Something strange is happening. Have you noticed? Demand for software engineers seems to be at a low point. Simple economics would tell us that low demand means increased supply, but somehow finding quality talent is becoming counterintuitively difficult. What’s really going on?
Several factors contribute to the complexities of the job market. Let's break down three main reasons why it feels like talent is becoming increasingly scarce despite overwhelming evidence that it should be booming. And importantly, what to do as a company looking for engineers or as an engineer feeling stuck in their career.
Pickiness from Companies
While the demand for generalized talent may have decreased, the truth is that thousands of engineers are graduating annually across the Americas. Finding a developer isn’t inherently difficult. So, companies have raised the bar, focusing on specialized skill sets and putting extra effort into narrowing down potential candidates to those who meet their exact requirements.
Is this a good practice? Yes and no. Sure, you'll get team members who can hit the ground running and navigate learning curves with ease. But, on the flip side, you might take much longer to find that one needle in a haystack. Plus, you could potentially miss out on serious talent that could adapt to your specific technology requirements and learn what’s needed quickly. This symptom is exacerbated by the next point.
Developer Wariness
In such uncertain times, engineers have noticed that the market in 2024 isn’t what it was two years ago. Previously, talent could jump from project to project, aiming for increasingly better-compensated jobs with each move. That’s no longer the case, and talent in this area has started to value stability. Many are afraid to move from their positions out of fear that they may take a false step and lose a reliable income.
To complicate matters, engineers who are truly great and specialize in what you need are more likely to think twice about participating in a project that doesn’t meet their expectations around technology and industry.
Shift to AI and Market Uncertainty
For most of 2024, AI has been on everyone's mind. Many companies are still struggling to keep up with the pace or even understand what AI will be capable of in the short term. Until this development slows down and we come to understand what the new normal looks like, both companies and engineers are likely to remain cautious about their next move.
In some cases, companies have taken a gamble and jumped to gather talent with AI specializations, hoping to capture it before everyone else catches up, leaving standard engineering roles in a halt.
What Can We Do?
As an engineer, you have multiple options. If you feel comfortable at this point in your career and don’t feel like pursuing new opportunities, staying put is a good option. But bear in mind, companies haven’t stopped layoffs, and the risk of being cut loose remains. A better choice is specialization. Specialized roles will continue to be in demand, and pursuing opportunities in the technologies you want, whether at your current job or elsewhere, is a winning option.
As a company, building a strong employer reputation is paramount. Create a pipeline by engaging with communities of engineers interested in pursuing opportunities with you out of sheer interest in your values and work. This will make the hiring process easier when you're ready. Additionally, maintaining flexibility when looking for talent is crucial. Some technologies are easy to learn, and you might find excellent candidates willing to adapt.
Conclusion
We’re navigating through a strange time, but like all market fluctuations, this too shall pass. Both companies and engineers need to remain adaptable and forward-thinking. Companies should work on being attractive places to work, offering flexibility and fostering community engagement. Engineers should focus on specialization and be open to new opportunities, ensuring they remain valuable assets in a competitive job market. The market will bounce back, and those who remain excellent options to partner with will thrive.
