Turkey's Technology Sector Salary and Benefits Trend Report: The Tech Industry Signals, Competitive Advantage is Diminishing
The "Turkey Technology Sector Salary and Benefits Research Report November 2024," prepared in collaboration with Melon, a consultancy firm specializing in strategy, leadership, human resources, and culture for technology companies, and Endeavor Turkey, a network supporting entrepreneurs worldwide, has been released. The report includes various exclusive analyses regarding the Turkish technology sector and has gathered significant data to strengthen companies' future strategies.
Data was collected from 100 technology companies of all sizes operating in Turkey for the research. According to the year-end evaluation, which also encompasses the second half of 2024, it was found that 20% of the participating companies base their salary payments on foreign currency, while the salary gap between experienced and inexperienced employees is gradually decreasing.
In strategic positions, salary increase rates exceeded 100%. According to the mid-year 2024 Salary and Benefits Report published in June, 49% of companies planned salary increases, 18% did not consider any increase, and 33% were undecided. The new findings show that 67% of companies prefer to implement increases. By 2025, 85% of companies stated they would increase employee salaries, although they could not provide a clear decision on the rates. This situation aligns with the same percentage among companies that make payments in foreign currency, which is 75%. In the software sector, 25% of reported roles over the past year had salary increase rates exceeding 100%, with strategic positions such as Technology Director, Full-stack Software Director, and Cybersecurity Manager showing the clearest trends of increase.
52% of companies offer stock options to their employees. The proportion of technology companies providing supplementary health insurance or private health insurance to their employees stands at a high rate of 82%. Moreover, 94% of companies provide meal support to their employees. As of June 2024, the median meal allowance was 225 TL, which rose to 272 TL in October with a 21% increase. The percentage of companies rewarding good performance with bonuses is 93%. According to the research findings, 43% of companies make bonus payments annually, 15% quarterly, and 12% monthly. Additionally, 52% of participating companies offer stock options to all employees.
Foreign-based companies are downsizing their engineering teams. The research findings indicate that meetings with organizations based abroad that employ engineering teams in Turkey revealed clear messages regarding the weakening of competitive advantages. Despite having access to a talented pool of engineers, many companies that have lost cost advantages in Turkey have decided to downsize their engineering teams or limit hiring from Turkey. This situation sends significant signals regarding talent management and employment strategies in the technology sector.
Artificial intelligence is increasing productivity in the workforce; it automates routine tasks. Recently, artificial intelligence technologies have been frequently employed to enhance productivity, resulting in significant changes in business processes. There is a 92% participation rate in the integration of AI into work processes. However, 52% of companies do not provide any training or awareness programs for their employees in the field of artificial intelligence. 69% of participating companies see the benefits of AI in enhancing productivity and automating routine tasks, while 61% indicate that these effects are concentrated in Data Analysis and Reporting processes. The teams utilizing artificial intelligence the most are IT (85%) and Marketing (80%).
“Our research highlights the challenges companies face in salary management.” Melon Founder Sure Köse Ulutaş commented on the research findings, stating, “This year's report addresses significant findings across a wide range, from the effects of economic fluctuations on the labor market to the most current performance management approaches. Our research clearly reveals the constraints companies face in salary management. Additionally, we have included important analyses that will shape the future of the sector in our report.”