Salaries in a reality check

At the beginning of their careers, the salary expectations of STEM talents are comparatively far removed from those of companies. This is one of the findings of a study by the German-speaking SAP User Group e.V. (DSAG) and Get In, which operates Talent Marketplaces in the STEM sector.

In parallel, 255 companies and 2200 IT and engineering professionals were surveyed. The focus was on the mutual salary expectations of applicants and employers.

Lower degree, greater potential for conflict

The survey reveals an interesting contradiction in the salary expectations of young professionals: Young professionals from IT and engineering overestimate the salary ranges they can expect, especially when they enter the job market after completing vocational training.

The group of computer science career starters with a bachelor's degree also has salary expectations that go far beyond what companies are willing to offer them. Computer science graduates with a master's degree, on the other hand, particularly often come to the same denominator with the companies' ideas. Master's degree holders from the engineering sector even tend to underestimate companies' willingness to pay.

The data collected show a particularly strong discrepancy between the salary expectations of employers compared to professionals with vocational training and at least three years of professional experience. This applies to both the group of IT and engineering professionals.

For example, more than 60 percent of the companies surveyed make IT professionals a salary offer that is less than 50,000 euros per year. These employers have to reckon with the fact that around 55 percent of potential candidates will turn them down. Around a quarter of the IT professionals surveyed would like an annual salary of between €50,000 and €59,000. A full 30 percent would like a salary well above 60,000 euros.

Companies that want to hire engineering professionals under the same conditions - experienced professionals with an education degree - must also be prepared for salary expectations that leave little room for compromise: 66 percent of respondents want an annual salary above 50,000 euros.

However, only one-third of the companies comply with this wish. For engineering professionals with a master's degree, on the other hand, the picture is the opposite: Here, salary expectations are very likely to be even lower than the companies' willingness to pay.

Competition intensifies

In 2020, 86,000 positions for IT experts were unfilled across Germany. This is the second-highest figure ever measured by Bitkom in a representative survey.

In the engineering labor market, demand for construction and IT-related qualifications has remained fairly stable, according to Ingenieurmonitor 2020/IV, while there has been a sharper decline in job openings in industry-related fields.

"Intensified by the corona pandemic, the wave of digitization and demographic change will further intensify the competition for qualified STEM professionals overall," Rainer Weckbach, Managing Director of Get In, is certain. Against this backdrop, the joint study by DSAG Academy and Get In aims to contribute to greater transparency in the STEM labor market.

HR managers not only benefit from better understanding the requirements of IT and engineering talent. At the same time, they get a feel for how the market is developing and what levers the competition is using to attract young talent.

Herrmann-Josef Haag, DSAG board member for Human Resources and Public Sector -as well as technical spokesman for the DSAG Academy, says of the results: "It is frightening how far apart expectations are in some areas. However, this does not mean that employers have to meet the sometimes completely exaggerated salary expectations at all times.

Many are not even able to do this. However, it is important to show career starters in particular - who are almost exclusively oriented toward salary - development prospects in this regard. That way, you'll be in a better position in negotiations. For those who already have professional experience, the environment plays an important role: flexible working hours, home office and good professional development opportunities.."