- Hybrid working is now the top factor attracting tech talent, ahead of salary.
- 83 per cent of leaders say AI and tech skills are essential for leadership roles.
- Half of businesses report a shortage of candidates with the right digital skills.
Hiring in tech is shifting in a measurable way. According to research by International Workplace Group, hybrid working has overtaken pay as a key factor in attracting talent, while AI skills are reshaping how companies hire, promote and structure teams.
More than 83 per cent of business leaders now say advanced tech skills are essential for leadership roles, while 67 per cent report that competition for talent is intensifying. At the same time, half say they cannot find candidates with the right skills.
Here are five ways tech hiring is changing, based on the data.
1. Hybrid working is now more important than salary
Hybrid work is no longer a perk. It is becoming the main lever in hiring.
Around 37 per cent of companies now prioritise hybrid working as their primary strategy to attract talent, compared to 35 per cent focusing on competitive pay. In addition, 72 per cent of leaders say flexibility is important, rising to 80 per cent among Gen Z leaders and 79 per cent among millennials.
The shift is even clearer among workers. Among professionals under 30, 42 per cent rank work-life balance and flexibility as the most important factor, compared to 30 per cent who prioritise salary.
2. Talent shortages are intensifying despite wider hiring pools
While hybrid work has expanded hiring beyond geography, the talent gap remains significant.
Around 67 per cent of business leaders say attracting and retaining tech talent is more competitive than ever, while 50 per cent report a shortage of candidates with the right skills.
This suggests that even with access to broader talent pools, demand for AI, data and coding skills continues to outpace supply.
3. AI and tech skills are overtaking degrees in hiring decisions
The importance of formal education is declining in tech hiring.
Around 83 per cent of leaders say advanced tech skills are critical for promotion into leadership roles, while 22 per cent believe these skills are significantly more valuable than university degrees.
Only 5 per cent of organisations still consider formal education as the primary factor when evaluating candidates.
At the same time, 31 per cent say tech proficiency is now as important as a degree, indicating a clear shift towards skills-based hiring.
4. Younger tech talent is moving into leadership faster
Career timelines are shortening for those with strong technical skills.
Around 23 per cent of organisations say they are promoting professionals under 30 into leadership roles earlier than traditional timelines, rising to 45 per cent in Gen Z-led businesses.
This reflects how AI and digital skills are accelerating career progression, allowing younger employees to take on leadership responsibilities sooner.
5. AI is reshaping productivity and team dynamics
Artificial Intelligence in hiring iStockphoto
AI is changing not just hiring, but how teams operate.
Employees with strong AI skills are able to automate routine work, improve decision-making and generate insights faster. This is already influencing workplace dynamics.
Around 62 per cent of Gen Z employees say they actively support senior colleagues in upskilling with AI. As a result, 72 per cent report improved team productivity, while 77 per cent of directors say Gen Z’s AI expertise has boosted performance.
At the same time, 59 per cent of organisations are actively adding more AI and tech talent to leadership teams, signalling a structural shift in how companies are organised.
The data points to a clear change. Hiring is no longer centred on pay alone. It is increasingly shaped by flexibility, skills and the ability to work with emerging technologies.
For companies, the challenge is not just attracting talent, but adapting to what that talent now expects.
