The strength of the tech industry significantly increased in the past few years, especially with the emergence of remote work and continued digitalization. Organizations realized the necessity of transforming and together with the fast-changing technological advancements this led to shifts in the industry’s dynamics.
The rising demand for tech development led to more jobs and startups surfacing, and as a result, the U.K. tech industry has raised nearly £100 billion in investments from venture capital firms in the last five years alone.
This growth can also be seen in rising tech job openings and the compensation being offered. For example, in Manchester, the number of jobs increased by 164.6%, and according to our 2022 U.K. Tech, Media and Gaming survey report career level (P3) tech developers are paid an average of £60k in the UK.
Additionally in 2022, tech development roles comprised 23% of all job vacancies in the U.K., making talent with tech skills some of the most sought-after people in today’s workforce.
Historically, the gaming industry performs well compared with other industries during crises, which was evident during the COVID-19 pandemic. Reportedly, the sector expanded by 26% from 2019 to 2021. In 2020, the game industry’s global revenue reached $155 billion, and is predicted to reach $260 billion by 2025.
Regarding compensation for these roles there are many factors that affect salary such as level of expertise, the desired skill set for the specific role, and the talent market.
When comparing pay levels for technology product development positions against those focused on game development our 2022 Tech, Media and Gaming Compensation Survey results show that in EMEA and North America technology product development roles tend to show an average premium over game developers. For example, in the U.K. the base pay for the technology product development function (TPD) at the managerial level is 19% higher, and professionals 12% than the game development function (TPG). We see a similar base pay trend in Sweden and Canada. In Sweden, the base pay of managers in technology product development is also 19% higher than managers in game development but is just 3% higher for professionals. Meanwhile, in Canada, professionals in technology product development have 20% higher base salary than those in game development.
Looking into the Asia Pacific region, the trend changes by country. For example, in Taiwan, the base salary of professionals in technology product development is 19% higher than those in game development, whereas in Vietnam base salary for professional game developers is 11% higher than tech product developers.
Globally, there has been an increase in the popularity of game development roles as there are now more ways in which gaming can be monetized, and this resulted in an upward trend of salaries in the game industry in some markets due to increased competition for talent with the right skills.
Bar chart showing change in base salaries in UK tech roles from the 2021/2022 UK Tech, Media, and Gaming surveys: Computer Game Development and Operations - 11.02%, Technology Product Development - 5.38%, Data Science/Analytics and Business Intelligence - 5.10%, Technology/Systems Consulting - 5.09%, IT Administration - 4.77%, IT Development - 4.46%, Business Consulting - 4.33%, Information Technology - 4.01%, Technical Customer Support - 3.10%, External Project/Program Management - 2.79%
Source: 2021/2022 UK Tech, Media, and Gaming surveys
In this tight labour market considering a skills-based approach can help organizations attract and retain the right talent, as well as upskill current employees to meet current and future skills demand. The skills that are most needed in game development include the following:
If these are difficult to find in the market you can also consider talent sources beyond existing game developers, for example talent from a programming background and those from a creative/artistic background. Tech developers who already have strong programming skills can move into game development by acquiring skills such as a 3D Game Engine skill. Whereas the creatives who have design basics can move into Game Design or become a Gaming Artist by acquiring skills related to 3D Modelling / 3D Sculpting. Understanding this interlink and potential for upskilling can help organizations expand their potential talent pool.
During these volatile times, getting compensation right for your workforce is challenging. You can start with these focus points in crafting pay plan designs for your tech talent:
To get the leverage that you need, it is imperative to keep a close eye on the latest workforce and rewards data and trends and to consult experts that provide solutions to your unique needs.
