Hiring Your Next Tech: A Practical Guide to MSP Recruitment

November 8, 2025

Finding qualified technicians has become the defining challenge for MSP owners in 2025. The right hire transforms your operations and how your clients experience your service. Get it wrong, though, and you're looking at replacement costs anywhere from 50% to 400% of that employee's salary, not to mention the productivity hits and client relationships that take damage along the way.

Here's the reality: 75% of MSPs say hiring and keeping good IT people is their biggest headache, and it's not just us. The talent shortage hits 76% of companies worldwide. But it's more complicated than just "not enough people." MSPs are competing against enterprise IT departments that can throw around salaries 30-50% higher than ours, plus benefits packages we can't touch.

This guide gives you a practical framework for building a recruitment strategy that actually works within the economics of running an MSP. You'll learn where to find candidates everyone else overlooks, how to evaluate both technical skills and whether someone can handle the MSP pace, how to put together compensation that competes (without breaking your budget), and how to avoid the expensive mistakes that kill your margins.

What Does the MSP Hiring Landscape Look Like in 2025?

Before you start posting jobs, you need to understand what you're up against. The market conditions shaping recruitment right now aren't pretty, but knowing the landscape helps you compete smarter.

Why Is the IT Talent Shortage Creating Unprecedented Hiring Challenges?

The talent shortage story is more nuanced than the headlines suggest. Yes, there's a shortage, but it's not quite what people think. ISACA's 2025 study found 74% of organizations can't find and keep good people, and a third of tech workers changed jobs in just the last two years. ManpowerGroup's data shows the shortage jumped from 40% in 2014 to 75% now.

Here's what's interesting: 96.4% of tech companies say their main problem is finding candidates with the right skills. The Bureau of Labor Statistics expects about 317,700 new IT jobs to open every year through 2034.

But Chris Camacho, COO at Abstract Security, has a different take that's worth hearing: "There's plenty of talent on the market, and many skilled professionals are actively seeking work. The real challenge is that the most capable individuals, those who have evolved with the threat landscape, are already employed and continuously growing. The gap isn't about numbers. It's about preparedness."

What this means for you: Entry-level people are out there, but they'll need serious time and training before they're productive. The experienced techs who can hit the ground running? They're getting calls from companies with way bigger budgets than yours.

Which Technical Skills Are Hardest for MSPs to Hire?

Three skill areas are killing us right now:

Cybersecurity expertise: 67% of companies report they can't find cybersecurity people, and there are 4.8 million unfilled cyber jobs worldwide. Your clients need compliance and protection, and the skills gap keeps growing. Nearly 60% of organizations say the cybersecurity shortage puts them at real risk, up from 44% last year.
Cloud infrastructure: Everyone's moving to the cloud, but there aren't enough people who know Azure, AWS, and hybrid setups. Salaries in this area are going up 5-7% this year because the competition is fierce.
Automation and AI: This is where the next round of efficiency comes from, but most techs never got trained on it. These roles are growing fast, and the stakes are high.

Here's the problem this creates: You can't just hire more Tier 1 people and expect them to handle what your clients need. The gap keeps widening.

How Do MSP Technician Salaries Compare to the Broader Market?

ZipRecruiter's November 2025 data shows MSP techs averaging $27.49/hour, or $57,186 a year. Rates run anywhere from $15.14 to $42.79. Glassdoor's numbers come in higher at $65,602, with top earners hitting $101,296.

The Service Leadership report breaks it down by tier: Tier 1 averages $46,371, Tier 2 hits $64,879. That $18,508 difference shows what experience is worth.

Here's an uncomfortable truth: One large MSP couldn't figure out why they weren't getting any qualified senior techs. Turns out their offers were 50-70% below market. Your competitors, both MSPs and enterprise IT departments, will often pay a lot more for someone who's already proven.

Location matters too. Berkeley, CA pays 22.4% above the national average. San Francisco is 17.8% higher. If you're hiring remote workers from expensive cities, your budget needs to reflect that.

Where Can MSPs Find Qualified Technician Candidates?

You need to look beyond the usual job boards and recruiters. The best people aren't always actively looking, and some of the best talent pools get completely ignored.

How Does Remote Work Change MSP Hiring Opportunities?

Remote work changed everything about who you can hire. Here's the thing: The Service Leadership report shows only 9.6% of MSP employees work fully remote, and 73% are in the office at least three days a week. We're being way too conservative here, especially when 82% of tech workers want hybrid or remote options.

Do the math: A tech in Des Moines might have the same skills as someone in San Francisco but costs way less. That experienced Tier 2 tech in Iowa might jump at a salary that wouldn't even cover rent in the Bay Area.

You just need to structure things right. Remote techs can handle most helpdesk work, documentation, monitoring, and even complicated troubleshooting. Save the on-site requirement for roles that actually need someone physically there.

What Non-Traditional Talent Pools Should MSPs Explore?

Ray Spangler, who's been running MSPs for years, has this advice: "We rely too heavily on university certificates. The government invests significantly in training its workforce, and that training is highly focused and specialized. MSPs should recognize and leverage that experience."

Veterans bring a lot to the table:

They troubleshoot in structured ways
They're used to working under pressure
Documentation is already a habit
Many have networking and security certs
The work ethic fits the MSP grind

Don't stop at veterans, though. Look at:

Career changers from related fields: Help desk experience counts, even if it's not from IT
Vocational and community college grads: Plenty of great techs never got a four-year degree
Apprenticeship programs: Partner with local schools to build your own pipeline
Skills-based candidates: People without college degrees stay 20% longer in tech jobs, and 89% of tech companies say skills-based hiring works

How Can MSPs Build Recruiting Relationships Before Positions Open?

The MSPs that win at hiring treat recruiting as relationship building, not just posting jobs when you're desperate. Show up where tech people hang out. Stay connected all year. Focus on what matters to them instead of chasing the perfect resume.

Try these:

Local tech meetups and user groups: Sponsor events, host them at your office, or just show up consistently
LinkedIn engagement: Actually comment on technical stuff people post, not just when you need someone
Industry conferences: CompTIA events, local IT groups, vendor conferences - all good for meeting people
Referral programs: Your techs know other techs. Referrals are gold - people hired through referrals take 29 days versus 39-55 days from job boards

The worst thing you can do is wait until you desperately need someone. That's when you make expensive mistakes because you're hiring under pressure. If you're unsure when to pull the trigger on hiring, check out when and how to add team members to avoid that trap.

When Should MSPs Consider White-Label Partnerships for Specialized Skills?

Some skills are just too hard to hire for - advanced cybersecurity, complex cloud migrations, compliance work. White-label partnerships can be your answer here.

Partner with specialized providers to fill gaps without hiring and training people in-house. You get experts working under your brand, keep service quality up, and cut operational costs.

This works great for:

SOC services
Complex projects where you need expertise for a few months, not forever
After-hours coverage
Compliance and audit work

How Should MSPs Structure the Interview Process?

A good interview process is what separates smart hires from expensive mistakes. You need to check both technical skills and whether someone can actually handle the MSP pace.

What Pre-Interview Screening Criteria Matter Most?

Before you spend hours interviewing, set up screening that filters people out effectively.

When you're looking at resumes:

Check for the right certs (CompTIA A+, Network+, Security+, Microsoft stuff)
See if they've worked with your tech stack
Look for progression, not job hopping
Find evidence they document things and follow processes

Phone screen basics:

Verify they know the basics
Can they explain tech stuff clearly to someone who doesn't get it?
Are they available when you need them, and do salary expectations line up?
Do they understand what MSP work is actually like?

What Technical Interview Questions Reveal Real Problem-Solving Ability?

Skip the textbook questions. Ask about real situations they'll face every day.

For Tier 1 techs:

"A user is working from home and can see their network drives but there are small red X's next to them. How do you troubleshoot that?"
"Someone printed fine before lunch, now they can't. The printer says 'Ready to print.' What do you do?"
"Walk me through a password reset while making sure you're actually talking to the right person."
"Explain DHCP and what happens when a lease expires."

For Tier 2 and senior techs:

"You get an alert that a server disk hit 95% capacity. Walk me through your steps, and how do you prioritize this against everything else you're working on?"
"Client calls and says 'the network is slow.' How do you diagnose that?"
"Tell me about a complicated problem you solved and how you approached it."
"Draw a network you know well with as much detail as you can." This shows real understanding better than just talking about it.

Check their tool knowledge:

Ask what ticketing system they used before and see if they know your PSA and RMM platforms. If they already know ConnectWise, Autotask, Datto, or Kaseya, they'll get up to speed way faster.

What Behavioral Questions Reveal Cultural Fit for MSP Environments?

Technical skills matter, but they're not enough. MSP work is a different animal - the pace, the variety of clients, the pressure. You need to figure out if someone can handle it.

Ask about client interactions:

"Tell me about a time someone was frustrated or angry. How did you deal with it?"
"How do you explain technical stuff to people who don't get it?"
"Ever have to say no to someone? How did that go?"

Check their documentation habits:

"Show me how you'd document a ticket."
"What do you do when the knowledge base doesn't have the answer?"
"Have you ever improved a process? Tell me about it."

See if they can handle the MSP pace:

"Multiple clients have urgent issues. How do you decide what to work on first?"
"What's your experience working with different technology setups?"
"Why MSP work instead of working internal IT somewhere?"

How Should Candidates Handle Questions They Cannot Answer?

Here's something experienced MSP recruiters will tell you: How someone handles a question they don't know matters just as much as getting the right answer.

"If you don't know the answer to a question, that's OK. It is acceptable to admit that you don't know the answer, and many times the interviewer will appreciate the candidate's honesty. The candidate should display how they would go about getting the answer, which shows honesty and ability to think outside the box."

Watch out for people who fake it confidently. That doesn't go away on the job, and it kills client relationships. Someone who admits they don't know something but explains how they'd find out? That's someone you can train and trust.

How Can MSPs Compete on Compensation Without Breaking the Budget?

You cannot match enterprise IT salaries dollar-for-dollar. However, compensation strategy involves more than base pay, and many technicians prioritize factors beyond the largest paycheck.

What Is the True Cost of Employing a Technician?

The true cost of employment extends far beyond salary. Benefits, healthcare, taxes, retirement contributions, vacation pay, and ongoing training accumulate quickly.

For budgeting purposes, calculate your fully loaded cost per employee:

Base salary
Employer payroll taxes (7.65% for Social Security/Medicare)
Health insurance (average $7,000-$15,000 annually for employer contribution)
Retirement contributions (if offered)
Paid time off costs
Training and certification expenses
Equipment and tools
Recruiting costs (average $4,000 per hire according to SHRM)

A $65,000 salary typically represents $85,000-$95,000 in actual employer cost. Use this figure when calculating profitability per technician and making hiring decisions.

What Non-Salary Benefits Attract Top Technical Talent?

Research consistently shows IT workers seek more than the highest paycheck. Beyond competitive salary, strong benefits, and remote work options, they prioritize professional development and concrete advancement pathways.

Career development offerings that attract talent:

Certification sponsorship (exams, study materials, training time)
Clear advancement paths from Tier 1 to Tier 2 to engineer to team lead
Exposure to diverse technologies and client environments
Mentorship from senior technicians
Conference attendance and professional development budgets

Work environment differentiators:

Flexible scheduling and remote work options (82% of tech professionals prefer hybrid or remote roles)
Reasonable on-call expectations with compensation for after-hours work
Team culture that minimizes the chaos common at poorly-run MSPs
Tools and processes that enable success rather than create frustration

For key positions, consider equity participation or profit-sharing arrangements. A technician who benefits from company success has different motivations than one simply collecting a paycheck.

How Should MSPs Benchmark Compensation by Region?

Your compensation needs to be competitive within your specific market. Use the Service Leadership Compensation Report as a baseline, but validate against local conditions:

National averages (2025): $46,000-$65,000 for technicians depending on tier
Major metros: Add 15-30% above national averages
Secondary markets: Often 10-20% below national averages

Berkeley, CA tops the list at 22.4% above the national average. San Francisco runs 17.8% above average. If you hire technicians remotely from high-cost areas, expect to pay accordingly for that talent.

Why Is Retention More Cost-Effective Than Continuous Hiring?

The bigger threat from a cost standpoint is high turnover. Recent research indicates that replacing a single employee in 2025 costs between 50% and 400% of their annual salary, depending on role and experience level. The average cost across all levels is approximately $35,700 per departure when including direct and indirect costs.

The Service Leadership report highlights a critical retention metric: employees with 1-3 years of experience have a 3x higher FTE churn rate compared to employees with 8 or more years of experience.

This finding has practical implications for your MSP staffing strategy:

Invest heavily in onboarding and early career development
Identify flight risks early and address concerns proactively
Consider retention bonuses for the 1-3 year experience band
Track turnover rate by tenure and address patterns
Remember that 86% of new hires decide how long they will stay within the first six months

What Is the True Cost of Making a Bad Hire?

A single hiring mistake can devastate your MSP's profitability in ways extending far beyond the obvious costs of recruiting and training a replacement.

How Much Does Replacing a Bad Hire Actually Cost?

According to the U.S. Department of Labor, a bad hire can cost your business 30% of the employee's first-year earnings. For a $65,000 Tier 2 technician, that translates to $19,500 at minimum.

Research from Applauz suggests replacement costs range from 50% to 400% of annual salary depending on role complexity and seniority:

Entry-level positions: 30-50% of salary
Mid-level technical roles: 100-150% of salary
Senior and specialized positions: 200-400% of salary

Even more concerning: 74% of employers admit to having made wrong hiring decisions, and 80% of turnover stems from poor hiring choices. Nearly three-quarters of companies have hired the wrong person, with each bad hire costing an average of $14,900 in direct costs alone.

What Hidden Costs Do Bad Hires Create?

Beyond recruiting and training expenses, bad hires damage your business in ways that rarely appear on financial statements.

Productivity drain:

New hires operate at just 25% productivity in their first month, increasing to 50% in month two and 75% in month three. Full productivity typically takes 6-12 months. Every week an underperforming hire stays on the team reduces overall output while others step in to assist or redo work.

Client impact:

Poor performance directly drives client dissatisfaction. A 2024 PwC survey found that 17% of consumers quit buying from a brand after one bad experience.

For MSPs, this translates into:

Longer ticket resolution times
More escalations burdening senior staff
Client complaints about service quality
Potential contract non-renewals

Team morale damage:

When a high performer leaves or a problem employee persists, the impact ripples through your team:

Increased workload on remaining technicians
Frustration with management's hiring decisions
Questions about company direction
Potential departure of other strong performers

Knowledge loss:

When high performers leave, they take their ideas, market understanding, and product knowledge with them. Even detailed notes and training for replacements cannot capture everything stored in their experience.

How Do Bad Hires Affect Client Profitability?

Your MSP's profitability hinges on technician efficiency. Consider the math when a Tier 2 technician spends four hours troubleshooting an issue for a flat-fee client:

Tier 2 technician fully loaded cost: $35/hour
Four hours on a single issue: $140
Average ticket value under flat-fee agreement: $50-$75
Net loss on that ticket: $65-$90

Multiply this by a technician who consistently takes longer than necessary, creates extra work through poor documentation, or damages client relationships requiring account management intervention.

Research shows that at some MSPs, almost 80% of tickets were opened by 10 companies, with 8 of those companies being painful customers getting near white-glove service without covering their costs. A bad hire magnifies this dynamic, turning marginal clients into money losers and profitable clients into marginal ones.

How Should MSPs Structure Onboarding for New Technicians?

Your MSP recruitment investment only pays off if new hires reach productivity and stay long enough to generate returns. Organizations with strong onboarding programs improve new hire retention by 82% and productivity by over 70%, according to Brandon Hall Group research.

What Should the First 90 Days Look Like?

Week 1: Foundation

Complete HR paperwork and system access provisioning
Introduce company culture, values, and expectations
Provide overview of client base and service offerings
Assign mentor or buddy from the team
Begin PSA and RMM tool training

Weeks 2-4: Supervised Practice

Shadow experienced technicians on tickets
Handle simple tickets with mentor review
Complete documentation training
Learn escalation procedures and SLAs
Begin studying for relevant certifications

Weeks 5-8: Guided Independence

Handle standard tickets independently
Receive daily check-ins with supervisor
Begin learning client-specific requirements
Participate in team meetings and QBRs
Complete first certification exam

Weeks 9-12: Full Integration

Take normal ticket load with periodic review
Handle on-call rotation if applicable
Contribute to documentation improvements
Set 90-day review goals
Identify areas for continued development

Employees in the longest onboarding programs gain full proficiency 34% faster than those in the shortest programs, representing a difference of 4 months in time-to-productivity.

What Factors Determine Onboarding Success?

Pair new hires with strong mentors: The technician who trains your new hire shapes their habits, knowledge, and attitude toward the job. Choose mentors who model the behaviors you want replicated.

Provide clear expectations: New hires should know exactly what success looks like at 30, 60, and 90 days. Vague expectations create anxiety and allow underperformance to go unaddressed.

Invest in tool training: Time spent learning your PSA and RMM platforms pays dividends in efficiency. Front-load this investment rather than expecting technicians to figure it out while handling client work.

Create documentation habits early: Establish documentation standards from day one. Technicians who start with poor documentation habits rarely improve without intervention.

Remember that 70% of new hires decide whether a job is the right fit within the first month, and companies have an average of 44 days to influence long-term retention.

What Early Warning Signs Indicate a New Hire May Not Work Out?

Watch for these indicators that a new hire may not succeed:

Resistance to feedback or coaching
Repeated mistakes on similar issues
Poor time management or ticket handling
Client complaints about communication
Documentation that is incomplete or nonexistent
Difficulty working within your processes

Address concerns directly and early. The cost of a frank conversation is trivial compared to the cost of prolonged poor performance. Given that 20% of employees who quit do so in the first 45 days, early intervention matters significantly.

How Can MSPs Build a Sustainable Talent Pipeline?

The best time to recruit is before you desperately need someone. MSPs that maintain ongoing recruiting efforts avoid the costly mistakes that come from hiring under pressure.

What Always-On Recruiting Activities Should MSPs Maintain?

Maintain a talent database: Keep records of promising candidates you have spoken with, even when timing was not right. When a position opens, you have a warm list to contact rather than starting from zero.

Build your employer brand: Your reputation in the local tech community affects who applies and who accepts offers. Be known as a place where technicians can learn, grow, and do meaningful work.

Track referral sources: Know which channels produce your best hires. Double down on what works and eliminate what does not. Remember that employee referrals reduce time-to-hire by 10-26 days compared to job boards.

Conduct stay interviews: Understand why your current team stays. Their answers inform both retention efforts and recruiting messaging.

What Recruiting Metrics Should MSPs Track?

Monitor these metrics to measure recruiting effectiveness:

Time to fill: Days from opening to accepted offer (average 44-88 days for technical roles)
Cost per hire: Total recruiting costs divided by hires made (average $4,000 according to SHRM)
Source of hire: Which channels produce candidates
Quality of hire: 90-day and one-year performance ratings
Turnover by tenure: When employees leave relative to hire date
Offer acceptance rate: Percentage of offers accepted

If your offer acceptance rate drops or time to fill extends, your compensation or employer brand may need attention.

MSP Recruitment Action Checklist: Where to Start

Transform your MSP's approach to hiring technicians with these concrete steps:

This week:

Audit your current compensation against market benchmarks
Review job postings for clarity and appeal
Identify your best current employees and analyze how they were sourced

This month:

Develop structured interview questions aligned with your needs
Create or update your onboarding program
Establish a referral bonus program

This quarter:

Build relationships with at least two non-traditional talent sources (veterans organizations, community colleges)
Implement a stay interview program
Calculate your fully loaded cost per technician and use it for profitability analysis

Ongoing:

Track recruiting metrics and adjust strategy based on data
Maintain warm relationships with promising candidates
Continuously improve onboarding based on new hire feedback

The MSP talent crisis will not resolve itself. However, providers who approach MSP recruitment strategically, understanding the market, building relationships, and competing on total value rather than salary alone, will continue building the teams they need to serve clients and grow their businesses.

Your next great hire is out there. The question is whether your MSP recruitment strategy will find them before your competitor does.

Frequently Asked Questions

How much does it cost to hire an MSP technician?

Average MSP technician salaries run from $46,000 for Tier 1 to around $65,000 for Tier 2 roles in 2025. Fully loaded costs, including benefits, taxes, training, and recruitment expenses, typically add 30-50% on top of base salary. The average cost per hire is approximately $4,000 according to SHRM. If you make a bad hire, replacement costs range from 50% to 400% of the employee's annual salary depending on seniority level.

What are the biggest challenges in MSP recruitment?

The biggest MSP recruitment challenges in 2025 include competing with enterprise IT salaries that run 30-50% higher, filling cybersecurity and cloud skills gaps where 67% of organizations report being understaffed, dealing with high turnover rates where techs with 1-3 years experience churn at 3x the rate of veterans, and finding candidates who thrive in the fast-paced MSP environment. Budget constraints have become the leading cause of hiring difficulties for the first time in 2025.

How long does it take to hire a technical employee?

Technical roles take an average of 44-88 days to fill in 2025, significantly longer than non-technical positions. Nearly 40% of senior technical roles take longer than 90 days to fill. Top candidates are typically only available for about 10 days, making speed critical. Employee referrals can reduce time-to-hire to just 29 days compared to 39-55 days for job board applicants.

What interview questions should I ask MSP technician candidates?

Effective MSP interview questions cover technical scenarios like troubleshooting network drives with red X icons, printer connectivity issues, and VPN problems. Ask about specific tools in your stack including Office 365, your RMM platform, and PSA systems like ConnectWise or Autotask. Include behavioral questions about handling frustrated clients, documentation practices, and prioritizing competing urgent requests from multiple clients.

How long does it take for a new MSP technician to become fully productive?

Research indicates new hires operate at just 25% productivity in their first month, increasing to 50% in month two and 75% in month three. Full productivity typically takes 6-12 months depending on role complexity. Organizations with strong onboarding programs can reduce time-to-productivity by up to 34%, representing a difference of 4 months compared to minimal onboarding approaches.

What is the average turnover rate for MSP technicians?

The average annual employee turnover rate is 19% across industries, but MSP help desk roles experience higher turnover due to burnout and operational pressures. The Service Leadership 2025 report shows employees with 1-3 years of experience have a 3x higher churn rate compared to employees with 8 or more years of experience. Replacing a technician costs between 50% and 400% of their annual salary.