It's time we talked about pay rises and salary. The market has been changing drastically in the last few months and salaries have moved with it. Many candidates are asking for more money and bigger pay rises than ever before. Are they money hungry or is this fair?
I recently ran a poll on what is a fair pay rise: 0% - 10%, 10% - 20% or 20%+ Most people seemed to think 10%-20% is a fair raise when taking a new job (56% of the votes) but over my last 10 placements candidates have achieved an average pay rise of 28% with one as high as 54%. Why so much?
There has been a huge increase in demand for IT talent in a relatively short space of time. Candidates coming to market now are finding themselves bombarded with job opportunities and more choices than ever before. This has created a war for talent and companies are offering more and more to stay competitive. This shift in the market has led salaries to change drastically over the last 12 months. Below is a rough guide based on PHP/Laravel developers I've worked with over the last 12 months. The difference is stark!
Salaries for some skillsets have risen by £15,000 or 20% in a 12 month span! The Mid level dev who was on £35,000 12 months ago would not be out of place to be asking for £50,000 in the current market. Some companies are slow to catch up to this. Some genuinely aren't aware this is the case.
What can we do to avoid a mass exodus of developers who leave for huge pay rises elsewhere?
Understand the market - Ask for outside advice and figures don't just compare within the bubble of your company, know what the market around you is doing.
Do 6 month pay reviews with your employees - the world moves quickly, people learn new skills and they don't want to wait 2/3 years for the pay rise to reflect that.
Don't under offer or pay people for short term gain. Don't offer someone £38,000 "because their current salary is £35,000". If they are worth more, pay them it or someone else will.
This isn't a short term issue that will blow over in the next few months. The growth of technology has been coming for years and the coronavirus pandemic was the petrol on the fire. Figure out your plan of how to cope with the fast-changing market now or risk losing talent in the coming months or years.
If you are looking for advice from someone who speaks with developers daily and knows the market well then feel free to reach out. We have over 20 consultants here at Spectrum IT and a great understanding of the IT recruitment scene.