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Welcome to the 2024 Salary Guide.

This 2024 edition involves insights concerning low unemployment, increased staff retention, and this year's difficulties when facing the possibility of a recession. However, amidst all the ambivalence of the current hiring industry, one thing remains certain. Competition for hiring strong talent is as potent as ever.

As well as a deep dive overview into the current workforce, we will cover sectors such as Tech, IT, and Engineering services.

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An overview

As we conquer new goals and leave behind the entrepreneurial turbulence of the previous annum, a significant shift in sentiment is evident. Strong fears of a recession have made way instead to a slow and steady labor market creating an optimistic outlook for the year ahead. Through these more tentative times, employers must pay attention to maintaining company morale in order to heighten the confidence of their workers.

Some pressing concerns are predicted to remain in the spotlight throughout 2024, where a large scale of business leaders deal with the dual challenge of attracting skilled talent and retaining valued employees. The labor force participation rate has yet to find its way back to its pre-pandemic level. Still, we’re now seeing that this could be due to workers aged 55 and older who chose early retirement during the pandemic and may never re-enter the workforce.

Have a look at our blog on staff retention here.

A complex web of challenges adds to the retention struggle including but not limited to; heavy workloads, the persistent threat of competitors poaching talent, and competitive pay both in industry and job/role comparisons. The threats of burnout and lack of career progression opportunities further add to the intricacies of employee retention.

Inflation will heavily impact salaries into the new year, and how businesses choose to address these concerns is a multifaceted decision. The Federal Reserve continued to raise interest rates in 2023 in an effort to slow inflation. Although the full impact of these interest raises will take 6 to 12 months before they ripple through the economy it is uncertain how they will impact the nation. Despite this, the pressure for wages to increase is likely to subside due to the consistent salary increase that should be seen throughout 2024.

Please continue reading for a detailed sector analysis.

IT and Technology

In the current landscape, organizations place significant emphasis on digital transformation, intelligent automation, and security measures. Spearheaded by top-tier tech talent, these initiatives are instrumental in enhancing innovation, efficiency, and competitiveness. Consequently, the acquisition and retention of this talent have become highly important considerations for companies this year.

Despite reports of layoffs and downsizing within the tech sector, the impact has been relatively contained, representing only a fraction—ranging from 10% to 25%—of the substantial job creation observed during periods of industry growth and amidst the pandemic upheavals. Remarkably, the total workforce within tech companies still surpasses pre-pandemic levels, underscoring the resilience of the industry and promise for the future of the sector

However, the recruitment and retention of top talent persist as formidable challenges. A Deloitte survey revealed that 58% of technology decision-makers identify talent acquisition as a major hurdle, while 48% express similar concerns about talent retention.

Notably, IT roles exhibit the highest proportion of remote and hybrid work opportunities across all professions. Yet, there has been a discernible decrease in the prevalence of remote-only positions. In the second quarter of 2023, the mention of remote work in IT job advertisements decreased to 18%, down from 23% during the same period in 2022. This is alarming as 98% of US workers would like to work remotely for at least some of their working hours. Tech companies must keep this in mind when looking to hire and retain top talent.

Examining the employment outlook, projections indicate a robust trajectory, with an estimated average of approximately 377,500 new jobs expected annually in the field of computer and information technology from 2022 to 2032. Furthermore, as of May 2022, the median annual wage for these roles stood at $100,530.

In terms of specific roles, the employment landscape is particularly promising for information security analysts, with a projected growth rate of approximately 32% from 2022 to 2032. Similarly, overall employment opportunities for software developers, quality assurance analysts, and testers are anticipated to expand by around 25% during the same 10-year period. 

Engineering

Amidst a landscape shaped by the private sector's insatiable appetite for innovation that streamlines and enhances our daily lives, coupled with substantial public sector investments in infrastructure and renewable energy, the demand for top-tier engineering professionals has reached unprecedented heights. This surge in demand is mirrored by the escalation in salaries, underscoring the intense competition for talent within this sector.

The paradigm shift towards non-carbon energy sources, particularly in nuclear and solar power, has propelled the need for engineers proficient in these domains. Simultaneously, the imperative for energy conservation has fostered a demand for engineers adept at enhancing the design, insulation, and energy efficiency of both commercial and residential structures.

In terms of employment outlook, mechanical engineers are positioned for a surge, with projections indicating a growth of approximately 10% from 2022 to 2032, significantly outpacing the average growth rate across all occupations. Similarly, industrial engineers are expected to experience robust growth, with projections indicating a growth trajectory of around 12% during the same period. Civil engineers, while experiencing a slightly lower growth rate of approximately 5%, are still expected to see a steady increase in employment opportunities.

These predictions are further reflected in the estimated job openings, with an anticipated 19,200 openings annually for mechanical engineers, 22,800 for industrial engineers, and 21,200 for civil engineers over the coming decade. Such figures underscore the industry's sustained demand for engineering expertise and the critical role these professionals play in driving innovation and progress.

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Information sourced from Forbes.

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Next annum, companies should strengthen their skill retention tactics and employee value proposition strategies alongside searching for new talent to increase work quality within their teams. Future employees face an intense job search grind and should ensure they are up-to-date on the latest qualifications, and for success apply in accordance to the roles that have the highest need for new hires.

If you or someone you know are looking for a new job in the Tech or Engineering sectors, please get in touch today.​