The 2014 Employee Rewards Watch Technology Report is based on surveys of sector HR leaders across more than 50 technology companies. It suggests many of them are facing a period of restructuring to cope with increasing customer demand.
More than half (55%) of these companies are prioritising restructuring over the next year, with 59% predicting increased financial performance over the next 12 months, and 51% looking to grow their workforce over this period.
But despite the growth, only 17% of companies expect to see a significant increase in basic pay during the next year, compared to 32% of businesses across all other sectors.
Many are looking to benefits packages to make up for the lack of significant pay increases, with health and risk benefits seen as the most important tool for retention. Almost nine in 10 (89%) companies plan to offer this, as opposed to 76% of companies across all other sectors.
Thomsons Online Benefits chief technology officer Pete Craghill told HR magazine a younger, savvier workforce across the technology sector means employees appreciate more than just basic pay - although he warned there is no "one-size-fits-all" solution.
"Generally someone in their twenties may not want something like health or family care, so they may value something more based on lifestyle," he said. "Although there could be someone who is 23-years-old with a family, so you can't generalise. Flexibility is the key, making sure employees have choice in their pay and benefits."
