For most recruiters, the job market is almost performing too well. Unemployment rates remain near record lows, and nearly everyone seems to be hiring. Despite predictions of a recession, candidates have a wealth of opportunities before them. Ultimately, job seekers can afford to be picky about what positions they accept.
Amid all the talk of talent wars, though, the technology sector appears to be an anomaly. Instead of the Now Hiring signs omnipresent elsewhere, big tech names are issuing rounds of layoffs. While slowdowns in the economy may be behind these pink slips, not all technology firms are making the same move. Furthermore, businesses in other industry sectors are still looking for candidates with technology skills.
Recent tech layoffs give these organizations the chance to scoop up talent they otherwise would struggle to find. The key is to be sensitive to laid-off candidates' perspectives while balancing your company's staffing needs. Below we'll discuss why what looks like discouraging news can become a game-changing opportunity for your business.
New Faces Can Make Teams More Diverse
Companies form unique cultures based on the values and backgrounds of the people working there. Individual team cultures follow a similar dynamic. Everything from previous professional experiences to socioeconomic circumstances influences how employees work together.
When team members hold similar points of view, it can make work life a bit easier. Workflows may speed up because conflicts are less likely. However, people who are too alike can lower a company's shot at success. In fact, gender and ethnic diversity are vital contributors to company profitability. According to a 2020 McKinsey report, companies in the highest quartile for each measure outperformed less diverse companies by 25% and 35%, respectively.
That's why OSI Engineering, a recruiting firm that fills specialized technology roles, emphasizes the hiring of diverse teams. Diverse perspectives boost innovation and productivity, but they also tend to produce another highly important characteristic for team success: social intelligence.
Although technical expertise is in demand, social intelligence is arguably even more critical in collaborative, innovative environments. Recent layoffs have placed plenty of candidates with both technical and people skills on the job market. Recruiting these displaced workers is an opportunity to add more emotional intelligence - along with tech chops - to your team.
Talent Pools Expand for Smaller Firms
Smaller companies typically face disadvantages in recruiting because fewer candidates know who they are. Even after potential recruits discover small and medium-sized businesses, they may be skeptical. Growing companies tend to have less financial prowess, making job seekers uncertain about their long-term viability. Furthermore, candidates may not be as enthusiastic about dealing with growing pains or associating with relatively unknown names.
As recent layoffs show, the recently terminated especially want reassurance that their next company is financially stable enough to provide a lasting future. Small companies that can demonstrate strong financials stand to benefit, particularly if they boast a strong company culture as well.
Laid-off workers have little appetite for chaotic environments and seek out businesses willing to invest in supportive employee experiences. Small firms with such environments can thus expand into talent pools that might formerly have been unavailable to them. A 2022 Gallup survey revealed employees want opportunities to use their strengths and gain job security. Employers appealing to these priorities can overcome their lack of recognition with recruits.
By showing candidates they can get their needs met outside of big tech, your business can benefit from deeper expertise. What was another firm's loss is now your valued gain.
Making the Most of Tech Layoffs
Layoffs can be a jolting experience for dedicated employees, even when they're somewhat anticipated. Displaced workers may not respond the same, with some hitting the job boards immediately and others taking time out. While mass layoffs are disruptive, they also create opportunities for organizations with staffing needs.
Whether your business hopes to benefit from a more diverse team or a larger skill set, recently dismissed tech workers are an attractive talent pool. They can bring versatile capabilities to the table and increase your group's collaboration quotient. With the right match between your company's and a potential recruit's needs, you both can gain rewards once thought impossible.
