- Specialized skills remain scarce and in high demand
- Demand for AI and data specialists strengthens, driving wages higher
- Software engineers and mobile developers among those with highest raises
August 6, 2024: With tech sector hiring appearing stabilized, specialists possessing in-demand skills are commanding strong pay hikes many times higher than the market average in the UK and North America, according to a new salary survey released by industry-leading talent solutions provider Lorien. While wage growth was especially strong for those in AI, software engineering and mobile technology, the data also shows steady gains across other IT roles.
Lorien’s second annual Technology & Digital Salary Survey, a comprehensive examination of hourly wages and annual salaries for more than 100 roles, shows that specialized talent remains scarce, and the explosive proliferation of AI and data analytics is leading to fierce competition for those skills. Compensation is also robust for many other tech jobs ranging from Cloud skills and cybersecurity analysts in the UK to infrastructure architects and mobile developers in the US. Demand for these and other skills, according to Lorien business leaders, appears to have rebounded from last year’s slumping tech market.
“By the numbers, tech hiring appears to have stabilized following job cuts in 2023. As a result, pay is also rising as employers look to add capabilities to their workforce,” according to David Gettins, Lorien’s UK Managing Director. “With many organizations making significant investments in AI, data analytics, cloud and cybersecurity technologies, demand for great talent is again healthy. Employers should take note that competition for scarce skills will likely intensify later in the year.”
The data, compiled in the second quarter of 2024, was sourced from proprietary Lorien data and best-in-class third-party platforms that aggregate contingent workforce data. The reports, featuring both contingent workforce pay rates and full-time equivalent (FTE) salaries, reveal detailed information for jobs within 11 clusters, including: AI, machine learning and data analytics; cloud & DevOps; CRM & ERP; cybersecurity; infrastructure & data centers; mobile; program & change management; quality assurance & testing; software engineering, telecommunications; and UI/UX.
In North America, the salary survey revealed that all 11 job clusters reported pay increases of at least 4%, with those in AI, machine learning and data analytics securing the highest average of 5%. Software engineers and mobile developers reported hikes of nearly the same size due to more brisk hiring. Chief data officers and data architects also landed outsized raises, as did robotic process automation engineers. Conversely, roles reporting the slowest growth include program and portfolio managers. Even then, gains were close to 4%. In comparison, real average hourly earnings for all jobs in the US increased just 0.5% from April 2023 to April 2024. Similarly in the UK, in-demand roles such as those in cloud and data saw the largest wage growth of 9% and 8% respectively in the contract market, while permanent salaries grew the most for cloud roles (8% YoY increase) and infrastructure roles (4% YoY increase). Meanwhile growth in total pay across the UK last year was just 1.3% (adjusted for inflation) according to 2024 data from the Office of National Statistics (ONS).
“While wage growth is rebounding, we don’t expect the same frenzied demand for tech talent that the industry experienced in 2020 and 2021. More likely, a steady, measured rise in employee earnings will occur for the rest of this year and into 2025,” said Ryan McMahon, President of Lorien in North America. “Organizations can anticipate ongoing challenges in acquiring specialized skills and should take steps to mitigate scarcity in their talent strategies.”
In addition to understanding prevailing pay practices, employers should note emerging market trends unfolding in the sector. For instance, the use of contingent talent in the AI field may be limited as almost all of the roles Lorien has observed are full-time equivalent ones. One reason is employers are seeking more senior and experienced talent to fill these jobs.
Among mobile developers, a growing need for React Native developers and principal-level talent has emerged. Skill-wise, companies are looking for candidates with cross-platform expertise and experience in cloud service integration with AWS, Azure and GCP. This knowledge facilitates the development of more complex applications such as AR, voice assistants or chatbots.
In many of the job clusters surveyed, a consistent trend is the impact that AI is having on the specialty—both the tools used in development and the end products. This is likely to persist for the foreseeable future as AI will potentially transform the future of work in the years ahead. As a result, employers need to consider the impact this will have on their workforce and overall business.
The second annual salary survey provides the data and insights organizations need to accelerate their hiring and retention strategies. Informed decision-making, based on the most current data, ensures that tech leaders are best positioned to attract in-demand talent in an increasingly competitive labor market. The report not only provides benchmarking information but also useful insights to help navigate a rapidly shifting landscape. Access the full report in both the UK here and North America here, respectively.
About Lorien
We are Lorien, a technology, transformation, and digital talent company, powered by Impellam Group, a connected group providing global workforce and specialist STEM talent solutions. We combine tech expertise with the scope, depth, and breadth of large-scale talent organizations.
Driven by both clients and candidates, covering the US and Europe, we work with all sectors, sizes, and tech needs—from start-ups to established tech companies and those who use tech to propel them further.
Our unique position in the market means we have the insight to create tailored solutions, keeping our clients ahead of the curve and giving them complete agility. From one-off placements to scalable enterprise solutions, executive search to next-generation tech skills, time-sensitive projects to ongoing digital journeys—we flex to fit the requirement.
Press contact:
Kirsty Tranter
Head of Communications, Impellam Group
