Data, software pros expect 15% minimum pay hike to jump ship
With the labor market red hot, and unemployment figures at historic lows, organizations need to increasingly lure talent away from current jobs – and they better be prepared to shell out at least 15 percent more in compensation to grab that talent.
That is especially true for software and data professionals, as the technology sector is among the strongest in the workforce right now. According to the Bureau of Labor Statistics, one-third of all new jobs created in February were in the tech sector, with software and data related jobs leading the pack.
The latest data from Gartner’s 4Q18 Global Talent Monitor report shows that compensation remains a top driver to attract and retain talent in the U.S. In an effort to win more of the critical talent they need, employers are offering higher salaries to lure these candidates away from their current organizations.
Hiring managers have no choice. The same talent study also reveals that more workers intend to stay with their current employers this year, and they have to be convinced they should leave.
"Compensation has become tricky for many companies who are trying to both attract new talent, but also keep their best workers in-seat,” says Brian Kropp, group vice president of Gartner’s HR practice. “Globally, workers expect significant compensation increases of 15.5 percent to switch companies, and the annual wage increases that companies currently offer will never match that. The result is a new wage gap that is forming where new employees are paid more, sometimes significantly more, than tenured employees.”
Talent Retention Should Remain a Priority
Data from the 4Q18 Global Talent Monitor reflects that more U.S. employees plan to remain at their current organization, and they are doing more than is required in their jobs. Forty-four percent of U.S. workers intend to stay in their current roles, a 4 percent increase from last quarter and more than 11 percent higher than the global average.
In addition, almost 19 percent of U.S. employees indicated a high willingness to go above and beyond at work, with 78 percent of these workers expressing a high or somewhat high intent to stay at their current organizations.
“With more employees planning to stay in current roles, and increasing their discretionary effort at work, employers should consider how best to engage and retain their current workforce,” Kropp says.
Strategies to Engage, Attract and Retain Talent
Acknowledgments of accomplishments and distribution of rewards play very significant roles in growing morale and retaining employees. When workers hear first-hand from management how important their workplace contributions are to the overall success of the company, they become more connected to the company and its culture.
Gartner recommends employers implement a robust Employee Value Proposition (EVP) that focuses on those key attributes which the labor market and employees perceive as valuable to the workforce, including career development opportunities, competitive wages and benefits packages, and work-life balance.