IT 2016 Salary Guide

Cem Baris 25.02.2016

At Morgan McKinley, we endeavor to provide up-to-date market insight and expert knowledge on your sector. Here we offer key recruiter information within the IT sectors covering permanent and temporary salaries across London and the Home Counties.

View our most up-to-date IT Salary Guide.

London

Employee value proposition can count for more than salary in permanent position

2015 was a good year for the permanent employment market in London with huge growth in front end development and software engineering. The growth of hiring within Big Data and analytics has also been remarkable. This is a long-term trend, with recent research suggesting that the number of technology jobs in London increased by around 30% between 2010 and 2015. Tech City UK has had a hugely positive influence on this growth.

There is a local talent shortage in key skills such as HTML5, CSS, Python, Java, JavaScript, AngularJS, R, Hadoop, Spark, MongoDB and AWS. These roles are increasingly being filled by talented candidates from abroad particularly from Central and Eastern European nations. London is a very attractive destination with the number of tech companies headquartered here, from large corporations to startups. There are some concerns that any future restrictions on immigration may put a brake on this growth.

Financial services companies are throwing large sums of money into Fintech solutions such as payment systems. We have seen many instances of mid-sized Fintech companies doubling their developer headcount in 2015 to keep pace with their clients’ interest. SMEs in this space are having less trouble finding recruits than some of the big multinationals – not so much because of salaries but because they offer stock options and non-financial benefits such as flexible working hours and a highly dynamic atmosphere. This trend will continue through 2016 as the UK, London in particular, invest in this sector.

Another trend is that many businesses seem to be doing their development with Agile and Scrum methodologies. Consequently the startups have very flat hierarchies, which present developers with exciting opportunities to take on responsibility early in their careers.  However, to do well they need to develop a broad range of soft skills, such as the ability to understand business needs, to communicate and present effectively, and a high degree of self-motivation. The flip side is that such organisations have rather less need for Business Analysts and Project Managers, although there is so much activity at the moment that these professionals will also easily find employment.

These changes are creating a less stuffy, more diverse and a multicultural working environment than traditional IT so we are seeing the gender balance changing. This is also a selling point for many companies.

Big Data and data analytics continue to grow with recruitment at all levels. Postgraduates in not only computer science but other quantitative subjects such as mathematics, engineering or even economics are in very high demand and are being attracted into analytics: they can typically double the earnings that they would get in academic research.

At the more senior level we have seen increased recruitment of experts in all fields of IT risk and governance particularly in both the financial services and professional services industries

Salary levels are increasing across the board but it is important to underline that in the most vibrant areas of IT, other benefits such as equity, flexible working hours and the ability to take on more responsibility and innovate can count for far more. Developers, in particular, are likely to take a job with a tech firm that has a positive buzz in preference to a more hierarchical and less innovative company, even if the latter is offering a significantly higher basic income.

Permanent - London
Basic Salaries (£ Per Annum)
Senior Appointments Industry Low Mid High
Programme Manager Banking & Financial Services 80,000 90,000 120,000
Commerce & Industry 70,000 80,000 90,000
Project Manager Banking & Financial Services 55,000 70,000 90,000
Commerce & Industry 45,000 60,000 75,000
Business Analyst Banking & Financial Services 50,000 65,000 80,000
Commerce & Industry 40,000 50,000 60,000
IT Director / Head of IT Banking & Financial Services 70,000 85,000 110,000
Commerce & Industry 65,000 80,000 100,000
Enterprise Architect Banking & Financial Services 80,000 95,000 120,000
Commerce & Industry 80,000 95,000 110,000
Solutions Architect Banking & Financial Services 70,000 82,500 95,000
Commerce & Industry 60,000 72,500 85,000
Technical Architect Banking & Financial Services 60,000 70,000 80,000
Commerce & Industry 50,000 60,000 70,000
Databases and Development Industry Low Mid High
Java Developer Banking & Financial Services 45,000 65,000 85,000
Commerce & Industry 35,000 50,000 75,000
.NET Developer Banking & Financial Services 45,000 65,000 85,000
Commerce & Industry 35,000 50,000 75,000
Frontend Developer Banking & Financial Services 35,000 55,000 75,000
Commerce & Industry 25,000 45,000 65,000
Mobile Developer Banking & Financial Services 38,000 55,000 70,000
Commerce & Industry 28,000 45,000 60,000
C++ Developer Banking & Financial Services 50,000 70,000 85,000
Commerce & Industry 45,000 55,000 80,000
SQL Developer Banking & Financial Services 42,000 60,000 80,000
Commerce & Industry 38,000 42,500 50,000
Business Intelligence Developer Banking & Financial Services 45,000 60,000 80,000
Commerce & Industry 40,000 50,000 60,000
Oracle DBA Banking & Financial Services 40,000 52,500 75,000
Commerce & Industry 35,000 45,000 50,000
Test Manager Banking & Financial Services 58,000 65,000 75,000
Commerce & Industry 45,000 55,000 65,000
Test Analyst Banking & Financial Services 35,000 45,000 55,000
Commerce & Industry 28,000 33,000 40,000
Big Data and Advanced Analytics Industry Low Mid High
Head of Data Science Banking & Financial Services 80,000 90,000 120,000
Commerce & Industry 70,000 85,000 100,000
Analytics Manager Banking & Financial Services 55,000 65,000 75,000
Commerce & Industry 50,000 60,000 70,000
Data Scientist Banking & Financial Services 45,000 55,000 90,000
Commerce & Industry 38,000 45,000 80,000
Data Engineer Banking & Financial Services 50,000 60,000 70,000
Commerce & Industry 40,000 50,000 70,000
Data Architect Banking & Financial Services 55,000 75,000 120,000
Commerce & Industry 50,000 65,000 90,000
Data Visualization Developer Banking & Financial Services 50,000 60,000 70,000
Commerce & Industry 40,000 50,000 60,000
Machine Learning Engineer Banking & Financial Services 50,000 60,000 85,000
Commerce & Industry 45,000 60,000 70,000
IT Governance and Security Industry Low Mid High
Chief Information Security Officer Banking & Financial Services 110,000 140,000 160,000
Commerce & Industry 90,000 120,000 140,000
Head of Technology Risk Banking & Financial Services 110,000 125,000 140,000
Commerce & Industry 90,000 110,000 140,000
Technology Risk Manager Banking & Financial Services 75,000 90,000 110,000
Commerce & Industry 65,000 80,000 100,000
Technology Risk Consultant Banking & Financial Services 55,,000 65,000 75,000
Commerce & Industry 45,000 55,000 70,000
Information Risk Manager Banking & Financial Services 75,000 85,000 90,000
Commerce & Industry 55,000 65,000 75,000
Information Risk Consultant Banking & Financial Services 55,,000 65,000 75,000
Commerce & Industry 50,000 60,000 70,000
Information Security Analyst Banking & Financial Services 45,000 60,000 90,000
Commerce & Industry 40,000 55,000 75,000
Information Security Manager Banking & Financial Services 60,000 80,000 110,000
Commerce & Industry 55,000 75,000 90,000
Information Security Consultant Banking & Financial Services 55,000 85,000 110,000
Commerce & Industry 45,000 65,000 90,000
Information Security Architect Banking & Financial Services 60,000 90,000 120,000
Commerce & Industry 50,000 80,000 100,000
Security Project Manager Banking & Financial Services 60,000 90,000 120,000
Commerce & Industry 55,000 75,000 100,000
Network Security Analyst Banking & Financial Services 40,000 60,000 85,000
Commerce & Industry 35,000 50,000 70,000
Network Security Manager Banking & Financial Services 55,000 75,000 95,000
Commerce & Industry 50,000 60,000 85,000
Infrastructure and Support Industry Low Mid High
Infrastructure Manager Banking & Financial Services 50,000 65,000 90,000
Commerce & Industry 40,000 55,000 75,000
Infrastructure Engineer Banking & Financial Services 40,000 55,000 70,000
Commerce & Industry 35,000 45,000 60,000
Third Line Support Banking & Financial Services 34,000 40,000 50,000
Commerce & Industry 32,000 35,000 42,000
Second Line Support Banking & Financial Services 30,000 33,000 36,000
Commerce & Industry 25,000 30,000 34,000
First Line Support Banking & Financial Services 25,000 30,000 35,000
Commerce & Industry 22,000 25,000 28,000
Network Architect Banking & Financial Services 67,500 75,000 85,000
Commerce & Industry 55,000 65,000 75,000
Network Engineer Banking & Financial Services 45,000 55,000 70,000
Commerce & Industry 35,000 42,500 60,000
Applications Support Analyst Banking & Financial Services 37,500 50,000 75,000
Commerce & Industry 30,000 40,000 50,000


An attractive option for corporate clients driving change

Although hiring processes have, through necessity, been accelerated in permanent recruitment, such is the buoyancy of the market. Contract hiring is often the last resort where companies cannot find people with the right skills and experience quickly enough. This is especially true of tech companies themselves, whether we are talking about a Fintech startup or a Facebook, because if you are in the innovation business you want to secure knowledge into your organisation so that you can constantly drive your offerings forward with new products, features and apps.

In other sectors, such as banking, energy or retail, where technical innovation is not the core business, perhaps more traditional projects of systems upgrades contractors are the more attractive option. That said, even non-tech companies that have a business focus on customer experience and digital channel development are starting to create separate 'tech bubbles' and innovation labs away from the core business in order to foster the kind of dynamic, high-energy atmosphere that exists in the tech companies which in return will attract more staff.

At the junior end of the market, there is an appetite for hiring recent graduates on temporary contracts and then converting them to permanent if they work out.

IT security professionals are in high demand as contractors and can earn high rates of pay because companies are now very aware of the impact that a breach can have on revenues and brand reputation.

At more senior levels, there is still demand from non-tech organisations for experienced project managers who combine technical skills with a proven track record of stakeholder and client management. It is generally the case that they also must have a certification in Prince 2, PMP or Agile. These professionals are difficult to find as software development is not always the career path for most project managers.

Subsequently, day rates have increased slightly but in niche or hard-to-find areas the increases have been significant. The competition for talent will almost certainly sharpen further in 2016 and beyond

Temporary - London
Rate (£ Per Day)
Role Junior Mid Level Senior Level
Software Developer C++ 350 450 700
Software Developer C# 350 450 650
Software Developer Java 350 500 650
Software Developer Open Source 300 450 650
SQL Developer 300 400 500
Business Intelligence Developer 350 400 450
Data Scientist 300 400 550
Data Architect 350 400 500
Business Analyst 300 400 500
Project Manager - Systems Implementation 300 400 500
Project Manager - Digital 350 450 600
UX Designer 250 400 550
Mobile Apps Specialist 250 350 450
UI Developer 300 400 650
Front end Developer 250 350 450
PHP Developer 300 375 450
Solutions Architect 350 450 600
Database Administrator (DBA) 300 400 500
Service Desk Analyst 150 200 250
Network Engineer 275 350 450
Infrastructure Engineer 300 400 500
Information Security Analyst 300 400 500
Test Analyst 250 300 400
Test Manager 350 450 550
IT Director / Head of IT Commerce & Industry 500 600 700
IT Director / Head of IT Financial Services 600 700 800
Enterprise Architect 400 500 600

South West England

Security and digital the main growth areas 

Information and cybersecurity has seen huge growth over the past five years, largely a consequence of high-profile security breaches. With the media highlighting these, the world is becoming far more knowledgeable about the cyber threat. This has resulted in heavy fines for financial services companies and have had measurable impacts on company revenues, and damaged reputations, in commerce and industry sectors. This continued in 2015 and we have seen a sharp increase in the demand for IT security specialists and upward pressure on salaries. Cybersecurity in particular is highly candidate-driven; if we identify a high quality candidate it is easy to demonstrate the value-add that the individual will bring to a company. With heavy investment from companies across sector within cybersecurity, it's very clear that growth will continue for the foreseeable future. 

There is demand across the full range of IT skill sets in new digital technologies. Developers and programmers find themselves in very strong employment opportunities related to digital platform projects. 

Programme and project managers, who can analyse business requirements, are in demand for both tech and non tech organisations. These key individuals are now combining their roles with BAs meaning more responsibility covering one resource. The infrastructure, storage and virtualisation sectors remain increasingly busy, however, this is an extremely competitive market meaning candidates have chosen a new path of following the contract route allowing them to increase personal revenue and knowledge base.

Permanent - Home Counties
Basic Salaries (£ Per Annum)
Role Junior Mid Level Senior Level
Software Developer C++ 30,000 40,000 60,000
Software Developer C# 30,000 40,000 60,000
Software Developer Java 30,000 40,000 60,000
Software Developer Open Source 30,000 40,000 60,000
Software Developer SQL 35,000 45,000 60,000
Software Developer Business Intelligence 40,000 55,000 65,000
Data Scientist 45,000 60,000 70,000
Data Architect * 60,000 75,000
Business Analyst 45,000 52,000 60,000
Project Manager - Systems Implementation 45,000 55,000 65,000
Project Manager - Digital 45,000 55,000 70,000
UX Designer 50,000 55,000 65,000
Mobile Apps Specialist 50,000 55,000 65,000
UI Developer 30,000 35,000 45,000
Solutions Architect * 60,000 80,000
Database Administrator (DBA) 35,000 45,000 55,000
Service Desk Analyst 18,000 22,000 30,000
Network Engineer 30,000 40,000 55,000
Infrastructure Engineer 30,000 40,000 55,000
Information Security Analyst 30,000 40,000 60,000
Test Analyst 30,000 40,000 55,000
Test Manager * 45,000 60,000
IT Director / Head of IT Commerce & Industry * 75,000 110,000
IT Director / Head of IT Financial Services * 75,000 110,000

*Typically, these roles do not exist at this level

Inflated day rates and fees here for the long term

No CIO wants their company to be the next headline story because of a security breach, which makes IT security contractors highly marketable at present. Day rates for lower level experts range from around £300 up to as much as £800 where a company’s security has already been breached or it has identified a significant risk. Consultancies are now increasingly offering onsite managed services and can command fees of up to £2,000 per day for an experienced IT security troubleshooter. Managed and professional services propositions for customers is becoming far more favoured allowing businesses to have ongoing and 24/7 support. 

Cybersecurity is being introduced as a subject at A level and in universities, but until qualified graduates come onto the market there will be a scarcity of candidates. Strategically this is the best way to ensure there is a pipeline of talent to support this growing market. 

Across the broader technology space, digital skills are in high demand with many organisations initiating or expanding digital transformation and user experience projects. For example, energy companies are moving to smart meters that can be controlled remotely from mobile devices (which in turn creates security issues).

The market is now in a positive place and clients are now seeing the need for top talent, meaning more urgency to hire.

Temporary - Home Counties
Rates (£ Per Day)
Role Junior Mid Level Senior Level
Software Developer C++ 200 300 400
Software Developer C# 200 300 500
Software Developer Java 200 300 500
Software Developer Open Source 250 300 500
Software Developer SQL 225 275 450
Software Developer Business Intelligence 300 375 450
Data Scientist * 200 275
Data Architect 375 425 500
Business Analyst 400 425 500
Project Manager - Systems Implementation 300 350 500
Project Manager - Digital 300 350 500
UX Designer 300 350 400
Mobile Apps Specialist 300 350 400
UI Developer 300 350 400
Solutions Architect 400 500 700
Database Administrator (DBA) 375 425 500
Service Desk Analyst 200 250 325
Network Engineer 200 250 325
Infrastructure Engineer 200 250 325
Information Security Analyst 250 300 350
Test Analyst 250 325 400
Test Manager 250 350 500
IT Director / Head of IT Commerce & Industry * 500 750-1,000
IT Director / Head of IT Financial Services * 500 750-1,000

*Typically, these roles do not exist at this level

Cem Baris's picture
Director | Information Technology & Sales
cbaris@morganmckinley.co.uk