Tech talent is no longer something that is required by purely technology companies.

More and more, companies are in competition for tech talent in every industry. Given the competitive landscape that organizations continue to face and the demand for best-in-class user experiences that are typically technology-driven, knowing what tech skills are in demand, how to compensate tech talent, and what hot locations exist for these skills is a hot commodity. Mercer’s Comptryx tool provides the insights necessary to stay competitive in a tight talent market.

Let’s take a look at some of the findings.

Skills in demand

The skills gap in tech is narrowing opportunities for employers but it’s also defining the future of in-demand roles. In 2024, the top net hires in the US included roles in data privacy and security compliance, quality assurance, and search marketing. These positions reflect urgent industry needs as companies address talent shortages and create positions driven by technological advancements.

The top tech skills employers are seeking include:

• Cloud computing
• Blockchain
• Cyber and information security
• Artificial intelligence
• UX/UI design

These skills overlap considerably with the fastest growing roles, reflecting the evolving needs of the industry. If competition makes hiring these skills challenging, consider upskilling or reskilling your current workforce. Investing in training ensures that your talent pipeline remains robust and ready to meet critical business needs.

Top locations for talent

Tech talent availability varies widely across regions. Some areas are thriving hotspots for hiring while others demand a more competitive approach to attract top candidates.

In North America, the Atlantic provinces in Canada boast a 62% hiring rate and a low 10% voluntary turnover rate, making it one of the hottest job markets. Globally, Istanbul, Turkiye, is a standout, with a 61% hiring rate and a 21% turnover rate.

Unlike Miami and Louisville, where turnover exceeds hiring, most other North American locations show a greater hiring rate than turnover rate. Focusing recruitment efforts on high-demand areas while ensuring the right compensation and benefits package can help employers bridge talent gaps and secure top tech talent.

Competitive pay is the name of the game in high-demand tech markets. In regions where talent has plenty of options, offering premium pay is often the key to getting the talent you seek.

In North America, the Atlantic provinces lead with some of the highest pay premiums — new hires for the Software job family are paid, on average, 111% of existing hires. In the US, Charlotte tops the list, while in Canada, Toronto has the highest pay premium for tech talent, behind the Atlantic provinces.

And don’t expect wages to slow down anytime soon. Current trends suggest that pay rates will continue to climb in response to talent shortages and the competition for skilled workers.

And don’t expect wages to slow down anytime soon. Current trends suggest that pay rates will continue to climb in response to talent shortages and the competition for skilled workers.

When determining where to source tech talent or even relocate a tech hub, understanding the nuances of the various hotspots is critical. Atlantic provinces remain some of the hottest locations for hiring, which is also why companies in these regions must offer higher premium pay.

In the US, California’s Silicon Valley and Los Angeles have long been dominant tech hiring hubs. However, monitoring shifts in these hot spots allows you to adapt your hiring focus to regions where talent is more accessible and pay expectations are clear.

If your local market doesn’t meet your hiring needs, think globally. Europe is now home to a growing share of tech talent compared to North America. With flexible work opportunities becoming the norm, companies are increasingly sourcing skilled professionals worldwide to fill talent gaps and meet the growing demands of the Hi Tech industry.

Looking for more insight?

With all the changes in the tech industry and the increasing demand for tech talent in all companies, you’re right to want to up your game when it comes to insight. Comptryx may be just what you’re looking for. Reach out to Mercer’s associates today to talk through your needs at surveys@mercer.com or call 855-286-5302.