Thursday Nov 14, 2024
Thursday Nov 14, 2024
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The fast expanding IT industry is to hire more this year though there were mixed views on compensation strategies given internal and external challenges.
The growth in the industry and recent trends were released yesterday by the SLASSCOM, the national chamber for the IT/BPM industry. As per the Compensation and Benefits Report for 2022, developed in collaboration with SLASSCOM’s HR Forum and PwC Sri Lanka, the industry’s workforce has increased by 22% and it intends to hire 25% more employees in 2023 underscoring the sustained expansion and the need for more competent personnel.
According to the demographic analysis conducted, there has been a rise of 22% in the workforce as a whole, implying a favourable view of the job market and the possibility of companies expanding their operations.
Another noteworthy finding was the improvement in female representation in the IT industry, with a 35% female participation compared to the previous year’s 29% for IT. The BPM sector saw 46% female participation. These figures indicate that the industry is taking steps towards greater gender diversity and inclusivity. The study also discovered that the BPM industry has a comparatively young workforce, with a substantial proportion of employees under the age of 24. This implies that the industry is an attractive choice for young individuals who are seeking profitable job prospects.
The Compensation and Benefits Report for 2022 covers several critical aspects. These include the necessary skills for entry-level positions in the industry, as well as the requirements for experienced and top-tier talent, staff turnover rates and strategies for attracting and retaining skilled employees. A detailed analysis of pay levels, salary revisions, increment levels and compensation strategies that will be implemented in 2023 are provided. Additionally, it examines the adoption of flexible work practices, the promotion of wellness initiatives, and the implementation of measures to provide economic support.
It also shows that in the period before the COVID-19 pandemic, there was a significant rise in staff turnover levels from low to mid-level in organisations. Interestingly, migration has now become the primary reason for turnover, overtaking better pay and opportunities, among both IT and BPM companies.
In 2022, flexible work arrangements emerged as one of the top three factors for attracting and retaining talent. As such, around 81% of companies have implemented some form of remote working. There has also been a notable increase in the number of women who are seeking part-time employment as they can easily return to work due to the benefits of remote working. Focusing on staff well-being has also become commonplace with several companies combining wellness initiatives with staff engagement activities.
The report revealed that organisations are implementing different strategies, such as pay schemes linked to inflation and exchange rates, to ensure their employees remain motivated and engaged. As per the survey 75% of companies it seems have decided to keep salary increases and variable pay practices separate. This means that while basic salary levels and revisions are linked to employee performance, any additional bonuses or incentives are not tied to their overall pay.
A significant number of companies appear to be uncertain about their compensation strategies for 2023. In response, these companies intend to manage their budgets and adjust their practices to align with market changes. This approach suggests that businesses are likely to adopt short-term measures and maintain flexibility to review and adjust their pay practices periodically.
SLASSCOM Chairman Ashique Ali stated that the report will be a viable tool to assist businesses in making well-informed decisions regarding their hiring and retention strategies, enhancing employee engagement and benchmarking against industry standards. He appreciated the efforts of SLASSCOM Operations Director Shehani Seneviratne, Board Director Sampath Jayasundare, SLASSCOM General Council member Thilanka Jayathilake and HR forum lead, and the HR forum members in compiling this insightful report along with PwC Sri Lanka.
SLASSCOM Members have the exclusive opportunity to take advantage of a special rate for the survey report. The report is also available to both local and international companies. SLASSCOM encourages all organisations to acquire the survey report to gain valuable insights into the latest workforce advancements and trends.
