Pay remains a powerful force for tech retention rates and candidate attraction. Almost half of those searching for a new tech role cite a subpar salary as the primary reason. And with the news that the forecasted voluntary turnover rate hit a five-year high (19.5%) this year, it’s more important than ever that your salary offerings remain competitive.

How does yours measure up?

If you’re unsure, the following information will assist with key insights into current salaries in technology roles to ensure you’re effectively compensating your valued workforce. But first, we turn to signs indicating you may not be offering sufficient compensation and reasons why pay represents so much more than a monetary figure.

Signs You Aren’t Paying Enough

Let’s begin with what is seemingly the mildest sign your salaries aren’t up to par. You might find an increase in employee complaints about pay and benefits, whether directly or indirectly through rumblings amongst staff.

The next sign could be increased absenteeism coupled with a lack of motivation. If staff take more sick days and/or appear to have a marked decrease in motivation and engagement, this indicates that they aren’t happy. When employees feel undervalued – which is often a result of not being paid what they feel is fair – this is the likely result.

At the more impactful end of the scale is a decline in tech retention rates. High employee turnover usually correlates with inadequate pay, as those who feel underpaid will leave in search of better opportunities – and there are plenty right now! You lose important company knowledge and have to invest in the cost of finding and training new employees.

Another clear sign that your salary offerings aren’t competitive is if you struggle to attract top tech talent. Skilled tech professionals are in high demand and know their worth. If your competitors are offering better pay packages, you will naturally struggle to entice the best candidates to apply, the very ones who can really drive innovation and growth for your company.

This in turn harms your employer brand. Failing to offer a competitive salary can signal to potential employees that your business doesn’t value its workers, or that it’s not a serious player in the industry. If you’re noticing any of these signs amongst your workforce, it is a good time to review your current salary and benefits offerings to understand where you stand in the market clearly.

Current Salaries In Technology Roles

According to Payscale, salaries in the technology sector have significantly increased and we are seeing an alignment between regional and city salaries. While in the past, regional companies enjoyed the advantage of paying 10-20% lower salaries compared to those in major cities across Australia, primarily due to lower living costs and less competition for technology talent, the gap between regional and city in now much closer.

It seems that if you want to remain competitive or even exceed your competition, a salary rise is the minimum. But of course, that figure depends on your starting point, as it’s important to understand where you currently sit in the market.

Curating The Right Salary Package

As you can see, competitive pay is a key ingredient in attracting and retaining top technology talent. While it’s good to be aware of the signs that may indicate inadequate compensation, it’s even more vital to understand that fair pay means so much more than dollars and cents to your employees – it’s a reflection of their value to your business, which is a powerful motivating factor.

While staying informed about current salary rates is helpful, there are additional ways you can stay ahead of your competitors, and still show current and potential employees how much you respect and value them. This involves curating an overall salary and benefits package.

You have many options available to reward staff throughout the year, rather than just at the annual salary review and starting salary time. These include ongoing professional development budgets, extra annual leave, and one-off retention bonuses that can be delivered anytime.

Creating the right salary and benefits offerings to both attract new candidates and retain current employees is a multi-faceted task. It’s one that benefits from an expert’s touch.

Gain Insight with Our Help

Here at Emanate Technology, a key part of our recruitment specialist role is conducting regular salary survey market research to gain the most up-to-date information. We use this intel to help our clients set the right salary for each tech specialisation, whilst also assisting them to factor in other important variables based on our industry knowledge. Thinks like shortages for a particular role and the level of expertise needed.

If you would like further assistance in setting the right salaries for your open roles, please get in touch with one of our Adelaide, Brisbane, Canberra and Melbourne technology specialists. We’d love to support you in not only getting your salary packaging right, but with additional help in finding the best tech talent for your budget.