Amid a trifecta of strong sector growth, record levels of venture capital, and global hiring competition through remote work, salaries among Canadian tech talent rose markedly this year.
According to TAP Network’s recently released 2022 Tech Salary Survey, salaries jumped nearly 7%. This is notably higher than the five-year average off less than 4%.
This latest report confirms a similar conclusion as one from Hired: Canadian tech has been in the driver’s seat. Hence why TAP’s survey showed that “voluntary turnover almost double, as tech companies competed intensely for talent, and sweetened the deal with significantly higher salaries, bonuses and stock grants in order to attract and retain talent.”
“The reality is that if you work in tech, it was raining jobs this past year,” says Stephanie Hollingshead, CEO of Vancouver-based TAP Network, which recently celebrated its 30th anniversary. “I think we can expect to see continued pressure on local salaries given the movement towards a more global talent pool.”
With the surge of voluntary turnover over the past 12 months, organizations reacted and increasingly dangled both cash and non-cash incentives to attract and retain talent, according to Hollingshead. The incentives most commonly used were sign-on bonuses, retention bonuses, and new hire stock grants, she says. Roughly 40% of the jobs surveyed saw average salary increases of 10% or more in 2022, the report shows.
Perks are changing to accommodate more hybrid and remote work arrangements. 99% of companies now offer the option to work either partially or fully remote, TAP says.
Hollingshead believes “upward pressure on tech sector salaries is expected to continue into 2023.”
“Amid the ongoing tech talent shortage, the demand for software engineers … has doubled,” Hired CEO Josh Brenner estimates. “To win top engineering talent, companies have to offer increasingly competitive salaries, flexibility, and most importantly, extend their talent pipelines outside of traditional technology hubs to other regions globally.”
Since 1994, Tech and People Network has been producing an annual salary survey to provide BC tech companies with in-depth local market data. TAP is expanding nationally and their next stop is Ontario with their Tech Talent North Toronto conference on October 18.
Cofounded by TAP Network and Cube Business Media, Tech Talent North helps tech firms navigate the most pressing people and culture issues.