Tech Connects," Dice's podcast, digs into the tech hiring, recruiting, and career topics that matter to you. Subscribe on Acast, Spotify, Apple Podcasts, iHeartRadio, Amazon Podcasts, and YouTube!
Our guest on this episode is Ted Hellmuth, founder of IQ Clarity, a boutique recruiting firm based in Denver, Colorado, with nearly a decade of experience placing engineering, technology, and marketing talent across the U.S. Ted joined Paul Farnsworth, President of Dice, to break down the 2026 tech hiring market — what's shifting, what employers and candidates are getting wrong, and where AI fits into all of it. The conversation draws on Dice's latest tech professional survey data and Ted's frontline recruiting experience to paint a practical picture of the year ahead.
Summary
The Tech Hiring Market May Be Loosening Up
After two years of contraction and stalled mobility, 2026 is showing real signs of recovery. Ted noted a strong uptick in demand starting in late 2025, particularly for leadership roles — a leading indicator that companies are setting strategy and preparing to invest. Dice survey data backs this up: 74% of tech professionals said they plan to change employers this year. The desire to move is there. The opportunity is starting to catch up. Companies are paying recruiting fees again, engineers are fielding multiple offers, and the blockage that defined the last few years is starting to clear. That said, candidates currently employed still face a leap-of-faith challenge. Job stability jumped from the seventh to the second most important factor for leaving a role — not because the next company feels unstable, but because staying put feels safer.
AI Skills Are the Dividing Line for Candidates
AI proficiency has moved from a nice-to-have to a hard filter. Ted described three tiers of candidates when asked about AI experience: those whose companies banned it, those who dabbled with tools like Cursor or Copilot, and those who've stitched multiple AI tools together to drive real efficiency gains. That third group gets hired fast — sometimes within a week. The rest face a tougher road. For new grads, the landscape has shifted dramatically. Junior roles are harder to come by, but proactive candidates who've built AI into their coursework and project portfolios still stand out. For mid-career and senior engineers reluctant to adopt AI tools, the risk is real: the market is moving, and standing still looks more like falling behind. Ted also flagged a growing concern around AI slop — resumes, emails, and work product that are clearly AI-generated and unedited. Employers notice. The professionals who use AI well and put their own stamp on the output will separate themselves from the flood.
Employers Need to Fix Their Hiring Process
Employers are making costly mistakes in this market. The biggest one: dragging the process out. Five-round interview gauntlets, paired programming marathons, and take-home tests that prohibit AI use are all red flags — both for candidates evaluating a company's culture and for employers losing top talent to faster-moving competitors. Progressive companies are flipping the script. They encourage candidates to use AI in technical assessments and then evaluate how the candidate leveraged it — where they applied it, what they modified, and whether they can explain the reasoning. That approach signals a forward-thinking culture and attracts the kind of problem-solvers employers say they want. Ted also stressed that candidate experience still matters, especially now that strong engineers are receiving multiple offers. A poor process doesn't just lose one hire — it damages your employer brand.
Networking Beats the Apply Button Every Time
The biggest mistake job seekers make: relying solely on online applications. With remote software engineering roles pulling 1,000+ applicants in days — many of them fake or bot-generated — submitting a resume and hoping for the best is a low-probability strategy. Ted's advice is targeted and tactical. Pick the three roles you're a genuine fit for. Find the hiring manager. Get an introduction through someone inside the company. A referral from a colleague or connection carries more weight than a cold application, no matter how polished the resume. For earlier-career professionals, lateral moves inside a company can be a powerful entry point. Ted shared the example of a CS grad who took a help desk role, used AI to automate parts of the job, and quickly demonstrated value that opened doors to engineering work.
2026 Outlook: A Year of Transformation, Not Normality
Ted's prediction for the rest of 2026: more positive than last year, but far from business as usual. Macroeconomic clarity — even without full stability — is unlocking investment. AI startups are hiring. Established companies are setting strategy and building teams. Roles and expectations are shifting fast, and the professionals who stay proactive with AI tools, automation skills, and real networking will have a significant edge. The ones waiting for things to go back to normal will be waiting a long time.
There was a lot more in that conversation, so give it another listen if you're so inclined. And remember — Dice is your best resource to find the tech talent you need to fill your open roles, and for tech professionals, the best place to grow your tech career.