Tech Contractor Rates Guide Reveals Premium For In-demand Tech Professionals

In-demand tech contractors continue to command a premium rate, according to recruitment and workforce solutions specialists Hays.

The Hays IT Contractors Rates Guide FY23-24 shows that over the past year the typical rates increased by 12% for Penetration Testers, 7% for Test/QA Managers and 6% for Software Developers.

However, many rates remained flat over the year, resulting in a slight drop when the Consumer Price Index (CPI) is considered. Notably, there has been a drop of 11% for typical rates for ERP/CRM roles. This reflects the maturing digitisation journey of organisations.

Hays also note that with large organisations now finalising digital transformations and ERP system implementation projects, project managers are in less demand and command lower daily rates.

The rates that Business Analysts and Senior Business Analysts can command have also topped out.

“The tech sector is currently undergoing a workforce adjustment,” says Adam Shapley, Managing Director of Hays ANZ’s Technology Solutions.

“Major players reduced global workforces after making a land grab for skills during the pandemic, hoping that consumers’ digital behaviours would remain entrenched when lockdowns ended. Once it became apparent that these behaviours weren’t as sticky as hoped, they right-sized their workforces.

“But as the digital maturity and sophistication of organisations increases, employers are looking for new skills to take advantage of their increased digital capabilities,” Adam adds.

“Data and advanced analytics, cyber security and software development skills are currently in high demand, as are skills to clean and structure the vast amounts of data digitised businesses can now access.”

According to Hays, despite some levelling off in demand, the shortage of technology skills will remain for some time. To attract skills in demand, Adam advises that a competitive daily rate and flexibility are vital. So too are interesting projects, training and upskilling, the chance to work with new and emerging technologies and work-life balance.

Advice for professionals

If you are looking to advance your tech contractor career, Hays offers the following advice:

• Ensure your skills are up to date: Keep on top of new and emerging tech in your area of expertise to future proof your contractor prospects. Don’t forget to work on your soft skills, too. Employers look for contractors with strong communication, critical thinking and adaptability skills. 
   
• Look for projects that interest or challenge you: Working on projects of interest will allow you to make your mark on exciting tech developments. Also consider projects that challenge you to upskill and stay on top of the latest developments.
   
• Protect against automation: AI, machine learning and robotic process automation are all evolving how tasks are completed. As organisations look for increased productivity and efficiencies, more will be employing such technologies. Coders, computer programmers, software engineers and data analysts have been identified as roles that could be automated, so develop your capabilities to avoid becoming obsolete.
   
• Be flexible with where you work: Flexibility is vital to most contractors. But with more workers returning to the office, be willing to spending time in the workplace interacting with colleagues face-to-face.

Advice for employers

If you are looking to attract and retain tech contractors, Hays offers the following advice:

• Create a world-class EX: The employee experience, or EX, is a powerful attraction tool for in-demand contractors. Consider every step of the EX, beyond simply attraction and onboarding, to secure then retain technology contractors. Hold your organisation’s offering to a global standard.
   
• Be flexible: Contractors often chose temporary and project work because they value the autonomy to design their working day to suit their life. While many organisations are asking their people to come back into the office, consider how you can balance the flexibility contractors desire with company policies – you may attract more hard-to-find talent by offering them the choice in how they work from home versus remotely, or a combination of both. 
   
• Promote your organisation’s interesting projects: Contractors want to work on interesting and challenging projects that allow them to hone and develop their skills and expertise. Share your projects when engaging with in-demand contractors to attract their interest. 
   
• Utilise contractor expertise to upskill your workforce: Contractors are well-placed to further the skills of your permanent workforce through their fresh perspectives, ideas and previous project experience. Create opportunities for your permanent staff members to work and share knowledge with the contractors you engage.

The Hays IT Contractor Rates Guide presents the typical daily rates for more than 60 contractor job titles in 12 locations across Australia and New Zealand. Over 3,000 tech contractors work through Hays each week.

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