A highly technical new world order: Wages are falling, demand is rising, and no one in a

A global crisis, an environmental crisis, layoffs, closing companies, mergers, divestments, and reduced investment – since the beginning of 2022, an eternity seems to have passed in Israeli high-tech. Recruit new employees. In terms of market conditions, we asked the HR managers of companies that are currently hiring and what changes compared to this year’s high recruitment numbers. Has the power really returned to the recruiters, and is it easier to recruit talent today? Recruiting workers for the high-tech industry in 2023 – a snapshot.

Wages are falling – but not for everyone.

In the year In March 2022, something happened that we haven’t seen in Israeli high-tech for a long time: the average salary dropped. That’s after reaching NIS 30,000 (about $8,600) per month. Since then, the salary has been on the rise and in January of this year it was 28,772 NIS per month – a 5.4% increase compared to January of last year. But the average salary does not give the whole picture. In times of crisis, layoffs and a decline in real wages, the wage demands of certain workers in recruitment processes have remained stable.

“On a macro level, we’ll see status levels stagnate or decline. But ultimately a candidate who brings unique skills and talents and can land multiple offers in hand won’t necessarily see a dramatic decline in status,” says Daniele Rotham, Director of HR, HRBP & OD at Redis.

Therefore, the salary requirements of the skills have not changed. These are workers who are often not actively looking for work but are ‘hunted’ by employers. Therefore, it is possible to distinguish between active job seekers and candidates who are offered by employers on their own initiative. “Candidates who are actively looking for jobs today are more flexible when asked about salary expectations. Additionally, I recognize the trend of candidates who have used the market to improve their salary and need to adjust their salary expectations today,” said Lee Shehbar, director of recruiting and human resources at fintech company Nayaks, which employs nearly 800 people worldwide. , most of which are located in the development center and headquarters in the company’s offices in Herzliya.

Although the decline in average wages and the wave of layoffs is not immediately reflected in the lowering of salary requirements for candidates, HR managers say there is some flexibility on the part of candidates when negotiating terms. Work. “Salary requirements remain high, but we’ve seen a shift in candidates who understand that we offer other important values, such as stability,” says Nirit Amar, VP of Talent Acquisition at Ness.

Looking for stable ground

Stability, lack of dependence on investors, and career scope have become important considerations for candidates while choosing a workplace. With the market uncertain and large companies downsizing, candidates should carefully check how safe the company they are interviewing for is.

“At the first stage of the telephone interview, we get questions that are already visible, for example: what will the company’s business forecasts be in the near future, is it a new position, and how do we deal with the situation on the market. These questions indicate the security that the candidates are looking for in the companies they are interviewing,” says Shehbar. .

Candidates want to be hired at companies that don’t rely on raising capital to survive, says Hillit Paz-Lachauer, VP of Human Resources at Advance Software. “In 2021-2022 candidates had options in startups that raise capital in value that sometimes increases from quarter to quarter. This year we see the benefits of a technology company with a long history and stability. Growth, global activity combined with certainty. And stability plays a big role in our favor. They play,” she says.

Stability has become one of the most important factors for candidates, and this is expressed by standards and thorough tests, as well as the fear of entering new processes. “The questions and requests that candidates make are deep and long, and only after they are completely sure and confident about the position will they sign and take action,” says Amar.

Some candidates have personally experienced layoffs even if they were not fired themselves, so the companies choose to highlight the stability and growth of the organization to their employees. In addition, candidates are still looking for personal and professional development. “It could be considered icing on the cake, but it’s something that candidates emphasize,” says Rotham. “Companies that don’t allocate resources will lose the talent battle.”

Another question for candidates that doesn’t seem to be going away anytime soon is hybrid work. “Talent is less satisfied and insists on hybrid work and flexibility in working hours,” says Avia Telias, vice president of human resources at AltShare, which employs 120 people. Companies that do not allow hybrid work also face this need and are still trying to be flexible, given the competition, for talent. “After the pandemic, the need for hybrid work has not disappeared. We encourage people to come to the company’s offices and have a good presence, but we also allow some flexibility according to needs,” said Paz-Lachauer.

Reducing the number of vacancies

The shift from rapid growth to an emphasis on profitability has led to layoffs and reduced vacancies. Some companies that are still hiring today offer less than half of the jobs they offered during last year’s peak. “If you look at 2021, there were 30 vacancies and today there are 12-15 vacancies as we take more responsibility and choose areas that are critical to the business,” Rotham says.

Merav Ben Ari, Global VP People at Eleos Health, explains that following the changes in the market, the company takes a careful and responsible approach to recruitment. According to Ben Ari, the companies open new businesses only if there is full confidence in their survival. The same is true of Nayaks, who has grown in the last two years and has not been sacked recently. “We analyze the importance and importance of every new location that opens,” says Shekhar.

Following the changes, most of the vacancies are for roles in the companies’ technological development, such as engineering and programming. Depending on the company’s field of activity, there are jobs in sales and customer success.

There are fewer jobs in the market and more candidates available, which leads to more employment trends. First of all, professional requirements are increasing; Second, the employment period is short; And finally, there are still positions that are difficult to recruit.

Because there are so many candidates for companies to level up, “It’s a very competitive market, so when there’s no supply, we hire people with less experience, and when the supply is better, we look for the right candidates. Who best fits the job requirements,” Rotham says. According to her, hiring managers They redefine and strengthen entry conditions such as experience and academic studies.

Since there are many candidates, the companies can afford to raise the standards. “It is a very competitive market, so when there is no supply, we hire people with less experience, and when the supply is better, we look for the right candidates who best meet the job requirements,” says Rotem.