2024 six-month outlook for the European tech industry: Insights from Ravio 

Ravio, a leading player in the European tech sector, has unveiled its 2024 compensation trends report, offering invaluable insights for the first half of the year, a period usually marked by major economic changes and evolving work practices.

Nonso Onowu on February 01, 2024 Average reading time: 3 min
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2024 six-month outlook for the European tech industry: Insights from Ravio 

Faced with these shifts, businesses are adopting innovative strategies, especially in human resources, under tight budget constraints. 

According to Raymond Siems, Ravio co-founder and Chief Product and Technology Officer, The current economic environment is putting a big pressure on HR and People leaders, who are being challenged to do even more with less. 

Ravio notes a shift towards creative employee incentives beyond just pay, emphasizing employee well-being and flexible work arrangements. These trends suggest a significant transformation in the tech industry, with companies proactively adapting their strategies for success in a rapidly evolving global market. 

Hiring Trends: A deliberate and focused approach

In the current economic climate, a notable 44.8% of companies are planning to expand their workforce, reflecting a cautious yet strategic hiring approach. This trend is more evident in early-stage companies, which are prioritizing the replacement of existing staff rather than increasing their overall team size. This decision aligns with the need for stability and maintaining operational efficiency in a volatile economic environment. 

A significant emphasis is being placed on recruiting for engineering roles. This focus indicates a strategic move by companies to bolster their technical strengths. By concentrating on enhancing their technical teams, these companies are not only addressing immediate needs but also laying the groundwork for potential future growth. This trend highlights a proactive stance in the tech industry, where companies are actively working to develop and maintain key skills and capabilities that are critical to their long-term success and competitiveness. 

Compensation strategies: Navigating economic realities 

Following an economic setting marked by a 4.9% inflation rate, companies are adopting a careful approach to compensation. Most are exercising restraint in raising salaries for new hires, striking a careful equilibrium between financial limitations and the need to stay competitive in the job market. This conservative stance in salary increments reflects a strategic balance, ensuring financial stability while meeting market standards. 

For companies contemplating salary revisions, there’s a clear dual objective. Firstly, adjustments are considered to keep pace with inflation, ensuring that compensation remains relevant and fair in the context of rising living costs. Secondly, there’s an intent to attract experienced professionals, a move that underlines the importance of securing top talent for sustained business growth and success. This two-pronged strategy in compensation management showcases a nuanced understanding of the current economic landscape. It demonstrates an approach that not only seeks to navigate financial challenges effectively but also aims to maintain a strong position in the talent market.  

EU Pay transparency directive: Varied industry responses 

The upcoming EU Pay Transparency Directive has brought mixed reactions. While 69% of companies do not see it as an immediate concern, their complacency could stem from a sense of preparedness or a belief in sufficient lead time for compliance. Conversely, the proactive minority is prioritizing the enhancement of pay transparency and the clarity of career progression paths, setting a precedent for greater openness in organizational cultures.  

Evolving benefits: Prioritizing wellbeing 

The shift in benefits packages, planned by half of the surveyed companies, is a testament to the evolving understanding of employee needs. The focus areas – health, wellbeing, flexible holidays, and support for commuting and professional development – reflect a holistic view of employee welfare. This shift is not merely a tactic to attract new talent but a strategic move to foster a supportive and engaging work environment, crucial for long-term staff retention. 

Workplace flexibility: Embracing hybrid work models 

The hybrid work model has become a mainstay in the tech industry, with 77% of companies adopting this blend of remote and office work. This widespread adoption indicates a successful balancing of flexibility and collaboration, catering to diverse employee preferences. 

However, the consideration by some companies to increase in-office days points to an ongoing exploration of the best practices for fostering collaboration and team cohesion in a flexible work environment. 

Learning and Development: A vital investment

The significant emphasis on learning and development, with 85% of companies prioritizing it, underscores the sector’s recognition of continuous skill development as essential to both individual and organizational growth.   

In an industry that thrives on innovation and rapid technological advancements, fostering a culture of learning is key to maintaining a competitive edge. 

A time of strategic resilience and innovation

The next six months in the European tech industry are marked by a balancing act between cautious resource management and a commitment to employee wellbeing and development. This period will likely serve as a pivotal moment, testing the industry’s ability to adapt to external pressures while maintaining its focus on its most crucial asset – its people. The strategies being adopted reflect not just a response to immediate challenges but also a visionary approach to shaping a resilient, dynamic, and people-centered tech industry. 

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