Canada's technology talent market is settling into a more stable phase, according to TAP Network's 2026 Tech Salary and Total Rewards Report, based on data from more than 190 Canadian technology companies and 26,700 employees.

Median salary increases held at 3.5% in 2026, consistent with the previous two years, with organizations forecasting a similar 3.4% increase for 2027. But compensation is only part of the picture.

Turnover has fallen from 13% to 7% over the past three years — a shift that brings stability but also raises questions. Are employees staying because they're engaged, or because there are fewer external opportunities? TAP Network flags this as a growing concern for people and culture leaders, particularly around maintaining engagement and internal mobility when market conditions eventually shift.

AI skills are becoming harder to find. Artificial intelligence rose from 17% to 25% among the skills employers identify as hardest to recruit, now ranking third behind sales and leadership. "We are moving very quickly from a conversation about AI tools to a much bigger conversation about workforce capability," said Sachi Kittur, CEO of TAP Network. "The organizations that get this right will need to understand where human expertise becomes more valuable, where new capabilities need to be built, and where work itself needs to be redesigned."

On hybrid work, 71% of participating organizations reported a hybrid model in 2026, up from a pattern where two days onsite was most common — three days is now the norm. The report frames hybrid as no longer a temporary policy question but an established part of how organizations design work and collaboration.

"The headline isn't really that salaries moved 3.5%," said Kittur. "Employees are moving less, AI capabilities are becoming harder to find, and organizations are being much more deliberate about where they invest in talent. For People and Culture leaders, this changes the conversation."