Salary is the number one primary motivator for changing jobs and work-life balance ranks at No. 2 spot. According to the fourth annual Harvey Nash Technology Survey, four in 10 high tech workers were headhunted into a new job this year on much higher pay.

Respondents listed good salary as the main motivator (77 percent) behind the switch, up 16 percent from last year and pushing work/life balance out of the no. 1 spot. Globally, 53 percent of technology hiring managers reported skills shortages in 2015, up from 51 percent the previous year.

The long-term IT skills shortage has led technology companies, both large and small, to drive pay and incentives up with hopes of recruiting and retaining this scarce and highly sought-after tech talent.

This approach has had some effect: the proportion of IT workers who expect their next role to be with their current employer has risen from 22 percent in 2013 to 27 percent this year. However, this means that almost three quarters (73 percent) believe the only way to progress in their careers is to leave their current employer.

The three top motivators for staying in a job are: pay (selected by 77 percent of respondents), followed by work/life balance (72 percent) and then opportunities to work on innovative projects (69 percent).

The findings on this report are based on survey of nearly 3,000 technology professionals from more than 30 countries. It reveals that the traditional technology career path, even compared to five years ago, is being rewritten as there are far greater opportunities for flexible employment, alluring entrepreneurial projects and opportunities for advancement.

See: Impact of Millennial Job Hopping Ideologies on Employers

Albert Ellis, CEO Harvey Nash Group said: “For many companies, attracting and retaining high tech staff has become their number one concern. Whilst work/life balance is clearly a factor, what this report shows is how important pay and working on ground breaking digital projects have now become as motivators for changing jobs.”

We see the impact of this change with larger companies citing so-called unfair advantages being given to hugely successful digital start-ups like Uber and Airbnb. The reality is that highly talented technology talent aspire to work for start-ups, recognised disruptors and challenger brands, so rhetoric like this is self-defeating.

What traditional organisations need to do is urgently formulate positive strategies to compete effectively with the digital insurgents. That includes re-thinking their pay and employment proposition to the pool of high tech talent.

More key findings from the Harvey Nash technology survey 2016 include:

Tech Sector Demographics

• More than 1 in 10 work in an all-male environment.
• Nearly 6 in 10 work in divisions where less than 20 percent of the workforce is female.
• Three in 10 technology professionals are immigrants.

Innovation and Security

• Over half (55 percent) believe their country’s position as a high tech innovator will advance during the next five years; however, almost half of all technologists also worry that over-regulation will stifle innovation.
• Only five percent of technology professionals think the risk of security attacks is falling.
• 56 percent of respondents reported being personally hacked last year (up from 52 percent in 2014); only 39 percent report their company being hacked over the last 12 months.

Also read: Understanding Why Millennials Want Work-Life Balance

Image credit: LinkedIn