27% of candidates who receive offers from UK tech companies come from abroad, Hired reveals
Hired has released its second annual Global State of Salaries report.
Hired’s goal is to bring more transparency to the hiring industry. Its second annual Global State of Salaries Report, which offers an in-depth look at tech salaries across 16 global markets and examines how the market you live in, your role and even your race and age affect your compensation.
Its analysis looks at more than 280,000 interview requests and job offers from more than 5,000 companies and tens of thousands of job seekers.
This year’s report found that while Bay Area (San Francisco) software engineers are the highest paid in the country ($134k), their relative purchasing power lags behind their peers in cities with lower costs of living.
Using a standardised cost of living calculator, Hired adjusted each city’s average salary to be equivalent to San Francisco’s cost of living. In the US, Austin, Denver and Seattle take the prize for best-off tech workers. For example, software engineers in Austin average $110k per year, but they are able to afford a lifestyle that would cost $198k in San Francisco.
Salaries in the UK are among the lowest in the world. Even when factoring in cost of living, Software engineers in London make 25% less than those in San Francisco and 30% less than those in New York.
In nearly every market, companies offer more money to individuals who are relocating than to local candidates. Paris, London, Singapore and Toronto are particularly motivated to lure the right tech talent: Non-local candidates in those markets can earn between 21% and 57% more than locals.
27% of candidates who receive offers from UK companies come from outside of the UK, and the average relocation offer is 28% higher than that of local UK workers. With the uncertainties from Brexit around visas for foreign workers, this underscores the importance for the UK to continue to invest in developing of a pool of local talent.
Cities like Melbourne, Sydney, Boston and New York sit on the opposite end of the spectrum by prioritising local talent. In those cities, transplants are paid the same or slightly less than locals.
Hired recently began collecting voluntary demographic data that reveals the impact racial and age biases have on salary and hiring rates.
The average African-American candidate on the Hired platform is 49% more likely to be hired than the average white person, but they request and receive significantly lower salaries ($10K less on average). Latino and Asian candidates have a different experience: the average Latino candidate is 26% less likely to get hired than the average white candidate, and the average Asian candidate is 45% less likely. However, their salaries are more in line with white candidates (Latinos receive $5k less, and Asians receive $2k less on average).
While ageism isn’t as widely discussed, once candidates pass the age of 45, they begin to see a decrease in their average salary and the number of job offers they receive. Companies offer an average of $132k to candidates between ages 50 and 60, which is on par with what they’re offering to candidates who are ten years younger, and presumably, who have ten years less experience.
Richard Shea, managing director EMEA Search at Futurestep, commented, "The latest report revealing that 27% of candidates, who receive offers from UK technology businesses, come from abroad demonstrates once more the contribution foreign talent is making to our economy. It’s very telling that UK companies are prepared to make a relocation offer that on average is 28% higher than that of local workers. This is in stark contrast to other technology hubs such as San Francisco and a clear indicator that the UK technology industry is reliant on foreign workers in order to stay on the forefront of innovation.”
“The news that UK salaries for data scientists and product managers have risen by 5% in the last year is testament to the increased value businesses place on data. Although data growth offers numerous benefits, it also poses a significant challenge when it comes to finding and retaining talent with the right skills. With the widening skills gap in STEM industries, it is crucial for employers to ensure they have the best people on board if they don’t want to risk losing out to their competition. Whereas higher salaries alone may not enough to get the best people on board, they certainly play an integral part in a candidate’s decision to choose one company over another.”
Photo courtesy of Shutterstock.com