Figure Baltic Advisory ICT sector survey in Latvia
8/13/2024
The salary increase in the ICT sector this year has been nearly half of what it was last year, with a growth of 7,4%, which is just 0,1% less than the forecasted 7.,%. However, the job market is still considered "hot." Employers in the sector continue to face a shortage of employees, according to a study on IT sector salaries conducted by the salary research and management consulting firm “Figure Baltic Advisory.”
The study, which involved 78 organizations providing data on 16 280 employees, found that 47% of companies increased their workforce in the past 12 months, 40% reduced it, and for 13% it remained unchanged. Additionally, 56% of companies plan to increase their workforce by the end of the year. All companies in the sector indicated plans to raise employee salaries.
“The salary increase this year is significantly slower than last year (12,8%) or in 2022 (11,8%) and also slightly slower than forecasted. However, it is still very high. The forecasted salary increase for next year is 6,2%, with a more moderate growth expected over the next five years,” explains Anta Praņēviča, board member and leading consultant at “Figure Baltic Advisory.”
Explaining the situation, she adds: “The significant turbulence in previous years was caused not only by the high demand for industry specialists but also by inflation. This year, it is low, and salary increases in the industry have returned to levels similar to 2021. It should also be noted that in the IT sector, it is not uncommon for salaries to be increased two or more times a year.”
The study also analysed the benefits package offered to employees. The average annual budget allocated for bonuses per employee is 1 871 EUR. The most popular benefits offered to employees are health insurance (offered by 100% of companies), the option to work remotely (99% of companies), and social events (95% of companies).
“Figure Baltic Advisory” is a labour market research and management consulting firm in the Baltics. Since 2007, the company has been conducting salary research and advising clients across the Baltics on related issues. Previously, “Figure Baltic Advisory” was known as “Fontes” in Estonia and Latvia, while in Lithuania, surveys were conducted under the name “Baltic Salary Survey.”