New data from Tenth Revolution Group has suggested tech employees expect 20 per cent per rises to remain in their roles in 2025. The research follows previous data highlighting the lack of salary increases as a top reason for tech professionals quitting, after one study found only 49 per cent of IT professionals plan to remain in their current roles in the next 12 months.
The research also found that those professionals planning to switch roles in the next 12 months expect an average 25 per cent salary increase to justify the move.
As the digital skills gap continues to grow across major tech stacks including Microsoft and AWS, effectively tackling this issue requires the IT industry to attract new talent and retain existing professionals by offering sustainable career paths.
For employers, these numbers highlight the importance of proactive retention strategies, as well as being mindful towards what doesn’t necessarily work. A well-timed salary adjustment of 20 per cent could prevent a costly cycle of turnover, recruitment, and onboarding, while the 25 per cent increase desired for new roles emphasises the premium tech professionals place on the uncertainties and risks associated with job changes in today’s market.
“IT professionals value stability and growth, but they also know their worth in a market driven by constant innovation and demand,” Tenth Revolution Group Chairman and CEO James Lloyd-Townshend commented. “This data highlights that employers have an opportunity to retain talent by aligning pay increases with industry expectations before employees feel the need to seek external opportunities.”
James went on to explain that the 20 per cent pay increase can be a benchmark for retention strategies, helping companies stay competitive in the battle for tech professionals by keeping hold of top talent. “And at the same time, the 25 per cent threshold serves as a reminder of what it takes to compete for new talent in the market. By proactively addressing pay expectations, businesses can position themselves as employers of choice in an increasingly dynamic industry.”
While salary is a key driver, employers should not overlook non-financial incentives like career progression, skill development opportunities, and workplace culture. By addressing these factors alongside competitive pay increases, businesses can build a more robust retention strategy and reduce reliance on reactive counteroffers.
Progression: A lack of growth opportunities leaves professionals feeling stagnant or undervalued, making career advancement a key factor in long-term retention. Structured and well-defined career pathways help employees envision a long-term future with their employers.
Purpose: Tech professionals thrive in roles where they feel engaged and connected to a broader mission. Embedding purpose at leadership level and communicating it throughout the organisation ensures employees stay aligned with the company’s vision and remain motivated.
Culture: Burnout is a persistent issue in tech, and businesses need to prioritise creating a culture that supports employee wellbeing. From addressing work-life balance to managing stress at an organisational level, fostering a healthy environment is critical to retaining talent and avoiding costly turnover.
Pay always has, and always will be, a key difference maker in winning the race for talent. These findings demonstrate the impact a proactive approach can have on an employer’s retention success—just be sure it doesn’t come at the cost of at your team’s other priorities.
