Victorian small to medium-sized businesses and start-ups have been impacted by large enterprises, particularly banks and the financial services sector, in the war for tech talent helping to drive up demand and wages.
The Financial Services Royal Commission and the disruption of the sector through FinTech startups, has driven competition within the banking sector for experienced tech and project services talent.
With the Royal Commission leading many in the sector to develop remediation strategies, the need for talented tech staff, who have experience working in project management and business analysis, has increased rapidly.
While Project Managers salaries have stayed much the same for the past few years, the gap between their wages and that commanded by Business Analysts is closing.
We expect there to be an increase in the volume of tech staff moving into contracting to take advantage of more competitive rates and opportunities.
Experienced programmers are being offered lucrative packages by companies eager to secure talent in such a niche field.
Of particular value are those experienced working with Python, Spark, Snowflake, Glue and Athena, while the skills in cloud data such as AWS and Azure are also highly valued as organisations continue to migrate their data into the cloud.
The financial services sector is now actively looking to adopt specialised technology to help address reduced headcount and increased automation, and in doing so, is looking to disrupt their own sector by employing agile thinkers and talented tech minds.
This has seen an increase in new roles for the IT sector particularly within banking and financial services industries as they adopt the latest technologies, which is more appealing to candidates who have typically not come from large enterprises.
If banks are to evolve to maintain and grow their market share, they will need to get smarter and faster in the adoption of new tech as it is released and we are seeing this occurring in the sector already. Some even allow their employees pick what technologies they wish to utilise or introduce into the organisation.
Growth in contracting
Candidates are increasingly chasing opportunities to work on the latest technologies, interesting projects and to be paid competitively.
Due to the continuing demand, candidates are often more flexible to consider contract opportunities as well as permanent which is resulting in perm salaries largely keeping pace with contractor rates in some areas. We expect rates to remain competitive for skillsets that are in high demand.
Those with in-demand skills, notably in programming, data and cloud infrastructure, will continue to be in high demand across a broad range of sectors including banking and financial services, encouraging candidates to push for more attractive packages. Additionally these larger enterprises are now keeping pace with salaries for tech talent where previously they weren’t.
This is very much a candidate-driven market.
Speed to offer
The slow speed at which many employers are able to move from shortlisting to offer continues to see them miss out on top talent which is not prepared to wait for red tape to be navigated. And as more talent moves over to the contracting space, the need to be more agile and respond to candidates quickly will continue to be a determining factor in who secures the best staff.
Karmen Guthrie, Davidson Technology Practice Manager Victoria