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.
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.
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