A recent study by Robert Walters on more than 300 professionals and companies in Singapore revealed that technology and transformation are still among the top in-demand professions for 2024. Professions in the field include head of digital or business transformation, software developers, cloud & DevOps.
The tech and transformation industry also has the highest attrition rate at 93%, meaning it has the most people looking to change jobs. Moreover, the study revealed that 63% of professionals in the industry expect pay raises in 2024.
As the talent gap, attrition rate, and salary demand increase in the tech industry, executives from HR firms have insights into the general trends observed in IT executive compensation for 2024 in APAC, factors currently influencing salary adjustments, and approaches companies are taking to retain top IT executive talent in the current market.
IT executive compensation for 2024 in APAC
Faiz Modak, the associate director at Robert Walters Singapore says that salaries for in-demand tech roles will remain on an upward trajectory but will remain relatively stagnant for more developed markets.
However, countries such as Vietnam continue to offer more competitive compensation and benefits packages to attract and retain high caliber talent, as well as invest in employee development to bridge skill gaps.
Faiz Modak
The Robert Walters executive also noticed companies are taking a more holistic approach, beyond monetary compensation, to attract and retain executives, and an increasing trend to hire on a contract basis or vendor outsourcing, to manage costs.
Chris Aukland, the group managing director of Ambition noticed that the average percent increments have lowered when professionals are changing employers since highs of 2022/early 2023.
He also noticed a “shifting market dynamics from candidate-driven to employer-driven means employers have more leverage to negotiate. Overall compensation levels remain resilient due to demand (not declining) and there is a projected increase in salaries in southeast Asia higher versus North Asia.”
Factors influencing salary adjustments for IT executives
Robert Walter’s Modak says companies are aiming to right-size as the market remains cost-sensitive. This means employers try their best to look for the best candidates within their budget.
“Companies may not fill positions when departures happen, and executives who are able to take on dual roles or have multiple skills that can contribute to the business are more likely to see more significant salary adjustments,” he explains.
For Aukland, economic headwinds influence salary adjustments such as the crash of the crypto market and, the global economic slowdown.
The global large-scale tech layoffs in 2023 plus global instability all led to far larger tech talent pool in 2023, giving employers leverage when hiring and in salary negotiations with current employees.
Chris Aukland
“However ongoing digitization, automation, AI, focus on cybersecurity and lack of skilled professionals driving the continuous rise in tech compensation,” he says.
High demand skills
“Software engineering, digital transformation, data, artificial intelligence, machine learning and cybersecurity, blockchain, and cloud computing are among the sought-after skills. There is also significant demand for senior and experienced talent capable of driving top-line revenue,” says Modak.
He also encourages IT professionals to learn soft skills such as communication and project management skills, business acumen, architecture design, and R&D.
“IT executives with international experience or those working in Global environments and advanced tech are viewed favorably,” he adds.
Aukland noticed a strong demand for IT infrastructure professionals (system, cloud, information security) and cloud specialists.
Talent retention
Modak says “Companies are considering ways in which they can promote their employees’ mental wellness and work-life balance. More weight is given to D&I initiatives as well. Beyond higher salaries, professionals are motivated by work-life balance, better career opportunities, and company culture.”
Companies are also working towards a true hybrid work model, platforms, and resources for top performers to reach their goals, employee stock ownership plans, training programs, and upskilling.
Aukland agrees that offering hybrid work arrangements and work flexibility aids in attracting and retaining talent.
He says companies can also consider entrusting exciting projects such as the opportunity to work on AI and other emerging technologies. Companies also retain talent by fast-tracking career growth, employing international transfers, and increasing geographic scope.
Professional coaching and sponsorship for further education can also help retain talent.
Proactive and adaptable approach
“From focusing more on employee benefits and wellbeing, communicate a clear career and advancement path to manage employee expectations, and strengthen the company culture to be more inclusive,” says Monty Sujanani, the country manager at Robert Walters Singapore.
As talent gaps, attrition rates, and higher pay demands surround talent acquisition and retention in the technology industry, companies should consider adopting a proactive and adaptable approach amidst the evolving dynamics in the job market.
