Many of these leaders have expressed a strong desire for their employees to return to the office, despite the unprecedented success of remote work. Top performers exiting during the pandemic have posed a major challenge, but these trailblazers remain undaunted and determined to find new ways to build dynamic teams.
With frustrations mounting over the traditional hiring model, innovative tech founders and executives are forging ahead with a bold new vision for the future. They’re ramping up hiring plans, embracing freelancers, and adopting a revolutionary new model of ‘blended teams’ that leverages the best of both worlds.
And though some may caution against fundraising in the next 24 months, the majority of these visionary leaders remain undeterred and committed to raising funds within the next year.
The challenges have been unprecedented, but so have the solutions. As valuations and fundraising take a hit amid economic uncertainty, the talent market remains tighter than ever. Workers are resigning in record numbers, presenting an incredible hurdle for tech leaders to navigate. But these pioneers have risen to the occasion, adapting to new financial realities and finding innovative ways to hire the talent they need to not just survive, but to thrive.
The future of work is here, and these visionary leaders are leading the charge. Are you ready to join them?”
hubinit has uncovered some revolutionary findings in the tech industry that will change the way we think about hiring forever. The Great Resignation has had a massive impact, with a staggering 44% of tech founders and executives reporting that a significant number of their top performers have exited as a result. But these industry pioneers remain undaunted, ready to adapt and overcome.
Despite their frustrations with the traditional recruitment model, a whopping 67% of these visionary leaders agree that it’s broken and in desperate need of an overhaul. The industry’s brightest minds are eager to bring on top product and engineering talent, but it remains a major challenge. A staggering 62% of leaders report that it takes 4 months or more to hire the very best.
And the winds of change are blowing across the industry, with 80% of tech leaders reporting that they’re now willing to hire someone without a college degree for any role. It’s a bold new world, and hubinit is leading the way.
hubinit has uncovered some truly groundbreaking insights into the world of tech. Blended teams of full-time employees and independent workers are now the norm, with a staggering 73% of tech companies integrating these teams. Visionary tech leaders see independent talent as a vital tool in times of economic uncertainty and remote work. A remarkable 71% agree that bringing on freelancers or independent workers gives their business greater agility during tough times, and 70% say that remote work has made them more likely to bring on freelancers or teams as a service.
The results of a flexible work model speak for themselves, with 62% of tech leaders believing that the shift to remote work has increased employee productivity. But hubinit‘s research also shows that many are now planning to return to the office. A notable 37% of tech founders and executives say that they intend to work from the office more over the next year. And amongst more mature Series B, C, D, E, and public companies, that number jumps to an impressive 55%. hubinit is leading the charge in this bold new era of tech, where flexibility and innovation go hand in hand.
Innovation is at the forefront of every tech leader’s mind, and hubinit has unearthed some fascinating findings in this regard. Despite warnings from top VCs not to fundraise in the next 24 months, a courageous 60% of tech leaders still plan to try. And an even more impressive 78% plan to fundraise within the next 18 months.
hubinit‘s research has revealed that tech leaders are adopting a long-term view of their organization’s health, with a remarkable 57% expressing greater concern for the long-term viability of their company compared to six months ago. Only 10% were less concerned.
As we approach the two-year mark of the pandemic, tech leaders are increasingly concerned about the mental health of themselves and their employees. hubinit‘s data shows that 72% of tech founders and execs are worried about the mental health of their employees, while 62% are concerned about their own mental health. hubinit understands that tech leaders must balance the demands of innovation with the wellbeing of their team, and we are committed to providing the support they need to succeed in both areas.
In the tech industry, the Great Resignation has caused a significant impact, leading to high resignation rates. This trend was predicted to return to normal with a wave of layoffs, but the latest labor report shows that 40% of workers plan to quit in the next 6 months. As a result, 44% of tech founders & execs say that they have lost a significant number of top performers due to the Great Resignation. Despite layoffs, hiring plans are on the rise, particularly at more mature companies. Forty-five percent of respondents stated that their hiring plans have increased over the last 6 months, with this number jumping to 59% for founders & executives at the Series B to public company stage.
However, the traditional recruitment process is becoming more frustrating for tech leaders, as 67% believe it is broken and needs an overhaul, mainly due to being too long and expensive. Product and engineering roles are particularly difficult to fill, with 62% of tech founders & execs stating that it takes 4 months or more to fill these roles on average. Respondents also rated product and engineering as the hardest role to fill, but marketing (17%) and HR (14%) also earned a significant share. Consequently, tech leaders are becoming more flexible in their criteria for great talent, with 80% willing to hire a candidate without a degree if they have the right skills and experience. They are also increasingly investing in formal career growth and upskilling programs, with 87% stating that having a formal career growth and upskilling program is important to their employees, and 41% increasing their investment in tech upskilling programs in the past year.
As the trend of the Great Resignation continues, a new workforce trend has emerged: the growing pool of highly skilled freelancers and independent workers. Tech founders and executives are taking advantage of this trend by restructuring their organizations to balance immediate needs with long-term growth.
According to a Bloomberg analysis, one-third of the growth in the labor force over the past two years has come from the self-employed, and a recent Upwork study revealed that 36% of all workers now freelance, with 53% of those workers offering in-demand skills such as computer programming and IT. This growing pool of highly skilled freelance tech talent, coupled with the flexibility of bringing on an independent workforce during times of economic uncertainty and remote work, make freelancers increasingly attractive to tech leaders.
Our recent survey of tech founders and executives revealed that 42% of respondents have freelancers or independent workers make up over one-quarter of their total workforce. This figure is expected to grow in the future, as over two-thirds of respondents claim that economic uncertainty has made them more likely to bring on freelancers or independent workers, and the same number believes that doing so gives their business greater agility.
Moreover, the integration of freelance workers into blended teams with full-time employees has become a popular approach. 73% of respondents said they have already integrated teams of full-time and independent workers, and an additional 11% plan to do so soon. With remote work gaining popularity during the pandemic, it has become easier to build blended teams that can operate out of the cloud instead of a conference room.
Tech founders and executives see the value in remote work, as 62% of respondents believe that shifting to a more flexible work model during the pandemic has increased employee productivity. However, as businesses plan for the future, 37% of respondents plan to ask employees to work in the office more over the next 12 months. Among more mature companies, 55% plan to ask employees to work in the office more.
Finally, while the benefits of remote work are clear, 53% of respondents believe that an economic downturn would make it easier to require employees to return to the office. By embracing a blended workforce and maintaining flexibility, tech leaders can position their organizations for success in the face of economic uncertainty and changing work models.
In May of last year, Sequoia Capital released a memo warning of an impending downturn in the tech industry and advising companies to focus on cost-cutting and becoming profitable. Despite this warning, tech leaders remain focused on fundraising and growth, with 60% planning to fundraise in the next 12 months and 78% planning to fundraise in the next 18 months.
However, there is a greater concern for consistency and stability in pursuing growth, with 57% of tech founders and executives more worried about the long-term health and viability of their organization compared to six months ago. Mental health is also a top concern, with 72% worried about their employees’ well-being and 62% concerned about their own.
Reducing stress and managing motivation is another focus, with 63% worried about employee burnout and 59% expressing concern about their own burnout. While revenue growth remains a top priority at 43%, fundraising comes in at 22%, and reducing burn rate and achieving profitability is a distant third at 14%.
Despite the current uncertainty, economic downturns present opportunities for dramatic market evolutions. The 2008 recession, for example, gave rise to a generation of SaaS companies that disrupted the status quo and pioneered a new consumer experience. Similarly, companies like Airbnb and Warby Parker found ways to adapt to changing market needs.
Instead of waiting to see what happens, tech founders and executives should be seizing this window of opportunity to think creatively and disrupt outdated ways of operating. Our research shows that tech leaders are already willing to apply this mindset to their workforce and org structure. Remote work, blended teams of freelancers, full-time employees and on-demand teams as a service are no longer fantastical concepts but rather preferred ways of working.
As this trend accelerates, founders will need to continuously rethink team formation, management, and optimization. They will also need to address new questions around benefits, mental health, and compensation. Those who embrace change will likely gain a key advantage over the competition.
At hubinit, we’re excited to track the impact of these new trends and work models in future studies. Despite the unprecedented times we’re living in, there are opportunities for growth and evolution in the tech industry.