Over 200k People Will Be Laid Off in the Tech Industry in 2023
In Brief
The tech industry is experiencing a “buyer’s market” as employees prioritize factors beyond monetary compensation.
A recent report from Blind shows that 56% of respondents are willing to accept a new role with a lower salary if it fulfills other needs, such as an adequate corporate culture, work-life balance, remote or hybrid work arrangements, and visa assistance.
This shift in mindset presents opportunities for startups, as they offer a dynamic culture, purpose, and meaningful impact on the world.
Employee expectations have undergone a tectonic change, with money no longer being the primary motivator. As layoffs in the industry continue to rise, surpassing 200,000 in the first half of 2023 according to Layoffs.fyi, the landscape has become a “buyer’s market” that is reshaping the way employees perceive their ideal work environment.
A recent report from the career forum Blind sheds light on the evolving salary trends among tech workers. The key finding reveals that 56% of respondents are now willing to accept a new role with either the same or lower salary if it fulfills other important needs. These needs include factors such as an adequate corporate culture, work-life balance, the opportunity for remote or hybrid work arrangements, and assistance in obtaining a visa.
The shift in mindset among tech workers presents an opportunity for startups, as they are known for attracting talent through factors beyond monetary compensation. Startups have the advantage of offering a dynamic culture, a sense of purpose, and the ability to make a meaningful impact on the world. This change in priorities provides fertile ground for startups to poach individuals from more traditional corporate environments that may suffer from toxicity and lack of motivation.
The desire for an adequate corporate culture resonates strongly among tech workers who are willing to trade a higher salary for a healthier work environment. Toxicity in the workplace has become a significant concern, and employees are increasingly valuing a positive and inclusive culture that promotes growth and collaboration.
Achieving a work-life balance is another factor for tech workers when considering a new role. The demand for flexible work arrangements, including remote or hybrid work options, has surged in recent years. Companies that can accommodate these preferences stand to attract and retain top talent in the competitive tech job market.
Additionally, for individuals seeking job opportunities in foreign countries, assistance in obtaining a visa has become a critical consideration. Startups that can navigate the complexities of immigration processes and support international talent have a competitive edge in attracting skilled workers from around the world.
Lower Salary Expectations Create Opportunities for Employers
With over 200,000 employees laid off across nearly 700 tech companies and more announcements being made daily, the industry is experiencing a transformation. Amidst these challenges, there are new opportunities for employers to attract top-quality candidates at a reduced cost.
The current job market presents a buyer’s market for employers, with a larger pool of applicants and more options to choose from than ever before. Candidates, influenced by the changing landscape, are now placing greater emphasis on factors beyond monetary compensation. Culture, career growth, work-life balance, and stability have emerged as key considerations for job seekers in ways that have not been seen before.
The job market serves as the primary influence on these lowered salary expectations. However, it is not the sole factor at play. The survey reveals that 19% of respondents consider a strong company culture and work-life balance to be critical drivers of their decision-making process. 14% express a preference for remote or hybrid work arrangements, while 13% emphasize the importance of career growth opportunities.
This shift in candidate priorities provides employers with a unique opportunity to attract highly qualified candidates at a potentially lower cost. Startups and smaller companies, historically resource-constrained with limited budgets, may particularly benefit from this trend. By addressing the non-monetary needs of candidates, employers can differentiate themselves and create appealing work environments that go beyond traditional compensation.
It is worth noting that while salary expectations have dipped across various experience levels, the impact is more pronounced for junior and mid-level engineers. Early-career engineers have been the least affected by market conditions, while senior engineering talent is adjusting their expectations to a lesser extent.
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Damir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
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Damir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
