CENTENNIAL, Colo.--(BUSINESS WIRE)--Amid concerns of a coming recession continue to build, the demand for technologists remains strong: Tech unemployment was at 2.2% in October 2022, according to CompTIA. Given the widespread need for tech expertise in data science, cloud computing and advanced programming languages, 52% of technologists surveyed by career marketplace Dice (a DHI Group, Inc. brand; NYSE: DHX) may feel comfortable enough about their skills and market prospects that they are likely to change employers in the next 12 months (up from 44% a year ago).
This data suggests CIOs and CTOs could face a tech talent flight in 2023, and that means there is a significant opportunity for companies to attract more job candidates given the likelihood for a larger-than-average applicant pool. In its annual Tech Sentiment report, Dice took input from technologists, HR professionals and technology business leaders to provide the clearest picture of sentiment on tech hiring, job satisfaction and more across multiple industries.
Dice outlines several key trends and takeaways to empower company leadership, HR professionals and hiring managers as they build out 2023 tech talent acquisition and retention strategies.
“Technologists have strong opinions on their working environments and continued high demand for tech talent is giving them opportunities to choose the workplaces that best fit their needs,” said Art Zeile, CEO of Dice. “In just two years, the willingness to change employers has risen roughly 63 percent. From our research, this is likely a combination of increased salary opportunities, a desire for better work-life balance and remote work, and the increased importance of company reputation. More than ever, employers need to understand what matters to technologists when it comes to where, when and how they work so they can create and sustain environments where they can thrive.”
Salary and Merit Increases
Technologists know they’re highly sought after, and they’re learning more skills than ever to increase their value at organizations and maximize their compensation packages. While the job market for new hires is rewarding these skills and competing to attract talent, organizations aren’t necessarily keeping pace when it comes to their current employees’ salaries. In the Tech Sentiment Report, Dice research shows technologists received an average merit increase of only 4.8% this year versus an expected merit increase of 5.2%.
With inflation remaining a top concern for employees and demand for technologists staying strong, workers have clear incentives to consider other work opportunities and leverage their skills for increased pay. Companies looking to retain talent should keep a close eye on competitive pay and ensure their salaries are comparable with industry-wide salary bands.
Work-Life Balance and the Future of the Workplace
Remote work — once seen by many as a temporary solution for office workers during the COVID-19 pandemic — has remained stickier than most leaders expected. In the surveys, Dice found that approximately 70% of employers are planning for a hybrid future; however, only 30% of technologists indicated a preference for hybrid work. In fact, 60% of technologists surveyed ranked fully remote work as their most desired workplace setting — up from 53% in 2021.
Additionally, Dice found that the option for remote work in technology professionals’ next role was equally important across all age groups; nearly 90% of all respondents reported that remote work was somewhat, very or extremely important.
When looking at this data, it’s clear that organizations should be wary of rushing back into the office and risking the loss of valuable tech talent in the process.
Brand, Reputation and Culture
In the age of online conversation, reputation for individuals and entities has become more important than ever before. With the tech job market so competitive for companies seeking talent, technologists are becoming more discerning in how they view a company’s culture, reputation and brand.
Dice found that nearly 90% of technologists feel an employer’s brand is important when considering a new employer, and nearly 80% said they would not apply for a higher-paying job at a company with a bad reputation. This is a trend that has been steadily building for years, and it’s important for leadership to take brand reputation and culture seriously to draw and keep their tech talent.
Find more data and analysis from this year’s survey in the 2022 Dice Tech Sentiment Report.
Dice conducted two specific online surveys to support the insights presented in the 2022 Dice Tech Sentiment Report:
- Q3 2022 Technologist Sentiment Survey: Conducted July 8–29, 2022. The survey generated 950 qualified responses from fully employed technologists residing in the U.S.
- Q3 2022 Employer Sentiment Survey: Conducted September 28–October 5, 2022, and generated 350 qualified responses from Human Resources professionals from direct hire organizations that recruit and employ tech talent.
Where applicable, results from these two surveys will be compared to these additional first-party data sets:
- Q4 2021 Salary Survey: Conducted August 10–October 10, 2021. Generated 6,226 responses.
- Q2 2021 Technologist Sentiment Survey: Conducted April 16–23, 2021. Generated 1,033 responses.
- Q4 2020 Salary Survey: Conducted September 26–December 6, 2020. Generated 7,746 responses.
- Q2 2020 Technologist Sentiment Survey: Conducted April 17–June 26, 2020. Generated 771 responses.
Dice is a leading tech career hub connecting employers with skilled technology professionals and providing tech professionals with career opportunities, data, insights and advice. Established in 1990, Dice began as one of the first career sites and today provides a comprehensive suite of recruiting solutions, empowering companies and recruiters to make informed hiring decisions. Dice serves multiple markets throughout North America. Dice is a DHI Group, Inc. (NYSE:DHX) brand.
About DHI Group, Inc.
DHI Group, Inc (NYSE: DHX) is a provider of AI-powered career marketplaces that focus on technology roles. DHI’s two brands, Dice and ClearanceJobs, enable recruiters and hiring managers to efficiently search for and connect with highly skilled technologists based on the skills requested. The Company’s patented algorithms manage over 100,000 unique technology skills. Additionally, our marketplaces allow technology professionals to find their ideal next career opportunity, with relevant advice and personalized insights. Learn more at www.dhigroupinc.com.