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Balázs Simon, Team Leader, Technology Division, Hays Hungary

In a changing economic climate, employers across all sectors are revising their business strategies and hiring plans for the next year. Many foresee a slowing in the pace of recruitment, a freeze on hiring in specific sectors and an intensification of competition for talent.

However, the tech market doesn’t seem ready to put its plans on hold. Balázs Simon, Team Leader of the Technology Division at leading recruitment agency Hays Hungary, shares insights from his latest market research on the industry and the challenges employers face today and in 2023.

Over the past year, the tech industry has seen massive growth. With many companies opening new offices and positions in Hungary, the recruitment boom has continued at full speed. Although the outbreak of war in Ukraine affected some, most Hungarian technology companies ended a strong year with strong revenues and a larger workforce. According to market research conducted by Hays in August 2022, business expansion plans set out in January have not changed significantly over the year, despite the war and changing economic environment.

“At Hays, we have seen incredible growth in the number of new open positions in our clients’ organizations this year,” says Balázs Simon, Team Leader Technology Recruitment at Hays Hungary.

“There are a few conservative players in the market who have slowed their pace of hiring somewhat, but most of our clients are looking to recruit more talent with an optimistic view of the future. Now every company is watching the changes closely. macroeconomics and the dynamics of the technology sector, to be ready in case it needs to adjust its plans,” he adds.

Value of tech talent

Today, the biggest challenge for companies is to calculate competitive salary scales. Candidate salary requirements often increase during the selection process, which is a good indicator of how quickly salaries are changing in the tech industry these days.

“Many companies increased their wages during the year to cope with rising inflation. According to our latest research, more than half of our clients have done so, and we expect another wave of increases early next year as more employers may follow this trend,” says Simon .

Most IT contractors want to be paid in Euros or another stable currency. According to Hungarian labor law, permanent workers can only receive their wages in forints; however, more employers are willing to adjust salaries to the EUR-HUF exchange rate.

Most Wanted Skills

“You can search for almost any programming language on the internet, and you’ll find endless vacancies in the results,” says Simon. “When it comes to non-development roles, experts in data science, cybersecurity, SAP, and cloud technology are most needed. In the future, I think Python knowledge and Salesforce will be the new stars of technology, which are very present in western countries, and we expect it to soon be dominant in Hungary as well,” he adds. -he.

Senior technology professionals can reach a salary of millions of forints in most IT specialties today. The most in-demand positions are in programming, development, advanced data and analytics, cloud technology, and cybersecurity, but ERP and CRM systems experts also earn high salaries.

Hays Forecast

In the coming months, we will see if an economic recession actually occurs. Hays expects employers will still face the challenge of raising wage demands due to inflation and skills shortages. This will be especially true in the tech industry in Hungary in 2023. The consequences of rising US interest rates and war may surprise companies as well, but most already have a “plan B” for such situations.

“We had an incredible year with high volume recruiting projects. In one year, our team has doubled in size while our income has tripled. We enjoy being the trusted and strategic partner to an even wider range of businesses,” notes Simon.

“Our recruitment process outsourcing service is growing in popularity. This year, we closed nine successful RPO projects for technology partners, and many are still ongoing,” he says.

“According to our latest market research, our clients are not planning any layoffs; at most, a slower recruitment pace and more thoughtful hiring steps. Also, employers are placing more emphasis on retention. More conservative companies will also grow over time, while those in a more advantageous position will be able to take advantage of the slowdown.

This article first appeared in the September 9, 2022 print issue of the Budapest Business Journal.