In 2023, we’re seeing the immense salary growth of the past few years start to plateau and salaries begin to stabilise. However, with tech skills remaining in high demand, there are a few roles where candidates can expect to earn more.
Despite a slowing market, we’re continuing to see salary growth across several job specialisations. Globally, tech salaries and contract rates have increased 15-20% since 2022.
The biggest permanent salary increases can be seen in the Security arena with average salary growth of 20% over the past year. The same is true for Infrastructure, particularly Cloud Infrastructure, with significant salary growth and demand for Architects and Designers in this space. Digital, Data Analytics and Business Intelligence roles are not far behind, with 17% average growth, followed closely by Development roles which have seen a 15% average increase.
When it comes to contract rates, we’re primarily seeing movement across Infrastructure positions, once again, largely in the Cloud Infrastructure space, with rates up 20% on average since 2022. Testing, Project Services and Data Analytics roles have also seen an uptick, with 15-20% average rate growth within these job specialisations over the past year.
We are seeing strong demand and salary growth for people who are coming from the Architecture and Design side of Cloud Infrastructure, more specifically with Microsoft skillsets. Microsoft continues to gain market share in the Cloud space and Power Apps continues to grow, claiming market share in the low code space. The growth in salaries remains particularly high because of this.
Alan Dowdall, Talent Sydney Practice Manager
Although there are skill and talent shortages across the board, the market is fiercely competitive for engineers/analysts and BI developers.
Kara Smith, Talent NZ Country Manager
Permanent salaries and contract rates [have begun] to plateau after the huge increases we saw between mid-2020 to mid-2022. Skill sets in high demand and short supply such as Cyber and Software Development have bucked the trend with rates still rising.
Matthew Munson, Talent Sydney Managing Director
Across the regions Talent operates in globally, the industries with the highest demand for tech talent include:
Source: Talent data & LinkedIn Talent Insights
Now that COVID border restrictions have been largely removed, the travel & tourism, logistics and higher education sectors will also be very active technology employment markets.
Keith Dixon, Talent Brisbane Managing Director
Public Sector, Financial Services, Tertiary Education and Engineering, Construction, Mining & Utilities are areas that are experiencing significant digital growth.
Matthew Munson, Talent Sydney Managing Director
It’s clear that candidates continue to hold the power. With tech skills only growing in demand, candidates still have lots of room to negotiate, and although employers are opting to be more conservative when hiring, those with coveted tech skills are still highly sought after. If you want to get ahead and win the competition for top talent, you need to be aware of and deliver on what your candidates want.Find out more
Although candidates are seeking more than a paycheque from their employers, the impact of rising inflation can’t be overlooked. In 2023, salary (on top of work-life balance) is a key driver for many:
Over the last two years, candidates have had a strong focus on having that right work-life balance especially around flexi hours and working from home. With prices rising at the supermarket, the petrol pump and everywhere in-between and not to mention recent public sector pay freezes, it is no surprise that growing their base salary is the key driver for many candidates in the market.
Senior Candidate Manager,
Salary is still top of mind and an important factor as we continue to see a rise in the cost of living.
Within the Public Sector, contract is buoyant with no reduction in contract rates. In fact, I have seen rates increasing due to contractors needing more money due to the cost of living crisis and IR35.
Talent UK Public Sector Director & Talent Consulting Director
When it comes to pay, candidates are also increasingly seeking transparency. So much so that 85% of candidates, according to a survey of over 1,200 US workers, would be more likely to apply for a job that lists a pay range as opposed to one that doesn’t. Insights from this same survey revealed that 1 in 20 would resign if discovering that co-workers earn more money for the same role while 63% would request equal pay. Legislation requiring employers to inform team members of the pay range for their current role as well as to cite pay ranges on all job listings is driving this demand for transparency further.
If you want to bring the best in tech on board and retain your top performers, transparency is important. However, where it’s not legislated, consider what level of information best suits your company and culture. Will you share market averages or exact pay rates, and how will you go about this? If you’re not ready to disclose exact numbers yet, it’s important to be open about how salaries are determined. Be clear on whether tenure, experience and other factors play a role, and be fair with your offers.
Honesty about your decision-making process when it comes to pay can go a long way in attracting and retaining those top candidates.
To uncover what’s happening in your market and what you can do to get ahead, click through to your region for our local market insights:
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