More technology professionals will receive a pay rise this year than last, but the amount will be less than they feel they are worth.
According to the FY 2021-22 Hays Salary Guide, released recently and based on a survey of close to 3,500 organisations, 65% of technology employers will increase salaries in their next review, up from 38% who did so in their last review.
But just 19% will award increases of 3% and above. Instead, almost half (46%) intend to raise salaries at the lower level of 3% or below.
This is out of touch with the technology professionals surveyed for the guide. Of these, 68% say a raise of 3% or more would better reflect their individual performance over the past year.
This gap between employer and employee expectations for wage rises must be managed sensitively if employers are to retain staff.
There are several ways to help overcome this divide, but one strategy stands out above the rest: investing in the training, development and advancement of staff. After a year in which many skilled professionals put career plans on hold, they are focusing again on their long-term goals.
A lack of new challenges is also a primary factor driving technology professionals into the jobs market today, behind only an uncompetitive salary and a poor management style or workplace culture. A lack of promotional opportunities came in fourth. This makes re-investing in career progression and upskilling, such as offering stretch opportunities to challenge and advance staff, a sensible strategy for the year ahead.
Skills shortages intensify
While employers grapple with this salary expectation divide, a looming skills shortage threatens to further upset growth. 68% of technology employers say skills shortages will impact the effective operation of their organisation in the next 12 months. This is above the 64% average for all industries.
In addition, 47% of organisations intend to add to their permanent headcount this year, a figure that rises to 57% in technology departments. Add rising turnover, and employers need to address attraction and retention now.
Within technology, we’re seeing particularly high demand for cloud, cyber security, software development and data professionals. But these aren’t the only areas of demand. In fact, the need for technology professionals has never been greater.
In such a market, to attract top talent employers need to review salaries and benefits, while also offering career progression and opportunities to work on innovative projects from conception to completion.
When hiring in candidate-short areas, remember that the candidate is also assessing you in a job interview. So, make sure you demonstrate the opportunities they’ll access in your organisation, including not only learning and development, but also your culture and technical environment.
For detailed salary information for thousands of roles, download the Hays Salary Guide.