Navigating Shifting Tides
As the tech job market continues to evolve, businesses are closely monitoring the impact of economic changes on compensation and benefits trends. In this blog post, we present Nexton's latest Salary Survey, shedding light on key findings and implications for the second quarter of 2023. Join us as we explore the changes in median expected salaries, benefits offerings, and the market's response to challenging conditions.
The Q2 2023 Compensation Report provides a comprehensive overview of salary and benefits trends. Notable highlights include an 8% drop in the median expected salary, narrowing the salary gap to 20%. Benefits like Vacation, Remote Work, and Career Development remain crucial. US companies are increasingly embracing Latin American talent and offering health insurance and paid time off for remote workers. The report equips companies with valuable insights to attract high-performing talent and adapt to the evolving market.
Salary Trends: The median expected salary declined by 8% to $72k this quarter, while the median current salary remained stable at $60k. The narrowing salary gap of 20% indicates a more predictable market.
Benefits Shift: While there was a decrease in the number of benefits offered, Vacation, Remote Work, and Career Development remained essential. Other benefits, like Stock Options and Company Gatherings, saw an impact due to economic conditions.
Talent Strategy: US-based companies are increasingly integrating Latin American talent into their teams, offering health insurance and paid time off for remote workers. The once-popular Stock Options benefit is losing its appeal amidst economic uncertainty.
Offer Stage Trends:
Roles experienced slight changes in salaries during the second quarter:
- Sr. Back-End Engineers: Median expected salary dropped by 8%.
- Sr. Front-End Engineers: Median expected salary remained at $78k.
- Sr. Full Stack Engineers: Median expected salary dropped by 7%.
- Tech Leads: Median expected salary dropped by 13%.
- SRE / DevOps Engineers: Median expected salary dropped by 14%.
- Product Managers: Median expected salary increased by 14%.
Despite challenging market conditions, the report provides valuable insights for companies to adjust salary ranges and attract top talent. US companies' growing focus on Latin American talent, coupled with offering health insurance and paid time off, indicates a promising trend in talent retention. By understanding the evolving benefits landscape and prioritizing inclusive work cultures, businesses can ensure long-term success.
The survey included 500+ Latin American engineers based in countries like Argentina, Brazil, Chile, and Mexico. The pool consisted of experienced professionals with upper-intermediate or advanced English levels, working remotely as foreign contractors for US companies.
- Talent Expected Salary: Back End Developers saw an 8% decrease in median expected salary, while Front End professionals remained at $78k. Full Stack Engineers experienced a 7% drop to $78k, while Tech Leads saw a 13% decrease to $81k. Product Managers, on the other hand, witnessed a 14% increase.
Yearly Salary Gap: The median salary gap of 20% indicates a positive trend, but the ultimate goal is to achieve equilibrium between expectations and reality. Evaluating salary gaps for each role independently is crucial to meeting candidates' compensation demands.
Benefits: Cultural improvement-based benefits and a sense of belonging gained prominence. Paid Time Off and Vacation were offered by a significant 97% of companies. Stock Options' appeal decreased, with only 29% of companies providing them in Q2 2023.
Market Rebound vs Reduced Attrition Rates: The market is gradually rebounding, with companies proactively hiring top talent. Engineers are showing more loyalty, resulting in reduced attrition rates and fostering stability and growth.
Nexton's Q2 2023 Compensation Report provides valuable insights into compensation and benefits trends amid challenging market conditions. By adapting to evolving trends and prioritizing inclusive work environments, businesses can attract and retain top talent for future success.
Embracing Latin American talent and offering appealing benefits are key steps towards achieving these goals. At Nexton, we are committed to helping companies build strong and cohesive teams, bridging the gap between global talent and organizations.