Salary levels and the number of advertised jobs were on the rise across the technology sector last year, as the industry witnessed steady salary increases across a variety of job roles, according to new data released by Reed Technology today (Thursday 30 January 2020).
From analysis of 7.5 million jobs posted since the start of 2016, the Reed Technology Salary Guide 2020 – part of the company’s annual suite of salary guides - found that the technology sector was the strongest sector going into 2020, with a 13.8 per cent growth in the number of jobs posted, accounting for over 100,000 roles posted. This positive trend is bolstered by the 4.7 per cent average increase in advertised salary growth, resulting in an average salary across the sector in excess of £58,000 for executive roles.
Businesses recruiting to adapt to changing business climate
Despite tough trading conditions reinforced by business and consumer uncertainty caused by Brexit, the sector has been able to largely maintain salary levels since 2017, and is now experiencing a period when salaries across the board are on the rise again.
Of the salary increases identified, some roles have benefitted more than others in the last year. And, the biggest percentage of wage increases can be seen below the £40,000 mark, including management information analyst (5.4 per cent) and data analyst (5.2 per cent).
For salaries above £40,000, roles with the highest increases include, data engineers (9.5 per cent), manager developers (6.7 per cent), software engineers (6.5 per cent) and Java developers (6.1 per cent).
Chris Adcock, managing director of Reed Technology, said: “Like many others, the technology sector will have been affected over recent times by the economic and political uncertainty generated by the Brexit fall out.
“However, the digitalisation of UK industries, concerns around cyber security and the potential business returns from intelligent use of data have seen the tech sector thrive. Increasingly we are seeing companies from across sectors looking for high-end tech talent. They know they have to modernise and want to reap the benefits of making their business technologically enhanced – this can be in any sector. In the past year, this need to modernise has significantly outweighed the desire to cut budgets while uncertainty lingered.
“With the UK’s political and business position becoming more certain, and some tech talent leaving to the EU, we expect companies to continue loosening the purse strings and competition for tech workers to rise.”
Technology not the only sector showing growth
Technology was found to be posting roles at a much higher rate than the next nearest sector – engineering, which grew at 0.9 per cent, demonstrating that UK organisations are embracing the shift into the digital age.
Despite the significant growth of the technology sector, the highest rate of average salary increase was for hospitality and leisure workers at 6.1 per cent. This was followed by procurement roles (5.2 per cent). However, the technology sector holds a much higher average salary for its executive roles of £58,000 vs £31,000 for hospitality.
Adcock continued: “In creating a great place to work for tech professionals employers need to consider important facets such as environment, culture, flexibility, additional benefits and exciting projects – the bar has been set high. Getting the right pay rates in a candidate-short market is vital.
“Businesses may want to consider alternative bonuses and incentives, such as shares in the company to encourage high-performing innovation. Our annual technology salary guide will help employers to understand the changing climate so that they can compete effectively and secure the best talent.
“The guide also shows how the technology sector across the UK is responding to the changing political and commercial climate. In 2020, we expect to see technology professionals continue to be in demand as companies look for proven experience to stay strong. Employing the right people and capturing the best talent in tech will be crucial to helping businesses achieve that, and our salary guide will give an indication of where the competition is and where it is going to be in 2020.”
Download REED’s salary guides for more information here
For more information please visit www.reedglobal.com/Technology