In Canada, there remains high earning potential for technology professionals, despite downshifting market conditions, according to research from Morgan McKinley.
With a majority of tech workers looking to switch jobs this year, data from Morgan McKinley’s 2023 Salary Guide suggests half of tech employers in Canada could lose staff members this year because they can earn more elsewhere.
That kind of lateral and even upward mobility is not strongly present in many other fields today. Tech talent is still in demand, it seems, retaining power amid mass layoffs.
And that is why most Canadians expect a salary increase this year—and perhaps even a bonus payout—broader economic turbulence be damned.
As a result, 70% of employers “had to offer higher-than-expected salaries to attract new employees over the past 12 months,” the Morgan McKinley report revealed.
“Many technology companies in Canada will be approaching 2023 cautiously, having learned some important lessons last year,” stated Ian Kinsella, Managing Director of Morgan McKinley Canada.
The post-Pandemic market correction, which is still unfolding, saw leaders make the mistake of hiring too aggressively. This resulted in a great trimming-of-fat over the last several months.
Yet even the “fat” in tech is still highly sought-after by other organizations; in a cutthroat market, one company’s trash is another’s treasure.
“Even with a market correction and a potential global recession, our guide showed that technology salaries in Canada increased,” Kinsella noted.
From lean startups to global titans, layoffs affected many—but did not damper demand for critical functions such as software engineering. Moving forward, companies are looking to rebound in 2023, reviving a temporarily diminished demand for tech skills.
“We might see certain companies begin to loosen hiring freezes in the first few months of this year,” predicted Kinsella, “especially those that enforced freezes early in 2022.”
It’s one of several reasons to be optimistic as a Canadian working in tech.
Kinsella believes it is “a great time to hire as there is likely to be less competition whilst companies figure out what their needs are for this year.”
For those who are hiring, he warns that “top talent knows their market worth, so businesses will still need to meet salary expectations.”
The average salary in Canada in 2023 currently sits just above $70,000. However, key tech roles will pay $100,000 to $150,000, according to data from the Salary Guide.
Beyond salary, companies are increasingly competing through perks, such as working from home and flexible compensation plans.