The Disconnect: Employers vs Job-Seeker

The technology industry is known for offering lucrative salaries to professionals with the right skills and experience. However, we are currently seeing a disconnect between employers and job seekers when it comes to salary expectations. This disconnect can lead to frustration on both sides and make it difficult to fill open positions. Over the past two years, employers have distributed large raises to valued employees; which was essential to retain irreplaceable talent. Inflation skyrocketed, and basic living expenses followed.

However, as the economy tightens, so do budgets. Employers are trying to pull back while job seeker expectations remain unchanged. Similar to the cost of living, salary expectations match the inflation we all see in our everyday lives. This has lead to a large disconnect between employers and job seekers as we move into 2023. The labor market remains tight and employers are struggling to fill important positions.

One of the main reasons for the disconnect between employers and job seekers when it comes to salary expectations is a lack of transparency. Many employers are hesitant to disclose their salary ranges for open positions, either because they don't want to tip off their competitors or because they want to maintain flexibility in negotiating salaries. However, this lack of transparency can lead to job seekers having unrealistic expectations about what they can expect to earn.

Another factor that contributes to the disconnect is the rapid pace of change in the technology industry. New technologies and programming languages emerge every year, and the demand for skilled professionals can vary widely depending on these trends. Employers may not be able to accurately predict what skills will be in high demand in the future, and job seekers may overestimate the value of their current skills. Additionally, retaining top talent has become a bidding war, and companies with the largest war chest come out on top. Not only do they retain the top talent in the industry, they set a new standard for salary expectations industry-wide. A standard that is out of reach for the mid-size business.

To bridge the gap between employers and job seekers regarding salary expectations, there are a few steps that both parties can take. For employers, being more transparent about salary ranges can help set realistic expectations for job seekers and attract a more qualified pool of candidates. Additionally, offering opportunities for professional development and training can help ensure that employees have the skills necessary to meet the changing demands of the industry.

Another way to bridge the gap is cutting cost elsewhere. In example, hiring an independent consultant to support your current systems instead of using vendor support, considering off-shore resources for programming or troubleshooting roles, hiring subject matter experts on an as needed basis, etc.

At some point, job seekers and employers will reconnect somewhere in the middle on salary expectations. However in the mean time, business have to run smoothly and that requires having the right people in place. If you would like to discuss cost cutting measures, or need help finding the right full-time talent, feel free to reach out any time.

Ryan Kelly

Director of Recruitment

Cox-Little & Company

[email protected]