where did the 30% gap come from / Habr

where did the 30% gap come from / Habr

Three things can be endlessly debated: the economy, politics, and IT workers’ salaries. We know from memes and reliable sources that they get 300,000 rubles per nanosecond. Or maybe they just value themselves much higher than the real market?

A little introduction: where the data came from

At hitch, we are engaged in outstaffing – we bring IT specialists to domestic bigtech projects. To do this, we conduct more than 1,000 interviews per year, we look for people all over the world at the request of companies. We are always aware of how much companies are willing to pay developers of different grades and how much the developers themselves want to receive.

These indicators are not always accurate. “Wow, it’s all employers who want cheap labor, that’s why they’re dumping the market,” you say. But not everything is so simple. We conducted extensive research to understand how different candidates’ salary expectations are from what companies actually offer (and where the gap came from).

Research: How we did it

  1. We analyzed data from resumes from hh.ru with open information about the desired salary. To do this, each resume was manually reviewed to weed out irrelevant ones before inclusion in the sample. This also includes our internal data collected during interviews. This is how they collected statistics about how much developers of various stacks want to receive. Only candidates on the territory of the Russian Federation were included in the selection.

  2. The second variable is the salary offer. Here we analyzed data from open vacancies on hh.ru, Khabr Career, as well as from our clients.

  3. The third stage was to compare the data and draw conclusions.

    Spoiler alert: the research showed a pretty big difference in the “expectation/reality” style, so we went looking for an answer to the question “Why?” We talked to HR, developers, and even conducted a survey to find out how willing job seekers are to bargain (and move the salary fork) when looking for a job.

Main conclusions

  • The biggest difference is among inexperienced specialists – on average, they demand 26% more than what the employer offers.

  • Experienced developers with more than 6 years of experience ask about as much as companies offer.

  • A suspicious situation in the circle of pythonists – specialists flew into the salary gap and outpaced the market.

  • Middles are also not far behind, with an average discrepancy of 22%.

  • The minimum discrepancy among Android developers is on average 10% more than what employers offer.

The main question is: why is this happening?

We have several hypotheses:

  1. Despite the official inflation figures, we are seeing serious increases in the prices of rent, food, household goods and more. Specialists expectedly want an increase in wages, since the beginning of the year many have requested a rate increase. But the market takes a long time to adjust. For example, corporations sometimes need this six months. So it turns out that the expected salary exceeded the real one, but, most likely, a similar cut in 3 months will show a completely different picture.

  2. In 2022, the market “stopped” for a short time. There have been massive layoffs, some projects have closed, companies have frozen / reduced hiring plans. This swung the pendulum in the direction of companies – the market seems to have ceased to be a candidate, the year 2022 saw the lowest increase in salaries in the IT sector. But now the market has come to life, hiring plans are growing, and privilege is once again on the side of candidates. So, you can bargain and significantly raise salary expectations.

  3. The amounts that companies publish in vacancies are often subject to bidding. If a person is needed, and needed urgently, employers make concessions. For example, in our practice there were cases when the client was ready to increase the upper threshold of the fork by 30% for individual specialists.
    It also works with candidates – they are ready to make concessions, more on that.

  4. June has a slightly different situation. Yesterday’s graduates of online courses have not yet faced reality and realized that the market does not really need them now. And that’s why they hope for the salary promised to them by talented PR people in advertising brochures.

  5. The state is actively pouring into the market. money, candidates are bombarded with offers with huge stakes. And with this, the market is greatly dispersed. Most often, candidates form their salary expectations, counting on such offers.

How candidates are traded

From our experience, we know that companies in the fight for good personnel are ready to seriously move the upper part of the salary fork, up to 30%. We became interested in how willing the candidates are to bargain. A simple survey was conducted among middle and senior specialists. They asked two questions – for what amount are you ready to “bargain” and whether you had to accept an offer less than you expected.

  • A third of the respondents are ready to accept a lower than expected salary if the difference is no more than 10%.

  • There are very few candidates who are willing to bargain for more than 10%. Our survey showed that no one is willing to bargain more than 20% of the desired amount.

  • A third of the respondents emphasized that they are not ready to agree to a decrease in the expected salary. But at the same time, half of the respondents at least once during their career agreed to a profit that was less than the declared one.

  • 40% are ready to consider lowering their expected salary only if they reach the desired income during the year.

Instead of conclusions: we foresee another wave of salary increases this year, it has already started. We attribute this to the fact that the shortage of personnel is only increasing. We wrote above that after the market freeze in 2022, there was a surge of activity: corporations unfrozen their hiring plans, took a course for business expansion and new projects. There is a lack of personnel again, and there is a bloody slaughter for some positions. Therefore, companies will have to mentally prepare for an increase in FOP.

Well, we are already preparing a new study to understand how much the situation and salaries will change in the coming months. We publish up-to-date data, as well as important news about technology and digital business in our Telegram channel. Inside, news, analytics, interviews with industry experts, as well as our vacancies. Subscribe, we’re good!

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