Ashdown Group releases 2024 IT salary guide amid economic shifts

The Ashdown Group has released its IT Salary Guide for 2024, providing fresh insights into the current job market and salary trends within the information technology sector. According to the report, recruitment demand has decreased significantly due to economic slowdown and cost-cutting measures by both employees and employers. The volume of job postings fell by 27% between January 2023 and January 2024.

Despite a minor rise in inflation to 4% in December 2023, there is optimism for an impending rate cut by the Bank of England, which may offer businesses the stability needed to focus on growth and investment. Although the economy is nearing a technical recession, the number of employed adults remains high, and the OBR's predicted mass redundancies have not occurred to the extent previously forecast.

The EY Item Club anticipates a 1.25% dip in interest rates for 2024 and has revised its GDP growth forecasts upwards, suggesting a potential positive shift for the year ahead. One notable trend highlighted in the report is that salary increases for those switching jobs are generally more substantial than for those remaining with their current employers. This trend is expected to lead to greater job turnover and increased hiring activity in 2024.

Companies are advised to closely monitor high-demand skills within their industry as they navigate salary negotiations. The guide emphasises that the specific skills in demand, rather than headline inflation figures, should drive salary decisions for the coming year. Understanding market-appropriate salaries for key roles is crucial for organisations looking to attract and retain top talent.

Data-focused skills continue to be highly sought after, with many organisations leveraging data for decision-making and employing AI tools for data interpretation. Despite AI's prominence in the media, only 4% of executives plan to reassess their company roles due to this technology in 2024. However, a significant 80% of CEOs believe that generative AI will provide operational efficiencies in the future.

Critical skills shortages persist in areas like software development, software testing, cyber security, and data-centric roles. As job market activity is expected to increase throughout 2024, businesses may find it challenging to secure these essential skills, potentially impacting their competitive advantage.

The rapid pace of technological advancement poses additional challenges for companies aiming to benefit from new technologies. IT departments are under increased pressure to maintain up-to-date skills, identify future requirements, and address existing skills gaps.

Cybersecurity remains a critical concern, with the World Economic Forum predicting the global cost of cybercrime could triple over the next three years, increasing from USD $6.5 trillion to USD $20 trillion. Consequently, investment in cyber skills and defences is expected to rise. Companies face a constant battle against increasingly sophisticated cyber threats, and small to medium-sized businesses may find it particularly difficult to maintain robust cyber defence strategies amid ongoing skills shortages.

Data utilisation continues to grow in importance for decision-making across various business departments. The creation of data-led teams and positions such as Chief Data Officer, Data Engineer, and Data Scientist is becoming increasingly common as organisations strive for improved outcomes. The Ashdown Group's 2024 Salary Guide aims to support businesses in meeting employee salary expectations and understanding employment trends, thereby aiding in the attraction and retention of talent in the coming year.