IT Business Staffing New Trends

2023 State of Tech Salaries Report

The tech industry continues to adapt and to keep moving forward. The 2023 State of Tech Salaries provides insight into up-to-date skills, salaries, benefits, and market preferences, so you are ahead of the game in hiring the best technology team.

Some of the highlights of this report include:

1. Inflation rates continue to cool, but a period of higher interest rates and increased costs for goods and services have tempered salary gains from the last four years. US tech salaries have seen the largest year-over-year decline in the past five years. In fact, when adjusted for inflation, US tech salaries have dropped to their lowest point during the same period. Workers are grappling with this change in the face of competition for roles.
2. Engineering Managers commanded the highest salaries in both the US and UK, while engineers with specialized skills in AI, security, data, and machine learning show the most demand.
3. Companies are following the exodus of talent from higher cost-of-living (CoL) areas, as well as sourcing remote candidates in lower CoL markets, but in fewer locations overall. By focusing on fewer markets, some companies have opened new offices for in-person collaboration versus remote teams spread across borders.
4. Generative AI appears to be threatening junior talent, or those with less than four years of experience the most but also presents an opportunity for new roles and applications.
5. In general, enterprise and midsize companies have pulled back on remote flexibility for new roles, while eSMBs and SMBs have increased their appetite for remote talent. Experienced candidates largely prefer remote, but have been more open to alternatives in this hiring environment.

Reference: Find the Report here.

Most Attractive Employers of 2023 by Universum.

According to the 2023 study made by Universum, students, and new talent are more focused on compensation and flexible working conditions in 2023.

Demand for new talent remains at historically high levels according to Manpower. The share of companies struggling to find skilled talent is 77% as of Q4-2023, the highest level recorded by the research firm in 17 years.

Despite this, Manpower reports that the global “Net Employment Outlook” (the share of employers that plan to decrease hiring subtracted from the share of employers that plan to increase hiring) has weakened slightly over the last 12 months, dropping two points over 12 months written twice.

Due to slightly weaker hiring signals, plus the persistent pressure of inflation, students are strongly focused on compensation in 2023.

High future earnings rank as the #1 career priority for students across all areas of study, and competitive base salary is rising in importance for all, now ranking in the Top 4 for business, engineering, and IT students.

Other talent attraction drivers that employers should consider and pay attention to our mentorship and development opportunities as well as collaboration tools that make it easy for remote workers to feel part of the team and advance their careers.

Reference: You can find the Report here.