NodeFlair co-founder and CEO Ethan Ang
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:
How did NodeFlair collect and analyse the 2024 Tech Salary Report data, and what were the key insights revealed by the report?
Our compensation data use user-submitted payslips, offer letters, and job listings.
Some key insights are:
- Huge pay gap: Among software engineers, the salary discrepancy between the 10th and 90th percentiles can extend up to three times.
- Regional talent distribution: Mid-senior talent percentages are higher in Singapore (62.7 per cent) and India (79.3 per cent) compared to Vietnam (36.9 per cent) and Indonesia (49.6 per cent).
- Software engineer salaries dip 0.99 per cent: Tech’s pivot for innovation from Blockchain to AI.
- Job seekers increasingly prioritise stability and higher salaries over perks.
In a statement, you mentioned a shift in the tech industry’s talent challenges amidst the rise of generative AI and financial prudence. Can you elaborate on how these factors have influenced the salary trends outlined in the report?
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 NodeFlair report highlights a decrease in overall salaries for various tech positions in Singapore. Could you discuss the factors contributing to this decrease and its implications for the tech industry?
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.
What strategies can companies adopt to navigate the global talent pool and embrace flexible hiring strategies in light of the evolving tech hiring landscape?
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 NodeFlair report mentions a decline in blockchain engineer salaries but a significant increase in data scientist salaries. What are the factors driving these contrasting trends in salary adjustments?
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.
How have job seeker priorities shifted in terms of career stability and salary expectations, as indicated by the findings in the report?
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.
Could you provide examples of companies offering competitive salaries and unwavering financial stability, as highlighted in the report?
Though offering competitive salaries, companies such as Bytedance/TikTok (2nd most popular) and Shopee (third most popular) have below-median Glassdoor ratings.
NodeFlair mentions the growing interest in AI-driven innovation in tech hiring trends for 2024. Can you discuss the role of AI tools in recruitment workflows and candidate evaluation?
- Reach out and engage with potential candidates in a more personalised approach. Using AI, companies can tailor their communication to match each candidate’s interests, skills, and preferences, increasing the likelihood of successful engagement.
- Traditional applicant tracking systems (ATS) often rely heavily on keyword matching, which may overlook qualified candidates who don’t have the exact keywords in their resumes. On the other hand, AI-driven approaches analyse various data points beyond keywords, such as past experiences and skills, to assess whether a candidate is a good fit for the role. This leads to more accurate and comprehensive candidate evaluations.
- Companies have adopted AI-driven video calls as a component of their screening process, typically managed by a human HR. This approach, though subject to its own set of advantages and disadvantages, significantly streamlines business operations and saves company costs, particularly during periods of mass recruitment and financial prudence.
What are the implications of the shift towards remote hiring and cross-border talent acquisition for companies in the tech industry?
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.
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