The tech and IT sectors have always stood apart, often bucking trends common to other industries over the past two decades when it comes to pay, pay raises, and demand. In the wake of the COVID-19 pandemic, these sectors witnessed a surge unlike any other.
As businesses globally pivoted towards digital transformation and online platforms, the demand for tech talent skyrocketed, leading to a post-Covid "war for talent" within the sector. Tech professionals were frequently enticed with salary increments as high as 40-50% (and in some cases higher), reflecting the sector's desperate bid to secure top-tier talent in an increasingly digital world.
However, the landscape was not always favorable for employers. Employee loyalty became a rarity, with employers often overlooking a candidate’s “jumpy” career trajectory due to the soaring demand. It was a golden era for tech job hunters, but fast forward to today, and the market dynamics have shifted perceptibly.
The economic slowdown echoing across the globe has not spared the tech sector, with notable layoffs and reduced venture capital funding painting a sobering picture of the once buoyant industry.
This global narrative finds a reflection in regional markets like Thailand, a core player in the Southeast Asian tech landscape. The economic growth forecast for 2023 has been revised down amid a disappointing recovery, with real GDP growth in Q2 2023 recorded at a weaker 1.8% year-on-year. High interest rates, heightened political uncertainty, and weak external demand are among the headwinds facing the Thai economy, mirroring global economic challenges. The ripple effects are palpable in the tech sector as reduced external demand and economic uncertainty contribute to a more cautious outlook.
While tech and IT remain hotbeds for innovation, the days of high salary increments seem to be receding into the past. But have the salary expectations of tech professionals adjusted to this new reality?
A recent LinkedIn poll I conducted aimed to delve into this very question. The findings indicate mixed sentiment: a significant portion still expects a 21-30% salary bump when transitioning roles, yet a growing majority are now leaning towards a modest 10-20% increase. The 26% of respondents still hoping for increments exceeding 30% indicates a notable shift from trends observed just two years ago. From my experience, a 10-20% increment is becoming commonplace in today's market, signaling a correction of general expectations in line with the new reality.
So, how should jobseekers navigate this new market dynamic?
Really consider your “push & pull” factors. Why are you looking for a new role, and what is the driver behind you wanting to leave your current company? Be sure to go into your job search with a clear idea of what you are looking for next – prioritize the things that are important to you. From experience, when I speak to candidates and ask them the reasons, they are looking to leave their current position, they cite a range of reasons and often, money is not one of the key ones. Yet when considering a new role, the focus seems to be on money. This is generally not a good approach, never let alone in a slower market.
There are still lots of great companies hiring, albeit at a lower volume than previously. As competition for talent is not as fierce as a few years ago, these companies are raising the bar with their expectations and are increasingly looking for the perfect candidate. Longevity and “jumpy candidates” are again more scrutinized, so be sure to also think carefully about your next move.
Conclusion
Has the tech bubble burst?
Absolutely not! There are still plenty of excellent opportunities out there, and now might just be the best time to seek a new role. Interestingly, the present climate could be more favorable for job seekers, as companies are more deliberate in their hiring, aiming for the right fit. It's essential to focus on genuine reasons for a move rather than merely financial incentives. After all, transitioning to a new company primarily for a large salary increase seldom yields the desired results.