Despite being on pace to get pay rises in 2023, Australian IT workers still feel underpaid and undervalued.
In their next review, 93% of technology workers will raise salaries, with two-thirds of those increases coming in at a 3% rate, according to the FY23 – 24 Hays Salary Guide research from recruiter Hays.
Even so, only 17% of companies are projected to raise wages to keep up with price inflation, which is now tracking at 6%. An boost above inflation, according to 60% of workers, would, nevertheless, reflect their own performance and the market's need for their particular set of abilities.
According to Adam Shapley, Hays' managing director, both the amount and value of increases will be higher this year, following the upwards trend they initially noted in Hays Salary Guide last year.
"Employer and employee expectations concerning technology continue to diverge, notwithstanding the compensation increase. Many technologists believe they are underpaid and underappreciated. They believe that their current pay does not accurately reflect their own performance.
14,000 professionals and employers were polled for the report.
Competition between companies for desirable abilities, the effect of payment transparency, and the expectation that salary increases would keep pace with inflation are some factors influencing wage increases.
Several technology businesses, according to Hays, are open and honest with their staff about how wage levels and raises are set to promote fairness and foster trust. According to the recruiter's survey, 27% of companies are transparent to all of their employees, while 35% are to only some of them.
Shapley said, they anticipate that these numbers will rise in the coming months, as more employers audit salaries, examine disparities, and make necessary adjustments to guarantee equal and fair pay as a result of the repeal of pay secrecy of Australia.
Additionally, a wage raise will be requested by 70% of IT professionals, up from 46% and 58%, respectively, the previous two years.
According to the report, tech workers are becoming less loyal to their employers. Only 44% of technology professionals say they will definitely stay with their current employer through FY23 – 24, while another 40% aren't sure.
Lack of promotion chances is the primary driver of those who want to or are considering changing jobs, followed by low pay and a terrible work environment or management style.
Employers are aware that incentives like training, physical and mental health and wellness programs, and continual learning and growth are crucial as well, even though Hays stated that income is "unquestionably the most important aspect in attracting, fulfilling, and retaining IT workers today.
Given the demand for their expertise, employees still have some negotiating power, but Shapley advised exercising restraint to avoid pricing oneself out of the running. Salary increases are being funded by employers, but profit margins are still modest. Salary rises can only go so far, according to the commercial reality.
When negotiating a new job or your next raise in salary, take the complete picture into account. Think about the benefits that you would genuinely appreciate and that could have a long-term impact on your life and career because they can go a long way toward bridging any potential financial expectation gap.