The current sentiment in the IT market is relatively optimistic. The year 2024 proved to be difficult for both employees and employers. Many workers lost their jobs, while employers paused numerous projects. Today, recruiters are receiving positive signals that these projects will be back on the agenda in the new year, resulting in more job opportunities. Poland continues to attract significant investor interest, and IT specialists from the country are eagerly hired by international companies. Nevertheless, the industry faces ongoing challenges, such as developments in artificial intelligence (AI) and the rise in cybersecurity threats.
Supply of Candidates Exceeds Demand
It is currently harder to find a job in the IT sector compared to a year ago. Several factors contribute to this situation. In recent months, companies have reduced investments in development or undergone restructuring, leading to job cuts. Employers now have a wide pool of candidates to choose from. Those looking to change jobs must make concessions, such as accepting lower salaries, different work models, or longer commutes.
“In the IT market, the supply of candidates currently exceeds demand. This is partly due to projects being frozen during the economic downturn observed over the past several months. At Michael Page, we notice candidate activity and their openness to change. Just a year ago, it was a candidate-driven market. The situation has changed, and today candidates are proactively reaching out to us in search of new roles. While we can’t yet call it a full employer-driven market, the situation is definitely different than before,” says Jakub Świderski, Executive Manager at Michael Page Technology.
Candidates who want to change jobs are much more selective about offers. At the same time, they are more open to negotiations to ensure job continuity. Many are even willing to accept lower salaries, recognizing the reduced demand for IT professionals. This leads to wage erosion. However, according to the
Talent Trends 2024 Technology report, 62% of IT specialists in Europe were satisfied with their salaries. Furthermore, 54% received a pay raise in the past year.
The large number of candidates has increased job market competition. This motivates employees to enhance their skills through courses and certifications to boost their employability and appeal to employers. In turn, employers scrutinize candidates more closely, prolonging recruitment processes to find the best talent.
Low Employee Turnover and Cautious Candidates
In 2024, companies had limited recruitment needs due to fewer projects caused by the market slowdown and exceptionally low employee turnover. Negative economic news, layoffs, and poor outcomes from job applications have made employees prefer the stability of permanent contracts. This provides them with greater peace of mind compared to joining new projects that might offer higher pay but less job security. According to the
Talent Trends 2024 Technology report, 51% of IT specialists consider work-life balance the most important aspect of company culture influencing job satisfaction.
“The willingness of employees to take risks associated with job changes has decreased. As a result, candidates are far more meticulous in selecting potential projects. They assess project duration, salary, and employer reputation to minimize job-switching risks. This places greater demands on recruiters and external firms. They need to provide detailed information to effectively market job offers and select clients with lower risks,” emphasizes Bartosz Maligłówka, Head of IT Contracting at Michael Page Technology.
The job market is continually evolving, influenced by global economic and political developments, making people wary of risk. Companies are aware of this. To attract and retain top talent, they need to offer more than just salaries. Stability and professional development are key to employees. This year, low employee turnover has benefited companies by reducing costs, improving efficiency, enhancing loyalty, and boosting company reputation.
New Challenges and Threats for the IT Market
AI development is driving changes in employment. Companies are now seeking senior-level professionals with experience in using the latest technologies. Working with AI requires advanced technical skills.
“Employers are less inclined to hire junior or mid-level employees due to the longer training periods required. However, this doesn’t mean juniors have no chance in the market. Technological advances will create demand for new roles. Less experienced professionals will need to develop essential skills related to AI, risk management, cybersecurity, and data analysis. Those who are eager to learn new skills and adapt to market needs will succeed. Job opportunities in these areas will increase, and new roles we can’t yet imagine will emerge,” adds Dawid Zienkiewicz, Consultant at Michael Page Technology.
It’s too early to fully gauge AI’s impact on the IT market. However, the
Talent Trends 2024 Technology report shows that 94% of tech professionals in Europe believe AI influences their career decisions, with 28% rating this impact as high, 22% as medium, and 44% as low. Additionally, 58% believe AI affects their long-term career plans.
Many companies are interested in implementing AI to varying degrees. They are exploring which areas to integrate AI into and how to train teams to use even basic AI tools. Specialists already use AI solutions, such as development teams automating processes and analyzing data. AI aims to support work and positively impact business. These changes are gradually being implemented, and the coming months or years will bring significant transformations to the IT market.
As AI advances, cybersecurity risks increase. Risk management now involves security awareness, promoting safe technology practices among employees. Current threats include employee ignorance, hacking attacks, and malware, which may also come from external vendors. Companies are building and expanding teams to be prepared with contingency plans. However, there is an oversupply of cybersecurity roles in the market. In Poland, many specialists work for global firms.
An Optimistic End to 2024
It is difficult to predict what the IT market will look like in the coming months. Nonetheless, signals from companies are relatively optimistic compared to last year. There are plans for substantial budgets to increase technology team resources and resume suspended projects. Recruitment is restarting, a positive sign for 2025. The first quarter should indicate the market’s direction.
Poland remains an important market for investors. Companies, particularly from Western Europe, are opening and relocating projects to Poland for cost-saving reasons. Nearshoring is a continuing trend that will grow in 2025, linked to volume recruitment. Poland’s cultural and geographic proximity to Western Europe, combined with well-trained IT specialists and lower labor costs, makes it an attractive destination. Hiring in Poland is more cost-effective than in the US, Germany, the Netherlands, the UK, or Scandinavian countries. Additionally, Poland is viewed as a stable country for business, infrastructure, and workforce.
Source: ManagerPlus
