Recent growth in the IT recruitment sector has been spurred by the increase in the number of technology jobs – approximately 30% between 2010 and 2015 buoyed by healthy investment flows. The number of digital technology companies in London is expected to rise to 45,000 and create more than £12 billion of economic activity.
Companies focused on big data, ad tech and fintech are seeing some of the biggest growth. In particular, with consumers now warming to the idea of alternative lending the fintech revolution is well underway. New fintech contenders who launched in recent years are making significant headway benefiting from less red tape than traditional banks, attractive employer branding and having more nimble scalable operations. However, a number of high profile banks have taken note and now heavily invest in fintech ventures as well as their own proposition and product development, creating opportunities for IT professionals. This is set to continue in 2016.
However, Morgan McKinley has found that large companies and industry giants are actually losing out on the top IT talent to SMEs and startups in the sector. Rather than competing on salary, small startups are able to offer stock options and benefits, such as flexible working hours and the ability to take on more responsibility and innovate, which are proving to be attractive to professionals.
Cem Baris, Associate Director – Technology, Morgan McKinley commented:
“London is a very attractive destination and a growing number of technology companies are headquartered here, from large corporations to startups declaring the capital the technology epicentre of Europe. There is a renewed confidence in the economy within the sector and IT professionals are reaping rewards with many enjoying salary increases.”
However, there are concerns that future restrictions on immigration may put a brake on this growth. In addition, there have been a number of initiatives to teach IT, coding and digital at schools and university with the belief that an increased interest at an early age will filter through but until qualified graduates come onto the market there will be a scarcity of professionals leading to war on talent.”
“Employers will find it difficult to attract and retain the most skilled employees and therefore need to work hard to ensure their offering is compelling and goes beyond pay alone.”
Morgan McKinley 2016 UK Information Technology Salary Guide offers key recruiter information covering salaries, employment trends and hiring advice for jobseekers and employers alike.