By Abigail Gamble
DIGITAL JOURNAL
November 20, 2024
Liz Elliot, Product Market Leader at Mercer, speaks during Innovation Week in Calgary. - Photo by Jennifer Friesen, Digital Journal
Yes, tech layoffs are continuing in 2024, but as Stephanie Hollingshead, CEO of TAP Network says, they’re more targeted than the mass layoffs we’ve seen over the last couple years.
Despite layoffs in the tech sector there’s still high demand for critical skills as tech employers and non-traditional tech companies vie for the same talent.
Hollingshead was speaking at Calgary Innovation Week where she shared current trends in tech compensation alongside Liz Elliot, Product Market Leader at Mercer.
The pair offered insights based on October research produced by Mercer on behalf of TAP Network on the evolving landscape of pay, perks and workplace practices in Canadian tech.
Another big-picture trend Hollingshead shared was that voluntary turnover (people choosing to leave their jobs) is down from 13% to 9% on average.
“This is the lowest I’ve seen in six or seven years,” she said, adding that this reflects a cautious workforce staying put amid fewer job opportunities and lingering economic uncertainty.
Despite these challenges, Calgary’s tech ecosystem is booming.
Between 2018 and 2023, Hollingshead said the city experienced a 78% growth in tech jobs, making it the fastest-growing tech market in North America.
Alberta also surpassed British Columbia for the first time in venture capital investment, “drawing a total of $383 million across 41 deals versus $288 million across 43 deals for BC,” she shared, highlighting the province’s increasing prominence in the Canadian tech landscape.
Stephanie Hollingshead, CEO of TAP Network, speaks during Innovation Week in Calgary. – Photo by Jennifer Friesen, Digital JournalEmerging roles to keep an eye on
The job market in tech has shifted focus a little, with high-demand roles (as evidenced by their increase in pay) emerging in unexpected areas.
Elliot highlighted that mechanical engineers, particularly at entry and intermediate levels, have seen significant pay growth. Demand generation managers and growth marketing roles are also climbing in compensation as the industry emphasizes customer acquisition and market expansion.
Meanwhile, traditional roles like software developers are no longer at the forefront of pay growth but remain essential in the broader tech landscape, she said. Emerging roles like machine learning developers and research scientists have also grown in demand, reflecting the sector’s continued focus on innovation.
Calgary Innovation Week runs from Nov. 13-21, 2024. — Photo by Jennifer Friesen, Digital Journal
Will pay transparency be a key part of the future of hiring in tech?
“We’re seeing tech companies really leading other industries in developing a global pay transparency strategy,” said Hollingshead.
She revealed that 52% of Canadian tech companies now voluntarily include salary ranges on job postings nationally.
Companies are taking a proactive approach because it simplifies hiring and improves transparency, she explained.
However, only 10% of companies disclose pay ranges internally, which Hollingshead flagged as a potential gap. Employees are increasingly aware of external market rates, making internal communication on pay more important than ever.
Will pay transparency be a key part of the future of hiring in tech?
“We’re seeing tech companies really leading other industries in developing a global pay transparency strategy,” said Hollingshead.
She revealed that 52% of Canadian tech companies now voluntarily include salary ranges on job postings nationally.
Companies are taking a proactive approach because it simplifies hiring and improves transparency, she explained.
However, only 10% of companies disclose pay ranges internally, which Hollingshead flagged as a potential gap. Employees are increasingly aware of external market rates, making internal communication on pay more important than ever.
Liz Elliot, Product Market Leader at Mercer, speaks during Innovation Week in Calgary. – Photo by Jennifer Friesen, Digital Journal
Pay differences and the remote work ripple effect
Remote work is affecting how companies approach pay, but regional differences remain. Toronto and Vancouver are Canada’s top-paying cities for tech roles, with Calgary following close behind in third place.
Elliot explained that Calgary’s competitive compensation is partially influenced by its energy sector, which raises pay rates across industries.
“When energy does well, so does everyone else,” she noted, pointing to how Calgary’s booming tech market benefits from its proximity to resource-driven industries.
The shift toward remote work has prompted many companies to rethink their compensation strategies.
According to Elliot, while 45% of organizations have adopted a national approach to pay — offering the same salaries regardless of where employees live — 26% use geographic pay differentials to balance costs and attract talent in high-demand regions.
She highlighted the challenges companies face in making these decisions, especially when hiring in areas with limited local talent data. It’s not just about the role; location and industry dynamics are big influences on how salaries are structured, Elliot explained.
Stephanie Hollingshead, CEO of TAP Network, speaks during Innovation Week in Calgary. – Photo by Jennifer Friesen, Digital Journal
Incentives and benefits: More than just a paycheque
Incentives have become a critical tool for retaining talent in tech.
Elliot said 74% of tech companies now offer short-term incentives tied to performance, while 54% have long-term incentive programs, such as stock options.
These benefits, however, resonate differently across demographics.
Younger employees often prioritize immediate compensation over equity, while older professionals may value long-term rewards.
Perks are evolving as well.
Flexible work arrangements are now the norm (and expected), but Hollingshead pointed to the rising adoption of family leave top-up programs, which have increased by 9% this year.
RRSP matching has also gained traction, with 57% of companies now offering this benefit.
“We’re seeing the industry maturing,” Hollingshead noted, comparing today’s offerings to earlier years when such benefits were rare.
Hybrid work remains a competitive advantage
Finally, unsurprisingly, hybrid work continues to be a defining feature of tech workplaces.
The survey showed that 85% of tech companies operate hybrid models, while only 1% require employees to work in-office full-time (14% are fully remote).
Hollingshead noted that flexibility remains a significant draw for employees, with many companies leveraging it as a competitive advantage.
It’s a way to increase engagement and attract talent, she explained, contrasting the tech sector’s approach with recent mandates from larger corporations like Telus and Amazon to bring workers back to the office.
Incentives and benefits: More than just a paycheque
Incentives have become a critical tool for retaining talent in tech.
Elliot said 74% of tech companies now offer short-term incentives tied to performance, while 54% have long-term incentive programs, such as stock options.
These benefits, however, resonate differently across demographics.
Younger employees often prioritize immediate compensation over equity, while older professionals may value long-term rewards.
Perks are evolving as well.
Flexible work arrangements are now the norm (and expected), but Hollingshead pointed to the rising adoption of family leave top-up programs, which have increased by 9% this year.
RRSP matching has also gained traction, with 57% of companies now offering this benefit.
“We’re seeing the industry maturing,” Hollingshead noted, comparing today’s offerings to earlier years when such benefits were rare.
Hybrid work remains a competitive advantage
Finally, unsurprisingly, hybrid work continues to be a defining feature of tech workplaces.
The survey showed that 85% of tech companies operate hybrid models, while only 1% require employees to work in-office full-time (14% are fully remote).
Hollingshead noted that flexibility remains a significant draw for employees, with many companies leveraging it as a competitive advantage.
It’s a way to increase engagement and attract talent, she explained, contrasting the tech sector’s approach with recent mandates from larger corporations like Telus and Amazon to bring workers back to the office.
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