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Technology pervades every area of life, from the software your financial department uses to the checkout systems at grocery stores. As a result, very few companies can succeed in today’s world without adopting tech. Those same businesses need tech talent to support the company’s adoption of new technology, like artificial intelligence (AI), machine learning (ML), and automation.
The demand for tech talent is greater than the supply of available talent, despite the increasing number of layoffs you see in the tech industry. So, what are your options?
Mercer has compiled valuable data on technology workforce trends using our Mercer | Comptryx database from the last quarter of 2022. Here’s an overview of our findings about the growing demand in this field to help you build a strong tech talent strategy.
Several changes are fueling the demand for high-tech talent, including:
These changes offer new opportunities for businesses to reach customers more effectively. Through tech, you can connect with customers in their homes, increase your hiring pool to locations outside of commuting distances, and increase your company productivity through streamlined processes.
Along with these systems, you need highly trained tech talent to maintain and run them. Their role is crucial to your success, because they allow you to remain competitive in a world that relies on technology.
According to our Mercer | Comptryx data findings, just under 90%1 of companies are hiring for Internet of Things (IoT) roles globally. These roles require programming and data analytic skills to create, track, and monitor devices connected to the internet.
In the US, 55% of companies are hiring for data privacy and security roles, while 42.5% seek digital consulting talent. In Canada, 95% of companies are hiring for data storage engineering roles.
Other jobs in high demand globally include:
These roles aren’t exclusive to high-tech companies — all companies need tech talent in one form or another.
For instance, data storage and privacy are especially relevant as company interactions with employees and customers move online. This puts those communications and data exchanges at greater risk of breaches than when they occur in person. Therefore, companies need more efficient storage and data protection, no matter the industry or company.
Are companies able to hire and retain the high-tech talent they find?
Mobile app development had the highest turnover rate within the high-tech industry in the US (24%), and social marketing had the lowest (16%). In Canada, artificial intelligence and machine learning had the highest turnover rate (20%) and software DevOps had the lowest (14%).
According to Mercer | Comptryx data, higher premiums often lead to lower turnover rates.
Pay premium is the base salary of new hires compared to the base salary of existing employees. As talent is more challenging to find and hire, many employers are offering higher starting pay incentives to attract new talent.
According to our US survey results, data privacy and security has the highest pay premium of just under 20%, which is also the role with the highest hiring rate. Other positions with high pay premiums include:
Some lower pay premiums, between 13% and 14%, are for Cloud Svs-ops and technical consulting
Canadian pay premiums fall between 10% and 20% for hot jobs like customer education, business process analysis, and software engineering.
You can see other incentives and benefits high-tech companies offer with a subscription to our Mercer | Comptryx database.
Hiring and turnover rates vary drastically by location, which is why local insights are crucial when setting up your talent strategy.
Here are some comparisons of new hire rates to turnover volumes for software engineers in top North American cities:
Charlotte is a prime location for tech jobs in North America. Globally, the hot spot for tech jobs is in Warsaw, Poland, with a 63% hiring rate and 16% turnover volume.
Businesses that want to build a successful talent strategy should look deeper than national averages. These hiring rate differences between major cities give a glimpse of how your location can change your prospects and strategy. Some cities have more trained and qualified prospects due to more tech opportunities and better educational systems, while other locations don’t attract tech talent. For example, companies in highly competitive markets may consider offering higher starting salaries than those in less competitive areas.
Data constantly changes, so trends will be outdated within a year as inflation and other economic factors impact businesses.
Gathering insights faster than worker behaviors change is frustrating. You invest so much time trying to understand your employees. Then, economic or personal situations change, prompting employees to require different benefits and support.
However, understanding workers is necessary.
You need competitive starting pay, benefits, and incentives to fill your workforce.
While you can gain some insights from online research, it is often generalized or of low quality. National compensation averages don’t reflect the differences between key tech locations like Silicon Valley and smaller industrial towns.
Instead, you need insights into your specific industry, locations, and roles to understand what strategies will attract and retain talent. These will help you determine the right compensation for incoming talent and attract quality applicants without overpaying.
Mercer | Comptryx database, which we update 4 times annually, provides the data you need to stay current in the latest changes in the tech industry. Use the database to dig deeper, beyond compensation. You can review hiring trends, turnover rates, and talent flow. You will also access key impacting factors, like gender, ethnicity, and location so you can analyze data in a picture larger than individual numbers.
It’s time you took back control of your high-tech talent strategy and removed the guesswork by incorporating survey insights into your hiring process.
Do you want access to the wealth of data in Mercer | Comptryx database?
Mercer supports business growth through regular, detailed insights into industry’s compensation and talent strategies. Our insights have helped hundreds of companies build competitive hiring and retention strategies.
If you’re interested in more high-tech salary surveys, we can help.
Call us at 855-286-5302 or email us at firstname.lastname@example.org to learn more about our Mercer | Comptryx database and high-tech salary surveys.
1 All numbers are rounded for simplicity.