Wages rising as skills shortages inflate expectations: Hays Technology

Wages rising as skills shortages inflate expectations: Hays Technology

  • 85 percent of technology employers will raise wages at their next review, from 65 percent;
  • 34 percent will give raises of three percent or more;
  • 76 percent say skills shortages have forced them to offer higher wages than planned;
  • 87 percent of technology employees say a raise of three percent or more would reflect their individual performance and the demand for their skills.

More tech professionals will receive a pay raise this coming financial year than last, and skills shortages will create a “single-career market,” according to the latest salary guide from recruitment firm Hays Technology.

Fiscal Year 22-23 Hays Salary Guidenewly launched, found 85 percent of the technology employers will raise wages at their next review, up from 65 percent last year.

Of these, 34 percent intend to raise wages by more than three percent, while 51 percent intend to raise wages by less than three percent.

According to Hays Technology, 76 percent of employers they say skills shortages have forced them to offer higher wages than planned.

Noting that professionals say they deserve more, Hays says that, for their part, 87 percent of tech professionals also spoke up to say their performance and the demand for their skills warrant a raise of more than three percent.

Nearly two-thirds (65 per cent) say the skills shortage has given them more confidence to ask for a pay raise and 63 per cent have already benefited from the skills shortage through a pay raise, a new job or both .

Despite this, Hays says that only 37 percent are satisfied with their current salary, and meanwhile, uncompetitive salary is the main motivating factor for 51 percent of job searches, outweighing a lack of career opportunities. promotion and lack of new challenges.

Noting that skills shortages affect wages, Robert BeckleyRegional Director of Hays-Technology. say what “intense competition for qualified professionals will translate into salary increases this coming fiscal year.”

Moving away from the pay stability stance of recent years, employers say skills shortages are the reason raises are higher than planned. 95 percent are already experiencing a skills shortage. 90 percent say it will affect the effective operation or growth plans of their organization.

“This is fueling a unique market in the race. Previously camouflaged by skilled migration and more impacted by workforce growth, skills shortages have reached a level unprecedented in our hiring years and prompted deliberate wage increases by employers.

“However, as both the value and scope of salary increases increase, employee expectations grow faster. In a market rich in jobs and poor in candidates, they feel more secure in their value and have prioritized a salary increase.

“In a market like this, the number one question employers ask us is how to stand out as the first choice of their preferred candidate.”

Hays’ response is a “new equation” for employers to follow, and as Beckley explains, “we suggest that the current skills shortage presents an opportunity to define a new equation in the world of work. Salary increase budgets only stretch so far, so he considers the full value trade-off for each role. Along with salary, he considers benefits, upskilling, career progression, purpose, and the relationship employers have with their employees.”

In other key findings, the Hays Salary Guide found:

  • The five most in-demand technology skills:
  • Business Analysts
  • cloud engineers
  • Full stack developers
  • Cyber ​​Security Analysts
  • data analysts

  • Increased benefits to attract candidates: 20 percent of technology Employers have improved benefits and work practices to attract more staff. The three main benefits sought by technology professionals are train (whether internal or external), more than 20 days of annual leave, and continuous learning and development.

  • Hiring intentions rise: 60 percent of technology employers intend to increase permanent staff levels in FY22/23. 48 percent will increase their use of temporary and contract staff.

Download a copy of the Hays Salary Guide visiting www.hays.com.au/salary-guide.

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