International Workplace Group’s latest research suggests the contest for tech talent is no longer being won on pay alone. Instead, hybrid working has emerged as the strongest lever for employers seeking to attract and keep scarce digital skills, even as AI, data analytics and coding become central to leadership progression.
The release says 83% of business leaders now believe advanced technology skills are crucial for promotion into leadership roles, while 22% value those skills more highly than a traditional university degree.
That marks a notable shift in hiring and promotion criteria, especially as organisations adapt to a workplace reshaped by AI. It also highlights a changing career path: 23% of companies say they are appointing tech professionals under 30 into leadership roles earlier than older career models would have allowed, rising to 45% among Gen Z-led businesses.
Flexibility is now the leading talent strategy. IWG reports that 37% of businesses use hybrid working as their main way to compete for tech talent, slightly ahead of competitive pay at 35%.
A strong majority, 78%, believe organisations offering hybrid work have a clear recruitment advantage, while 68% say competitive salaries alone are not enough to retain top tech professionals.
For younger workers, the priority is even clearer: among tech professionals under 30, work-life balance and flexibility rank above compensation as the most important elements of company culture.
The release also places these findings in a Hong Kong context. It notes rising demand for AI skills in job listings and says AI-exposed roles can attract wage premiums of up to 56%.
It further points to government initiatives such as the AI for Empowering Learning and Teaching Funding Programme, HK$2 billion for AI education in schools, and HK$50 million for youth-targeted AI application courses, plus the Technical Professional List, which opens high-demand roles to non-degree professionals.
“The message from leaders - and particularly from younger generations - is clear: companies that do not embed hybrid working into their culture risk losing out in the race for tech talent and accessing the skills they need to remain competitive,” said Mark Dixon, founder and CEO of IWG.
The underlying message is simple: firms that pair flexible work with continuous upskilling are likely to win the next generation of leaders.
