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IT salaries jumped 30% in a year

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IT salaries jumped 30% in a year

HR people with CTO skills are getting nearly double the pay compared to last year (Photo: CC0 Public Domain)

The highest pay levels in technology have risen, especially in some majors. On a year-on-year basis, from April 2022 to April 2023, salaries in many of the positions increased by 30%, according to a new analysis.

The survey looks at vacancies in digital, media, marketing, sales, research and technology. It is the work of digital and media recruitment firm Aspire.

The conclusion is slightly surprising against the background of massive layoffs in the IT industry in recent months. However, the trend has several explanations.

“The technology sector has gone through a difficult period in the last 18 months, marked by mass layoffs at large firms. But solid wage growth in many of the key positions looks like a harbinger of recovery,” commented Terry Payne, Global Managing Director of Aspire. “This is a welcome sign for both employers and candidates.”

Factors

On the other hand, while some IT businesses are shrinking entire teams, many consumer organizations need highly skilled personnel to entrust with the work of their digital transformations. Such employers are looking to attract talent from laid-off companies and see great value in their investment.

Talent shortage is also a factor. The roots of the problem go back in time to the beginning of the coronavirus pandemic. The obligation to work from home has created a real dependence on technology for many businesses. This has led companies to digitize rapidly. Such change, in turn, forces them to seek the right talent to maintain and further develop technological advances.

The situation gives rise to a number of adversities from the acute shortage of talent. So it’s not surprising that nowadays we often see an increasing number of IT job postings and too few applicants for each one, Payne says. The disparity usually means that people with the necessary skills can bargain and demand a competitive salary.

The big departure

The Great Leave never actually happened, according to Aspire. Towards the end of 2021 and into 2022, IT workers were talking massively about moving from one job to another or leaving the IT industry altogether. This giant migration seemed to be on the horizon, especially at a time when many companies forced their employees to return to the office after the end of the pandemic.

However, the impact of the economic crisis quickly cooled the passions. Fears of layoffs amid a cooling economic climate have prompted companies to cut spending and employees to abandon their willingness to take risks in search of better jobs.

From -10% to +87%

Of the 1,400 positions evaluated on Aspire’s platform, junior or mid-level QA engineer offers have seen an average 30% increase in maximum salary over the past year. Graduate data analysts saw an average increase in offered remuneration of 7% from April 2022 to April 2023. Junior designer roles also saw a modest jump of 13%.

Offers for CTO roles have jumped the most. The minimum salary offered to a talented CTO has increased by 87.5% in the last year.

Growth is also seen in mid-senior software engineers. At the same time, many other roles – such as mid-senior product managers, directors and heads of UX/UI and QA roles – have seen their salary offers remain the same.

For some positions, the change isn’t even positive – for example, mid-level UX and UI designers have to put up with up to 10% less pay than last year.

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