I'm trying to gauge the current mood in the tech world. How is inflation affecting job decisions in the US for those in Cloud Technology? I can't tell if people are hunkering down because they fear a recession, or if they are aggressively switching companies every 12 months to secure a 20% pay bump just to maintain their purchasing power.
3 answers
It’s a bit of both, but the trend is leaning toward "cautious hopping." In the Cloud Technology space, the demand for specialized architects is still high enough that you can command a premium. However, the days of the 40% salary jump just for moving are largely behind us. Most professionals I know are only moving if the new offer covers the increased cost of their mortgage or rent with a significant buffer. Inflation has made people much more analytical about their moves; they aren't just looking at the base pay anymore, but also at the stability of the company's funding and their history of layoffs.
Doesn't the risk of "last in, first out" during a layoff make job-hopping a dangerous strategy right now, even if the pay is better?
I think the biggest change is the demand for remote work. People are moving to lower-cost areas to make their current salary go further against inflation.
Spot on, Samantha. Geo-arbitrage is the new "raise." If you can't get a 10% bump, moving to a state with no income tax is the next best thing.
That is exactly the fear that is keeping the market stagnant, Bradley. Even if a new role offers more money to fight inflation, the lack of seniority makes you a target if the economy dips further. It's a "risk vs. reward" calculation that many are currently losing sleep over, as they weigh their immediate need for more cash against the long-term safety of their current, lower-paying but "safer" position.