IT Market Has Good Salaries But Overwhelms Employees, Study Says | Business

The IT market is against other sectors of the labor market in Brazil. The assessment is from a study carried out by FEA-USP economist Sérgio Almeida and the startup Flow – Executive Finders, revealed exclusively by the Techblog. In it, two researchers concluded, based on data from specialized publications, that the IT sector maintains full employability in the midst of the COVID-19 pandemic. But there are no professionals available to fill the vacancies.

Technology market is heated, but has a low supply of professionals, which increases workload (Image: Science in HD/Unsplash)

Unemployment is on the rise in Brazil: data from the IBGE (Brazilian Institute of Geography and Statistics) indicate that 14.7% of Brazilians are out of work. This corresponds to 14.8 million unemployed people — the highest number in the historical series since 2012.

Brazil trains 43,500 professionals in the area of ​​Technology per year. But this is insufficient to fill the more than 70,000 vacancies available.

A study by Sérgio Almeida, professor of Behavioral Economics at FEA-USP (Faculty of Economics, Administration and Accounting) and Luiz Mariano, founding partner of Flow, reveals that the pandemic has accelerated the demand for IT professionals, but the supply it didn’t grow at the same rate.

“The technology market has had a great demand for professionals at all levels of the pyramid: from the simplest technician to executives, the CTOs”, points out Mariano, from Flow, to the Techblog. “But demand stretched. The number of X professionals the IT industry employs each year tripled during the pandemic. And the offer was stopped, it did not keep up with this growth.”

In fact, with the pandemic, experts note that there has been an exponential growth in vacancies, thanks to the digitization of companies. To serve people from a distance, each one, micro or large, had to create their own digital channel.

Pandemic overwhelmed IT professionals, study says

The rush of companies to program interfaces and systems brought to light a common feeling in the category: work overload without salary increases. According to Mariano, the market is heated, but companies still do not understand very well the challenges that a technology professional must face:

“Every company had to create a digital channel. To program the page, the technology, the interface via the internet. You have to be quick, but have security, as we are seeing an increase in cybercrime. And in the middle came the LGPD. Companies are racing to recover lost revenue during the pandemic. But this takes time: the fruits of an IT team take 2-3 years to harvest”

Professionals are overwhelmed by IT market acceleration during the COVID-19 pandemic (Image: Jametlene Reskp/Unsplash)

Despite frequent complaints from those who work in the area, the Flow executive does not see that IT professionals are being “underpaid”, but that this is part of a “company emergency agenda”.

Universities form a third of IT professionals

As in all areas of the labor market, universities play a fundamental role in training technology professionals. But the study also reveals that colleges and higher education institutions are struggling to train young people who fill the vacancies.

Of the 43,500 trained IT technicians, only a third leave universities. The researchers estimate that there is also a gap in technical skills: 50% of professionals are taking courses that do not meet the requirements of the labor market.

For Sérgio Almeida, from FEA-USP, universities are still training students through “slower processes” and that are not capable of meeting the demand demanded by the labor market. He pointed to the Techblog:

“The training of these students is slow; universities will only be able to meet the demand [do mercado] in 9, 10 years. Typically, private educational institutions have courses that are more agile and can graduate faster, but public institutions have an advantage in the quality of education they seek.”

Another professor at a large public university, who declined to be identified, consulted by Techblog, says that the bureaucratization to create a course is due to the delay in the search for teachers. In addition, he assesses that it is not interesting for universities to create many Technology courses, because this reduces the sector’s salary ceiling.

If the training of professionals is equal to the demand, the supply in abundance would reduce the salaries of the IT sector. Salary and availability of labor are inversely proportional.

Experts: “We need to increase emotional benefits”

To solve the shortage of professionals for IT jobs, companies must consider two factors, according to the study’s authors: the fixed salary, and the emotional benefits. Those who do well in these two factors prevent the departure of good employees, who migrate to other areas.

Luiz Mariano, from Flow, defends that more companies increase their bargaining power with employees through fixed salary and benefits, such as vacations, 13th, transportation and food vouchers. “What this changes in the game, in the short term, is less risk and more security — and this becomes a fixed salary and benefits”, completes the executive.

Companies must invest in salaries and emotional health strategies to avoid talent drain (Image: The 9TH Coworking/Unsplash)

Sérgio Almeida, on the other hand, points out that it is necessary for each company to encourage its employees with good policies that involve emotional aspects. The economist calls benefits that inspire employees to stay in the company an emotional salary:

“We see three factors that make up a good emotional salary: the first is autonomy. Companies that leave micro and big decisions in the hands of their employees. Second comes the mission: the company must assign a noble purpose, such as ‘improving the world’ to everyone who works to fulfill it. The third factor is the employee’s journey: as they spend time at the company, they must understand that they are in a process of improvement and that there is a possibility of promotion.”

Finally, experts point out that it is very worthwhile to remain in the Technology market, as there is no low salary forecast for IT professionals. The sector should remain hot for a long time. But Almeida warns that it’s better to diversify the training and not bet all your chips on just one career option:

“The world of work can be very dynamic. If the IT professional learns and specializes in front-end, back-end, cybersecurity, for example, he is able to define later which training he wants to follow, and which would be the most versatile option”

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