What Are the Top 3 Factors for Attracting and Retaining Tech Talent in 2023?

85% of technology professionals are open to new job opportunities, making competitive pay, flexibility, and clear career progression non-negotiable for employers. Our analysis of a global survey of 70,000 workers reveals a seismic shift in professional priorities, creating a candidate-driven market. Understanding this "work-life equation" is critical for building a talented tech team.

What Do Tech Professionals Value Most in a New Role?

The recruitment landscape for technology roles has been permanently altered. Following the trends of The Great Resignation, high turnover is expected to continue, with 57% of tech professionals more likely to job hunt during an economic downturn. Loyalty to a single employer has diminished, replaced by a more transactional approach where professionals seek a specific value proposition. Based on our assessment experience, this is defined by three core pillars: competitive compensation, work-life balance through flexibility, and tangible career growth opportunities. Employers who master this combination will become employers of choice.

Why is Competitive Salary More Critical Than Ever?

In a candidate-driven market, salary has surged to the top of the list of motivators. While economic uncertainty might suggest otherwise, salary growth in high-demand tech specializations like cybersecurity, data engineering, and development shows no signs of slowing. Salary ranked as the top reason for tech professionals to accept a new job, as they increasingly monetize their time and specialized skills.

For employers, this means:

• Conducting a salary benchmarking exercise to understand what competitors in your location and industry are paying for similar roles.
• Reviewing current employees’ salaries to prevent internal equity issues and retain existing talent.
• Clearly displaying salary information in job advertisements to attract qualified candidates from the outset.

It's important to understand salary bands, which are the range of pay (e.g., $90,000 - $130,000) established for a specific position. Additional benefits are no longer a substitute for a competitive base salary.

How Can Flexibility Improve Tech Talent Retention?

Flexibility is now a standard expectation, not a perk. The survey found that work-life balance was the most significant influencer of overall job satisfaction (57%), ranking higher than pay (50%). For tech respondents specifically, 75% valued flexible hours above all other aspects of hybrid work. Furthermore, nearly half of all respondents would reject a promotion if it negatively impacted their wellbeing.

Employers can meet this demand by:

• Implementing individualized flexible working options, such as hybrid agreements or flexible hours, that focus on output rather than rigid schedules.
• Consulting with teams to determine what type of flexibility they value most—whether it's remote work options or adjusted start and end times.
• Building trust by evaluating performance on work done, not hours clocked in an office.

Is Clear Career Progression the Key to Engagement?

In a sector defined by rapid evolution, "job hopping"—moving frequently between roles to gain seniority and higher pay—is on the rise. Ambitious tech professionals are drawn to employers who offer clear paths for advancement and opportunities for upskilling (acquiring new skills) and reskilling (training for a different role).

To engage and retain top performers:

• Lay out clear progression pathways early in the recruitment process.
• Highlight training programs, qualifications, and courses offered by the company.
• Equip managers to focus on personal development plans that align individual career goals with organizational objectives.

To thrive in this new era, employers must prioritize a competitive salary, offer genuine flexibility, and provide a clear path for career growth. These three elements form the essential work-life equation that today's tech talent uses to evaluate opportunities. Mastering this equation is the key to not only attracting but also retaining the skilled professionals needed to drive innovation.