It’s difficult to think of an industry, business, or consumer that has not been impacted by technology.
Technology skills have always been highly marketable within the talent pool. Now, more than ever, there is an unprecedented demand for cutting edge technology experience. A company's ability to remain competitive requires a dynamic team of technology professionals who have the necessary skills and expertise to compete, lead, and innovate within their sectors.
Software development positions topped the list of most difficult positions to recruit. US News & World Report also ranks Information Security Analysts among top technology positions, with the Bureau of Labor Statistics estimating that employment of IT Security Analysts will grow 33% in the next 10 years, outpacing all other occupations.
With demand higher than supply for many technology-focused roles, companies are under increased pressure to provide higher salaries to obtain the talent they desire. While we recognize that there may be some pull-back on headcount within the technology industry, for those still being retained and recruited, highly-negotiated pay is very much a focal point for companies.
The value of experience and continual expansion of skill set and knowledge, cannot be ignored. It’s a key factor in determining compensation for any role, but especially for technology positions. Software Engineering positions are seeing an increase of 30% in the US and 200% in India for those with two and five years of work experience.1
Companies will continue to examine their pay structures against the competitive market and may ultimately implement separate structures for technology positions to address the out-of-range pay that is being garnered by applicants. Additionally, internal adjustments may be made to maintain parity between new hires and current employees. While we would normally see a positive correlation between company size (i.e., revenue) and salary, companies are now paying salaries in the upper quartiles, regardless of company size.
As the ever-changing landscape in the IT job market continues to evolve, senior leadership will play a pivotal role in recruiting and retaining talent by being keenly aware of the market and designing creative programs for their workforce.
1CompAnalyst, Salary.com (2022)