Hiring tech talent: Best practices in a changing marketplace

Hiring top software engineers—especially those with niche technical expertise—is getting harder. With ongoing debates around tech talent shortages and the growing impact of AI, companies are having to overcome skills gaps and adapt to new workforce requirements. 

To find out more, we’re speaking to Hiraash Thawfeek, Chief Technology Officer at Multiplier, who discusses proven strategies for sourcing specialized talent, balancing external hiring with internal development, and adapting to AI-driven shifts in the hiring process.

The tech talent shortage debate

First things first, is there a tech talent shortage? According to Thawfeek, yes and no. The extent of the problem often depends on location and hiring scale. “For smaller companies with less ambitious hiring goals, the tech talent shortage is not that keenly felt,” says Thawfeek. 

The actual talent shortage problem becomes evident at a larger scale. Consider how, in the US, it’s estimated that the demand for tech talent will grow to 7.1 million tech jobs by 2034—up from 6 million in 2023. The gap between talent demand and availability becomes more pronounced at this level, requiring businesses to employ diverse hiring strategies and expand their talent search beyond traditional markets.

In talent-rich markets like India, “you'll always find sufficient talent”. However, other markets may face genuine shortages—especially, as Thawfeek explains, “if you're hiring for very deep technical projects and you need highly skilled, highly specialized talent.”

The challenge is that in the current economic climate, fewer companies can throw money at the problem—but neither can they compromise on their requirements. To resolve these competing requirements, businesses must hire more innovatively by keeping one eye on the future.

Future-proofing tech hiring

We live in a time of unprecedented change, with AI transforming workforce demands and leading businesses to wonder whether the skills people learn today will still be relevant in five years time. Leaders are therefore rethinking hiring strategies for long-term adaptability and prioritizing skills over degrees. Indeed, 55% of companies have adopted skills-based hiring to address talent shortages, with 23% planning to follow within a year. 

So how do you future-proof your hiring efforts? It starts with ensuring your talent acquisition efforts are correctly aligned. “There's always a bit of sparring that goes on between the hiring manager and the talent acquisition folks when it comes to identifying what kind of talent suits the requirement,” says Thawfeek.

While job postings can attract some candidates, more refined approaches remain essential for hiring senior and highly specialized professionals. According to Thawfeek: “Looking for specific skill sets and experiences requires a surgical headhunting process with multiple iterations before you land on the right kind of profiles.”

Explore software communities

Part of that lies in proactively reaching out to the sites where specialized engineers congregate. LinkedIn remains the dominant platform for talent searches, but companies can also explore more specialized communities such as Stack Overflow and Reddit. “There are also specific networking sites in use in different countries that you can use as talent marketplaces,” says Thawfeek.

The key is to conduct targeted searches and leverage direct outreach to engage potential candidates. But hiring for specialized roles isn’t a one-step process—hiring managers and recruiters must engage in continuous dialogue to refine job descriptions, assess candidate pools, and adjust their search criteria as needed. 

Search for global talent

It’s not just about how you look, but where. Places like India are famous as sources of tech talent, but Thawfeek recommends doing your research before embarking on a hiring process. “What are local candidates looking for and how do they usually interact? Is it normal to reach out to people? Is it normal to discuss salaries openly?” Understanding these nuances is key to closing a candidate in a different market.

Just because you’ve understood one market doesn’t mean you can rest on your laurels and hire there ad infinitum. Talent trends are constantly shifting, as Thawfeek has found through experience. “Sri Lanka was one of the markets that we were very excited about and keen to hire in—but lately we've struggled to find talent there because of the talent crunch.”

The impact of AI on tech hiring strategies

Remaining agile helps companies tailor their talent acquisition strategies to meet specific market challenges—not least the disruptive rise of AI, which has shifted the skills companies look for in engineers. 

While certain AI-driven roles like prompt engineering have gained temporary traction, demand has evolved toward a different kind of professional. “From the software engineering side of things, there is an interest in builders who are able to utilize the AI tooling that's growing in the market,” says Thawfeek.

The key word there is growing. The rapid evolution of AI means that companies must focus on hiring engineers who are adaptable and eager to learn. “It's still a very nascent space,” says Thawfeek. “So I look for engineers who are really going out there and trying out stuff and building the skill set themselves.” Engineers themselves are increasingly wise to the need to make the most of the AI capabilities out there. A user analysis of four million prompts found that workers use AI more for augmentation (57%) than automation (43%), with software engineers and computer professionals being the heaviest users.

By prioritizing adaptable and innovative hires and not waiting for AI roles to become formalized, businesses can ensure they “grow with the change as it happens.”

Winning the race for tech talent

Hiring top tech talent requires a nuanced approach that considers location, sourcing strategies, and internal talent development. While tech talent shortages for specialized roles are making themselves felt, companies can navigate these challenges by being flexible and agile in their hiring strategies.

As AI reshapes the industry, hiring adaptable engineers who can integrate emerging technologies is essential to addressing workforce shifts and maintaining a competitive edge in the evolving hiring landscape.

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