The days of explosive tech hiring are behind us—at least for now. After years of rapid expansion, companies are shifting away from large-scale recruitment and focusing on high-impact, strategic hires. So, what’s driving this change, and how should employers respond? Let’s break it down.
Since 2022, demand for tech professionals has dropped by 54%, with an additional 27% decline in the past year.
It’s not just tech—hiring is slowing across the UK, with total job openings down 40% over three years and 14% in the last 12 months.
Even as hiring slows, tech salaries keep climbing. It’s a paradox, but there’s a clear reason: companies are willing to pay a premium for deep expertise and specialised skills. We believe several factors are at play:
With demand cooling and specialised skills becoming increasingly crucial, companies need to take a fresh look at how they hire and manage their workforce.
For smaller or mid-sized companies, the data above might have you wondering how to stand out against tech giants offering sky-high salaries for specialised talent. But here’s the good news— AI specialists are drawn to more than just a paycheck; they want to work on groundbreaking projects, make a real impact, and continuously expand their skills. Build an EVP that speaks to what truly matters—career-defining opportunities, rapid growth paths, and benefits that go beyond salary. Show AI talent why your company is the place to build something remarkable.
Sticking to “brand-name” candidates (like FAANG/MAMAA alumni) means you might be missing out on highly skilled professionals. Look beyond the obvious—tap into adjacent industries or collaborate with universities or bootcamps that focus on specialised skills. Consider candidates with niche certifications and demonstrated project experience, even if they don't have a household name on their resume.
Hiring specialists is tough (and expensive), so it’s worth prioritising the people you already have. Keep top tech talent engaged with clear career growth opportunities, continuous learning, and an environment where they feel challenged and valued. Helping them level up internally can also fill those hard-to-hire skill gaps.
Not every role needs a full-time hire, and rigid hiring strategies can slow down innovation. Contract workers, freelancers, and project-based hires offer a way to bring in specialised expertise to bridge skills gaps and support high-priority initiatives—without the long-term overhead.
The UK job market is shifting, but there’s still strong demand for high-impact tech talent. Companies that prioritise impactful hiring, expand their talent search, and invest in workforce agility will be the ones that thrive in the next phase of tech hiring.
LevelUP Human Capital Solutions was founded in 2012 with the mission to modernise talent acquisition. We specialise in developing and executing strategic talent acquisition plans that align with the unique challenges and opportunities faced by our clients. Our customised solutions ensure organisations not only attract top talent but also build a workforce that drives long-term success.