In the last few months, employees across various industries have been leaving their jobs in record numbers. In wake of the pandemic, employees are re-evaluating their priorities. The “one size fits all” approach will no longer work in the new normal, where flexibility and greater autonomy over work are key.
At the same time, the hunger for top talent is increasing. Companies are struggling to attract the best fit candidates for open positions. The Great Resignation, a trend where large numbers of employees are quitting their jobs in response to the pandemic, has created an unprecedented challenge for companies who are striving to attract and maintain highly skilled employees.
In this competitive environment, how can companies attract and keep talent?
In Hired’s 2021 State of Tech Salaries report, the company examines the U.S., U.K. and remote job markets and offers advice for companies to redesign their hiring strategy to attract the right talent. Hired is one of the Adecco Groups business units.
“While the Great Resignation causes many challenges, employees leaving their jobs in droves also means that companies have an incredible opportunity to hire some of the best, diverse talent that's on the market right now. Increasing hiring efficiency and offering the right benefits will be absolutely critical to compete for top tech talent,” Josh Brenner, Hired CEO, told Forbes.
Here are the key takeaways from the report.
Contributing factors to salary trends
Competitive job market. The need for top talent is high, but the number of employees is not enough to fill the total demand, making this a tight job market. To speed up recruitment and stay on top of their hiring needs, companies are hiring junior candidates with less experience and investing in their development instead. This practice is exerting a downward pressure on salaries for junior employees, though top tech talent salaries continue to rise (Hired: US, UK, and remote).
Remote work. Tech salaries for remote jobs and candidates from smaller markets have seen the most growth. By offering flexible work arrangements, companies can diversify their candidate pools, increasing their chances of finding employees and filling lower-paying jobs.
Despite the ability to relocate and work from places with lower living costs, the majority of employees (57%) wants to be fairly compensated. Furthermore, pay varies by industry, market, and role demands but in general, all markets saw salaries increase for experienced candidates.