Tech hiring won't grow quite as quickly in 2017, survey says

68% of tech employers expect new hires in tech in 2017, down 10 points from 2015, according to a new survey. Learn the rest of the details on next year's outlook for tech jobs.

Image: iStockphoto/AndreyPopov

Tech hiring will remain hot in 2017--but US employers are now slightly more cautious with hiring plans than in the past two years, according to a survey from DHI Group, released Tuesday.

Some 68% of hiring managers who focus on recruiting tech professionals said they anticipate more hiring in 2017, down 10 points from 2015, the survey found.

Across all industries, 56% of hiring managers said they anticipate increased hiring levels in the first half of 2017, representing a five point drop from last year.

DHI Group surveyed US companies, government agencies, and recruiting firms. Results included 618 hiring professionals who recruit for a variety of industries, and 785 who said they recruit for technology positions.

Positions are also taking longer to fill than in the past, especially in tech: 50% of tech-focused hiring managers said the time to fill open positions has slightly or substantially lengthened relative to last year. This is potentially due to increased competition among employers who are looking for skilled talent, as they increase their tech needs, the report stated.

SEE: Report: 40% of employers worldwide face talent shortages, driven by IT

"Finding the right candidates for the right positions continues to be a challenge for America's hiring managers as demand for highly skilled professionals creates tension and competition among employers," said Michael Durney, president and CEO of DHI Group, in a press release.

Wage expectations are also increasing, as 59% of hiring managers across all industries including tech noted that salaries for new hires will rise in 2017. However, more than half of recruiters across industries said they could not fill positions due to salary guidelines, up 8 points from 2015.

"Companies are missing a big opportunity by not evaluating salary trends and changing expectations for positions," Durney said in the press release. "While some employers fail to stay current with rising salaries, savvy recruiters who keep up with changing market dynamics come out ahead and land top skilled talent."

With competition for tech talent at such a high, 77% of tech hiring managers said sourcing passive candidates was more important today than last year. These hiring managers also reported that they anticipate recruiting budgets to rise in 2017.

"It's becoming increasingly important for employers to have a proactive approach to attracting candidates, one that goes beyond reacting when a position becomes available and extends to building a bench of talent and having candidates at the ready, year round," Durney said in the press release.

The 3 big takeaways for TechRepublic readers

  1. Some 68% of tech-focused hiring managers said they anticipate more hiring in 2017, a decrease of 10 points from 2015, according to a new survey from DHI Group.
  2. With increased competition for tech talent, 50% of tech recruiters said that the time to fill open positions has slightly or substantially increased compared to last year.
  3. One way to ensure your company is getting the best tech talent is to source passive candidates, the report stated.

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