After the last few years of mass tech layoffs, we’re now seeing signs of technical hiring picking back up. Karat’s 2024 Tech Hiring Trends report surveyed hundreds of engineering leaders and found that hiring targets are up across the board. U.S. hiring targets are up 12% from last year, with companies averaging about 300 open software engineer roles, and 23% of companies targeted hiring over 300 software engineers in the U.S. compared to 13% in 2023. We also saw increases in non-U.S. hiring, with 81% of U.S. engineering leaders planning to hire abroad compared to 73% last year.
With signs that hiring is heating up, companies need to find ways to get ahead of their competition. While there are many ways to do this, our research found that more flexible hiring practices continue to be a strong competitive advantage.
Despite the backlash against DEI (diversity, equity, and inclusion) efforts this year, many of the investments that companies have already made in DEI also seem to be paying off by making the whole hiring process more fair and effective. The majority (70%) of top-performing engineering leaders strongly agree that DEI is a priority, but only 36% of lower-performing leaders feel the same. This percentage of top performers increased from 62% last year, which suggests that DEI is becoming even more important.
To understand how flexibility and inclusive hiring can help you make your engineering hiring process more fair and inclusive, adopt these three best practices.
Meet the Scheduling Needs of Candidates
Not all candidates are able to interview during regular business hours — for example, candidates who have children, care for family members, or juggle multiple jobs. These candidates may be less likely to proceed through the hiring funnel because your availability doesn’t fit their schedule or finding a time that works for everyone is a frustrating process.
To meet the needs of a variety of candidates, offer flexible interview scheduling. Allow candidates to interview in the evenings and on weekends — ideally 24 hours a day, 7 days a week.
Having interviewers available 24/7 isn’t feasible for most companies. To get around this, Karat leverages our network of professional interviewers across timezones to interview engineers all over the world. With an expanded pool of interviewers, you’ll give candidates the flexibility they want without increasing the demands on your team.
Offer Redo Interviews
Underrepresented minorities (URMs) are often at a disadvantage when interviewing because they receive fewer interview opportunities. Our data backs that up, as we’ve found that only 50% of surveyed Black engineers had experienced a technical interview before looking for a job. This interview access gap means underrepresented minorities lack interview experience, which can affect their confidence and performance.
Redo Interviews support these candidates by giving them the opportunity to redo their first-round technical interview if they feel they didn’t do their best. By offering a second chance, you’re less likely to pass on a candidate who had the right skills but simply felt anxious or had an off day.
Redo Interviews don’t just help you create diverse engineering teams. They also help you close, as we’ve seen an 8% increase in close rates when URM candidates take a Redo Interview.
Focus on Skills, Rather Than Resume
Over-reliance on resumes can lead to pedigree bias, where candidates get passed over because they didn’t graduate from a top engineering school or work at a large, well-known tech company. These candidates typically come from underrepresented racial and ethnic groups, as underrepresented minorities lack exposure to the tech industry. We’ve found that nearly three-quarters of surveyed Black engineering students knew less than five people working in big tech, and more than 25% knew no one. Focusing on resumes perpetuates this access gap and means you’ll lose out on talented candidates who simply fit a different profile.
A more inclusive and fair way to screen candidates at the top of the funnel is with a technical skills assessment. Skill assessments put candidates on a level playing ground so that they can showcase their abilities and expertise. Those with the right skills for the job will rise to the top, rather than those who come from select backgrounds.
Conclusion
As hiring for software engineers is picking up, it’s not going to be easy for companies to secure top talent and meet their hiring targets. Companies that are more likely to succeed are the ones prioritizing DEI, as our data shows that top-performing engineering leaders are more likely to do so compared to lower-performing leaders. By continuing to invest in DEI and adopting these three practices to make your hiring process more inclusive, you can give your company a leg up.
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ABOUT THE AUTHOR
Scott Bonneau
EVP of Product & Operations
Scott Bonneau is the Executive Vice President of Product and Operations at Karat, the world’s most trusted talent evaluation partner. Bonneau brings a unique perspective to the world of tech talent, having performed in both software engineering and talent acquisition leadership capacities prior to joining Karat. Most recently, Bonneau served as the Vice President of Talent Acquisition at Indeed.
