Rethinking the tech industry’s approach to the job market

The tech industry has hit a rough patch, and it doesn’t look like it’s getting better anytime soon. In recent months, tech layoffs have been happening faster than during the early days of the pandemic. Even firms like Amazon and Salesforce have not been spared.

That said, not all is lost. Companies can’t just unthinkingly cut their workforces – firms still need to have the right teams to execute their visions, and that means hiring and retaining the best talent they can.

Peter Bithos, CEO of Seek Asia / Photo credit: Seek

“The best and most successful companies find the best people for their firms, situations, and roles. Investing to find the right person is paramount,” says Peter Bithos, CEO of Seek Asia, which operates several online employment marketplaces such as JobStreet and JobsDB. “That priority has not changed one bit.”

Given today’s tough conditions, how can stakeholders in the tech sector rethink their approach to the job market? Bithos shares some pointers.

Reevaluating the job market

Bithos points out is that while the tech sector has been suffering, it’s not necessarily the same for all tech talent.

Essentially, there’s been a lot of overinvestment in young and medium-stage startups that overestimated their growth prospects. According to Crunchbase, global VC funding hit US$70 billion in November 2021. In 2022, this fell 69% to US$22 billion. Amid worsening macroeconomic conditions, tech firms have had to make a “massive adjustment,” and that brings headcount changes, he says.

However, there’s still huge overall demand for tech talent. According to the CEO, demand for tech roles on Seek’s platforms is up 180% in Singapore from 2020 and has risen 75% in Indonesia in the same period.

“In fact, when we look at the whole of 2022 cumulatively, the number of job ads for tech roles in Singapore has not only increased significantly, but it has also outpaced the growth of the total job ads in the country,” he points out.

Photo credit: rrice / 123RF

Additionally, because of the layoffs, tech workers are more focused on the security of their positions. These are important points for companies in the tech industry. They could risk losing out on talent if they aren’t financially stable.

“I was interviewing someone to join Seek, and I had the interviewee ask me: ‘Will my job be secure?’” Bithos shares. “I’ve never gotten that question since I joined Seek two years ago, which is a really good indication that there’s much more focus on being wary of the company and whether it’s in a good position.”

Understanding what matters

Bithos advises tech companies to ensure they’re a profitable and financially secure organization – should macro conditions worsen, this helps safeguard against potential job cuts. And the key factor driving profitability is managing innovation in a sustainable way.

“The challenges with profitability doesn’t mean you have to slow down innovation,” he says.

“The real challenge is how to accelerate innovation but not over-invest until you’re certain of what pace you can grow something at.”

One misstep that firms make is to come up with an idea, assume everything will work out, and then hire for the end goal. That thinking, however, will lead to “lots of layoffs,” Bithos adds. Instead, companies should concentrate on achieving and proving concepts at certain stages before allocating resources to the next step.

Seek, for instance, launched SeekMAX, a video-based learning platform, in Indonesia last September. The point of launching the service in just one country was to ensure that the company could get the concept and fundamentals running right before expanding it elsewhere, Bithos explains.

That said, tech talent is still facing an unprecedented level of uncertainty. And for those that have had to face the knife, the Seek CEO has some advice.

Photo credit: ryanking999 / 123RF

“I’ve been laid off before,” he shares. “First and foremost, take a step back. This is a unique moment for individual talent to understand what they want over the next three to five years and what they value.”

Moreover, workers in the tech industry should keep an open mind, he says.

“If you’re in a tech firm like Grab or GoTo, it’s kind of all consuming and you lose sight of how big the world is out there. It’s full of opportunities, even if it may not be the ones you’d naturally think of,” he points out.

To that end, retrenched workers can consider using employment platforms like JobStreet to discover opportunities or even offline channels like networking events – such as the one hosted by Seek and Tech In Asia – to interact with and reach out to other stakeholders.

Stay with me

While hiring is an issue right now, it isn’t the only concern. Retaining good talent is also a challenge as employees’ priorities have changed.

Bithos says that at this juncture, it’s not the “shiny objects” or the glitzy staff benefits that are keeping employees at a company. Rather, it’s a question of career development.

Firms have to let potential talent know that they can have a meaningful career with their company. This means offering ways for workers to achieve their full potential – by allowing them to work remotely or providing other flexible arrangements, for example.

Photo credit: notice44 / 123RF

Seek, for instance, looks to balance flexibility and a strong company culture, Bithos says. Managers can decide how often teams should come to the office and the firm holds larger events every quarter to bring its workers together in bigger groups.

As for tech workers worried about their own retention prospects, he says: “Your job is not your career and your career is not your job.”

That means that despite doubts about their job security, there are still opportunities for workers to develop their career outside their current positions. They can take heart in the fact that demand for tech and tech-related roles is still strong and not reflective of the entire macroeconomic situation, he adds.

This too shall pass

Over the next few months, Bithos cautions that the job market in the tech sector could get more uncertain with more potential layoffs down the line.

However, across a longer three-to-five-year horizon, being in tech – especially within Southeast Asia – is still a “fantastic proposition,” he says. He foresees several tailwinds for the region, such as global supply chains re-orienting into Southeast Asia and an eventual lowering of interest rates, which would help stimulate the economy.

“This is an adjustment, but it’s only temporary,” he says.

“Being tech talent in Southeast Asia is still a fantastic career. The macro forces that have been at work in the region for the last decade will continue.”

Seek Asia combines two giants in the jobs portal sector – JobsDB and JobStreet – under one roof and helps improve the lives of millions across Asia through comprehensive platforms.

Interested in joining Seek Asia? Click this link to find out more.

This content was produced by Tech in Asia Studios, which connects brands with Asia’s tech community. Learn more about partnering with Tech in Asia Studios.