Innovations like artificial intelligence, cloud computing, and automation drive unprecedented growth in the IT sector. However, riding this tech wave requires you to have top-tier IT talents to utilize, develop, and manage cutting-edge tools.
You must also understand that tech professionals now expect more from their workplaces, especially regarding compensation. Remember that you’re not only paying for their education, skills, and expertise but also investing in their critical thinking and problem-solving skills.
In today’s fast-paced world, where pros are raising the bar, treating your IT talent right is non-negotiable. Check this IT salary guide for 2024 to learn how to attract the right talents.
How to Use This Salary Guide
A salary guide is a valuable tool that outlines industry-standard compensation ranges and provides insights for effective hiring and talent management. It typically includes updated salary information based on experience or skills, historical averages, job market trends, and location.
It also offers the following benefits:
- Learning industry-standard compensation packages provides a benchmark for understanding salary norms in your field, helping you make informed decisions when hiring or negotiating salaries.
- Understanding how compensation packages are determined gives you insights into the factors influencing pay scales. It allows you to tailor your approach and make strategic adjustments to attract and retain top talent.
- Building your competitive compensation package becomes more effective as you integrate knowledge from the salary guide. It ensures your offers align with industry standards but stand out as attractive and competitive.
- Comparing your compensation package against industry standards allows you to assess your competitiveness in the job market, helping you adjust to remain appealing to top-tier professionals.
What Are the Factors Influencing IT Salaries
Two types of factors affect IT salaries: intrinsic and extrinsic. Understanding both is crucial for making informed decisions about compensation and ultimately attracting quality IT employees.
Intrinsic factors
These factors are based on what the candidate can offer to the role.
Hard skills
An individual’s hard skills play a pivotal role in shaping IT salaries. How you should pay your IT employees depends on their proficiency in specific tools and tech stack.
For instance, you can pay a software developer higher if they know valuable tech stacks that are related to the role, or the project that you’re working on. Their deep understanding of various operating systems, hardware and infrastructure requirements, and database management further enhance the value they can bring.
Soft skills
These skills are integral in the IT landscape because they enhance the effectiveness of technical professionals in various aspects. For instance, effective communication and collaboration foster teamwork and streamline project workflows, while strong time management ensures efficient task execution.
The ability to adapt to developing technologies and employ effective project management skills also contributes to project success. Moreover, problem-solving prowess is crucial in navigating challenges and optimizing solutions.
Together, these soft skills not only elevate an individual’s performance but also influence their overall value and potential compensation in the IT sector.
Credentials
While a candidate doesn’t necessarily need a college degree to enter IT, it can prove their knowledge and expertise and influence their salary. Industry certifications can also establish IT compensation because they validate specialized skills and signify a commitment to staying current in a rapidly evolving field.
Experience
This factor directly correlates with a candidate’s practical understanding and mastery of complex technologies. This hands-on familiarity influences their effectiveness in delivering successful projects and significantly impacts their salary, with seasoned professionals often commanding higher compensation.
Exposure to different projects and international or offshore work further enhances an IT professional’s versatility, making them highly sought after in the dynamic and globally connected IT landscape.
Performance
A candidate’s efficiency lies in their performance at work. This factor reflects their ability to deliver results, solve complex problems, and contribute to the success of projects and teams.
IT professionals who consistently demonstrate exceptional skills, innovation, and reliability often receive higher compensation. It shows their impact on the success and productivity of the IT environment.
Extrinsic factors
These factors are based on your company’s or industry’s standards.
Job role and responsibilities
More complex roles or those with higher levels of responsibility require a deeper skill set and experience, justifying a higher compensation.
For instance, a software development manager typically earns as much as ₱300,000 per month due to their skills, scope of work, and years of experience. Meanwhile, a junior-level mobile developer often receives ₱30,000 monthly, which can increase as they upskill and progress through their career path.
Industry and sector
Salaries in IT can vary significantly between industries and sectors. IT professionals in finance or healthcare, where data security is crucial, may earn differently than those in tech or e-commerce, where the focus is innovation and growth.
Geographical location
The cost of living and demand for IT professionals in a specific location directly impact salaries. High-demand tech hubs often offer higher compensation to attract and retain talent.
Employee demands
Individual negotiations and demands from IT professionals—such as specific benefits, remote work options, or flexible schedules—can influence the overall compensation package.
For instance, a web developer may want to work from home and require an internet allowance. Meanwhile, an information security specialist may need higher pay because they need continuous specialized training, and are often required to work onsite to deal with sensitive security systems.Try to balance the less-desirable parts of the job with an attractive incentive or perk.
Economic conditions and market demand
The overall economic climate and the demand for IT skills in the job market contribute to salary fluctuations. When there’s high demand for specific tech skills, salaries tend to rise, reflecting the market dynamics.
The State of the IT Job Market in 2024
The IT job market is expected to remain strong in 2024, with demand for skilled IT professionals continuing to outpace supply. Here are some trends you should anticipate.
The IT job market is a red ocean that organizations must brave
As more technologies and business processes evolve, you can expect fierce competition with other companies for skilled talent. A 2023 study found that 41% of organizations plan to expand their internal IT staff next year, an increase from 31%. Although IT hiring is set to increase, 63% of senior tech leaders currently find it difficult to hire skilled professionals.
The demand for IT jobs outstrips the supply
The global population of software developers will likely hit 28.7 million by 2024, an increase from 25.6 million in 2022. Although this number seems substantial, a critical shortage of skilled IT labor remains. In a separate study from Gartner, the demand for tech talent will continue to exceed the supply until at least 2026.
These statistics underscore the persistent and escalating gap between the demand and availability of skilled IT professionals in the foreseeable future.
The employees are in the driver’s seat
Employees are now firm with their compensation—and companies are conceding. A 2023 study found that 51% of organizations planned to revisit their compensation philosophy and implement new practices. While not particular to the IT industry, this data reflects a broader shift that recognizes the pivotal role of employee values in organizational strategies.
What’s In Demand in the Market?
List of in-demand IT jobs in 2024
The world of technology is ever-evolving, and with it, the demand for skilled IT professionals. The following are some of the in-demand IT careers we can expect in 2024:
- Systems Security
- Network/cloud architect
- Applications architect
- IT Director
- ERP Integration Manager
- Data Engineer
- Data Security Analyst
- Data scientist
- DevOps engineer
- Network security engineer
- Senior web developer
- Database developer
- Software engineer
- Network/cloud engineer
- Help desk support manager
List of in-demand IT skills and certifications in 2024
As the technology industry continues to evolve, so does the demand for specific skills and certifications. Here are some that match in-demand IT jobs next year:
- Cybersecurity Certifications
- CompTIA Security+
- Certified Ethical Hacker (CEH)
- Certified Information Systems Security Professional (CISSP)
- IT Support Certifications
- CompTIA A+
- HDI Support Certifications
- ITIL 4 Foundation IT Service Management
- Infrastructure Certifications
- CompTIA Cloud+
- Cisco Certified Network Associate (CCNA)
- AWS Certified Solutions Architect Professional
- Data Certifications
- CompTIA Data+
- CompTIA DataSys+
- CCIE Data Center Certification
List of top industries hiring IT professionals in 2024
Various industries and sectors now employ different technologies to streamline processes, enhance security, and reduce errors. Each requires a specific IT professional who can step up to the plate. The top industries actively seeking IT talent in 2024 are:
- Renewable Energy
- AI and Machine Learning
- Biotechnology
- Cybersecurity
- Remote Work Technology
Pay Your IT Staff Right
Following an IT salary guide is paramount to ensuring fair compensation for tech professionals. As the demand for tech tools and skills rises, investing in the expertise of IT professionals becomes both an essential and a strategic imperative for organizational success.
To streamline this process and explore opportunities with remote and offshore IT talent, consider reaching out to a reliable recruitment agency in the Philippines like Manila Recruitment. We specialize in connecting businesses with skilled IT professionals through our offshore software development services.
Contact us to elevate your team and stay ahead in the tech game.
