SeekOut Search Results Reveal A&D Hiring Opportunities from Tech Layoffs

Tech layoffs show no sign of slowing down in 2023. More than 160,000 workers were let go in 2022, and this year so far, over 500 tech companies have laid off over 150,000 employees, according to Layoffs.fyi.

Companies cite various reasons for reducing their workforce, including over-hiring during the pandemic and the ongoing uncertainty of economic conditions. Academics, however, suggest “social contagion” as the culprit. That is, companies are being influenced by one another’s behaviors. Layoffs have been disruptive to the tech world, but the sector’s economic challenges spell good news for aerospace and defense (A&D), offering a golden opportunity to secure highly skilled workers for historically hard-to-fill roles.

Ahead, we’ll show you what type of workers may be available from tech layoffs using SeekOut's Power Filter feature and why now is the time to take action and engage with this talent pool.

A&D and the new tech industry

CNBC found that over 55% of tech leaders believe the tumult in the labor market gives them a chance to bring in top-level talent they otherwise might not have attracted. This trend is a major advantage for A&D as the industry is one of the few that continues to hire despite the economy’s uncertainty.

According to HR tech analyst Josh Bersin, there is a “new tech industry” forming in real time that is comprised of non-tech-specific industries like A&D. He reasons that as digital transformation drives the need for tech workers in non-tech sectors, recent layoffs provide opportunities to capture the talent these sectors have spent years looking for. The Boston Consulting Group echoes the sentiment, stating that tech layoffs give others the chance to secure a wide range of talent to “support their digital strategy: from experienced software and platform engineers to specialists in areas such as data science, artificial intelligence, machine learning, cybersecurity, and robotic process automation.”

Understanding the available workforce: Diverse, experienced talent

To better understand A&D’s hiring opportunities from tech layoffs, we used SeekOut’s Power Filter function to look at the skill composition of employees who have likely been impacted.

SeekOut’s Director of Analytics Shawn Dudzik conducted this analysis using the “Companies with Recent Layoffs” Power Filter. This filter does not explicitly identify any worker who has been laid off but it does use public information to flag companies who have announced layoffs in the past six months. The tool is a smart way for recruiters to plan ahead—research has shown that when an organization reduces their workforce, a spike in voluntary attrition occurs in the months that follow. This trend presents an opportunity for teams to fill their pipelines with qualified talent who are more vulnerable of leaving their current employer.

Here’s what we found about this talent pool:

• There is an abundance of cleared workers. Over 49,000 software and data science workers have security clearances.

• Many workers hold a wealth of software and data science expertise. Eighty percent have greater than five years of experience.

• Thousands of diverse workers are on the market. Of the 230,000 women in the talent pool, 174,000 are software engineers and 56,000 are data scientists. Further, 76,000 are Latinx and 29,000 are Black. There are also 21,000 veterans, and this group has the highest percentage of security clearances.

How the available talent pool can benefit your A&D organization

Based on SeekOut’s findings, there are several benefits that your A&D organization can leverage by moving in on this available talent pool:

• Diversify your workforce. A 2022 Ernst & Young A&D Workforce Study reported that representation among women, Black and Hispanic groups have only grown slightly year-over-year, highlighting “the reality that the U.S. A&D industry is less diverse than the overall U.S. labor force.” SeekOut’s search results show that a large number of women, veterans, and people of color are potentially available to help improve your DEI efforts.

• Reach your digital transformation goals—finally. Former tech employees are now making up a once-scarce digital talent pool. Your organization is likely in a phase of digital transformation, and the available talent can help modernize operations that have been slow to take off.

• Win back the talent you lost to tech. In SeekOut’s analysis, 10% of cleared workers had left an A&D organization to join a tech firm. If your A&D organization lost employees to tech firms over the last several years, this is an opportunity to rehire that valuable talent.

How A&D can attract laid-off tech workers (and potential challenges to consider)

A&D organizations are moving quickly to advertise job openings to impacted tech workers. They’re focusing on varying tactics, such as boomerang initiatives aimed at former talent and video messages on social media, like this talent acquisition leader from Lockheed Martin who invited laid-off workers to apply to the organization.

"There is so much highly skilled talent available now—more than we've seen in a long time. Workers have options and where they choose to work will depend on the organization's employee value proposition. Recruiters and hiring managers will need to be precise in their efforts, act quickly, and make a compelling case."

-Shawn Dudzik, Director of Analytics

As layoffs continue in the year ahead, it’s imperative to employ a comprehensive strategy to attract talent and stand out from your competition. Shawn suggests that your organization will need to emphasize its employee value proposition and prepare for potential hesitancy from candidates.

• What to emphasize: A renewed focus on work/life balance, benefits, and job security could draw a workforce previously motivated by Big Tech salaries and stock incentives. Other factors to highlight include a mission-driven purpose, the recent Russia-Ukraine war, and tensions with China to highlight the importance and value of A&D work.

• What may hold back talent from applying: Conversely, some workers may not view the same aspects of A&D work as benefits. Talent may prefer the higher salaries that tech offers, or they may be uncomfortable with the unfamiliarity of government work. There also may be a reluctance to work on military projects, and the months-long process for security clearances could be unattractive due to the potential of a long wait for employment.

Taking advantage of the opportunity to engage with available talent will require A&D organizations to move fast—many workers do not stay on the market for long. According to ZipRecruiter, 79% of laid-off workers find their next job within three months, with 37% landing a job in one month. And Robinhood research found that competition is still fierce: over one-half of those rehired received pay increases and three-fourths of workers found jobs in the same industry.

How SeekOut can transform your A&D talent strategy

The opportunity for A&D organizations to tap into a diverse, experienced, and well-qualified talent pool is time sensitive. The prospect of engaging this type of digital talent is rare and would be impactful to your organization in both the short and long term.

Sign up for a demo to discover how SeekOut offers easy access to these candidates with a human centered, AI-assisted platform. Or learn more about how SeekOut can supercharge A&D talent pipelines.