78% business leaders say hybrid work gives firms an edge in tech hiring: Study
Flexible work arrangements are becoming more important than salary hikes for companies trying to attract AI and technology professionals, according to a study by International Workplace Group.
The research found that hybrid working is now the most-used strategy among organisations competing for technology talent. Around 37% of companies said they rely on hybrid work models to attract skilled professionals, slightly ahead of those offering higher pay packages at 35%.
More than three-fourths, or 78%, of business leaders surveyed said organisations with hybrid work policies have a clear advantage in recruiting technology talent.
AI skills reshape hiring priorities
The study also highlighted a shift in how companies evaluate leadership potential and hiring decisions.
About 83% of business leaders said advanced technology expertise, including AI, coding and data analytics, is now important for promotions into leadership positions. Nearly 22% said these skills are valued significantly more than university degrees.
At the same time, only 5% of respondents said formal education remains the primary factor while evaluating candidates for new roles.
The report further stated that 59% of business leaders are planning to add more AI and technology professionals to leadership teams this year.
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Companies struggle to find skilled talent
Businesses are also facing increasing pressure in securing qualified candidates, the report noted.
Nearly 67% of business leaders said attracting and retaining technology talent has become more competitive than before, while 50% reported shortages of candidates with the required digital and AI skills.
The findings showed younger leaders are placing even greater importance on workplace flexibility. Around 80% of Gen Z leaders and 79% of millennial leaders said hybrid or flexible work arrangements are important in attracting tech professionals.
Younger tech workers prioritise flexibility
For employees under 30 working in technology roles, flexibility and work-life balance ranked higher than salary while assessing company culture, according to the study.
The report also pointed to changing leadership timelines within organisations. Nearly 23% of companies said they are promoting tech professionals under the age of 30 into leadership positions earlier than traditional career paths. Among Gen Z-led businesses, the figure increased to 45%.
“The message from leaders – and particularly from younger generations – is clear: companies that do not embed hybrid working into their culture risk losing out in the race for tech talent and accessing the skills they need to remain competitive,” Mark Dixon, Founder and Chief Executive Officer of International Workplace Group, said.
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