IT staff in strong demand as pay packets soar

KPMG warns employers that cash isn't everything when it comes to retaining top talent

Employers of IT workers have been warned that splashing out more cash on staff salaries is not necessarily the key to retaining the best staff, who are increasingly looking for more work perks.

KPMG said in a report today that according to its index – which measures the level of job opportunities for staff in various industries – demand for permanent IT staff remained above the UK average in June. Demand for temporary IT workers rose to its highest level since February over the same period, it said.

The report added that IT employers are offering the highest starting salaries in the survey's 17-year history but warned that it is not all about money.

"It seems that employers are ready to splash the cash in what appears to be an attempt to lure skilled staff from competitors," said Heath Jackson, partner in the CIO Advisory practice at KPMG.

"Employers need to bear in mind that cash is just one element of a rewards package and today's savvy employees are looking at a broader range of benefits when they choose their employer. Businesses will have to come up with increasingly inventive rewards packages to attract and retain the best talent."

Those that throw money at the staff retention issue could regret it in the future, added Jackson.

"Although many might argue that by offering higher pay packets they are showing market confidence, the truth is that continued starting salary growth is unrealistic and unsustainable over the long term."