Original post by By James Seechurn, Consultant – The Radford London Team

 

Employees of London-based tech companies can expect a 13% premium on the national average according to the latest figures from our Global Technology Survey (GTS) UK database of over 87,000 incumbents.

The diagram below demonstrates the average regional base salary as a percentage of the UK average.

At face value, this may seem like an attractive uplift for employees working in the capital however the pay differential has remained consistent with that of last year, whilst the cost of living continues to rise.

The latest CPI inflationary figures of 4.5% from the IMF across the UK eclipse the year on year average salary increase figure of 3.2% taken from our Q3 2011 Trends Report.

Furthermore, rental prices in London have increased by 12% since August last year resulting in the average rental being 52% more expensive than the rest of the UK.

Large year-on-year increases in the cost of living coupled with stifled pay increases for many tech firms means that the challenge of attracting and retaining talent is at the top of the agenda.

Structuring short and long-term incentive programmes whilst fostering effective employee engagement is essential to address these issues.

For more information please go to www.radford.com/emea, or e-mail us at emea@radford.com.