Technology salaries in 2025: What's next for tech talent
Microsoft, Twitter, Meta, Google, Amazon - what do all these companies have in common?
Alongside being global leaders in innovation, they've also announced significant layoffs in recent years. Despite this, they remain some of the highest-paying technology employers in the market, often offering salaries well above the industry average.
This is one of many reasons why roles in these powerhouses are so coveted. So, in the wake of these layoffs which seem to have burst the idealistic bubble of working for a FTSE 500 tech giant, swathes of talent are flooding the market.
As these professionals re-enter the market, the UK technology sector in 2025 finds itself at an interesting crossroads. Our latest market report and salary guide gives some interesting insight into the lay of the land when it comes to technology salaries.
How can employers adapt? Let's explore the scenarios shaping technology salaries and hiring trends in 2025.
But what do we do about their salary expectations?
The average salary of a Product Manager at Google UK is £95,000, compared to the London average in the range of £65,000-£75,000. Naturally, considering budgets, salary benchmarking, and roadblocks from HR, many companies would struggle to accommodate salary expectations 30% above market rate. All this begs the question; where do we go from here? If we are looking at a market saturated with exceptional yet expensive talent, there are a few scenarios that will all play out at some point in different companies.
Will displaced big tech talent push into more senior roles?
We all know you must be the crème de la crème to work for these tech giants, that is no secret. For this reason, smaller companies may be inclined to go out on a limb and place talent in positions that are more senior than the years’ experience would suggest.
Given the undeniable talent of these employees, workload and technical ability will not be too much of a concern. However, employers and talent teams may be tentative on this due to unproven people management and leadership skills that are required to have that sweet ‘senior’ title attached to them.
HR and Talent will adjust interview processes accordingly, utilising case studies and interview questions relating to leadership and management skills. One issue pertinent to career progression within companies is people being given promotions due to performing well at mid-level, then not having the actual management skills to succeed in their newly appointed higher station. It is possible that the high earning laid off workforce will exacerbate this problem, resulting in management skills and qualifications becoming more valuable.
Is a market correction on technology salaries coming?
This brings both opportunity and risk. On one hand, these professionals have technical expertise from ROI-driven environments that could accelerate growth in smaller businesses. On the other, our report highlights that leadership and management skills remain the biggest gap when promoting mid-level staff.
Why FinTech remain an exception
Unlike other areas of tech, FinTech in London continues to thrive. Funding here has outpaced New York and San Francisco, and our survey shows strong demand for product management and data talent across Series A-C start-ups.
A hiring trend I have seen from senior Product Management talent is movement from major retail banks into series A-C FinTechs. With the major contender banks highlighting the shortcomings in traditional banking establishments, there are many niche gaps in the Fintech landscape that need filling. Big tech employees could mirror this migration into FinTech, as a consistently profitable industry pushing through macroeconomic turmoil.
Smaller companies will improve their benefits packages
Compensation isn't the only deciding factor for candidates. In 2025, work-life balance has overtaken financial compensation as the main motivating factor for jobseekers in the tech sector. Our report found that 70% of tech professionals are happy with their benefits, with the most valued perks including flexible working, annual bonus, health insurance, and wellbeing support.
To stand out agains Big Tech salaries, smaller firms are pushing further with policies like four-day working weeks, "work from anywhere" schemes, and wellbeing allowances. The question for 2025 and beyond is how far start-ups will go to differentiate themselves in a competitive market.
Whatever the reason, this is commonly attributed as a symptom of start-up culture. However, the impressive benefits on offer from tech giants cannot be understated. Most of the above benefits can also be found at Google, to continue the comparison, meaning start-ups and scale-ups will need to find other ways to attract top talent if the salaries cannot cut it.
One trend that is developing as time goes by is the advocacy for a four-day working week, with 100 UK companies signing up to trial this back in November. It is looking ever more likely that this notion will be used as an attraction to hotly contested talent, along with other alternatives such as a fully flexible working week. How far will start-ups be willing to push the boat out? Only time will tell.
Equity, stocks, and shares
Speaking as a recruiter who often works with start-ups, pitching equity and shares is a sticky business. If the salary does not meet the candidate’s minimum expectation, it is very unlikely that the vague promise of a shares scheme and equity options will provoke them to take the application further. Companies can get around this by advertising a clear, concrete options scheme that provides more answers than it does questions.
The sentiment amongst candidates is that disclosing salaries on job ads is massively preferred. Clarity and transparency is the name of the game, and companies should extend this to all financial reimbursement, not just salary.
How can Marks Sattin help you benchmark technology salaries?
Salary benchmarking can be complicated by macroeconomic factors. We’re seeing this play out currently with high-income talent being unleashed onto the market, creating a dilemma that will particularly affect start-ups without the liquidity to afford to raise their salaries to match expectations.
The above scenarios are by no means an extensive list of how things could play out. One option for start-ups would be to partner with a consultancy for salary benchmarking, particularly when building out a company’s core product and engineering team from a low headcount.
Partnering with Marks Sattin would give companies and all-in-one staffing solution, from advising on team structures, to salary benchmarking, to marketing, to finding that missing piece of the puzzle that will drive the team and product to profitability.
If you're ready to partner up, submit a brief today. For more insights, download our 2025 technology market insight report.
