Putting expansion plans on pause and re-thinking hiring strategies will help tech companies overcome industry struggles

As spiralling inflation, interest rate hikes and the threat of recession drive up the cost of doing business, tech leaders must be agile, look to new methods of management and be open to rescheduling pre-existing plans. This is according to STX Next, Europe’s largest software development company that specialises in Python.

Alongside economic struggles, talent shortages are continuing to expose skills gaps in technical teams – 68% of tech companies say they are held back by a lack of qualified staff – while decision-makers are still struggling to fine-tune remote working models and implement new technologies in the workplace. However, Maciej Dziergwa, CEO of STX Next, believes that tech companies can survive and thrive by adapting practices to reflect the business landscape.

Dziergwa said: “It’s important that tech leaders recognise the current economic slowdown is halting the IT industry’s momentum, and react accordingly. For instance, they shouldn’t be afraid to rein in growth plans during the height of the crisis, allowing for flexibility if the climate suddenly worsens.

“Downsizing is a concerning trend in the tech industry – Amazon, Meta and Twitter are the latest high profile organisations to slash employee numbers – so it is vital that businesses grow sustainably to avoid turning to job cuts.

“Technology leaders should also prioritise the investment of time and funds into client acquisition and retention. This involves adopting a more client-focused approach, such as travelling to meet existing or potential partners face to face. Regular contact shows a business will be far more dependable during an economic slowdown than less visible competitors.”

To cope with the shortage of IT workers, Dziergwa believes that technology companies should seek to enhance the employee experience in order to set themselves apart from competitors.

He added: “With skills shortages putting a strain on recruitment strategies, it’s time for business decision-makers to be more proactive to attract new talent or retain incumbent employees.

“Flexibility is a priority for the bulk of today’s workforce, so appealing to candidates begins by ensuring that remote working models are watertight, and that staff are well-supported even if they are based at home.

“It’s important to remember that the offer of hybrid work is now a minimum requirement for prospective staff. The tech companies that differentiate themselves will go above and beyond to meet employee needs, providing financial, emotional and educational support to guide workers through the cost-of-living crisis.”

He concluded: “Times of economic slowdown are great opportunities to pinpoint areas for improvement and strengthen company culture. The pandemic came as a shock and stopped the world in its tracks – tech leaders must not let history repeat itself, regardless of what transpires in the coming months.”

Technology leaders can share their thoughts on how to weather the oncoming storm by completing the CTO Survey: https://www.thectosurvey.com