Are you STILL searching for that perfect IT auditor hire? You aren’t alone. Should internal audit departments adjust their recruitment approach to prioritize tech experts amid tech layoffs?
Tech workers laid off in 2023 through January 27th
Tech workers laid off in 2022
TL;DR
The tech industry has recently seen a surge in tech layoffs, especially at big companies like Amazon, Google, and Microsoft due to the slowing economy. This has created a surplus of tech talent in the market, presenting an opportunity for internal audit departments to up their game by hiring these highly skilled professionals with specialized knowledge in cloud computing, data security, and AI. Internal audit departments must re-focus their recruiting efforts to capitalize on this opportunity by putting less emphasis on candidates having prior IT audit experience.
Overview of Big Tech Layoffs
The tech industry is no stranger to layoffs, but the last few months have seen unprecedented job losses, particularly at publicly traded companies. Tech giants like Amazon, Google, and Microsoft have all had to cut their workforce due to slowing economic conditions.
Tech job losses skyrocketed in 2022, with a staggering 97,000 positions cut in the industry, according to a January 2023 report from Challenger, Gray & Christmas. This is an increase of 649% from the mere 13,000 jobs lost the previous year.
On the 18th of January, Microsoft’s CEO Satya Nadella declared an extensive restructuring that included massive layoffs. In a statement, Nadella said, “today, we are making changes that will reduce our overall workforce by 10,000 jobs through the end of FY23 Q3. This represents less than 5 percent of our total employee base, with some notifications happening today.”
I’ve seen this movie before. In today’s business world, layoffs are a common occurrence, but this one feels a bit more dramatic. But here’s the silver lining: internal audit departments everywhere can take advantage of this tech talent surplus!
Someone with stronger connections than me should conduct a survey 6 months from now to see how successful internal audit departments were in recruiting these professionals.
The Connection Between Big Tech Layoffs and IT Auditors
It’s time to take the leap and harness the power of information technology (IT) auditing! Internal audit departments can benefit from an IT-savvy workforce that knows all the ins and outs of today’s technology-driven business landscape.
The internal audit function needs to be more active. Cyber threats are rising, and companies rely more than ever on software solutions for critical functions, so having an IT auditor is essential.
Fortunately, significant layoffs have created a massive opportunity for internal auditors to hire these highly skilled professionals with specialized knowledge in cloud computing, data security, and artificial intelligence to help them stay ahead of the curve.
Few people know more than tech workers about the risks and potential problems that come with new technology. It’s like hiring former hackers to test the control environment of a cybersecurity program.
Keep in mind it’s a Catch-22: Tech companies are laying off IT pros, but there’s still a need for more skilled tech workers. It’s essential to act quickly!
ZipRecruiter did research that showed most laid-off tech workers find jobs within a few months. 37% were back at work in less than a month, and 42% were back at work within three months. The small remainder (5%) are without work for longer than six months.
It’s time to get in gear and tap into this invaluable resource!
The Need for IT Auditors in Internal Audit Departments
Importance of IT Audits
If you are reading this blog, you likely understand IT audits’ critical role in a company’s success.
An effective IT audit can detect vulnerabilities in data security systems and pinpoint errors in financial reporting – helping organizations stay ahead of the curve in cybersecurity and compliance.
Technology is evolving faster than a toupee in a hurricane. Organizations need to ensure their IT systems are up-to-date and secure.
According to an article from TeamMate, “A recent poll of attendees at a Wolters Kluwer webinar on emerging technology found that 20 percent said their organizations were using robotics process automation (RPA), 12 percent were using artificial intelligence (AI) and 3 percent were using blockchain technology…15 percent said they were using more than one.”
In a world where technology is becoming more and more critical to business operations, it is more important than ever to manage IT risks. That’s why internal audit functions need to have a strong IT auditor on board.
Growing Demand for IT Auditors
The hunt is on for IT internal and external auditors, and it’s no joke. The world is becoming increasingly digitized, and companies need someone to help them navigate the complexities of technology and data protection.
The U.S. Bureau of Labor Statistics says that the number of jobs for IT internal auditors will grow by 10% from 2019 to 2029, faster than the average for all jobs.
This is primarily due to increased security concerns across all industries and a greater reliance on technology. The internal audit function is searching far and wide for IT internal auditors with the technical know-how, expertise, and experience to manage risks and control the chaos.
A former recruiter told me, “sometimes it felt easier to find a flying unicorn than an IT auditor candidate suitable for the hiring manager.”
Emerging Technologies
If you have the tech know-how, now’s the time to cash in! With cloud computing, data security, and AI ever increasing within business operations, IT internal auditor salaries are growing. Here are ten emerging technologies that are likely to require IT auditing:
1. Artificial Intelligence and Machine Learning
2. Blockchain
3. Cloud Computing
4. Cybersecurity
5. Internet of Things (IoT)
6. Robotics
7. 5G Networking
8. Quantum Computing
9. Virtual and Augmented Reality
10. Autonomous Vehicles and Transportation.
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The Benefits of an IT-Savvy Internal Audit Department
The importance of technology in today’s business world cannot be overstated, and organizations must have a handle on their technology risks. That’s why having an IT-savvy internal audit department is essential. Here’s how it can benefit your organization.
- Increased efficiency in identifying and mitigating IT risks
- Improved communication between IT and the internal audit department
- More accurate assessments of a technology systems and processes
- Better alignment of IT risk management with overall business strategy
- Access to in-house IT expertise, reducing the need for outside consulting
- More cost-effective IT audits due to reduced reliance on outside resources
- Improved ability to identify and prevent IT related potential fraud and misuse
- Enhanced data analytics capabilities, leading to more meaningful insights and reporting
- Improved ability to understand and evaluate the effectiveness of IT internal controls
- Better risk-based decision-making due to a more thorough understanding of IT risks and mitigation strategies
How Internal Audit Departments can Convert Big Tech Layoffs into IT Auditors
Hiring Experienced IT Professionals
The layoffs have brought a smorgasbord of IT talent to the table, and the internal audit team should be ready to dig in. An internal audit team can use the skills of these experienced IT professionals by evaluating their technical skills and finding candidates with relevant backgrounds.
Sizing Up the Skills
When hiring IT internal auditors, the internal audit department must ensure they get the right ingredients for their recipe. They need to assess their knowledge of technology, methodologies, and best practices. They also have to taste-test their ability to understand and analyze complex technical systems and processes.
Finding the Right Fit
Internal audit departments can also benefit from hiring people with IT experience. Think of them as a secret ingredient to your IT audit soup. For example, a candidate with a background in database administration can bring a rich flavor of database security expertise. A network engineer can add a pinch of network security expertise.
Changing your Mindset
Consider removing the requirement that candidate has “worked in IT auditing for X number of years”. This requirement dramatically decreases the talent pool in an area already in short supply. Instead, focus on current IT knowledge and abilities and a broad understanding of risk management processes.
From my experience, it’s harder to teach new employees about IT and emerging technology than it is to teach them how to do an audit. Technology is constantly changing, while auditing techniques are much more stable and consistent.
ROI Bonus
It’s easier (obviously) to justify hiring new talent when there are open roles in your internal audit plan. However, consider this when making your case – the new technology professional can devise new and creative ways to automate your audit testing. A nice little boost to your operational efficiency, eh? Plug that into the ROI when justifying your budget.
Gartner Survey Reveals the Top Challenges for Internal Audit in 2022
A Gartner survey of 166 audit leaders in July 2021 showed that advanced analytics adoption, better IT auditing, and adequate cyber security assurance are top worries for 2022. Internal audit is struggling to attract talent with non-traditional skills.
Four out of the five biggest concerns were tech-related. The recent layoffs may help with some of the talent searches.
Top 5 (of 12) Audit Leader Challenges in 2022
- Attracting Talent With Nontraditional Audit Skills 57%
- Making the Leap to More Advanced Analytics Applications 56%
- Inadequate Assurance Over Cybersecurity 53%
- Inadequate IT Auditing Practices 53%
- Measuring the Impact of Higher-Value Activities Our Team Performs 51%
Value Proposition to the IT Professionals
Cool, cool. But how do I convince technology experts to shift their career focus to internal auditing? Here are ten tips.
- Highlight the stability and security of the internal auditing field compared to the fast-paced and dynamic technology industry.
- Emphasize the opportunity to use and expand their technical skills in a new and challenging environment.
- Offer IT-specific training and development programs to help them transition into the internal auditing role.
- Provide flexible work arrangements and a supportive work culture that values work-life balance.
- Offer opportunities for professional growth and advancement within the internal auditing department.
- Partner with tech companies and industry organizations to offer joint training and development programs for laid-off tech workers.
- Highlight the importance of internal audits in promoting transparency, accountability, and risk management within organizations.
- Offer competitive compensation and benefits packages, including health insurance, retirement plans, and paid time off.
- Promote a positive and welcoming workplace where employees feel valued and respected.
- Demonstrate a commitment to diversity, equity, and inclusion, and actively seek out and recruit a diverse pool of IT professionals.
Now let’s expand on a few of these tips.
Offering IT-Specific Training and Development
To stay current with the latest technologies and best practices, IT internal auditors require ongoing training and development. By offering a range of training and development opportunities, internal audit departments can attract IT professionals looking to continue learning and growing in their careers.
- Offer on-the-job training, and hands-on experience with real-world projects, to build their confidence and expertise.
- Encourage continued learning and development with ongoing training and professional development programs to keep internal auditors up-to-date with the latest technologies and best practices.
- Offer courses on emerging technologies, like blockchain and AI
- Attend industry conferences and workshops to show the importance of professional development and growth.
A recent article in the Journal of Accountancy agrees with this approach. The author notes that “ongoing training is critical for staying current on new technologies, regulations and industry practices, and maintaining the skills and knowledge necessary to perform IT audit functions effectively.”
Creating a Positive Work Environment for IT Internal Auditors
It’s not just about the paycheck anymore – tech professionals at the top of the ladder are looking for organizations that offer them a positive work environment. Internal audit departments can attract laid-off big tech workers to their ranks by offering competitive compensation and benefits and fostering a work culture where collaboration and support thrive.
Offer competitive compensation packages
Each situation is different, but internal audit departments can offer competitive compensation packages, including salaries, benefits, and bonus structures, to attract highly skilled IT professionals who have been laid off from big tech companies.
Highlight career growth opportunities
IT internal auditors have the potential for career growth and advancement within the internal audit department. By highlighting these opportunities, internal audit departments can attract highly skilled IT professionals looking for long-term career stability.
Showcase the importance of IT auditing
IT auditing plays a critical role in ensuring the integrity and accuracy of information systems. Internal audit departments can showcase this importance to attract IT professionals looking to make a meaningful impact in their next role.
Offer flexible work arrangements
Many IT professionals value having flexible work arrangements (as do I), such as remote work or flexible hours. By offering these arrangements, internal audit departments can attract IT professionals looking for a work-life balance.
Availability of internal transfers
Internal transfers offer IT internal auditors the chance to move between departments within the same organization, enhancing their skills and experience while staying with the same company. Highlighting this availability can draw Tech workers looking to expand their skill set while remaining within the same institution.
Conclusion
Don’t let the tech layoffs be a burden; use it to your advantage! By recruiting experienced IT internal auditors from big tech layoffs, you can improve technical risk management and efficiency while staying ahead of the competition. Hiring talented IT professionals can help set you apart from the rest, so don’t let this opportunity slip by!
Layoffs might mean bad news for some, but it doesn’t have to be that way. Why not turn a negative into a positive and dive into IT auditing? Let’s make something great out of nothing! Happy auditing!
Are you searching for IT auditing talent?
I’m interested to learn more about your experience!
Let me know in the comments below.
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