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Infographic | Beyond Data

2022 Trends in pay for digital talent

October 6, 2022

High demand, economic volatility and changing employee expectations are combining to put heavy pressure on organizations to effectively attract and retain employees with critical digital skills.
Compensation Strategy & Design
Beyond Data
Infographic of 2022 Trends in pay for digital talent

Finding and keeping IT and digital talent roles has been one of the biggest challenges for organizations around the world.

90% of organizations in more than 130 countries identified these roles as the hardest to attract and retain

And the demand for talent in certain major markets is clear.

  • In Brazil, an increase of 400,000 jobs in 2022
  • In China, an increase of 10 million jobs by 2025
  • In the UK, an increase of 200,000 jobs by Q2 2022
  • In the U.S., an increase of 667,600 jobs by 2030

54% of organizations have taken a variety of nonmonetary and monetary actions to address attraction and retention challenges:

  • Increased workplace flexibility: 69%
  • Placed a broader emphasis on diversity, equity and inclusion initiatives: 59%
  • Offered incentives (e.g., sign-on bonuses, equity/long-term incentives): 49%

Given 2022’s economic volatility, pay has remained important for many organizations’ attraction and retention efforts.

  • 96% of organizations have increased salaries – and salary budgets – to rates that haven’t been seen in nearly 20 years
  • 34% of global respondents in the largest economies said that, in July 2022, their salary budget increases were higher than projected just a few months prior
    • Additionally, among these respondents, 57% said that pay decisions were influenced by concerns over a tight labor market and cost management (e.g., inflation, rising cost of supplies)

As they consider how to distribute salary budget dollars, European employers in the IT and Telecom industry are making salary adjustments for targeted employee groups.

  • 85%: colleagues identified as having rare/hot skills
  • 69%: highest performers
  • 69%: colleagues identified as a retention risk
  • 54%: talent with digital skills

And, for certain critical skills, organizations are willing to pay market premiums.

  • 20%: Computer vision/machine perception/augmented reality (e.g., face, fingerprint, gesture or object recognition, remote sensing and motion estimation algorithms)
  • 15%: AI / machine learning frameworks (e.g., Caffe, CNTK, MXnet, Tensorflow) and Application development (e.g., dataflow programming)
  • 15%: Cryptography, distributed ledger development, smart contract programming (e.g., LLL, Serpent, Solidify, Vyper)
  • 15%: Natural language processing (e.g., speech recognition, language understanding and natural language generation algorithms, chat bots, digital assistants)
  • 10%: Cyber security (e.g., application security development, cloud security, threat intelligence analysis, penetration testing, network security, identity and access management, risk and compliance auditing, mobile-remote computing)

Employers also understand that digital talent sees hybrid working as an integral part of their lifestyle and work requirements.

  • 64% in favor of hybrid setup
  • 50% do not have minimum requirement for in-office days
  • Zero are back onsite full-time

In terms of retaining talent, another 37% of organizations reported plans to take actions similar to their talent attraction strategies.

  • 46%: reinvigorate the employee value proposition/employee experience
  • 34%: raise starting salaries
  • 31%: change health and wellness benefits
Actions organizations can take
  1. Consider the role of enhanced benefits and greater workplace flexibility for employees with critical digital and technical skills. As the demand for talent increases, organizations need to take a total rewards perspective to attract and retain talent. While pay premiums are important, they aren’t everything.
  2. Results from WTW’s Artificial Intelligence and Digital Talent (AIDT) Survey are due this month. Pre-order your results now so you have the data you need as you review your compensation strategy and assess your market competitiveness.

Sources:
Digital Transformation Practices Survey, Europe, Middle East and Africa
2022 Salary Budget Planning Survey Report – Global (July Edition)
2022 Inflation and Reward Actions Pulse Survey Report (Europe)

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