​Talent Market Update: Tech

24 January 2023

Pen

Amid some high-profile mass layoffs – tech job postings are up; digital transformation continues to drive demand for talent. The landscape is increasingly competitive as employers face a digital talent shortage. We now find that healthcare, aerospace, finance, and consulting firms compete against traditional tech companies for the same workers.

The Talent Market:

There is a consistently high demand for tech talent, particularly those in mid to senior-level positions; candidates have a wide range of options and are ready to explore to get their worth.

Recruiting outside the industry is now commonplace for mid-level roles.

Mid to senior-level roles such as software engineers, data scientists, and web developers are highly sought-after and know their value. Employers must offer competitive salaries, benefits packages, and flexible working hours to secure the best talent.

As the fear of missing out on talent grips the market, we see clients adopting a more streamlined approach to hiring. Gone are the days of 4-5 stages. We're now seeing jobs offered after just one interview. While this is still uncommon, 2 or 3 interviews is the sweet spot for securing a role.

Post-pandemic, office or location-based positions have become more challenging to fill with employees favouring a better work-life balance. With job security at an all-time high, it's common to see employees in the workplace once or twice a month.

Europe-wide, earnings are up; those with just one year's experience can demand €15-20k more, around a 10-15% bump in salary. US tech companies are paying for European hires with the right skills, knowledge, and expertise.

Employing European talent is a great way to access the European market, develop a presence, and grow, helped partly by relaxed taxation, free movement of people and a large consumer base.

London offers developers some of the best salaries, followed by Hamburg, Berlin, and Munich. As is to be expected, major cities are paying more, with Paris paying 20% more than other regions in France.

Taking Germany, France, Belgium and the UK as examples, there is a spread in gross salaries across countries and even regions by €10k -15k. Still, when adjusted for taxes and cost of living, take-home salaries and benefits packages do even out. 

In the past, cheaper talent was available in Europe. With the rise of remote work, employers had access to a larger pool of tech professionals, but mass hiring by several US firms now means this is no longer the case. Increased wages and employee benefits limit what firms can offer, ending the talent sale.

Key takeaway:  

High-profile layoffs are not affecting global demand for tech talent. Companies must offer competitive salaries and benefits as they compete against non-tech firms for the same employees.