Tech talent in India, who got over 100 per cent hikes for switching jobs a year back, are realising the situation is starkly different now, though they still get a 30-35 per cent jump in salaries, the recruitment service providers said.
Macroeconomic pressures, a looming recession, and back-to-back tech layoffs are some of the factors affecting this, The Economic Times reported.
As per data obtained by ET, hikes for new jobs fell from 54 per cent in July and August 2022 to 45 per cent in September and 37 per cent in October. Currently, the numbers rest at 35 per cent, but are likely to go down further, as per Aditya Mishra, chief executive of the hiring and staffing firm CIEL HR Services.
"Frenzied salary hikes for job switches over the last two years have come down to pre-Covid levels with the decline in business. This has worsened with startups — and now big tech companies — opting for hiring freeze and layoffs due to economic slowdown and feared recession", he said.
In 2021, not only did tech candidates get huge hikes while changing jobs but they also had more offers at hand, effectively allowing them to call the shots. The situation has now changed drastically. Experts say that the number of opportunities has also come down in the past six months.
Some roles like Java Developers and Node JS engineers remain exceptions, where people are still receiving over 100 per cent hikes for job switches. However, the appetite to pay a large hike is low unless there is a critical and urgent need for a specific role. Demand is even more selective for permanent roles.
There has been a chasm between demand and supply in this field due to macroeconomic and geopolitical factors like the fear of recession and the war in Ukraine.
"Compared to last year, we have seen compensation expectations of talent go down and are a little more realistic. Leaders from listed tech companies where RSUs (restricted share units) are almost 50-60 per cent of the overall CTC (cost to company) are ready to take marginal cuts for the right opportunity and equity", said Ashish Sanganeria, senior partner at executive search firm Transearch India.