The Business Times (Garage)
February 14, 2022
THE talent war for software engineers has intensified in Singapore, with over 78 per cent of job listings last year seeking experienced hires. Salaries are also robust, with those in lead roles commanding as much as S$15,950 monthly.
These are some of the findings of a report by talent platform NodeFlair and early-stage investor Quest Ventures, released on Monday (Feb 14).
The report taps some 30,000 data points compiled by NodeFlair, from user submissions backed by payslips and offer letters, as well as from job portals.
Out of the job listings for software engineers in the city-state last year, 38.6 per cent were for senior positions and 34.4 per cent for mid-level positions. About a fifth were for junior roles and 5.8 per cent for lead engineers (see chart).
The entry of US and China tech giants into Singapore likely accounts for the strong demand for experienced hires, the report noted. Concurrently, the boom in venture capital fundraising among Singapore startups has enabled them to afford more senior talent to accelerate growth.
As a result, remuneration is on the rise. Salaries for software engineers rose 22 per cent through 2021, the report said, albeit without a breakdown of figures. For lead software engineers, the increase was as much as 32 per cent.
Junior software engineers commanded a median monthly base pay of S$4,750 last year, according to NodeFlair's data. The figures for mid-level and senior software engineers stood at S$6,500 and S$7,500 respectively.
Lead software engineers saw a median salary of S$9,000, while those at the 90th percentile commanded as much as S$15,950 (see chart).
As The Business Times previously reported, the inflation in tech salaries has been amplified by pandemic hiring restrictions. Tech giants such as China's ByteDance have further fuelled the talent poaching war.
In this climate, offering a strong compensation package is often the most straightforward way to stay ahead of the war.
"While companies can, and will, work on the non-compensation aspect to attract talents, the easier way out in the short term will be to increase their hiring budget, especially when they are on a hiring spree," said Ethan Ang, chief executive and co-founder of NodeFlair.
The report found that several companies pay software engineers well above the market median. It cited ByteDance, Google, Facebook, Goldman Sachs, Amazon Web Services, JP Morgan, Apple and foodpanda as paying over 25 per cent above the median.
There is also a shortage of specialised talent such as blockchain engineers. Companies have adjusted their strategy by instead hiring software engineers interested in blockchain development, further intensifying competition for this talent pool.
Julius Uy, chief technology officer (CTO) of edtech company Kydon Group, advises companies to pay sufficiently to attract the best talent.
"If you cannot compete against ByteDance, go to markets where ByteDance is not there and pay top dollar for top talent," he said in the report.
Ashish Awasthi, CTO of caregiving startup Homage, said that his company uses both cash and equity to stay competitive in hiring.
Nevertheless, non-salary factors such as culture are still indispensable. More resources also need to be allocated to retention, over and above recruitment.
"Companies need to invest in leaders who can grow and retain these talents through non-compensation means, such as enforcing a higher quality engineering culture and creating a better developer experience," said Ang.
