Innovation ecosystems are currently facing complex scenarios. “Unprecedented” is a word we’ve become disturbingly accustomed to. While the restrictions from the pandemic have largely been lifted, economies, workforces, and funding structures are reconciling significant changes over the past few years.
With all these challenging variables, we wanted to get a better pulse on how exactly founders are feeling and how their startups are responding. In July 2022, MassChallenge partnered with A.Team for our inaugural Tech Work Report. We surveyed 581 tech founders and executives (C-Suite or department leaders) based in the United States. Respondents were pooled from the MassChallenge network of founders, experts, and partners.
You can download the full report here.
Some of the key findings of the reports include:
- Long-standing requirements for hiring are changing: 80% say they're willing to hire someone without a college degree for any role.
- They're frustrated with the traditional recruitment model: 67% agree that the traditional recruitment process needs an overhaul, noting that it s too long and expensive.
- 71% of tech leaders agree that bringing on freelancers or independent workers gives their business greater agility during times of economic uncertainty.
- Two years into the pandemic, leaders are concerned about themselves and their employees: 72% of tech founders and execs are concerned about the mental health of their employees, and 62% are concerned about their own mental health.
- Resignations have not slowed. In fact, 40% of workers plan to quit in the next 6 months, per a new McKinsey study released in July.
For contextualizing how founders are thinking about these conditions, the report covers these essential areas:
- How tech leaders are dealing with hiring challenges, adopting new hiring criteria, and exploring new talent models amidst the Great Resignation.
- How companies are shifting towards a “blended” workforce that integrates teams of full-time employees with a growing pool of highly skilled independent workers.
- How tech leaders view the effects of the downturn—from fundraising plans to growing concerns over both the health of their companies and mental health of employees.
On the subject of employee burnout, tech leaders are focused on reducing stress and managing motivation – 63% worry about employee burnout, and 59% expressed concern about their own burnout.
While obviously difficult, MassChallenge and A.Team’s takeaway from the data and the current economic climate was one of optimism. MassChallenge itself was born out of the Great Recession in 2008 and continue to champion the transformative power innovative startups hold.
I hope you find this report both reflective and inspiring of our current economic moment. MassChallenge will also be hosting talk on this subject and report on September 15th, at 11am EST. Join us to explore the state of work in tech and what it means for your business. Space is limited, so reserve your seat today!