Is it time to swap coding challenges for personality tests?

The IT job market has been on a bumpy road over the past few years, bringing us to where we are today.

Some blame governments for poor decisions during COVID, others point fingers at shady contracting and software houses selling junior developers' services at senior rates. Others still believe in the mythical bubble that had been inflating long before all this, only to finally burst and leave the industry in turmoil.

The current situation: the market holds its breath

Today, the market is holding its breath—large-scale development projects have been put on hold, and many companies have entered survival mode.

Observing the market and our recruitment experience, we can see that dynamics have changed significantly:

Then vs. now

In 2020, a candidate with 2-3 years of Java experience who was considering a job change was flooded with offers from companies bidding against each other, inflating salaries and egos.

And today? The situation has completely reversed. Instead of receiving five job offers at once, specialists are sending out dozens, sometimes even hundreds of résumés, often without receiving a single response. Many experienced developers are forced to accept lower salaries than they had just a year or two ago. What was once a candidate’s market has become an employer’s market—at least for now.

Today, many companies are adding requirements like certifications, framework expertise, fluent English, on-site work readiness, professional appearance, relevant education, and soft skills needed to communicate with business and clients. And even with all these criteria, they still have plenty of candidates to choose from.

Why are companies raising the bar?

Adding more requirements is a natural response from employers, as some job postings attract hundreds of applicants—especially for popular roles like Frontend or Backend Developer, where a single listing can receive hundreds of applications.

Highly qualified technical candidates are no longer rare. Many companies use additional requirements as filters to limit the number of applications they need to review. Some even reject résumés based on intuition or subconscious biases during the CV screening or interview stages.

Thesis: The growing importance of personality tests in IT recruitment

Here’s my take: I believe more companies will start using personality tests. Technical skills are no longer as difficult to acquire.

Moreover, AI-driven tools are rapidly reshaping the technical skill landscape. Large language models enable developers to solve many technical challenges with AI assistance, and this trend is only growing. This means that coding skills are gradually losing their importance as the key differentiator of a valuable employee.

A motivated and resourceful person can handle technical challenges, learn what’s necessary, or use AI to bridge their skill gaps quickly.

Today, the real challenge is finding someone who fits the company culture, is engaged, mature, and quickly adapts to change—someone who can tackle tough challenges even without direct experience.

Interestingly, according to a Hays report, soft skills are now the most sought-after by IT employers:

That’s why I predict that personality tests will become a standard part of hiring for technical positions.

What are employers really looking for?

At speedapp, the main reason for early departures of developers we’ve hired has never been a lack of technical skills. More often, the issues leading to terminations were related to attitude, cultural misalignment, difficulty working with the team, or lack of engagement.

This hasn’t changed over the years. Even today, only a small percentage of failed hires are due to insufficient technical skills.

It’s better to hire someone who is engaged, willing to work hard, honest, proactive, and adaptable—despite technical gaps—than a top-tier coder who refuses to go beyond their job description and struggles to work with the team.

The end of the salary race?

For years, we’ve been used to asking, "How much have IT salaries increased?" rather than "Have they increased?" However, in 2024, salaries have stabilized—some roles have even seen declines in pay.

Most companies no longer plan salary increases above 10%. Yes, IT salaries remain high compared to other industries, but the rapid growth has slowed down.

In this scenario, companies must find new ways to attract and retain talent. Organizational culture, growth opportunities, and good management are becoming the key differentiators.

What does this mean for candidates?

If you’re job hunting, be prepared for a shift in how recruiters assess you. Excelling in coding tests is no longer enough. Pay attention to your soft skills:

What does this mean for companies?

For companies, this may mean adjusting their hiring processes. Consider:

Companies should recognize that the competition for top talent has shifted from salary wars to culture, management style, and development opportunities.