Hiring Early Talent: The Key to Cost Savings and Long-Term Growth
Hiring early talent is a game-changer for companies looking to stay competitive in today’s rapidly evolving tech landscape. Whether recruiting for cybersecurity, software development, or other in-demand fields, businesses often struggle to attract and retain technical talent.
According to Deloitte, nearly 60% of tech industry leaders describe acquiring fresh talent as “a major challenge.” Additionally, 40% say retaining employees is just as difficult, as experienced professionals frequently leave for higher salaries. Economic shifts have further complicated hiring, leading many companies to prioritize senior technical hires over investing in early talent.
The assumption? Recent grads and early-career employees come with their share of challenges. Like any new technical hire, it can take months to fully ramp up early-career talent. Worries over technical skill gaps, cultural fit, and long-term retention lead many to view early-career employees as a risky investment—or even an outright liability. Let’s explore why forward-thinking companies are prioritizing early talent recruitment.
The Value of Early-Career Talent: Dispelling Misconceptions
As baby boomers retire and Gen Z enters the workforce, companies must evolve their hiring strategies. While some see demographic shifts as a challenge, innovative organizations are using them as an opportunity—debunking myths about early talent and leveraging this workforce segment for long-term success.
Misconception #1: Hiring Early Talent Is Too Expensive
Many companies acknowledge the need for early-career hiring but hesitate due to perceived costs. Investing in campus recruitment, hiring early-career recruiters, and onboarding new graduates all require dedicated resources. However, what many businesses overlook is that relying solely on mid- and senior-level hiring is far more expensive in the long run.
Consider the numbers:
- Recruiting an entry-level employee costs an average of $2,000–$3,000, while early talent hiring typically amounts to about 20% of their salary.
- Hiring mid-career employees can cost 1 to 1.5 times their annual salary.
- According to Levels.fyi, the 50th percentile salary for an L1 software engineer is $170,000, while mid-career L3 engineers average $350,000.
Misconception #2: Gen Z Talent Is Harder to Retain
A common narrative suggests that Gen Z workers frequently job-hop, making them unreliable long-term hires. But the reality is more nuanced.
Gen Z values job security, having grown up during the 2008 recession and witnessed financial instability firsthand. They are also highly mission-driven—77% say it’s important to work for companies whose values align with their own (Deloitte).
Companies that invest in workplace culture and professional development can cultivate loyalty among Gen Z employees, leading to higher retention rates and stronger engagement.
Misconception #3: Mid- and Senior-Level Talent Makes Up for Gaps in Early-Career Hires
The fast pace of technological change has left many traditional curriculums struggling to keep up. In a recent report, 70% of C-suite leaders reported workforce skill gaps as a major challenge.
But mid-career engineers don’t guarantee seamless hiring:
- Ramp-up time: Even experienced engineers take 3–9 months to deliver full productivity.
- Retention concerns: A recent BCG survey found that 70% of tech workers in new roles remain open to other opportunities, highlighting ongoing retention challenges in the industry.
- Shifting career paths: More mid-level engineers are transitioning into non-technical roles, creating additional hiring challenges.
Building a consistent pipeline of early talent ensures long-term workforce stability and prevents sudden skill shortages.
Misconception #4: Gen Z Isn’t a Good Cultural Fit
Gen Z’s work preferences don’t mean they’ll clash with existing workplace cultures. In fact, they offer key advantages:
- Highly autonomous: Gen Z prefers independent work but still values collaboration and connection.
- Tech-native mindset: As the first digital-native generation, Gen Z excels at integrating into high-tech environments. 51% of Gen Z workers consider the tech industry their top career destination.
- Mission-driven: Companies that authentically showcase their values can attract and retain Gen Z employees more effectively.
Future-Proofing Your Workforce with Emerging Engineers
The demand for skilled technical talent isn’t slowing down. Companies that invest in early-career engineers today will build a workforce that is not only cost-effective but also future-ready.
Instead of spending heavily on internal recruitment teams or external agencies, 65+ leading employers are tapping into a direct line to high-performing, employer-ready engineers at a fraction of the cost through CodePath. CodePath-trained interns convert to full-time employees 86% of the time—about 30% higher than the national average.
Skip the flood of résumés and go straight to top-tier candidates prepared to contribute from day one. Learn more about how CodePath can accelerate your screening and hiring process and start hiring with confidence.
