Seven IT salary and hiring trends for 2018

The good times for tech workers will continue into next year, according to Robert Half's 2018 Salary Guide, which found that today's tech talent gap will continue to weigh on businesses in 2018, giving them plenty of incentive for the people they hope to hire.

The report, which surveyed more than 8,000 tech professionals in North America, including 2,500 chief information officers, to assess current compensation and tech hiring trends, found that companies competing for talent are offering generous perks, incentives and competitive salaries to tech workers — while tech jobs themselves have become more satisfying and less stressful careers.

[[210095]]

Here’s a look at seven trends in IT recruiting and how they’ll impact employers and employees in the year ahead.

The problem of talent shortage remains prominent

The tech talent shortage is no longer just a nuisance for employers, it’s quickly becoming a serious business problem. And when companies do find high-tech talent, they often can’t afford it.

According to Robert Half, 44% of CIOs say they miss out on top talent because candidates ask for more money than they can afford. As a result, more companies are hiring less experienced workers who are "quickly and aggressively learning new skills."

Hiring is too slow

To keep hiring when talent is scarce, companies need to speed up the hiring process. The study found that while it’s understandable that companies want to be thorough, many are dragging their feet on the hiring process. That’s a problem, since two-thirds of non-executive technology professionals surveyed said they would lose interest in a job if they didn’t hear back within two weeks of an interview.

The survey found that CIOs are not unaware of this problem, with 41% saying they are unhappy with the length of the recruitment process. The survey results showed that it takes an average of 4.5 weeks to fill a staff-level position. Companies need to establish a smooth recruitment process so that they can quickly recruit and get qualified people on board.

Automation is transforming skills

Automation is not going to kill jobs yet. At least for now, it’s just changing the skills that are important to businesses. Another survey by Robert Half showed that the financial industry is going through a skills shift due to automation. Among those surveyed, 56% of CFOs said they expect automation to improve financial efficiency, and another 43% hope it will improve decision-making as well.

While CFOs are optimistic about automation, they also expect changes in priorities and key skills. By 2020, CFOs expect "keeping up with the speed of technological change" to be a top priority, followed by managing big data, regulatory compliance, and maintaining financial reporting standards. In contrast, in 2017, the top priority for CFOs was meeting regulatory compliance requirements, while controlling and managing big data ranked last.

Verticalization of technology needs

The demand for technology is growing across all industries, but the survey found that certain verticals are feeling the most pressing need for skilled workers. Healthcare, finance, and manufacturing professionals cited growing demand for technical talent in their respective industries.

In healthcare, we need modernization and innovation to provide better care for patients. The financial services industry needs security and data professionals as security becomes a top priority. Automation is affecting the manufacturing industry, where companies are looking for innovative IT professionals to help adapt to the changes. Robert Half expects these industries to lead IT hiring activity in the coming year.

Robert Half notes that workers who work with the latest developments in cloud computing, open source, mobile, big data and security are expected to be in greatest demand in 2018. Even if you're not a professional in one of these specialties, the survey found that as businesses increasingly struggle with talent shortages, management is more willing to hire less technically qualified candidates who show potential and demonstrate their passion to learn.

Soft skills are now required skills

Since technology plays a pivotal role in every business, it is important to hire high-tech professionals who can communicate and collaborate with other non-technical departments. This means employers are more interested in candidates who have a strong willingness to listen, critical thinking, and communication skills.

For example, 47% of CIOs say their teams need to work with marketing to support digital initiatives, which requires more than just technical skills. Workers need to understand this information and then communicate it to other less technically savvy people within the company. As IT becomes more important, soft skills are important to bridge gaps and facilitate communication.

For technicians, satisfaction increased and stress decreased

The tech industry currently ranks sixth for job happiness and first for the lowest level of job stress. Some of that satisfaction may come from the perks and bonuses companies offer to attract talent.

Only 19% of companies said they did not offer bonuses, and only 17% said their pay increased based on length of service. For 72% of companies, pay is performance-based, while 65% say it is based on organizational or individual performance. These incentives help motivate employees and make them feel satisfied with their jobs.

Popular perks to attract IT talent

To snatch up the best talent in a competitive market, companies have begun using “perks” — additional benefits beyond the standard offerings found at most companies. These include flexible work schedules (62%), regular social events (39%), remote work opportunities (34%), onsite or free gym memberships (25%), compressed work weeks (17%) and free food (13%).

To keep talent motivated, companies also offer incentives such as individual and team achievement rewards (37%), profit sharing (20%), retention bonuses (18%), stock options (18%) and deferred payments (16%).