Why Software Developer Pay is Skyrocketing
Dan Gordon • October 6, 2021
In short, it’s a simple supply and demand issue, driven by a global shortage of software developers.
This surge in demand for developers has one major issue: there are just not enough out there.
Looking at the current market, I see four positive plays by organisations:
- Investing in retaining their great developers. They know good software comes from stable, cohesive teams. This investment comes through proactive pay increases; share and equity offers; work from home flexibility as standard, to effectively improve work/life balance; and a new sensitivity by employers to understand specific needs of their people to increase job satisfaction and retention. To get this right, companies need to have heightened EQ and have great relationships and communication in place with their techo’s - a fair definition of good tech company culture. This is being executed best by hyper-growth Australian start-ups and scale-ups who hire software developers constantly: think Canva, SafetyCulture and Atlassian.
- Using skilled recruiters. Whether you use internal recruitment teams which have become more skilled and better paid, or specialist recruitment agencies, this is critical in identifying the right talent. But this isn’t the full solution to the problem of a skills shortage. However, investing in, and partnering with, capable internal and external recruiters gives companies the upper hand in hiring great talent.
- Improved hiring processes. Companies are competing better in the interviewing and hiring process, through fewer steps, less time between steps and faster decision-making. The hard truth is, if employers can’t recognise what they’re looking for when they see it, then they need to better understand what it is they are looking for. To be competitive in securing talent, current best practice is interview-to-offer in under a week.
- Growing their own talent. In recent years, slow-changing universities haven’t been able to adapt to the needs of the fast-growing IT industry. Making this situation even worse, a lack of international student enrolment since Covid means there is even less talent out there. The industry has realised it must take ownership by developing its own talent. We are therefore seeing an increase in cadet programs, both internally-run and, increasingly, outsourced through IT recruitment companies, who attract bright young talent to be trained in business and IT, and as the next wave of home-grown software developers.
Hiring IT Web Developers on Contract is a Smart Move for Your Transformation and Security Projects
In the fast-evolving IT and digital industry, organisations must constantly adapt to new technologies, processes, and strategies to remain competitive. A Change Manager plays a critical role in ensuring these transitions are smooth, effective, and embraced by all stakeholders.
As the IT & digital industry continues to evolve, staying informed on salary trends and employment dynamics is crucial for both professionals and businesses. Last month, Peoplebank’s highly anticipated February 2025 Salary Guide was released, offering comprehensive salary insights, job market analysis , and hiring trends to help you navigate the ever-changing landscape of IT & digital employment in Australia. Key Insights from the Peoplebank Salary Guide 2025 Our latest salary guide delivered state-by-state salary benchmarks for various IT & digital roles, providing clarity for job seekers, hiring managers, and industry leaders. It also includes expert insights from Peoplebank specialists, highlighting the latest employment trends shaping the industry. “Our Salary Guide reflects the major challenges and opportunities within the dynamic IT & digital industry. The guide serves as a critical resource for stakeholders, providing insights into commercial realities as the year begins and empowering both talent managers and IT & digital professionals to make informed strategic decisions aligned with the current market.” Tim Moran, Executive General Manager, Peoplebank and Leaders IT What’s Trending in the IT & Digital Job Market? Job Market Stability : The number of professionals changing jobs has continued to decline since 2024, with a rise in job tenure. This suggests a growing emphasis on job security and long-term career planning in the IT sector. Contractor Rates & Permanent Roles : A softening of contractor rates indicates a shift in preference towards permanent employment, reflecting a changing job market dynamic. Talent Development Focus : Companies are prioritising in-house talent development , tailoring skills to meet their specific organisational needs rather than solely relying on external hires. Most In-Demand Roles : Software Engineers are in high demand as businesses invest in AI, automation, and cloud-based solutions to accelerate digital transformation. Solutions Architects are increasingly sought after to design scalable, efficient, and secure IT infrastructures that support evolving business needs. Download the Full Salary Guide Understanding salary trends, hiring patterns, and emerging job market shifts can give you a competitive edge—whether you’re an IT professional planning your next career move or a business seeking top digital talent. Download the full Peoplebank Salary Guide now to access the latest insights and ensure you're staying ahead in the IT & digital industry.
As we wrap up the first month of 2025 what have our experts learned? Peoplebank Account Manager Elizabeth Fairweather shares her thoughts and predicts the trends to come
What's ahead for 2025?
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