WN Talents: "In the gaming industry, it has become more difficult to approve budgets for hiring employees"

The recruiting agency WN Talents conducted a survey of game studios regarding the hiring landscape. According to the responses, over half of the studios found it more challenging to approve hiring budgets over the past year. Marina Lopatina, the agency's Business Development Director, provided more details to App2Top.

Marina Lopatina

We at WN Talents regularly host HR meetups for gaming industry professionals. During the latest meetup, we surveyed participants on how they perceive changes in the gaming labor market over the past year.

The survey was brief but highlighted several concerning trends that deserve attention. However, I'll start with a quick overview of the methodology.

The study involved HR representatives from 16 gaming companies, mainly operating in Europe. The survey was conducted privately: participants submitted responses via a Google form without specifying email addresses or company details.

Overall, the respondents answered several questions during the study. Let's focus on some of them and how our respondents answered.

Assessment of the Game Development Labor Market

The first question was phrased as follows: "How do you assess the changes in the gaming labor market over the past year?"

56.3% of respondents noted that the situation has become slightly more difficult.
18.8% reported no significant changes;
12.5% were unsure;
6.3% of respondents noted that the situation has become significantly worse;
6.3% believe that the situation has improved.

We see that the majority of HR specialists indicate a deterioration in the labor market (62.6%).

Changes in HR Processes and the Cost of Talent

Responses to the second question ("What has changed the most?") reveal the reasons for the worsening situation.

50% of respondents noted that budget approvals have become more difficult;
37.5% reported that their company is hiring less;
An equal number shared that there are more candidates applying for each position now;
25.1% indicated a sense of uncertainty;
18.9% said that over the past year, their attitude towards employees, work, and the company as a whole has changed.

Budget cuts are likely related to market turbulence. Many have faced layoffs in recent years. Not all challenges have been overcome, so employers are cautious about hiring, particularly for costly positions.

Incidentally, costly employees are not necessarily those demanding high salaries. For example, we recently searched for a marketing specialist for a client. During the search, we found that specialists of the same level from Russia and Spain had identical salary expectations. The issue was that in Spain, due to high taxes, such a specialist would cost the company 40% more.

In other words, he was not inherently expensive but was costly in terms of tax burdens.

Adaptation of HR to New Conditions

To understand how respondents are responding to challenges, we included a question in the survey that was phrased as follows:

"What new approaches/tools are you trying in response to changes?"

Many answers to this question included various descriptions of the trendy area of AI. Some noted they are studying artificial intelligence, while others stated they are already integrating "neural networks" into processes.

However, some respondents noted that they also see drawbacks in the technology. It is not uncommon today for applicants to abuse AI. Consequently, companies are forced to adjust their hiring processes, taking into account that potential employees also use neural networks.

Of course, the surveyed HR specialists are not only experimenting with and working on artificial intelligence. They are also increasingly interested in topics such as:

Content strategy for job postings;
Analysis and search for new sources;
Hiring through networking;
Engaging recruitment agencies.

Indeed, seven years ago when I first entered the gaming industry, companies conducted searches independently. There was no practice of analyzing sources or working with agencies.

Now, hiring an agency to assist internal HR is a very popular solution, especially considering payment is only made upon candidate placement. This means the company gains both in hiring speed and cost efficiency.

Additionally, it often happens that HR specialists, having thoroughly studied recruitment, reach out to agencies to delegate this function, which requires processing large volumes of information.

Among the responses, it was also noted that HR specialists have begun implementing coaching for managers under the current conditions, providing training on change management.

This is an excellent practice as employees perceive the company’s situation through their managers. Team leaders must be prepared for changes and able to communicate this information to their teams accurately and calmly.

In our WN Media ecosystem, several areas support working with people and teams overall – including WN Talents, which finds ideal candidates for companies, and WN Academy, which aids in the ongoing work and development of employees.