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Tech Labour Market Update 2024

What are the top workforce challenges for tech companies in 2024?

Compensation is now at the top of the agenda for European tech companies, according to ‘The State of European Tech’ report by technology investment firm Atomico.  

Salaries, Bonuses and Benefits

In the current macroeconomic climate, with both companies and individuals under pressure from inflation, energy costs, managing budgets and the general cost of living, the challenge of managing salaries, bonuses and benefits for employees is now the top priority.

We have seen a cooling of the UK labour market in the last quarter of 2023, although the market overall remains strong for tech talent the market for tech contractors isn’t as strong.

Candidates with in-demand skills in AI, machine learning, data science, NLP, Python, Java, AWS etc. are available in greater numbers than since 2019, although their salary expectations are high. This can present challenges for companies with tight budgets, defined salary bands and team members aware of the market rates.

For example, here at RWA we are aware of AI Engineers with c.2 years’ experience, with the most cutting-edge skills when twinned with MSc/PhD qualifications might realistically achieve £90-100k + benefits.

Remote Working

As well as the challenge of managing compensation, the report also points to the increase in remote working since the end of the pandemic leading to huge cultural changes and challenges for company founders/leaders in managing remote teams.  

Today, each startup/SME RWA partners with has its own unique way of working: most offer hybrid remote with a varying number of days in the office, from 1 day every month to 4 fixed days per week. What is clear is that companies with 100% office-based tech teams will have a smaller talent pool of candidates to hire from. 

The challenge of finding the best solution for both the company and team members ranks in the top two for the second year running.

At RWA we believe we have some answers

As a starter, we are happy to work with clients to brainstorm an approach that is tailored to your particular strengths on the ground; to compete on your terms.

Get ahead by reaching out to RWA to chart a path through these costly, time consuming, job market realities. Find out more about our cutting edge recruitment solutions or request a call back.