Latest findings highlight the salary trends driving retention and job changes in the tech industry
New data released today indicates the pay increase tech employees expect in order to remain in their roles in 2025.
This follows previous research highlighting the lack of salary increases as a top reason for tech professionals quitting, after one study found only 49% of IT professionals plan to remain in their current roles in the next 12 months.
Tech staffing experts Tenth Revolution Group has released findings from a recent survey that shows employers one way to combat the potential exodus, with an increased salary as a counteroffer requiring an average raise of 20% to convince them to remain. In contrast, those planning to switch roles in the next 12 months expect an average 25% salary increase to justify the move.
As the digital skills gap continues to be a pressing issue across major tech stacks including Microsoft and AWS, effectively tackling this issue requires the IT industry to attract new talent and retain existing professionals by offering sustainable career paths.
What was the average pay increase proposed in a counteroffer? |
|
Accepted counteroffer |
20% |
Rejected counteroffer |
15% |
What percentage increase in pay would you want to change roles? |
25% |
For employers, these numbers highlight the importance of proactive retention strategies, as well as being mindful towards what doesn‘t necessarily work. A well-timed salary adjustment of 20% could prevent a costly cycle of turnover, recruitment, and onboarding, while the 25% increase desired for new roles emphasises the premium tech professionals place on the uncertainties and risks associated with job changes in today’s market.
“IT professionals value stability and growth, but they also know their worth in a market driven by constant innovation and demand,” Tenth Revolution Group Chairman and CEO James Lloyd-Townshend commented. “This data highlights that employers have an opportunity to retain talent by aligning pay increases with industry expectations before employees feel the need to seek external opportunities.”
James went on to explain that the 20% pay increase can be a benchmark for retention strategies, helping companies stay competitive in the battle for tech professionals by keeping hold of top talent. “And at the same time, the 25% threshold serves as a reminder of what it takes to compete for new talent in the market. By proactively addressing pay expectations, businesses can position themselves as employers of choice in an increasingly dynamic industry.“
Retention Tips to Keep Tech Professionals Engaged
While salary is a key driver, employers should not overlook non-financial incentives like career progression, skill development opportunities, and workplace culture. By addressing these factors alongside competitive pay increases, businesses can build a more robust retention strategy and reduce reliance on reactive counteroffers.
Progression: A lack of growth opportunities leaves professionals feeling stagnant or undervalued, making career advancement a key factor in long-term retention. Structured and well-defined career pathways help employees envision a long-term future with their employers.
Purpose: Tech professionals thrive in roles where they feel engaged and connected to a broader mission. Embedding purpose at leadership level and communicating it throughout the organisation ensures employees stay aligned with the company’s vision and remain motivated.
Culture: Burnout is a persistent issue in tech, and businesses need to prioritise creating a culture that supports employee wellbeing. From addressing work-life balance to managing stress at an organisational level, fostering a healthy environment is critical to retaining talent and avoiding costly turnover.
Pay always has, and always will be, a key difference maker in winning the race for talent. These findings demonstrate the impact a proactive approach can have on an employer’s retention success—just be sure it doesn’t come at the cost of at your team’s other priorities.
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