Tech salaries have risen consistently over the past three years, defying broader economic uncertainties. This trend underscores the growing demand for technology professionals, despite significant economic challenges faced by other sectors.
The increase in tech salaries in 2018 was notably led by PHP developers, Java developers, and data scientists. Insights from the latest report highlight the evolving landscape of tech employment and the ongoing need for skilled professionals.
Consistent Salary Growth
Average advertised salaries for tech professionals have increased for the third consecutive year. In 2018, salaries rose by 1.7 per cent, marking one of the highest increases across sectors. This growth occurred despite broader economic challenges, highlighting the resilience and high demand for tech talent.
PHP developers experienced the highest salary boost, with a 6.9 per cent increase, followed by Java developers at 6 per cent, and data scientists at 5.9 per cent. These roles have seen substantial growth due to the evolving digital landscape and the significant value placed on these skills.
Annual Salary Reports
The insights into these salary trends come from the 2019 Technology Salary Guides, which analysed over 10 million job postings across various sectors since 2015. This comprehensive analysis provides a clear picture of the salary growth within the tech industry.
On average, the tech sector has seen a 1.4 per cent increase in advertised salaries since the beginning of 2018. This rate is one of the highest among all sectors, reflecting the strong demand for tech expertise.
Roles in High Demand
According to Andrew Gardner, director of Reed Technology, development-based roles and cyber security professionals will continue to be in high demand in the coming years.
Gardner notes that there is a strong demand for candidates with mobile, front-end development, and full-stack experience. The advent of new legislation, such as GDPR, has further accentuated the need for data analytical and science roles. Companies are increasingly aware of the consequences of not adhering to data regulations.
Long-Term Salary Growth
Since the report’s inception three years ago, Java developers have seen the highest average salary increase, at an impressive 41.6 per cent. Full stack developers have also experienced significant growth, with a 20.8 per cent increase in their average salaries.
London has been at the forefront of this salary growth, with advertised salaries rising by 4.5 per cent over the years. This regional breakdown highlights the concentration of high-paying tech jobs in the capital.
Impact of Legislation and Economic Factors
Gardner believes that Brexit will impact the job market and candidate flow in future years. Open borders have allowed many development roles in the UK to be filled by workers from EU countries. The potential for new restrictions could affect this talent pool.
He commented, “Whenever any large-scale change occurs, IT is the driving force behind those changes.” Even in times of economic downturn, the tech sector has shown resilience by helping organisations achieve greater efficiency and cost savings through technological advancements.
GDPR and Data Roles
The implementation of legislation such as GDPR has spurred the demand for data roles, as companies strive to stay compliant with regulatory requirements.
Data is increasingly being viewed as a critical asset, often dubbed as the ‘new oil’. This viewpoint underscores the enduring demand for data analysts and scientists who can help organisations manage and extract value from their data.
Future Outlook
Looking ahead, the tech sector is expected to continue its growth trajectory. Demand for specialised skills, such as cyber security and full-stack development, is likely to remain robust.
The broader economic landscape may pose challenges, but the tech industry’s track record suggests it will continue to thrive, driven by ongoing digital transformation and innovation.
In summary, tech salaries have shown remarkable growth over the past three years, driven by high demand for specialised skills and the ongoing impact of new legislation. The resilience of the tech sector, even in the face of economic uncertainties, underscores its critical role in the modern economy.
As we look towards the future, the demand for technology professionals is expected to remain strong. Companies will continue to seek skilled individuals to drive innovation and ensure compliance with regulatory standards. This sustained demand will likely keep tech salaries on an upward trajectory.