Motion Recruitment, one of the largest providers of IT Staffing Solutions in the United States, released their 2024 Tech Salary Guide, an annual report spotlighting compensation data, industry trends and market expert advice in technology hiring. This year, a complex economy and changes in the workforce have both technologists and employers considering what their priorities are and how to handle the evolution. Key trends are included below.
Read the full Motion Recruitment 2024 Tech Salary Guide here.
- Tech Jobs Still Outnumber Tech Talent: Even with a slew of layoff announcements at the start of 2023, tech employment remains a steady market, with an unemployment rate around 2%, well below the national average. Competition for talent still outweighs any setbacks of 2023.
• 79% of IT professionals laid off started a new position within 3 months.
• More tech workers than ever started their own businesses after being laid off.
• 71% of HR leaders say their tech hiring is due to growth – and 52% to backfill.
- Compensation a Priority for Technologists as Growth Stabilizes. Overall, tech salaries increased by a modest average of 2% this year as IT salaries normalized in a complex market and adjusted for 2022’s hyperactive growth. However, 56% tech workers say salary ranks as most important in a job offer – though job security (56%) and benefits (55%) are also top considerations.
- Tech Workers Want Flexible (Remote Work). While remote IT job postings have dropped by half since their peak in July 2022, tech workers prefer to stay fully remote, with lack of commute as the biggest factor. As companies push for a return to office, work/life balance and schedule flexibility paired with increased benefit offerings are turning candidates’ heads.
• Only 28% of workers say their company is making it worthwhile to come to the office.
• Generational differences drive different remote desires – a majority of Gen Z (80%) wants to be in the office 3+ days a week, but 52% of Boomers desire less than 2 days.
- IT hiring adjusts to the market. Not only are hiring managers honing their practices (60% of candidates quit the interview process because it was too long or complex), but top employers are considering talented junior candidates for roles versus finding a unicorn. These less experienced technologists have the ability to upskill with the newest tools and allow for a competitive but lower cost overall, as they are less likely to get bored and may be retained longer.
- AI Investments & Payoffs Skyrocket: Even as more than half of tech professionals are worried about losing their jobs due to artificial intelligence, currently AI has not replaced higher-level tech jobs, but rather made them easier and more productive, with developers feeling more fulfilled when using AI tools versus those that don’t. Adopting AI tools is a top issue for 2024.
• 45% of tech leaders are saying that AI spending is a top priority in their company.
• AI-tool focused software engineers are seeing 8%-12% higher salaries.
“When it comes to hiring in 2024, top candidates are still in high demand, but there is more balance in the tech job market. Both job seekers and hiring managers will need to find common ground,” said Matt Milano, President of Motion Recruitment. “This could include accepting a hybrid schedule, reasonable salary demands or more upskilling and growth opportunities. Long term, understanding how tech workers and employers will get work done best will help the industry thrive in 2024 as the market evolves.”
Motion’s Tech Salary Guide gives employers and tech professionals the latest data, reporting and insights to better understand the market value of IT positions across cities and technology stacks. The information is based on thousands of technologists and verified against other industry leaders’ reporting to provide salary data for mid to senior-level technologists, whether hiring or for their career growth.
Explore HRtech News for the latest Tech Trends in Human Resources Technology.