2023 Pay trends for digital talent

Employee attraction and retention plague organizations around the globe

Organizations are struggling to fill key roles at every level

2022 saw the highest salary budget increases in nearly 20 years

Given the fundamental role salary plays in an organization’s ability to attract and retain talent, employers plan to carry this adjustment through to 2023 – yet remain cautious about how and when they allocate the overall budget.

Additionally, organizations leveraged bonus payouts in 2022 and, again, are on track to the same in 2023

16%: Average 2022 projected variable payout for middle managers and professionals.

Organizations around the world have taken or are considering taking the same three actions

Top 3 highest-paid functions across all industries at Professional Level 3 (P3)

Median pay mix for Manager level 3 (M3) in the Data Scientist function

There are a handful of roles that will receive the highest pay premiums across regions

61% organizations around the world that offer differentiated rewards, benefits and/or talent programs to digital talent. Differentiation is often in the form of enhanced levels of base pay.

Trends that will drive 2023 rewards decisions

1. Global disruptions have emphasized the importance of digital transformation across all sectors and geographies. As organizations realize the need to boost their efforts in digitalization, HR will have a crucial role in building the workforce of the future with a data-driven and forward-thinking approach.
2. Cash compensation will continue to be the most effective attraction and retention tool for digital talent, but there are also important and effective non-monetary factors, like the organization’s reputation as a great place to work or having a clear path for growth and promotion.
3. Economic volatility and uncertainty could lead to lower investment levels and economic growth, which will force organizations to review their workforces and be more cautious about increasing salaries (among many other things).
4. Organizations will look beyond pay and take a holistic view of total rewards to create employee experiences that attract and retain the talent needed to drive business objectives.
5. To effectively compete against industry peers, compensation and HR professionals will seek a more sophisticated understanding and application of data in their strategic total rewards practices and policies.