The Economics of Technical Hiring

Alex Castle

13 April 2018

The Economics of Technical Hiring

Demand and Supply is at the core of economic science and it applies to each business that you can simply imagine. As a matter of fact, talent management (especially of resources with technical expertise like Java, Artificial Intelligence, Python, JavaScript, Android, iOS etc.,) the hiring managers have a tough time hit the equilibrium.

Here’s a quick excerpt from U.S. Bureau of Labor Statistics

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Increase in the demand for software system is the prime reason for the rise in applications developers and systems developers. Day by day importance of analytics and mobile apps is increasing. It can be safely presumed that this projected employment rate will grow as time goes on. So, irrespective of the size of your technical team, you’ll be inclined to focus on the future.

Long waiting period when it comes to hire for complex technologies

In USA it takes over a month time to hire for technical positions. This range shoots off considerably if you’re looking to hire for complex tech stack like Artificial Intelligence, Machine Learning or R language for that matter.

Bifurcation of developers based on their type and location shows their availability respectively.

Developer Types (image source: StackOverflow)

Demography vise developers (image source: StackOverflow)

What is in it for recruiters and hiring managers?

They need to expand their horizon and focus on candidate’s technical expertise rather than their degree. It is crucial to gauge them on their Coding skills, Analytical skills, Communication skills. Creativity (if required for the job), Interpersonal skills, and Problem-solving skills. One of the trend that is picking up is working remotely. Both job and career satisfaction are correlated with the degree to which developers work from home. So, the companies need to understand that offering remote work options will only benefit them in the larger context.

Quick facts (based on survey done by StackOverflow)

  • 62% of developers are open to new opportunities, and an additional 13% of developers are actively looking for a job.

  • Remote Work Globally, 15% of developers work either full-time remote or at least half-time remote. The proportion is significantly higher in the USA (16%) versus the UK (12%), France (12%), and Germany (9%).

  • Developers with a computer science or computer engineering major were the most likely to say their education was “important” or “very important” (49% globally).

  • 70% developers are employed full-time, while 10% classify themselves as an independent contractor, freelancer, or self-employed. 6% are part-time developers.

  • 43% of developers work for software and internet/web companies. They are also employed in diverse industries across the economy including finance, media, education, and healthcare.

  • Worldwide, only 9% of developers work at a startup while a majority work at privately-held companies 43% or publicly traded corporations 15%.

With the current trends industry experts foresee that demand for technical talent is and will exceed the supply. Literally, every organization is looking to hire its next developer. There are quite a few options available for hiring instantly like Andela, Upwork so on and henceforth. The best part is you get the pre-vetted candidates with the skillsets you require.

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