Tech Compensation Increases and Retention Strategies
Article by JobTerix IN DESIGN & ILLUSTRATION - 11/30/2021
How do hiring managers come up with strategies to retain more tech talent? A lack of skilled IT professionals has prompted companies to adjust their salary offerings for the next year. Tech skills are in-demand worldwide, and to stay competitive in the business world, you have to have knowledgeable people that can do the job your client’s need.
The turnover rates in some IT professions continue to be high, so many companies are offering a higher salary to keep the employees they have, rather than spending the money to hire new people.
According to Aon’s Salary Increase and Turnover Study, countries that are experiencing a demand for tech skills like India and the United States have increased their tech salaries by 30%. A large number of big-name companies participated in the study.
Here are a few figures from that study:
US & Canada
● Accenture: increased their base salary by 15-25% in June this year. Projected to increase next year as well.
● Edios: This Canadian company kept their salary base the same, but offered raises of 20% and adopted a 4-day workweek. A strategy of increasing pay for loyal employees and more benefits.
● FactSet is a US-based financial institution offering a 20-25% one-time adjustment for Software Engineers 2 & 3.
Latin America
● Software developers working remotely in Chile got a 50% salary increase. This increased from $64K to $100K.
● Amazon Brazil: increased salaries by 10% for all engineers
Europe
● Data Engineers at a publicly traded company in Portugal saw a 30% increase in pay. More increases in other sectors are expected to follow.
● A Series B startup based in Prague, Czechia gave a 25% base increase for engineers after having several Android and iOS engineers stolen by other companies offering a more attractive salary package.
● A Series B startup in the UK and Germany with a US HQ increased base salaries for engineers to 25%.
● Series C FinTech in London increased their base salary for managers to 20-25%.
● A Series A startup with most engineers based in Hungary increased their base salaries by 20-25% for engineers.
Maximize Your Total Rewards Strategy to Retain Tech Talent
To keep more loyal employees in any field, the first thing that employees need to understand is that salary is only one part of it. Benefits packages should be refocused to include things that are important to them, like shorter work weeks, more health care, increased PTO days, sick leave, and having more control over their work environment. Allowing employees to have some decision-making power is a definite plus. Software developers and engineers will stay with companies that value their skills and knowledge.
What Tech Candidates Want
IT Professionals want 3 things when it comes to the company they work for:
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a salary that reflects the skills and value to the company (a higher base salary),
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more flexibility in their work schedule (more PTO days, remote work, etc.)
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the ability to learn and grow with the company (learning programs, certifications, promotions). The number one reason most tech professionals left a job, after salary and benefits, is for a lack of progression (not being able to move up).
For IT professionals (software developers, engineers, etc.) looking for a change or to start freelancing, Jobterix.com is a marketplace for IT talent. It matches companies with talented individuals based on skills and abilities. Create a profile and look over your options for a new career.
