More technology professionals across Australia are expected to get pay increases this coming financial year of somewhere around three percent, according to research from recruitment firm Hays.
The report said some 85 percent of employers are expected to give tech workers pay rises, up from 65 percent last year, mostly fuelled by skill shortages that have created a “once-in-a-career market”.
Hays said some 34 percent of employers will be awarding a three percent increase to staff, while 76 percent said the skill shortage has forced them to offer higher than expected salaries.
Tech workers however say their performance and the demand for their skills merit an increase of more than three percent.
“Intense competition for skilled professionals will translate into salary increases this coming financial year,” Hays Technology regional director Robert Beckley said.
“Moving away from the salary stability stance of recent years, employers say the skills shortage is the reason increases are higher than planned. Already 95 percent are experiencing a skills shortage. 90 percent say it will impact the effective operation or growth plans of their organisation.
“This is fuelling a once-in-a-career market. Previously camouflaged by skilled migration, and further impacted by headcount growth, skills shortages have reached a level unmatched in our years in recruitment and sparked deliberate salary increases from employers.”
The report also revealed some 65 percent of workers said the skills shortage has made them more confident to ask for a pay rise, with 63 percent already benefiting through a salary increase, new job or both.
Only 37 percent of workers however are satisfied with their current salary, with an uncompetitive salary being the top factor motivating 51 percent of job searches, ranking ahead of a lack of promotional opportunities and a lack of new challenges.
Beckley added, “While both the value and extent of salary increases is rising, employees’ expectations are growing faster. In a job-rich, candidate-poor market, they feel more assured of their worth and have prioritised a pay rise.”
“In such a market, the number one question we’re asked by employers is how to stand out as their preferred candidate’s first choice.
“We suggest that today’s skills shortage presents an opportunity to define a new equation in the world of work. Salary increase budgets only extend so far, so consider the full value exchange for each role. Along with salary, consider benefits, upskilling, career progression, purpose, and the relationship employers have with their employees.”
The report said the top five in-demand technology skills are business analysts, cloud engineers, full stack developers, cybersecurity analysts and data analysts.
Employers have also started improving employee benefits and working practices, with some 20 percent adding training opportunities, more than 20 days annual leave and more opportunities for learning and development.
Some 60 percent of employers are also looking to increase their permanent staff levels in the coming financial year, while 48 percent will increase their use of temporary and contract staff.