High-tech is yet again in a state of flux.
Not just as an industry, or the rebound from over-hiring during the pandemic years, but due to an increase in reliance on tech in every company. In addition to the fierce competition for tech talent spanning across all industries, new technologies and shifting employee demands have disrupted traditional hiring processes, making finding and retaining skilled talent tougher than ever.
Is your business ready to adapt to the changing high-tech landscape? Do you have what you need to recruit top tech talent?
Let’s look at insights from Mercer’s extensive research, survey data, and Comptryx to uncover what’s impacting tech.
1. Demand for skills
The demand for tech talent continues to surge as we head into 2025. With technology driving more workplace operations, HR leaders face a pressing challenge — nearly 50% report a critical shortage of tech skills, putting business operations at risk.
The issue isn’t just the quantity of new tech talent but the experience gap. Many experienced professionals left the workforce during the pandemic — some retired while others stepped away for family responsibilities. A significant number never returned, leaving a gap in critical expertise.
2. Competition for talent
HR leaders are facing growing competition for tech talent, and it's no longer limited to just the tech sector. As technology continues making its way into more business operations across all sectors, the need for tech talent to help run these systems increases.
This surge in demand increases the talent gap, making it harder than ever to recruit top tech talent. Companies now compete not only with tech giants but also with organizations across all sectors that are seeking the same expertise.
3. Evolving priorities of tech workers
Inflation and rising healthcare costs have hit many workers hard. Today’s tech employees want to ensure that jobs offer financial stability, long-term security, inflation-adjusted salaries, and comprehensive medical benefits.
Across industries, job security is the top concern among tech workers, followed by retirement planning.
Pay also remains one of the top reasons employees join and stay with a business.
4. Increasing use of artificial intelligence
AI is revolutionizing the tech landscape and presenting new challenges for businesses. According to Mercer’s 2024 Global Talent Trends, nearly half (48%) of C-suite leaders identify disruptions from rapid technological change as their most significant organizational threat. AI can help alleviate talent shortages by automating repetitive tasks. Roughly 41% of C-suite leaders see AI as delivering the most value over the next two years by amplifying human intelligence and improving output quality. In addition, AI may enable less experienced employees to perform at higher levels, helping bridge skills gaps.
However, businesses must be ready for the change. About half of executives worry that the pace of innovation could outstrip their ability to retain talent, forcing them to become even more digital than they are today. A striking 56% of the executives surveyed strongly believe their organizations won’t survive past 2030 without AI, underscoring the urgency of preparing for the future.
5. Shifting focus on workplace flexibility
Workplace priorities are shifting with today’s workforce seeking balanced lives.
New entrants to the job market are demanding more flexibility in their roles to support their well-being. This includes a blend of hybrid, remote, and in-office options, along with flexible schedules. Such arrangements help employees balance work with family responsibilities or even a second job.
About 65% of workers are even willing to sacrifice their pay and benefits for more flexibility. Companies that embrace flexible work arrangements see greater job satisfaction and engagement.
Beyond boosting morale, workplace flexibility expands the talent pool. By offering remote options, employers can recruit beyond local candidates, tapping into a wider range of skilled professionals.
6. Changing government legislation
Government scrutiny continues with increased regulations for digital infrastructure. There are stricter controls on mergers with antitrust enforcement and cyber-specific legislation.
Hiring tech talent relies on a detailed knowledge of the latest changes and how to navigate them going forward. For example, according to Mercer’s 2024 People Risk Report, lack of cybersecurity knowledge and tech skills shortage are among the top five concerns for HR and Risk Managers.
Each of these trends likely impacts your organization in a variety of ways; there’s no one way to react. Staying up to date with High-tech insights is imperative in today’s volatile market, especially as technology shifts and impacts are realized.
Find your future high-tech labor force
Uncertainty doesn’t have to hold your organization back. By understanding what tech talent wants, needs, and values, you can stay ahead of industry demands. Leverage the latest tech industry data to fine-tune your strategies — identify where to focus your recruiting efforts and which benefits will attract the best candidates.
Comptryx is your guide to smarter workforce decisions. With actionable insights, you can navigate the complexities of the tech talent market and position your business for growth.
Learn more about Comptryx data and insights. Or connect with one of Mercer’s associates at 1-855-286-5302.