Dive Brief:
- AI tools embedded into hiring processes are contributing to tech talent attrition, as nearly one-third of technologists consider moving away from the industry, according to Dice data published Thursday. The company surveyed 212 technology workers for the report.
- More than half of the tech workforce is experiencing some level of dissatisfaction with hiring practices, the tech hiring platform provider found. AI tools can overlook otherwise qualified candidates who don’t optimize resumes for keywords, according to more than 90% of respondents.
- Nearly two-thirds of technologists admit to modifying their resumes to improve their chances with AI tools. More than three-quarters of survey takers say current hiring practices lead tech candidates to exaggerate their qualities in an effort to get noticed.
Dive Insight:
Tech job seekers are not alone in their frustration with and lack of trust in AI-powered hiring.
More than two-thirds of job seekers said they were uncomfortable with employers using AI to review resumes or make decisions, according to a ServiceNow report published earlier this year. Most respondents said companies should disclose the use of AI for hiring and recruiting.
Although AI in hiring is fueling frustration, additional factors are contributing to IT job seekers’ discontent.
“Technology professionals are navigating a job market that has been marked by layoffs, economic uncertainty and the perception that career opportunities are harder to secure now than in the past,” said Art Zeile, president and CEO of DHI Group, Dice’s parent company, in an email. “These stressors have amplified frustrations with the hiring process and raised questions about long-term stability in the industry.”
Stagnant salary growth is another factor as nearly 6 in 10 tech professionals feel underpaid, according to Dice data. The company found that IT salaries grew just 1.2% last year, trailing behind inflation.
To address the looming dissatisfaction, tech leaders can play a role in driving a culture of transparency, according to Zeile.
“In today’s environment, the CIO who demonstrates transparency and respect throughout the hiring process will have a clear competitive advantage,” Zeile said. “Talent is watching closely, and those who feel that their skills are recognized, their time is respected and their value is being compensated are far more likely to choose that opportunity over another.”