IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Business leaders continue to raise salaries as tech layoffs mount

Only 5% of CFOs said they would be reducing staff compensation amid a challenging economic climate

The vast majority of chief financial officers (CFOs) are planning to increase staff salaries in 2023.

New research from Gartner showed that 86% of surveyed CFOs said they plan to increase the amount their staff are compensated by at least 3%.

One in six leaders reportedly plan to increase pay by 10% or more, while most (70%) plan to increase compensation between 3% and 10%. 

Only 3% of CFOs said they plan to decrease pay by 10% or more, and 2% of financial leaders reported a planned decrease in pay between 3% and 10%.

The latest figures come amid an uncertain period for the tech industry, but Gartner analysts suggested that businesses are recognising the value their staff bring and will pay to keep them.

“CFOs know that two things will make or break their ability to drive growth and profits during, and after, the 2023 recession: their investment in technology and people,” said Alexander Bant, chief of research in the Gartner Finance practice.

“Many CFOs are still trying to shake off the negative ramifications from talent shortages since 2020, and they know they must invest in their staff to retain them.”

Tech layoffs in abundance

There have been a number of suggested explanations for job cuts across the industry. 

An uncertain future, economically speaking, is the one most tech companies cite. However, experts speaking to IT Pro speculated that C-suite executives could be capitalising on an opportunity to make sweeping cuts at a time when they won’t be criticised so harshly.

Tens of thousands of employees have been made redundant from major tech companies in recent weeks including Amazon, Microsoft, Salesforce, IBM, and Alphabet.

The unfortunate reality of talented tech workers finding themselves without work is seen by some as an opportunity for SMBs to recruit from a talent pool rich with individuals who have experience in building impactful products.

There is still a shortage of tech talent on the market; according to recent research, UK businesses continue to look overseas to plug their staffing holes which means there are definitely still jobs available outside of the biggest tech campuses in California.

Related Resource

The strategic CFO

Why finance transformation propels business value

Whitepaper with image of workers with different functions, at a desk, next to a server, and taking a laptop towards a lorryFree Download

Staff who have been made redundant from large companies may find themselves happier at smaller firms, too. 

SMBs typically have warmer, more relaxed cultures where laid-off workers could potentially feel more valued.

Larger companies could also find themselves struggling to retain talent regardless of their financial situations. 

Research from CWJobs found that the majority of UK tech workers (53%) are actively applying for jobs elsewhere. This figure rose to 63% for London-based workers.

Surveyed staff said their job searches were driven by the feeling of needing to pre-empt layoffs in their company

Featured Resources

ZTNA vs on-premises VPN

How ZTNA wins the network security game

Free Download

The global use of collaboration solutions in hybrid working environments

How companies manage security risks

Free Download

How to build a cyber-resilient business ready to innovate and thrive

Outperform your peers in your successful business outcomes

Free Download

Accelerating your IT transformation

How Cloudflare is innovating for CIOs to start 2023

Watch now

Most Popular

Tech pioneers call for six-month pause of "out-of-control" AI development
artificial intelligence (AI)

Tech pioneers call for six-month pause of "out-of-control" AI development

29 Mar 2023
3CX CEO confirms supply chain malware attack

3CX CEO confirms supply chain malware attack

30 Mar 2023
Getting the best value from your remote support software
Advertisement Feature

Getting the best value from your remote support software

13 Mar 2023