A cautious mood has taken hold among Tech & Transformation professionals in 2023 as businesses remain impacted by the winter that has fallen upon the tech industry. According to Vanessa Valerie, Senior Consultant at Robert Walters Indonesia’s Tech & Transformation division, the sharp drop in funding has impacted the overall talent landscape in Indonesia.
“Many businesses made big changes as they needed to pivot to business profitability. To ensure the business continues operating sustainably, they enacted massive layoffs to shape up their profit and loss statements so as not to lose investor confidence,” she explains.
With the economy being so uncertain, most tech candidates have held back, preferring to stay put where they are until the market gets better.
Candidates that did move in the past year were overwhelmingly drawn to opportunities at well established companies that can offer job security and more financial stability. There were also more opportunities across various sectors like retail, FMCG and manufacturing, as businesses invested more in digital transformation and in technologies like customer relationship management (CRM), artificial intelligence (AI) and machine learning to safeguard revenue streams.
“As always, candidates who have proven experience in the most updated technologies were highly sought after this year,” relates Vanessa.
Read on to find out more about Vanessa’s expectations for Indonesia’s labour market and hiring trends for Tech & Transformation professionals in 2024.
Employers have a bigger say
Based on Vanessa’s observations, the demand for cybersecurity professionals will only grow as more businesses go digital. However, there will be limited opportunities across the board for tech roles in the start-up space.
Hiring processes will also stretch out over longer timeframes as hiring managers take more time to decide on their candidates of choice. As there is now a good supply of talent on the market and employers are also more conscious of costs, there may be a market correction for compensation and benefits, with lower increments staying in place till at least the first half of 2024.
As such, candidates will also be more open with work arrangements when changing jobs. “Though remote work remains the number one preference, it is no longer the key factor that drives them to move jobs. Many tech candidates are now more willing to explore full-time, work-from-office arrangements,” says Vanessa.
Hiring demand driven by cybersecurity, management and digital transformation
Beyond the tech and financial services industries, the demand for cybersecurity talent will spread across more sectors, including retail, fast-moving consumer goods (FMCG) and more.
Vanessa also notes that professionals with proven experience across multiple industries, and who have digital transformation projects on their portfolios, will be in high demand. The same goes for talents in IT general management, particularly those with strong leadership skills and experiences in enterprise resource planning (ERP) implementation, cloud migration and digital transformation.
Candidates who possess strong proactiveness, agility, and the ability to adapt and be open to change will have an advantage in the year ahead.
The most sought after roles on the market will be in cybersecurity, IT general management and digital transformation leaders.
Secure top talent with growth opportunities and good benefits
Even as it is now more of an employers’ market, candidates will still be compelled to change jobs when they are dissatisfied, and salaries are no longer the sole or top motivating factor. Common push factors include a poor work environment, no career growth opportunities, lack of financial stability and job security, and if they do not feel challenged by their current job scope. Vanessa divulges,
Tech professionals will move to a company that has a mission they resonate with, and if they are excited about the plans set out for them in the role they take up, like new projects that use modern technology stacks.
She also remarks that the company’s financial stability has also emerged as a key point of consideration among candidates looking to move jobs.
Overall, companies can keep their employees happy and win potential hires over by providing flexi-benefits to support employee wellness. Flexible work arrangements are still a huge draw for tech talent, but Vanessa also points to bonuses, stocks, and three to six months of maternity leave as valuable offerings for companies structuring their compensation and benefits package.
Building a strong employer brand is also essential for attracting top talent as it helps companies form a community of talent, heighten brand awareness, and position themselves as an industry leader. Furthermore, Vanessa advises creating a smooth candidate experience from start to end to enhance the company’s brand name on the market.
To retain talent, it is vital for companies to invest in their employees’ career and personal development. “Provide employees with interesting projects and opportunities to learn new technologies so your talent can build their skills and careers,” suggests Vanessa.
Salaries to see reasonable increase
In 2024, salaries are expected to go up by 10 – 20% for candidates switching jobs. However, Vanessa points out that candidates will also take into account benefits like private health insurance, cars and flexible work arrangements.
Find out more
Request access to our 2024 Salary Survey to benchmark salaries and to find out more about key hiring trends in Indonesia.
