The IT industry has been growing exponentially due to technological advancements continuously working their way into consumer products and professional workflows. New applications, equipment, and platforms are released regularly to help professionals do their jobs faster and more efficiently. This has created an unprecedented demand for talent worldwide who can utilize, develop, and manage a wide variety of software and hardware applications. Accordingly, the working landscape for IT professionals has become more competitive, with IT employees receiving higher salaries and more perks from their employers in an attempt to attract them as job applicants, and also to retain them once they have become employed.
This is even more prevalent in the world’s top offshoring and outsourcing destinations, such as the Philippines. Companies from all over the globe are jostling to hire IT and tech talent in global outsourcing centers where salaries are below the market rates of those in their home jurisdictions. As the competition for the top IT talent continues to heat up, it is becoming increasingly important for companies to know how to compete effectively against the competition when hiring for IT employees in the Philippines.
Read on for a comprehensive IT salary guide specifically for the Philippines.
Why Do You Need a Salary Guide?
Salaries are not a one-size-fits-all solution. They vary depending on the candidate’s capabilities and the vacancy, rank, and demand for the role in the job market. A salary guide will help determine your company’s capability to hire staff. Other benefits include the following:
Keeps you updated on industry standards of compensation packages
You need to constantly update your salary guides to see what ranges the industry use for the different levels. Researching these will help you understand your own company’s budget and what positions you can hire.
Research-based salary information helps you recruit and retain top talent
Knowing the industry’s ranges will help put your company in a favorable position for hiring. Many candidates want to work for a company with an attractive compensation package and benefits. You’ll also be able to give information regarding salary increases during promotions, which will help retain your top-performing employees.
Determines what factors to consider when building a compensation package
Since a salary guide keeps you updated with the latest trends within the industry, you’ll also find out what factors companies consider when making their compensation packages. You can decide how competitive your salaries are, the different positions, and the levels of seniority within them.
Compare your compensation package with others on the job market to ensure competence
Salary competence includes the job level and your employees’ skills, knowledge, and abilities. Knowing how much other companies pay their workers for these qualities will help determine if your compensation packages align with or are better than theirs.
Boosts employee morale
According to a study by Pew Research Center in 2021, 63% of workers quit due to low salaries. The right compensation package will boost employee morale and increase productivity. Employees awarded fairly for their hard work are more likely to be loyal.
5 Factors That Determine IT Salary Rates
Hiring for a position comes with considerations, especially when determining the candidate’s proper Information Technology salary in the Philippines. Here are some factors when trying to find an appropriate compensation package.
1. Hard skills
Hard skills are technical or specific skills that an industry requires for a position. Employees can acquire these through certifications, training, or experience. Those with many hard skills can negotiate for larger salaries because they can fit in several positions.
The tech stack is the tools or technologies that IT professionals use to build a website or application. The required knowledge of technologies will vary from position to position.
For instance, software developers must know coding languages like Python, Ruby, C#, PHP, Node.js, React.js, etc, to create applications. Data professionals must understand how to work with platforms such as TensorFlow and Google Analytics to manipulate and interpret datasets.
Azure App Service is used by those working in IT operations, while those dealing with security may be using programs like Amazon Inspector.
Knowledge of operating systems
Familiarity with the OS on the market and how they work is one of the basic requirements for an IT job. Companies may use different operating systems, so they must know how to troubleshoot issues should something happen. Examples of operating systems are Microsoft Windows, Linux, and iOS.
Database management is storing, retrieving, and manipulating different types of data. Company requirements may differ, but an IT professional should handle database privacy, storage optimization, or automation.
For example, an IT employee must ensure that company data is safe from hackers, prevent duplicates from being logged, or restrict access to certain people.
2. Soft skills
Soft skills are more akin to personality traits or behaviors—these concern how employees interact with people within the team and the rest of the company. Soft skills determine if an employee is a good fit for the company and can influence their salary.
Communication and collaboration
Being good at communication and collaboration means an employee can explain complicated concepts to others and solve problems with a team. Implementing, scaling, and maintaining software systems alone is difficult, so working well within a team is essential.
Good time management will allow employees to finish projects on time or juggle several at once. Conversely, procrastination on the job leads to low-quality results that may cause delays to other departments, thus souring workplace relationships.
Employees who can learn and implement advancements quickly are valued, given the constant evolution and innovations in the tech field. Adaptability can also mean promptly addressing any sudden issues or last-minute changes in projects.
Project management is the ability to set and hit goals, work with others, and organize different tasks to juggle various projects.
Employees with this skill know which step in a project they are at and set attainable goals for their team members. This is also valuable in leadership positions, where it’s common to have more than one project going on at a time.
Identifying, analyzing, and solving different issues is par for the course with IT jobs. But unfortunately, software and applications are constantly being updated, so there’s a likelihood of errors or bugs preventing work.
Part of being an IT professional is solving these issues quickly to keep the rest of the company working smoothly.
Experience is a valuable asset in any field. Those with more years under their belts expect salaries matching their worth, which means they’re more likely to negotiate for higher prices. For instance, professionals with five years of experience typically earn more than fresh graduates.
4. Education and certifications
The schools a professional went to, and their educational level can influence salary. A candidate can use certifications from workshops or organizations to negotiate for better compensation.
Some companies award employees increased salaries based on their work performance or previous company commendations. Performance can be grounds for a salary increase during annual capability reviews.
2023 IT Hiring Trends
IT jobs are in demand more than ever. Paying attention to these rising trends will give you the edge in hiring the best employees in the industry.
Leveraging branding to attract top talent
Many candidates are attracted to big names or those with good company culture. One of the more famous ones is Google. According to an article by Inc, Google has several perks it gives to its employees, such as free haircuts, gourmet cafeteria food, and onsite doctors.
Good company culture and benefits make employees more productive. TeamStage supports this by stating that 80% of employees say strong company cultures allow them to do their best work.
Importance of soft skills and cultural fit
While soft skills are crucial to finding the right talent, they’re harder to evaluate than hard skills. A report by the Carnegie Foundation stated that 85% of a person’s job success is the product of soft skills.
Cultural fit refers to the compatibility of a candidate’s values and goals with the organization’s. A good cultural fit can determine whether the candidate will remain and thrive in the company, which is associated with employee satisfaction. For example, TeamStage’s article on Company Culture Statistics for 2022 said that happy workers are 12% more productive.
Decreased requirement for tech degrees and increased need for cloud certifications
Due to the labor shortage, companies are rethinking tech degree requirements. According to DataPeople, 25% of tech jobs in 2021 didn’t require a degree, compared to 2019. Instead, there’s an increased demand for cloud certifications, such as those offered by Amazon Web Services (AWS), Google Cloud, or Microsoft Azure.
In-Demand IT Jobs in 2023
Due to more businesses operating online and the continued use of e-commerce platforms, more jobs in the IT industry will be in demand in 2023.
Some of these jobs are:
- Data Scientist
- Data Analytics
- Software Developer
- Software Engineer
- Front-end Developer
- Full Stack Developer
- Machine Learning Design/Developer
- DevOps Engineer
- Network Administrator
- Network Security Engineer
- Systems Security Manager
In-Demand IT Skills and Certifications in 2023
Certifications provide recruiters with proof that a candidate is an IT expert. In addition, a skill such as DevOps offers employees knowledge of software’s development cycle and is thus helpful for any company that creates different applications.
These skills and certifications match the jobs that are rising in demand:
- Cloud Computing
- Certified Information Systems Security Professional (CISSP)
- Cisco Certified Network Associate (CCNA)
- Microsoft Certified Professional (MCP)
- Microsoft Certified Solutions Associate (MCSA)
- Microsoft Certified Systems Engineer (MCSE)
Top Industries Hiring IT Professionals in 2023
Technology permeates through different industries as companies adapt and use new tools. Now that several different integrations are available, IT professionals are needed to help keep everything running smoothly. Responsibilities can include improving customer experiences in an app, database management, and upgrading workflows with automation.
These are the top industries hiring IT professionals in 2023:
- Professional services
Fair Compensation Through a Salary Guide
Having a salary guide allows you to decide how competitive you want the company to be. Knowing the ranges of job levels, the factors that determine compensation, and the emerging trends will help you prepare for your hiring process.
Reach out to one of the leading IT recruitment agencies for your IT needs and more. Contact Manila Recruitment today.