Salary freeze and return to the office? Not for software developers

Developer focused coding on computer monitors running late in the office

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As the economic climate grows bleak, workers in some industries are increasingly concerned about what this means for their salary and flexible work prospects in the coming months.

Not so much for tech workers. according to UK job data analysis by Hackajob Starting salaries for software engineers are “at least” 64% higher than the national average — and while inflation is high, they show no sign of slowing down.

While a small percentage of companies have announced hiring freezes in recent months, demand for software developers still outstrips supply. The average UK salary in 2021 was £25,971; Hackajob found that most entry-level salaries in the tech industry range from £40,000 ($50,000) to £49,000 ($56,300) a year.

room for career advancement and The potential gain also remains “astronomical” in technologyWith salaries of up to £140,000 for technical professionals with programming skills, employers are sorely short of it. The report said developers can expect salaries to continue to rise in 2023.

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Java programmers had the highest percentage of job vacancies, accounting for 15.8% of employees in the market in 2021-2022. This was followed by C# developers (15.3%), DevOps professionals (10.8%), JavaScript programmers (10.6%) and QA technicians, who made up 8.9% of industry placements.

The programming languages ​​that have led to fewer employees are PHP, C++, Go, and iOS (Swift). The report pointed out that this does not mean a decrease in demand, but rather that These skills were more rare and harder to find In such a competitive market for employment.

Things are set to get even tougher for tech recruiters in 2023. Nearly half (46%) of candidates said they’ve declined job offers for another job within the past 12 months, adding to the pressure on employers to see how they can boost their work. Appeal and attract the best candidates.

While salary is still the most deciding factor when choosing between companies, flexible work, culture and location too It plays an important role in attracting developersHackajob found.

Technology workers are increasingly prioritizing their work-life balance, and by offering telecommuting or flexible working options, employers can broaden their appeal while broadening the search for talent beyond specific locations.

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Budget-constrained firms – such as those in the public sector – would be particularly wise to consider flexible working options, the report said.

The same advice can be given to startups: only 3% of job offers from companies of this size were accepted on Hackajob in 2021-2022. Enterprise-level companies got more than 50% of the hires, which the report said may be due to the “remarkable stability of a larger company in the cost-of-living crisis”.

Companies may be able to reduce the salaries they offer if they can show that they have other “desirable qualities” that developers want — such as flexible work, career development opportunities and interesting technology to work with — however, the report noted that if the pay “leaves too many desirable”, Other perks won’t necessarily cut it off.

In fact, nominating low candidates is a surefire way to lose talent in competition. While accepting a competitive offer was the main reason given by candidates for rejecting a job offer (46%), 16% of candidates said they would reject an offer because it did not meet their job expectations.

“If a tech professional feels as though the company is being severely constrained, they may start imagining what the company would be ungrateful about. The location and the perks/benefits.”

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Although London remained the number one tech job (32%), remote or hybrid roles accounted for 17.2% of jobs created in 2021-2022. It was followed by the British cities of Manchester (8.4%) and Leeds (4.2%).

The report suggested that the tech job market could be experiencing a “collapse of an authoritarian tech ecosystem that has been revolving around the capital” in favor of “decentralized tech hubs” scattered across the UK and beyond.

Despite major strides in the industry to improve diversity and despite wages rising at a rapid pace across the sector, Women’s salary expectations are lower than men’s (£57,000 vs. £65,000). Similarly, while more women are being hired for entry-level roles, particularly in startup companies, this is not reflected in higher-level roles. For example, engineering director was one of the highest positions for male technical talent in the Hackajob Report, but it did not appear for women

Mark Chaffee, CEO and co-founder of Hackajob, said: “The next 12 months will be vital in addressing the gender pay gap with the customized strategies needed to make it happen. Encouraging more companies to hire regional talent, rather than focusing excessively on hiring in London, Providing clear progress plans is essential to continue to attract more diverse tech talent.”

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