As we all look ahead to what the new year has in store, it’s a good chance to check in with the talent market.
Employees and contractors can seize the opportunity to see what prospects are out there and explore whether the grass really is greener on the other side of the fence. Employers and business leaders can also benefit from taking a good look at the market and foreseeing what the next 12 months might look like.
Whichever camp you’re in; the IT talent space has changed considerably since last year; not least due to shockwaves from last year’s various elections being felt around the globe and changes to factors like National Insurance here in the UK.
Despite the apparent challenges, the UK IT talent market remains robust, with pockets of considerable opportunity when you know where to look.
So, let’s dive into Crimson’s IT Salary Survey 2025 and uncover the many reasons to be optimistic.
Discover the latest salary benchmarks, trends, and opportunities.
Download the Crimson IT Salary Survey 2025 today!
Last year, many organisations took a cautious approach to hiring, with some pausing or delaying hiring decisions. Redundancies are now much less widespread than the period of post-pandemic layoffs which started around 2022.
Yet rather than correcting bloated hiring numbers caused by pandemic-influenced over-hiring, 2024’s redundancies seemed to be more due to belt-tightening and technical advancements. This might mean that tech employers are making progress towards their own post-Covid hiring equilibrium.
Salary inflation slowed but retains a positive trend. Data from our parent company, Nash Squared, found that 45% of tech respondents reported a pay rise in 2024.
Though permanent IT vacancies shrunk considerably in 2024, there are some pockets of opportunity to be unearthed. Our recruitment arm noted an increased demand for data science and machine learning expertise; with AI, cybersecurity, and cloud skills still highly desirable. Demand for contractors similarly slowed, though a modest recovery is underway.
Our pay data shows that some contractor rates are trending upwards, reflecting demand for specialists in cyber, data, DevOps, and project management on a shorter, more flexible basis.
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We still have a long way to go in closing the tech skills gap, though there may be hope on the horizon.
The pandemic worsened the market’s pre-existing lack of available tech talent, with Paul Davis, our Head of Technology Recruitment, commenting:
“The pandemic sparked a sharp but temporary surge in demand for IT professionals, leading to an unsustainable hiring boom. However, a mismatch between available skills and market needs persists, with many IT job openings going unfilled due to skill gaps.”
Paul Davis
Head of Technology Recruitment, Crimson
However, there is one welcome practice gaining momentum that might help close the gulf between available talent and desired expertise: skills-based hiring. Rather than rigidly adhering to higher education requirements, employers are starting to focus on demonstrable skills and relevant IT certifications.
We fully welcome this approach. It’s a move in the right direction to both close the skills gap and to cultivate more diversity in the field.
4- and 5-day return-to-office mandates hit the headlines here and there throughout 2024, yet the flexible working cat is well and truly out of the bag! We found that employers who insist on five-day in-office schedules do struggle to attract and retain talent.
Workers continue to favour flexible working, with Nash Squared data revealing that two days a week in the office is now the preferred norm for tech employees.
Predictably, demand for AI-related expertise is continuing to grow exponentially, highlighting a critical need for AI upskilling. However, looking more deeply at some of the data, we also see a need for corporate AI maturity.
In 2024, most organisations used AI in some way to boost productivity. This is a great use of the technology, but our transformation team see promise in using AI tools to digitally transform processes and data - that’s where we wager the real gains will be found.
Additionally, at our Innovation Conference in November 2024, we uncovered that 74% of IT leaders have implemented GenAI, but less than half had a formal AI policy. Though this shows a welcome effort by some to minimise the risks presented by AI, it also shows a stark lack of governance within organisations who aren’t guided by such a policy.
“AI is underpinned by data and the old rule for data warehouses—garbage in, garbage out—still applies today. It is perhaps even more relevant given the customer facing aspect of generative AI solutions.
[There is also] governance and regulation to consider, in addition to concepts such as an ethical AI framework in place. While this may seem onerous, these are the key ingredients that underpin developing and implementing AI solutions that can add significant benefit [...] to businesses, colleagues and customers.”
Ian Bobbett
Chief Data Officer, Crimson
So, what does this year’s salary data tell us? Thankfully, all of the salaries we follow have remained attractive, with few drastic dips or rises. This stands as testament to the IT talent market’s resilience and stability.
Though subtle, there are some notable permanent rate increases for those making their way through the ranks in testing, analysis, and cybersecurity. This shows that these skills are still crucial across the market.
Salaries for C-Suite and Directors remain robust, though minor adjustments reflect fiscal sustainability and long-term planning, perhaps informed by economic turbulence.
However, contractor rates are looking particularly interesting. Daily rates have seen patchy increases across the board, with significant increases being felt amongst PMO Analysts and Project Co-ordinators, reflecting the enduring relative scarcity of these skills.
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Nash Squared data from May 2024 shows signs of stability in the IT talent market. Just over half of respondents felt that their headcount would stay the same, and 36% were planning to expand their workforce.
Though 36% is lower than past data, both stats show a measured, sensible approach that may hint at a stable and confident future. Fingers crossed!
Despite the more cautious approach painted by hiring statistics, IT budgets stand resolute. 88% of tech leaders foresee stable or increased budgets (45% and 43% respectively). This indicates a firm commitment to technology and digital transformation.
Despite - or perhaps because of - their importance, AI and cyber skillsets are still notably short on the ground. As digital threats rumble on and the benefits of AI become better understood, we’re going to need a lot more specialists in these fields.
The AI hype train is trundling on, yet many organisations are still trying to uncover meaningful, hype-free use cases for the technology. We foresee this maturity improving in 2025 and anticipate in-house training/CPD initiatives to build workforce competency. IT professionals are particularly eager to develop their skills in AI/ML.
In line with established and expected trends, AI/ML practitioners, data specialists, and cybersecurity experts are most in demand, with cloud, DevOps and Sysadmin specialisms still going strong.
Yet there is one specialism that has notably made its debut in 2025’s report: put your hands together for AI Ethicists!
AI ethics expertise is going to be increasingly important as we teeter on the precipice of artificial intelligence’s “peak of inflated expectations” and head responsibly towards its mainstream “productivity plateau”.
“The technology sector remains one of the fastest-growing job markets in the UK, driven by constant innovation and the ever-changing demand for new skills. In 2025, success in attracting and retaining talent will hinge on finding the right balance between presenting an appealing proposition and ensuring work remains engaging and fulfilling.”
Louise Clarke
Head of Recruitment Services, Crimson
Three main career motivators this year are career progression, competitive compensation, and a strong company culture.
Tech professionals really value opportunities for continuous learning and development and seek clear pathways for career progression. As mentioned above, flexible working arrangements are still popular, with workers favouring employers who value work-life balance.
But some of the most heartening drivers are softer and more cultural. Technologists value workplaces where they can be heard, feel supported, and make a difference. Many British IT pros also strongly value efforts to make their workplaces more inclusive and sustainable, prioritising diversity and environmental impacts.
But this is just a quick glimpse into all of the observations, data, and insights contained within this year’s report.
Whether you’re benchmarking your own compensation against the market or you’re an employer looking to get the most out of your team this year, our IT Salary Survey is not to be missed!