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April 22, 2024
Early this month, talent platform NodeFlair released its 2024 Tech Salary Report. The report, which drew from over 422,000 salary data points across various roles and countries, sheds light on the tech industry’s response to the rising trend in Generative AI while fending off challenges such as layoffs and hiring freezes.
In this interview, NodeFlair co-founder and CEO Ethan Ang discusses the key findings, the rise of AI and its impact on the job market, and the shifting priorities of job seekers in Asia.
Edited excerpts:
Our compensation data use user-submitted payslips, offer letters, and job listings.
Some key insights are:
Tech companies now prioritise sustainable growth over rapid expansion, and there’s a notable shift from revenue-centric approaches to prioritising profitability. This shift impacts salary trends as firms focus on prudent hiring practices and cost-efficient hiring strategies.
Also Read: Blockchain engineering salaries in Asia see 5.41% drop: report
Generative AI enhances workforce efficiency, reducing the need for extensive hiring. Some roles are becoming redundant due to automation, leading to layoffs and reshaping salary dynamics. For example, IBM will stop hiring humans for jobs AI can do, says a Forbes.com report.
The decrease in tech salaries in Singapore is likely due to a downturn in funding across the Southeast Asian tech ecosystem, hitting a five-year low in Q3 2023 per Traxcn.
However, it’s worth noting that salaries still exceed those from two years ago, indicating a shift toward a more balanced compensation model rather than a concerning trend.
Companies can leverage remote work options by prioritising skills over location. They can also prioritise rewarding high-performing employees to retain them. Retaining high performers is often more cost-effective than hiring new ones.
The downturn in the cryptocurrency market, highlighted by events such as the collapse of FTX and regulatory challenges faced by platforms like Binance, has resulted in a decline in demand for blockchain engineers. As a result, companies operating in the blockchain space may be shutting down, scaling back their hiring efforts or restructuring their teams, leading to a stagnation or decline in salaries for blockchain roles.
On the other hand, there has been a surge in demand for data scientists fuelled by the exponential growth of AI applications across various industries. The heightened interest in AI has attracted significant funding from VC firms, allowing companies to offer more competitive salaries.
This is further fuelled by the rapid pace of innovation in AI and intense competition for skilled talent, especially with a limited pool of talent.
While job seekers value company culture, the emphasis is now on financial stability, evidenced by a willingness to overlook imperfect cultures for competitive compensation. Ten of the top 15 searched companies now pay 20 per cent above the market median, up from six out of 15 last year.
Also Read: Tech salary is escalating: How can companies survive the talent war?
Talents are becoming more willing to overlook imperfect company cultures if their salary meets expectations. Last year, 13 out of 15 companies surpassed a median Glassdoor rating, but now only nine out of 15 maintain this level.
Though offering competitive salaries, companies such as Bytedance/TikTok (2nd most popular) and Shopee (third most popular) have below-median Glassdoor ratings.
Pros: 1) Access to global talents, 2) reduced expenses on office space and associated overheads, and 3) both employers and employees benefit from remote work arrangements.Cons: 1) Communication challenges due to time zones, language barriers, and cultural differences; 2) Compliance issues related to employment laws and taxation; 3) Need for understanding and navigating diverse cultural norms; and 4) Lack of face-to-face interaction affects team cohesion and creativity.
