Salary increases in 2025: What to expect across European tech
What is the average salary increase in 2024? How will salary increases change in 2025? What percentage of employees typically receive a promotion, and how much does that impact their pay rise?
These are some of the key questions on the minds of HR and Reward leaders as they navigate the current compensation review cycle.
With rising expectations and cautious growth plans, competitive salary increases are essential to attract and retain top talent. Yet, balancing these increases with tighter budgets and shifting market trends remains a challenge for European tech companies.
According to our latest Compensation Trends report, 69% of European tech companies cited uncompetitive compensation as their top barrier to attracting top talent. This ranks higher than issues like competitive benefit packages (32%) and a weak employer brand (27%).
Having up-to-date salary benchmarking data is crucial for HR teams to stay competitive, but with market conditions in constant flux, traditional annual salary surveys from providers like Radford and Willis Towers Watson are falling short. Companies today need more agile, real-time compensation data to adjust quickly and remain competitive in a fast-paced environment.
