The tech job market is changing rapidly, and it’s important to stay informed about the latest trends.
According to Payscale’s 2023 Compensation Best Practices Report, the voluntary turnover rate declined to 22% in 2022 from 36% a year earlier. This is even lower in the tech industry, with a voluntary turnover rate of 19%.
The main reason for this is economic uncertainty and tech layoffs, which are making some employees reluctant to risk leaving their existing jobs. This gives employers more leverage in setting compensation and perks.
For example, some employers are using this additional leverage in setting new policies for employees to return to the office, limiting their options for remote work. Amazon is one high-profile example, recently telling its corporate and tech employees that they need to be back in the office at least three days per week.
However, there are still several factors working in employees’ favor. The overall labor market remains tight, with 60% of organizations still saying they had more trouble attracting and retaining talent in 2022 compared with prior years. In addition, many employees also have more data at their disposal in compensation negotiations thanks to pay transparency laws and policies.
The pandemic also created new expectations for accommodating remote work, workplace flexibility, and benefits. Although employers are taking back some of that power, it’s still an employee market.