Technology talent turbulence: Is this the new normal?
As 2025 draws to a close, we asked Dan Manton, Partner, Technology & Digital Executive Search at InX, to reflect on the year's turbulent tech talent market and share his insights for organisations and senior professionals navigating this new landscape.
I’ve been in executive technology search for decades, so I’ve seen my fair share of positive and negative job markets. The lows of Covid-19, the bounce back in 2021-2022, Conservative governments, Labour government, and even the UK’s historic coalition government (2010-2015) in my early days all came with different challenges. No doubt I’ll be looking back in another 10 years with a new perspective.
But for now, as we enter the final round of 2025 — with no knockout punch yet — it’s fair to say that I have never seen a market quite like this one.
Why 2025 has been uniquely challenging
There’s no denying it’s a challenging job market; for leaders seeking their next opportunity, for those hiring their next superstar, and even for experienced headhunters navigating complexities we’ve never seen before.
It has been suggested in some circles of LinkedIn that as many as 40% of recruiters have left the industry since the highs of 2021, and I can completely understand why.
‘Nice to have’ attributes have become ‘must haves’
This year, senior technology executives faced increasingly stringent requirements. The hiring manager’s list of essential skills and experience grows by the day, as desirable attributes quickly become non-negotiable. We aren’t quite in ‘moon on a stick’ territory yet, but we aren’t far off it.
The return-to-office (RTO) effect
The desire for talent to be seen, heard and physically in-office has shifted the dynamics once again. The perception that effective leadership is only possible by being present means that leaders not only need to live a commutable distance from the office, but they also require different skills. Leading remote teams and leading in-person teams demand distinct soft skills.
The rising cost of talent
There's also the significant challenge of rising employment costs, driven by increases in national insurance and salary expectations that must keep pace with inflation.
Consequently, technology executives are demanding higher pay than previously, whilst organisations grapple with the wider context of labour challenges — especially those with a large, employed workforce.
What this means for technology leaders
For those seeking a new role, the market has become increasingly competitive. The once 'passive' candidate, who has been in a role for over three years, is now open to exploring opportunities they would have previously dismissed in favour of job security. The lure of landing true transformation and change-centric roles has never been more appealing, given their current scarcity in the market.
Standing out in a crowded market is tough, especially for candidates who aren't used to competing against so many others. In areas where role requirements aren't quite aligned to a candidate's skills, this used to pose a small challenge. It was easier to emphasise transferable skills and bring different industry perspectives. However, this misalignment is now a bigger issue.
This isn't the fault of either candidate or organisation, but the nature of the current job market means companies hold the power, as they have more choice — and are prepared to wait for someone who meets 100% of their requirements. This can result in a lack of urgency, as organisations know they can wait it out for a perfect match.
Looking ahead to 2026
2025 has been a rollercoaster. It’s been busy at times, with periods where it feels like all organisations want to hire simultaneously. Conversely, there are also periods, such as in the lead up government budget announcements, where it seems like businesses are waiting for the outcome before they move forward.
Perhaps this will give us a bumper start to 2026. But in my experience, it’s better to be prepared for anything.
How InX can help
InX specialises in executive search and interim management across technology, private equity and strategy and consulting. Our deep expertise in placing high-calibre leaders means we understand the challenges of securing top talent in today's competitive market.
Contact us to explore how we can support your hiring needs in 2026.