TAP Network's Annual Tech Salary Survey Reveals Substantial Shift Towards Globally Competitive SalariesWednesday, September 21, 2022
Sector growth saw doubling of voluntary turnover and significant salary increases in 2022
Vancouver, BC, September 21, 2022--(T-Net)--TAP Network's recently released 2022 Tech Salary Survey shows Canadian tech sector salaries increased by an average 6.5%, a significant jump from the previous 5-year average of 3.8%.
The past year saw voluntary turnover almost double, as tech companies competed intensely for talent, and sweetened the deal with significantly higher salaries, bonuses and stock grants in order to attract and retain talent.
Stephanie Hollingshead, CEO, Tech and People Network (TAP Network)
"The reality is that if you work in tech, it was raining jobs this past year," said Stephanie Hollingshead, CEO of TAP Network. "The trifecta of strong sector growth, record breaking levels of venture capital, and local talent being lured away by international companies hiring for remote roles, has put significant pressure on Canadian companies to compete on salaries. I think we can expect to see continued pressure on local salaries given the movement towards a more global talent pool."
An unprecedented 39% of the jobs surveyed saw average salary increases of 10% or more in 2022. Manufacturing Engineer, Hardware / Electrical Engineer and entry level 2D/3D Concept Artists topped the list with average salary increases greater than 20%. While the hottest jobs were technical by training, many of the jobs that saw salaries jump more than 10% were also in the areas of sales and marketing, human resources and executive positions.
The Great Resignation
The data shows the great resignation was very real and felt throughout the sector last year. Voluntary turnover almost doubled from previous years, with organizations reporting 18.5% of employees leaving organizations on their own accord. The subsectors experiencing the most turnover were e-Commerce (32.5%), VFX, Animation (27.7%) and AI, Data Science, Machine Learning and Robotics (24.3%).
With the surge of voluntary turnover over the past 12 months, organizations reacted and increasingly dangled both cash and non-cash incentives to attract and retain talent. The incentives most commonly used were sign-on bonuses, retention bonuses, and new hire stock grants.
Shifting Workplace Benefits
Perks are changing to accommodate more hybrid and remote work arrangements. More and more employers are offering benefits such as flexible hours, working from home, paid time off to volunteer and even four-day work weeks while onsite office perks such as alcoholic drinks and free or subsidized food are decreasing.
The most common benefit that organizations are considering introducing is RRSP matching.
Continued Pressure into 2023
"As interest rates rise and inflation hovers around 7- 8%, some high-profile tech companies have downsized and many more are now taking a cautious approach to hiring and spending in general. While this shift should help smaller companies to retain employees and hire the additional talent they need to grow their businesses, upward pressure on tech sector salaries is expected to continue into 2023." adds Hollingshead. "Large scale hiring, salary increases and even layoffs present real opportunities to diversify workforces, improve pay equity and retain marginalized and racialized employees."
The 2022 Tech Talent Survey reports on Canadian tech sector compensation and policy data from 216 companies, including salary and incentive data for 30,718 incumbents (individual employees) across 227 jobs.
The 2023 Tech Salary Survey will be launched in April 2023, and all members of TAP Network will be invited to participate. In addition to collecting data on compensation by job and organization policies and practices, it will also collect data related to diversity and inclusion as part of the Diversity and Inclusion Tech Project. The TAP Network Tech Salary Survey is conducted by Mercer.
For more details and specific salary figures, purchase a full version of the 2022 Tech Salary Survey online at www.tapnetwork.ca.
About TAP Network's Tech Salary Survey
Since 1994, TAP Network has been producing an annual salary survey to provide B.C. tech companies with in-depth local market data. The survey has expanded over the past 3 years and now includes national tech sector data. Participation in the survey grew 17% this year, largely due to the association's growing presence in B.C. and Alberta and entry into the Ontario and Quebec markets. Survey submissions were collected in spring 2022 and results were published in August 2022. Learn more about the 2022 Tech Salary Survey here.
About TAP Network
TAP Network is a non-profit association for People and Culture professionals in Canada's tech sector, providing members with access to tech sector data, industry experts and an inclusive peer community to drive innovation, collaboration and results. Through programs and events, TAP Network fosters peer-to-peer connections and collaboration that enable learning and knowledge sharing. The association's 900+ members lead and influence the People and Culture practices at 225 tech companies spanning numerous subsectors, including ICT, VFX and animation, interactive and digital entertainment, cleantech, AI, life sciences and more.
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