people will always get paid what they are worth, but a lack of talent has seen an overinflated average salary for distinctly average candidates.

SMEs that have had to contend with suckling at the hind teat of the hiring market is now proving increasingly more popular and at the forefront of candidate demand. They are now far more attractive propositions to many than just who’s paying the highest salary.

A message to companies who WILL hire in the next year

The recruitment industry has a challenge ahead to assuage the fears of tech companies who’ve been burned by the ‘hot market’. These have been fed a string of average candidates dressed up to justify an agency’s exorbitantly high fees.

This is where Client Server comes into its own. Our strength has always been finding and working with the best technologists in the country. As things get harder – note that’s different from ‘freezing’ – Client Server’s knowledge and expertise will prove vital for any hiring plans.

This is no bad thing and will hopefully showcase what we do best. We have years of building relationships and teams that stand the test of time and react to whatever market we find ourselves in.

We continue to help businesses grow world-class engineering teams and deliver cutting-edge MVPs while helping candidates land their dream jobs.

Things might get tougher in the medium to long term, but we continue to build not only for the immediate future but also for the long-term future; of Client Server, our staff, our clients and our candidates. This takes sustained effort, energy, and engaging with the right recruitment partner. Global and local markets might change, but we strive to provide the best service possible in any economic condition.