The Brexit vote is already hurting tech salaries

UK might lose leadership position within European tech landscape, survey suggests

London

UK tech engineering salaries have plummeted since the vote for Brexit, with annual wages falling from 55,709 ($70,500) in May to 45,964 ($58,168) in October.

The figures are contained in investment firm Balderton Capital's latest research investigating the impact of the vote to leave the EU on the UK's tech industry, and are based on data from tech recruiter AngelList.

At the moment, London, Berlin and Paris dominate the European startup landscape, followed by Stockholm, Amsterdam, Madrid, Dublin and Copenhagen, according to the research.

The UK was the top destination for European tech talent in 2016, receiving 38% of tech job searches outside of job seekers' home countries, and has benefitted from access to global talent, with 22% of non-British workers in its tech industry.

However, while the average salary of an engineer working in the UK used to be higher than the average in any other European country, it has sunk following the Brexit vote, and is now equal to the role's average wage in Germany.

Other consequences once the Brexit vote is activated could make it far harder for the UK to hire EU workers, if it decides not to opt in to the EU tenet of freedom of movement, according to Balderton Capital.

The firm cited a current timespan of three weeks to hire EU tech workers, compared to a 16-week period if the UK extends Tier 2 visas to EU job applicants. 

James Wise, partner at Balderton Capital, said: "London has benefitted significantly from migration, with over 40% of the tech companies founded last year having at least one non-native founder.

"But the relative weakness of the pound since the referendum vote, together with developer's willingness to be mobile and work in smaller tech hubs, could reduce the relative advantage the capital enjoys without proper policy support post-Brexit."

Balderton's report predicts that if the visa quota of 20,700 people doesn't change, the UK's startup workforce could decline by 20%.

This might result in the UK's overall percentage of startups in Europe dropping from 31% to 24%, becoming nearly equal to that of France and Germany.

Featured Resources

How to scale your organisation in the cloud

How to overcome common scaling challenges and choose the right scalable cloud service

Download now

The people factor: A critical ingredient for intelligent communications

How to improve communication within your business

Download now

Future of video conferencing

Optimising video conferencing features to achieve business goals

Download now

Improving cyber security for remote working

13 recommendations for security from any location

Download now

Recommended

The IT Pro Podcast: Navigating Brexit data transfers
data protection

The IT Pro Podcast: Navigating Brexit data transfers

5 Feb 2021
So you want to work for a tech startup? It’s not all ping-pong tables and yoga
startups

So you want to work for a tech startup? It’s not all ping-pong tables and yoga

22 Dec 2020
The IT Pro Podcast: Is the sun setting on Silicon Valley?
Business strategy

The IT Pro Podcast: Is the sun setting on Silicon Valley?

18 Dec 2020
UK tech startups to watch in 2021
startups

UK tech startups to watch in 2021

15 Dec 2020

Most Popular

How to connect one, two or more monitors to your laptop
Laptops

How to connect one, two or more monitors to your laptop

25 Feb 2021
How to find RAM speed, size and type
Laptops

How to find RAM speed, size and type

26 Feb 2021
Ransomware operators are exploiting VMware ESXi flaws
ransomware

Ransomware operators are exploiting VMware ESXi flaws

1 Mar 2021