For hiring managers in technology, keeping track of fluctuating IT salary trends can feel like trying to follow the stock market in real-time. It isn’t easy to sift through all the available information on tech salaries, but it’s an essential practice for those looking to evolve their IT hiring strategies and land the best talent. To achieve this goal, Dice’s 2018 Salary Report is an excellent resource and guide. Here’s a snapshot of the key findings along with what they mean for you.
There’s a huge skills shortage in IT, so naturally salaries must be growing, but by how much? The answer may not be as high as you think.
Overall, the national IT salary growth rate is fairly flat at 0.7%. Most IT positions are seeing salaries grow at the same rate as non-tech jobs with the exception of cloud, big data, and process management positions. These are currently some of tech’s hottest roles, and you can expect an increased difficulty (and cost) when recruiting for them.
Now, less than 1% salary growth may not feel accurate to many of you, and that’s because rates in specific markets vary widely. In Oregon year-over-year salaries are up 8.5%, and in Portland, one of the nation’s fastest-growing tech hubs, salaries increased by 6.5%. Additionally, there has been a whopping 18.2% increase in salary for those with under one year of experience. That means employers are responding to the talent shortage by aggressively targeting entry-level tech professionals with the intent of shaping them into the employees they need.
Although IT salaries across the nation haven’t been rising as strongly as before, salary satisfaction has held steady, indicating that money isn’t everything for talent. Sure, a third of tech pros received a monetary bonus last year, but 71% of companies are now offering a combination of non-salary incentives, a percentage much higher than previously. These include:
The above motivators improve employee retention, which equates to fewer open roles that must be filled. At the same time, these incentives are very attractive benefits when recruiting new tech pros. Salary is important, but providing a fuller package carries a lot of weight. 45% of tech pros change jobs for better working conditions, not for more money, underscoring the importance of the big picture.
There’s a lot going on in tech. It’s a constantly evolving industry by nature, and one of the nation’s most competitive arenas when it comes to hiring. If you’re trying to land an IT pro over a rival company, it boils down to understanding market compensation for specific skills in your location and using other benefits to capture their interest. Finally, when there’s simply too much on your plate and overhauling your hiring strategy is daunting, teaming up with CorSource can get your roles filled quickly and effectively.