UK tech workers expect 20% wage rise to stay in roles

Recent research conducted by Tenth Revolution Group highlights that United Kingdom tech professionals expect an average pay rise of 20% to remain in their current roles.

The findings underscore the significant role that compensation plays in retention strategies within the tech industry, as stagnant salaries are one of the leading reasons for tech professionals leaving their positions. Only 49% of IT workers currently plan to stay in their roles over the next twelve months, with those considering a change anticipating a higher pay increase of around 25% to make the transition worthwhile.

The data from Tenth Revolution Group provides valuable insights for employers, offering guidance on adapting retention strategies to meet better employee expectations regarding compensation, career stability, and workplace culture. To forestall a potential exodus, the study suggests that an average raise of 20% might be necessary as an effective counteroffer.

Chairman and CEO of Tenth Revolution Group, James Lloyd-Townshend, comments on the report's implications: "IT professionals value stability and growth, but they also know their worth in a market driven by constant innovation and demand. This data highlights that employers have an opportunity to retain talent by aligning pay increases with industry expectations before employees feel the need to seek external opportunities."

"The 20% pay increase can be a benchmark for retention strategies, helping companies stay competitive in the battle for tech professionals by keeping hold of top talent. And at the same time, the 25% threshold serves as a reminder of what it takes to compete for new talent in the market. By proactively addressing pay expectations, businesses can position themselves as employers of choice in an increasingly dynamic industry."

Beyond salary considerations, the research suggests that employers should not ignore non-financial incentives such as career progression, skill development opportunities, and fostering a positive workplace culture. Addressing these alongside competitive pay increases could contribute to a more effective retention strategy.

Providing structured and well-defined career pathways can assist employees envisioning long-term futures with their employers while integrating a sense of purpose within the organisation can enhance employee motivation and engagement. Additionally, promoting a workplace culture that values employee well-being and manages stress is crucial in combating burnout and maintaining talent.

The study notes that a proactive approach to compensation can significantly affect an employer's ability to retain employees. However, it must be balanced with attention to other critical workplace factors.

The findings were derived from the 2024 Careers and Hiring Guides, with a sample size of 1,528 tech professionals across various platforms, including Amazon Web Services, Salesforce, Microsoft 365, Azure, Business Applications, and NetSuite.