While the Australian tech job market has always had a global element, the pandemic certainly propelled this trend forward. Australian tech professionals may now find themselves competing with more international candidates for remote or relocation-based positions, and this could have an effect on salary negotiations
With regulatory changes and new compliance requirements in sectors like finance and healthcare, comes new hiring needs and shifting salaries. Especially for roles focused on data security and privacy compliance, be sure to keep up to date with what’s happening in your industry.
It’s safe to say every field is feeling the effects of these market shifts differently, especially when it comes to job demand and pay rates. For example, industries like healthcare, e-commerce and fintech should continue to see strong demands for talent, as businesses continue to strongly focus on their digital transformation efforts. Other areas may see demand slow and openings for candidates may become more competitive.
Another side effect of budget restraints and uncertainty about the post-pandemic business landscape is the reduced demand for senior leaders. With companies being cautious about taking on large-scale initiatives right now, our transformation professionals, program managers and business analysts are not as sought after.
Many organisations have invested in upskilling their existing employees to meet evolving technology needs, and we love to see it! This may mean, however, a reduction in external hiring, especially for entry-level and mid-level positions. As a result, demand and expected salaries for these roles will likely change.
At its peak, salaries and contract rates were rising dramatically, especially for niche roles and highly sought-after skills. With demand cooling off, salary growth has levelled out, meaning many candidates and employers have had to recalibrate their expectations. This has also resulted in more stable compensation packages.
Remote work has certainly become more accepted and integrated into the tech and digital sectors since the pandemic. On the positive side, this means job seekers aren’t restricted to their immediate geographic location (no more battling traffic or travelling two hours into the city) and businesses have a larger pool of potential candidates to choose from. On the flip side, this new flexible setup could have a levelling effect on pay rates, as candidates from different regions compete for the same positions.
Another piece of good news - we’re seeing certain skills and roles remaining in demand despite the shifts. Software engineers, data scientists and cybersecurity experts continue to be highly sought after, as their skills are critical for businesses wanting to enhance their online presence (we need those clicks, likes and views) and cybersecurity measures.
The most noticeable shift in the job market recently has been the rebalancing of supply and demand. The initial post-COVID boom saw a huge surge in demand for tech and digital talent, as businesses rushed to set up Zoom calls and migrate to Mircosft teams in order to adapt to this new remote work environment.
With the pandemic now subsided, this demand is decreasing. While remote working is seemingly here to stay, there is no longer the immediate need to implement all these new projects and processes. This shift means candidates have the time and space to pick their paths and have more negotiating power.