From Talent Shortages to Surpluses… and Back Again? What’s the “Right” Hiring Strategy in the Tech World Right Now?

A Retro of Tech Hiring (And All Its Craziness Driving Companies Crazy)

2011 – Mid 2022: It’s an Employees’ World, and We’re Just Livin’ In It

With the exception of a few months due to COVID, growth seemed to be everywhere. For a while, money was cheap and tech companies were scaling at breakneck speed. 

Hiring during this time was a frenzy, with companies deploying a high-volume recruiting game to meet the relentless demand of their growth plans. Because of this unprecedented growth, and because inbound was generally not enough to keep up, many companies were forced to depend heavily on outbound recruitment to find the right talent. But an outbound engine was a heavy lift; if not fine-tuned right, there was a high likelihood of creating more noise in the funnel vs. precision.

But this was alright and passable (for the time being) because recruiting was purely a numbers game at the systems level.

After all, it was the era of rapid expansion—where teams grew seemingly overnight, and “hire fast, grow faster” became the mantra. 

So, what did the garden-variety recruiting motion look like?

☑️ Companies beefed up their internal talent teams, conducting as much outbound as possible to keep up. 

☑️ Companies found themselves willing—if not eager—to bet on potential versus perfection. 

☑️ The mindset: fill-as-many-roles, as-fast-we-possibly-can, and hope-for-the-best on the path to growth.

And, well, it worked. Companies grew and many great leaders were found and forged during this era who helped pioneer so many new industries and technologies that have reshaped society.

Company growth. Strong job market. Everybody was busy.

What could possibly go wrong?

Mid 2022 – 2024: Employers Are Back In the Driver’s Seat

Well. Growth came to a screeching halt.

Following the unprecedented growth era was a slew of subsequent company downsizing and total paradigm shifts in hiring talent. Funds started pulling back, boards started applying the pressure, and money wasn’t cheap anymore.

Every dollar, every investment, every hire came with a renewed and heightened level of scrutiny. 

At the same time, after waves and waves of reductions, the market found itself suddenly flush with talent – some top performers, and some not. Compounded with low job opportunities and many companies no longer in the hiring frenzy, the power returned to the employers.

So, what did this recruiting motion look like?

☑️ The “volume game” remained—it was just inverted. Rather than aggressively seeking talent through outbound efforts, companies found themselves responding to a flood of inbound interest, a drastic shift from the lean candidate pools of the growth era.

☑️ This time, companies were no longer willing to take broad bets on up-and-coming talent. Instead, the focus shifted to hiring the top 10% and immediate plug-and-play talent. 

Small catch: Many companies didn’t have a clear picture of what the “top 10%” meant in practice, let alone the expertise to identify it reliably. This struggle to define and assess top-tier talent led to longer interview processes, more take-home assessments, and the candidate experience took a nosedive.

As this new reality unfolded, one thing became glaringly clear: Networks and referrals emerged as the most reliable and efficient hiring channel. Similarly, the backchannel motion increasingly became the norm. This is because leveraging trusted connections and referrals helped companies bypass guesswork, providing credibility, efficiency, and a better candidate experience.

With careful and calculated growth back on the table, employers face a critical question: Now what? What is the right recruiting motion moving forward? 

Hunt Club’s recent market survey shows tech and product functions will experience the largest changes in budget, team structure, and leadership to power transformation. The same survey revealed that hiring talent is the #1 priority, or the most important people-related action, that organizations need to take to undergo business transformation and execute plans successfully.

Consider also that the AI sector alone is expected to show an annual growth rate of 28.30%, resulting in a market volume of US $223.7 billion by 2030.

There are signals to suggest (at long last) that we’re now living in a calculated growth market and hiring in tech once again. While this is the case...

Our survey found that finding the right talent with the right skill set is still the biggest obstacle standing in the way of growth plans and executing material transformation.

But the right hiring strategy isn’t as simple as opening the floodgates or tightening the reins as we saw in the past. With economic uncertainty and shifting candidate expectations, the “right” recruiting strategy has become highly nuanced, varying by company position, growth phase, and overall business goals.

So what happens now?

Should companies return to high-volume outbound recruitment, depend on inbound, rely on trusted networks to maintain quality, or craft a unique mix of these? 

To know what the right, core recruiting motion is for your company, you need to be deeply self-aware of where your company stands in the pecking order.

To find the right recruiting approach, companies need a clear, honest view of their place in the talent market. “Companies have to be really self-aware of where they rank in the stack and how they appeal to talent,” says Ta. “Today, there’s a more pronounced divide between the ‘haves’ and ‘have-nots’ in the market. This self-realization is essential because it will ultimately shape how you recruit.”

For those in the “have-not” category, the challenge is greater. 

If outbound, headhunting-style recruiting is necessary, it’s worth asking: does your recruiting team still know how to do it effectively? During the employers’ market era, many companies shifted to high-volume, inbound-based hiring, so traditional headhunting skills may have dwindled and the white-glove experience became a lost art.

Do your talent teams remember how to deliver a personalized, high-touch candidate experience? Are they skilled in thoughtful outreach, creating meaningful connections, and providing a standout experience that leaves an impression?

Even “have” companies need to be strategic to capture and retain the right kind of interest. 

Conversely, if you’re high in the pecking order, do you have a clear strategy for capitalizing on your brand strength? Top-tier companies can easily attract talent through inbound interest, but relying solely on a strong reputation can lead to complacency or wrong fits.

Are you making the most of your network channels to connect with high-impact, referral-based talent?

In Every Market, Lead With Network-First Recruiting

“We’ve seen the cycle play out. What I’ve seen as a constant success in all markets is recruiting through trusted referrals and networks. Network-led recruiting motions will always be your bedrock regardless of the cycle, or your position in the hierarchy,” shares Ta.

Right now, the nature of tech recruiting, especially in high-stakes roles in such fast-evolving fields and expertise, is becoming less and less about building robust pipelines of “good enough” candidates, and more about precision with exact skill/experience matches, unique culture adds, and motivation to solve the big problems. 

As competition intensifies, network-led recruiting stands out as the most effective approach, allowing companies to access vetted talent with proven expertise and genuine alignment with their mission.