Recruitment for technology professionals is set to increase in the new year, but firms will face rising salary costs as skills shortages continue despite previous layoffs. That’s according to new research by specialist recruitment firm, Robert Half.

The company’s 2024 Salary Guide - which analyses and reports on market salaries, hiring trends, and skills requirements – revealed that half of tech hiring managers plan to increase headcount for permanent roles in 2024 following a year of turbulence in the tech sector.

According to the data, despite the initial layoffs noted in larger tech businesses at the beginning of the year, demand for technology experts has remained buoyant, particularly in the SME space. This is largely being driven by strong tech talent hiring demands within the Financial Services, E-commerce, and FinTech industries.

A more detailed analysis of the data shows that mid-level Applications Support experts in Software Development and Testing have reported the largest pay increase of 24 percent so far this year. Demand for junior Product Managers has also driven up wages for these professionals by 14.3 percent.

“It was been a turbulent year for technology professionals, but despite the significant layoffs we saw at the beginning of 2023, demand has remained buoyant for tech expertise across industries and particularly with SMEs. As we look to the New Year, the pay rises that many professionals have commanded aren’t showing significant signs of shifting. While pay inflation isn’t sustainable on the current levels we’re seeing, employers will face increased competition throughout 2024 and will need to look at creating a broader benefits package that appeals to these individuals instead,” comments Kris Harris, an expert.