Technology talent acquisition and retention are undergoing a transition amid the current economic uncertainty, with hiring managers prioritizing different types of training, according to a May 2023 report from The Linux Foundation.

Companies appear to be more focused on upskilling and seeking certifications for current employees, especially in areas related to cloud/containers, cybersecurity, and AI/machine learning.

“Upskilling is becoming more important for recruitment, with organizations choosing to train existing employees more often than hiring consultants when they cannot find suitable external candidates,” Clyde Seepersad, senior vice president and general manager of training and certification at The Linux Foundation, said in the report’s foreword.

“This recognizes the value of investing in existing staff and the challenges of finding the right external candidates,” he said.

Overall, 59% of organizations surveyed for the report said they revised their hiring plans this year primarily by freezing new positions. However, more organizations said they plan to increase technical staff numbers, particularly in high-demand areas such as cybersecurity and AI. That’s partly because new hiring is focused more on developers and IT managers rather than senior technical roles, with companies looking for workers who can contribute to implementation, management and technical development.

To address this, upskilling and pre-employment testing are becoming more common. When unable to find suitable technical candidates, organizations said they trained existing employees (58%) more often than hiring consultants (38%). Most respondents also said that certification (73%) and pre-employment testing (81%) are necessary to verify skills and address the challenges of finding appropriate candidates.

About 25% of organizations said they’ve increased their reliance on training and certification incentives this year. In fact, respondents said they felt that upskilling (91%) and certifications (77%) are more important than a university education (58%) to address technology needs.

“Training and upskilling are essential strategies for organizations looking to address the changing hiring landscape,” Seepersad said. “The report highlights that 70% of organizations surveyed provide training opportunities for their existing technical staff on new technologies, demonstrating a commitment to ongoing development and growth.”

Read the full report here