The last few years have been tumultuous around the globe. The COVID-19 pandemic and rapid technological advancements significantly impacted how we live and work. Analysts are comparing the digital revolution of the 2020s to the Industrial Revolution. Labor is being redefined, existing roles reshaped, and new roles are emerging. Much of this change is linked to technological shifts that are creating an increasingly dynamic tech ecosystem.
It can be a struggle for companies that employ tech professionals to stay ahead of those shifts. And, in addition to planning how to integrate emerging technology and manage the changes it creates, the challenge to fill open roles is neverending, given the perpetual shortage of skilled tech professionals.
Anticipating and proactively planning for the challenges is key to attracting and retaining top talent and staying competitive. As you plan for 2025 and beyond, it can be helpful to consider industry and hiring trends. From a significant shift toward global talent acquisition to encouraging upskilling, the key tech hiring trends for 2025 are discussed below.
Shifting To Global Talent Acquisition
The global tech talent pool is rich and has the potential to address the shortage of skilled talent in the United States. Hiring internationally not only provides a simple increase in the number of qualified candidates for open roles. It also creates diverse teams, which makes good business sense, particularly within the tech sector.
Several major brands shifted away from, or outright eliminated, their DEI initiatives in 2024. While the social pressures of 2020 that highlighted the need for increased DEI have waned, companies would be wise to continue working towards more inclusive workplaces. DEI initiatives are important because they:
- Increase creativity and innovation, which are the basis of every tech company. Teams that bring together a diversity of experiences, ideas, and perspectives approach problem-solving and decision-making in a way that naturally fosters innovation.
- Increase employee engagement, satisfaction, productivity, loyalty, and retention by demonstrating the value of every employee.
- Ultimately improve a company’s bottom line.
While hiring globally can hold challenges, the benefits of doing so are enormous. And, it’s a shift most companies are poised to make. In a review of 2025 hiring trends, Forbes reports that 81% of tech leaders plan to hire internationally.
Thanks to the COVID-19 pandemic, most tech companies already have plans and procedures regarding hiring, integrating, and supporting remote workers. However, adding international remote workers to your team will require thoughtful consideration to manage specific issues around time zones and team-building while respecting cultural differences. More significantly, an in-depth understanding of the legal and logistical aspects of hiring internationally is critical to prepare for 2025 and beyond.
Increasing Contract Hires
Contract work can be alluring to tech professionals because it allows a better work/life balance and a chance to focus on projects that fit their interests and skill sets. But employers also benefit as more tech workers move from permanent full-time roles into contract work. Hiring contractors has several advantages including:
- Minimizing costs related to hiring and onboarding; overhead; contributions to benefits, sick days, and holiday time; downturns and market fluctuations; and turnover when the employee leaves.
- Access to specialized skills and expertise required for specific projects.
- Improved scalability to deal with fluctuations in project requirements.
- Bringing in fresh perspectives and innovative ideas, which can inspire your existing teams and ultimately improve your bottom line.
According to a piece in Forbes, “… there has been a notable uptick in contractor hiring – 28% of U.S. leaders now prioritize outsourcing via contractors.” As more companies recognize the value of hiring contract workers, and as more tech professionals transition to contract work as a personal preference, this trend will continue to pick up steam throughout 2025 and the years to come.
Sourcing Passive Talent
Companies have long had to be strategic in their recruitment efforts due to the long-term and persistent low unemployment rates in the tech sector. A common strategy of tech recruiters is sourcing passive talent – skilled workers who are not actively looking for work.
Given the current state of the job market and economy, the passive talent pool is large and growing. Many workers are holding onto their current roles for stability. While they’re not actively searching for work, they might be tempted by an unexpected offer from a recruiter or employer.
The shortage of tech talent shows no signs of abating; in fact, it’s likely to worsen. Along with an overall shortage of tech workers, the demand for tech specialists has exploded because of the growing ubiquity of tech solutions across all sectors and emerging technologies that demand new, quickly-evolving skills.
To fill open roles, recruiters and employers will need to focus on sourcing passive talent. To do so, it’s critical to:
- Develop and maintain a talent pipeline. Communicate regularly and authentically with each potential candidate to keep that pipeline warm.
- Strengthen and communicate your company brand. A strong brand identity that highlights your culture and values will attract exceptional talent that fits your company well.
- Leverage your employee brand ambassadors. Employees who authentically share their workplace stories can be one of your best marketing tools.
Keep in mind that passive candidates aren’t only external ones – your current employees might also be passive candidates for roles within or outside of your organization. Focussing on retention efforts will also be key in 2025 and beyond, to ensure that your own employees aren’t poached by the competition.
Focussing On Skills-Based Hiring
With the increasingly tight job market and persistent low unemployment rates in the tech sector, it’s critical that employers reassess what they value in candidates. Stringent educational requirements – such as an insistence on a degree or a preference for graduates from certain schools – considerably narrow the available talent pool.
Instead, focusing on hard and soft skills, hands-on experience, and an aptitude for continuous learning makes good business sense, especially for tech workers. It’s possible to pick up needed technical skills in non-traditional learning environments, including self-directed learning and boot camps.
In addition to increasing the number of candidates available, skill-based hiring can improve employee engagement, loyalty, job performance, and job satisfaction since people will be hired to perform work they excel at. A happy, engaged, and loyal workforce positively affects retention, talent acquisition costs, and the company’s bottom line.
Supporting Hybrid Workers
Since 2021, several major tech companies have instituted return-to-office mandates, believing employees are more productive in the office. And since 2021, workers have pushed back. Employees who discovered that their work/life balance improved while working remotely are loathe to let completely go of that work model.
Interestingly, however, more workers would prefer hybrid work arrangements over fully remote work. Robert Half reported in November 2024 that “37% of U.S. job seekers are interested in a fully remote position, while 60% would like a hybrid role.” Further, 31% of professionals actively engaged in or planning to begin a job search indicated that flexible work arrangements are a top priority.
To attract and retain top talent, who are happy and productive in the workplace, employers should support flexible work arrangements in 2025 and beyond. In addition to implementing a hybrid work model, employers need to develop policies that encourage community, collaboration, and productivity within a dispersed workforce, as well as support their mental and physical well-being.
Encouraging Upskilling
Traditionally, workers who lack the required skills are let go and recruiters look to external candidates to fill open roles. However, this recruitment model is inefficient for tech roles. With the tight labor market and rapidly changing technology – which requires ever-evolving skill sets – companies that encourage upskilling will attract and retain talent more easily.
Beyond filling open roles and improving retention by ensuring workers have the skills to be productive, upskilling makes employees feel valued. Employers who invest in the success of their employees foster loyalty, engagement, and job satisfaction – all of which also improve retention.
To develop and support effective upskilling programs, first assess individual employees and their work processes to identify where skills gaps exist. It’s possible that existing external or in-house training programs can meet the needs you’ve identified. If not, it may be necessary to develop in-house upskilling programs. While the effort and cost may appear prohibitive, the long-term benefits and cost savings will be enormous.
