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UK software engineers’ salaries lag behind major US tech hubs

UK software engineers’ salaries lag behind major US tech hubs


Hired has tapped into its data, based on real offers made to tech candidates, to reveal insights on tech workers’ salaries and the hiring market more generally.


With a string of high profile exits and an influx of venture capital investment, London’s importance as a global tech hub is growing quickly, says the technology and sales jobsite. As the tech community grows and more traditional businesses begin to embrace the digital world, the demand for technical skillsets is increasing.


Despite this growing demand for tech talent, however, Hired’s data indicates that salaries in London for software engineers haven’t kept pace with other world-class tech centres such as San Francisco and New York. In fact, when compared to these two cities, UK companies actually offer the lowest average salaries for software engineers.


When adjusted for cost of living, an engineer earning an average salary in San Francisco would make the equivalent of £86,000 a year, while an engineer earning an average salary in New York would make an equivalent of £81,000. Compared with London, where the average developer salary is £54,000 a year, San Francisco and New York salaries are 37% higher and 33% higher respectively.


UK-based tech companies, however, offer much more to candidates coming from other US tech hubs, such as San Francisco (over £ 91,600/year) or New York (over £ 85,500/year). Offers made to candidates coming from other countries, in comparison, they tend to be significantly lower to those offered to UK-based candidates.


Data reveals that generally speaking, the larger the company, the greater the salary offered. For early stage start-ups that can’t compete with larger companies on salary, perks like flexible working hours or the ability to work remotely are important parts of the overall package that can help attract candidates. Many of the companies featured in this report cite these as perks that they offer — 18% offer flexible working hours, while 16% offer free lunches.


The report reveals that although London businesses are hiring great talent in the UK, they are also very willing to recruit from across Europe too. 28% of UK placements were from other parts of Europe or from US, with San Francisco based candidates receiving the highest number of offers from London companies. European candidates were drawn primarily from Spain, Sweden, and France.





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