UK 'reliant on foreign tech talent to survive'
UK tech salaries are lagging behind those in San Francisco and New York as the Britain becomes increasingly reliant on foreign talent.
According to a 2017 State of Global Tech Salaries report by recruitment firm Hired, nearly a third (27 per cent) of candidates come from outside the UK.
Although salaries have grown by five per cent in the UK, in the US they are generally 25 to 30 per cent higher.
According to Hired: “With an increasing focus on innovation and a reliance of having the right people, in the right roles, at the right time, it is vital that Britain addresses the imbalance in order to compete on a global stage.”
Brief highlights form the report are listed below:
The UK is reliant on foreign talent to survive
- 27 per cent of candidates who receive offers from UK companies come from outside the UK, demonstrating the importance it places on foreign talent to help deliver a digital Britain.
- The need for the UK to attract global talent is further highlighted in the statistics that the average relocation offer is 28% higher than that of local UK workers. This is significantly more than in New York where the salary for local and relocated workers is the same, and in San Francisco where relocated workers are paid 10 per cent less.
UK tech salaries continue to lag
- UK salaries for tech workers are among the lowest in the world. With the London salary standing at £56k, the only places where tech workers make less are Singapore and France.
- Even when factoring in cost of living, tech workers in London make 25 per cent less than those in San Francisco and 30 per cent less than those in New York. It’s also worth noting that while tech workers in London have seen their salaries remain flat over the last year, their purchasing power has actually decreased significantly (-17 per cent) because of the recent fluctuations in the pound.
- While there are many factors that contribute to this situation, one of the most likely causes is that the United States’ tech market is the most mature, which ultimately leads to higher salaries.
Salaries for data scientists and product managers continue to increase
- Over the past 12 months, the salaries of UK data scientists have grown 5 per cent, demonstrating how the role is becoming increasingly sought after as data becomes a more valuable asset to businesses. They are now paid on par with software engineers, which have historically commanded the highest salaries in tech.
- Product managers are now the highest paid roles in the UK, at £64k. The role of the product manager is now 12 per cent higher than both software engineers and data scientists in the UK.