The Evolving Technology Workforce: Is permanent hiring going to become defunct?

The Evolving Technology Workforce: Is permanent hiring going to become defunct?

In recent years, the technology workforce has undergone a significant transformation. Whilst hiring full-time ‘permanent’ employees is still currently a main strategy of most multinational employers when looking to add human capital to their business, we have also seen a shift towards ‘flexible employment solutions’ including contingent hiring, hiring of remote workers, and employment of part-time employees or freelancers. Organisations also often choose to work with specialist vendors and consulting firms to augment their existing teams or add required technical expertise.

This raises the question of if in the future there will always be a need for full-time permanent employees in organisations or if permanent hiring will eventually be replaced.

Arguments For & Against Permanent Hiring

Advocates of permanent hiring highlight several benefits, including:

  • Stability and predictability in workforce planning and budgeting
  • Opportunities for employee training and career development
  • Greater employee motivation and job satisfaction
  • Long-term investment in human capital
  • Establishment of a positive company culture and brand reputation
  • Increased productivity and reduced turnover costs
  • Better alignment of employee and company goals and objectives
  • Stable workforce, a clear sense of job security, and a more predictable income for employees

However permanent hiring also has clear disadvantages, including:

  • Higher costs associated with recruiting, training, and benefits
  • Potential difficulty in managing underperforming employees
  • Limited flexibility in adjusting workforce as business needs change
  • Potential for higher costs in terms of severance and termination pay
  • Lower mobility and decreased opportunities for employee career growth
  • Limited ability to scale workforce quickly as business needs change
  • Decreased organisational agility and innovation

What are the other options?

With employers seeking to reduce risks and costs, and the next generation of technology professionals looking for more work-life balance and meaningful work, the use of freelancers, contingent workers, or engaging specialist vendors for staff augmentation and/or specific technical expertise is becoming increasingly common. Companies are embracing the hiring of part-time employees or full-time employees but on temporary contracts. This can more easily meet their needs for additional resources and expertise, without having to make a long-term commitment.

With advances in technology also making it possible to work from anywhere, many companies are also embracing remote working as a way to attract and retain talent, reduce costs, and increase efficiency. Remote workers can also bring new perspectives and experiences to the workplace, making organisations more innovative and diverse.

This blended approach to hiring and talent engagement allows organisations to tap into a wider pool of talent and allows organisations to respond quickly to changing business demands, while also giving job seekers the flexibility they need to balance work and personal responsibilities whilst working on a variety of projects.

Does this mean the end of permanent hires?

This all sounds great! Could this be the end of hiring on a permanent basis?

Well maybe. But probably unlikely. 

These new ways of working offer many benefits over permanent hiring, but they also come with their own set of challenges.

For employers, there is a need to manage and integrate a diverse and geographically fragmented workforce, deal with the increasingly complex legal and regulatory frameworks, ensure the culture of the company is retained, ensure consistent quality, as well as maintain effective communication and collaboration.

For IT professionals, there may be concerns about job security, benefits, learning & development, career advancement, and company culture.

Given the sheer size, scale, and complexity of many organisations and the thousands of employees they have on their payroll, it’s also likely that employing a significant percentage of those employees on permanent full-time contracts will remain as a common strategy for the foreseeable future.  

However, we do anticipate that employers will choose to use a combination of permanent, contingent, and flexible employment solutions to meet their staffing needs through a blended approach of hiring directly, working with recruiting partners, or engaging vendors. These vendors will typically support staff augmentation, act as an MSP (Managed Service Provider) or provide specialist consulting or technical advisory support. In the future, we would anticipate that technology professionals may choose to work in any of these different capacities at different stages of their careers.

Ultimately, the most important thing is for organisations to have the right mix of employees and expertise to meet their needs to enable business growth and for job seekers to have the right mix of opportunities to meet their needs and preferences.

So, the simple answer to the question ‘Is permanent hiring going to become defunct?’ is no! At least not in my opinion, and certainly not in the short to medium term. However, as the technology workforce is becoming more diverse and dynamic, organisations need to adopt hiring strategies that go beyond permanent recruitment and take a more holistic view of their workforce needs. By doing so, they can benefit from reduced costs, increased expertise, and greater flexibility, while also meeting the needs of employees in an ever-changing business landscape.

Where AmbTech comes in…

At AmbTech we understand the importance of responding quickly to the demands of a rapidly changing market, and our bespoke services are designed to help businesses evolve and stay ahead of the curve. 

AmbTech leverages extensively from our parent company, international staffing firm Ambition Group, through which we can also tap into over 20+ years’ experience in Asia with access to over 50,000 technology professionals. We are therefore able to deliver high-quality, flexible, and cost-effective solutions to our clients and we believe that by partnering with AmbTech your business will be better equipped to meet the challenges of the future, no matter what they may be.

We look forward to Partnering Together with you.

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