Employees looking to switch jobs should aim for a pay rise of up to 15%

The most common question we hear in the recruitment industry is, “How is the job market?”

This year, in technology, it is fair to say that the market has been slower than last year. Many well-known technology giants scaled back on hiring or even carried out redundancies.

The outlook for 2024 is a lot more positive, however. So, are we likely to see an increase in salary and benefits packages?

In recent weeks, I have had clients asking for a snapshot of current salary levels and company benefits.

This is good news, as clearly there are plans to accelerate hiring in 2024. With the demand for tech talent increasing in 2024, organisations need to offer a competitive package as well as a positive working environment to attract the best talent.

There is already a significant increase in demand for certain sectors that will increase competition and, therefore, drive up salaries – some clients are increasing the packages for job offers in the defence industry, for example.

I would always advise candidates looking to switch companies for a better opportunity to aim for an increase in salary of 8 per cent to 15 per cent, which, in most cases, is a realistic goal to achieve.

If companies are looking to increase packages for their own teams (and new hires), then the lower end of this number is also a realistic goal. If organisations are in tune with market conditions and salary trends and adjust accordingly, then employees will be less likely to leave for these reasons.

Before a candidate thinks of switching companies/jobs for more money, they should also consider the many other factors that come into play.

Financially, are you better off staying where you are if you are getting close to the five or 10-year mark? The gratuity payments will increase significantly at these stages. Also, what about your current benefits package?

Housing and transport allowances are standard in most companies, but they differ a lot from one place to another.

School fees are not always paid but are usually capped at a maximum amount per child and cover no more than three children.

There are plenty of other aspects to consider before switching companies and top of the list for many is the leadership team and work environment.

As the IT industry picks up next year, I have no doubt that we will see overall package increases of at least 10 per cent to 15 per cent. I foresee a lot of competition to hire senior tech talent across the GCC next year, particularly with multinational vendors and system integrators.

For those who are happy where they are, but are looking for an improvement in their current salary, there is a right and a wrong way to approach the subject. The first thing to do is to point to the data. Have your housing costs gone up this year? If so, by how much? How much does your education allowance contribute to your child’s school fees?

It might be a conversation to bring up casually over a coffee with a manager rather than in a formal setting, then ask if they have any insights. Another way to ask is to understand what the goals are for next year and what policies are in place for achieving those targets. If you are committed to achieving these goals, then it is important for you to understand what the rewards are.

Many employees will receive calls from other employers offering better salaries, but trying to hold your boss to ransom will probably not go down well.

It would be fair to accept that any employer should at least be able to offer an increase in line with inflation (currently about 3 per cent), but it is not mandatory.

My advice is to look at the overall benefits package and work-life balance before thinking you are undervalued.

There is a significant increase in demand for certain sectors that will boost competition and drive up salaries