This report aims to equip organizations and professionals, particularly in fields like cybersecurity, artificial intelligence (AI), fintech, cloud services, Software as a Service (SaaS), and software development, with actionable insights for strategic compensation planning. Through an analysis of median weekly earnings, sectoral growth patterns, and a focused look at key technological roles, we uncover the value and demand for skills that are shaping the future of the workforce.
As we transition into the specifics of the UK technology sector salary insights for 2024, a detailed exploration awaits, shedding light on the pivotal positions driving innovation forward and the compensation strategies essential for attracting and retaining top-tier talent in this competitive landscape.
Overview of Salary Data in the UK
The landscape of salary benchmarks in the UK showcased notable trends across various sectors, reflecting the dynamic economic conditions and the evolving job market. These insights are particularly valuable for organizations and professionals in the technology and innovation sectors, including cybersecurity, artificial intelligence (AI), financial technology (fintech), cloud services, Software as a Service (SaaS), and broader software industries.
Median Weekly Earnings
The median weekly earnings for full-time employees saw a significant increase, reaching £682 in April 2023, marking a 6.2% rise from £642 in April 2022. This growth rate is the highest recorded since comparable records began in 1997. Despite this nominal increase, when adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH), there was a real-terms decline of 1.5% year-on-year.
Occupational and Sectoral Growth
Earnings growth was evident across all major occupational groups, notably within lower-paying sectors, with caring, leisure, and other service occupations witnessing a 9.4% increase, and sales and customer service occupations growing by 9.2% compared to the previous year. Sector-wise, all areas experienced growth, with the most significant surge seen in the wholesale and retail trade; repair of motor vehicles and motorcycles industry at 8.6%.
Private vs. Public Sector Growth
The annual percentage growth in gross median weekly earnings differed notably between the private and public sectors. The private sector saw a robust growth rate of 7.7%, in contrast to a more modest 3.7% in the public sector, underscoring the varying economic dynamics across these employment landscapes.
Median Gross Annual Earnings
The median gross annual earnings for full-time employees stood at £34,963 in April 2023, marking a 5.8% increase from £33,061 in April 2022. This metric provides a broader perspective on the overall compensation trends affecting the workforce.
Average Income
The gross average salary for the UK was reported at £2,886 per month (or £34,632 annually) in 2023, according to the Annual Survey for Hours and Earnings (ASHE) by the Office for National Statistics (ONS). After accounting for taxes, the net average monthly earnings were £2,297 (or £27,573 annually), offering a glimpse into the disposable income of the average UK worker.
UK Technology Sector Salary Insights 2024
This section delves into the salary benchmarks for key roles within this sector, offering insights into how companies can align their compensation strategies to attract and retain top talent.
Data Scientist
Data Scientists, key in harnessing data for strategic decisions, see a median salary of £65,000, with potential earnings up to £116,000 annually for experienced professionals. This role's compensation reflects the high value placed on analytical and machine learning skills within the tech industry.
Cloud Solutions Architect
Responsible for designing and managing cloud infrastructure, Cloud Solutions Architects have a median salary of £75,117, with experienced roles earning between £90,000 and £100,000 annually, highlighting the growing reliance on cloud technologies.
Cybersecurity Manager
Given the importance of security, Cybersecurity Managers command an average salary of £65,055, with a range extending from £40,000 for entry-level positions to £77,800 for experienced professionals.
UX Designer
UX Designers focused on creating user-friendly interfaces, can expect salaries ranging from £30,000 for juniors to up to £76,000 for senior roles, reflecting the premium on design and user experience skills.
Machine Learning Engineer & AI Specialist
With AI and machine learning at the forefront of tech innovation, salaries range significantly based on experience and expertise. Machine Learning Engineers average £54,649 annually, while AI Specialists have a median of £52,500, with top professionals earning up to £70,000.
Mobile App Developer
Mobile App Developers, essential for creating apps across platforms, have an average salary of £46,526, with experienced developers earning up to £65,000 annually.
System Operations Engineer
System Operations Engineers, ensuring efficient system operations, earn an average of £45,000, with experienced individuals making up to £65,000, reflecting the demand for robust IT infrastructure management.
Cloud Architect
Cloud Architects, vital for developing cloud-based solutions, earn an average of £78,783 annually, with seasoned experts making up to £90,000, underscoring the strategic importance of cloud technologies.
Chief Information Officer (CIO)
Salaries for CIOs in the UK average £127,446 annually, according to Glassdoor, with the Robert Half Salary Guide suggesting a midpoint of £141,000 and a range between £105,000 to £250,000.
Product Manager & Head of Growth
Product Managers oversee product development and launch, earning an average of £53,460, while Heads of Growth, focusing on scaling businesses, see salaries around £70,000, with experienced roles earning up to £90,000.
Business Developer & Frontend Developer
Business Developers, key in driving business growth, earn between £35,000 and £60,000, while Frontend Developers, specializing in user interface development, average £47,500, with senior roles reaching £70,000.
Final Thoughts
From Data Scientists to Cloud Architects and CIOs—highlights the diverse opportunities and challenges within the tech sector, emphasizing the sector's pivotal role in driving forward the UK's economic and innovative capabilities. As we look towards the future, these insights provide a valuable foundation for strategic workforce planning and development, ensuring that the UK remains at the forefront of technological advancement and global competitiveness.
From notable increases in median weekly earnings to the strategic premium placed on key technology positions, these trends underscore the critical need for companies to align their compensation strategies effectively.
Emerald Technology emerges as the ideal partner for technology companies on the brink of global expansion, particularly for those looking to hire and oversee an international team without the burdens of establishing local entities. Through our bespoke global expansion offerings and the specialized support from our cloud platform, Emerald sets itself up as an invaluable companion for tech firms aspiring for rapid global progress. Companies seeking a collaborator with deep expertise in the tech domain, able to offer tailored talent sourcing and international workforce management services, will find Emerald's offerings particularly attractive.