If it’s true that facts and data don’t lie, then UK organizations in the tech, media and gaming (TMG) industry are in a heated battle for competition – particularly among talent in digital and content creation as well as management. In an examination of emerging pay trends from our 2023 UK TMG survey report, these disciplines are among the most sought.
It’s no coincidence that TMG jobs with higher base pay are the same as those that are in demand. The roles seeing the highest pay rates include those such as:
For example, base salaries for AI generalists (which falls within IT development) have increased by 8.9%, and those in cloud computing engineering (also within IT development) have seen their base pay climb by 9.2% (see Figure 1).
IT Development (AID)
Tech. Product Development (TPD)
Data Science & Business Intelligence (AEM)
Digital Content Production & Management (MTC)
Project/Program Management (APM)
Media Business Affairs (MBL)
Figure 1. Shows median base salary increases on a constant-incumbent basis
Source: WTW 2023 Tech, Media & Gaming Survey, UK
Also worth mentioning are roles under content licensing and acquisition within media business affairs. Those roles have seen a 14.2% increase in base pay, driven by the mounting pressure to own and create content and intellectual property. Another field to watch is human resources, where diversity, equity and inclusion (DEI) roles have experienced a 17.4% increase in base pay. This indicates an increasing need for DEI to be integrated across UK’s TMG organisations.
It isn’t surprising that UK’s TMG organisations tend to offer new-hire premiums to more experienced candidates, but it is noteworthy that there are nuances among levels of expertise. For example, career (P3) and specialist (P4) levels saw their 2023 premiums increase by 2% over 2022. Meanwhile, those in the expert (P5) and recognized expert (P6) levels saw their new-hire premiums reduce slightly by 2% and 5%, respectively (see Figure 2).
However, these results do not erase the fact that companies are still willing to pay premiums to attract experienced candidates if it means not hiring more junior-level individuals who need to be trained. Also, some TMG functions have raised their new-hire premiums. Leading the pack is technology product development, where new-hire premiums jumped from 8% to 13%, drive by software and hardware development disciplines (see Figure 3).
| Function | Premium increase |
|---|---|
| Technology product development | 13% |
| IT development | 12% |
| Technology/systems consulting | 11% |
| Media business affairs | 11% |
| Advertising creative services | 10% |
| Research | 9% |
| Sales, marketing and business development | 9% |
| Audit and financial/business controls | 8% |
| Information technology | 8% |
| External project/program management | 5% |
Work location does have an impact on total guaranteed compensation (TGC) across the sector, according to the results of the survey. Using national as a base, the London premium has declined slightly, dropping by 3% for Central London and 1% for Central and Outer London combined. East Anglia is noteworthy, as premiums remained consistent with the national level (see Figure 4).
Though remote work arrangements continue affecting the number of in-office days and compensation, our data found that job location still affects pay.
The value of annual incentives for both professional and sales bands fell below target in 2023. In the professional band, the median value of actual incentives fell from a peak of 12.2% in 2021 and 2022 to about 10% in 2023 – closer to annual incentives granted in 2019 and 2020 (see Figure 5).
Yet, depending on career level, the picture is mixed at the 90th percentile. Actual incentives received for roles at the intermediate level (P2) have fallen below target, while career professionals (P3) and recognized experts (P6) levels have reached target. Meanwhile, actuals for specialist (P4) and recognized expert (P6) levels have exceeded target (see Figure 6). Generally, though, payouts tend to be reserved for top performers across organisations.
The same broad pattern also appears in sales band roles. Notably, incentives for the sales band reached a peak 30% in 2023, the highest in five years (see Figure 7). Regardless, this still is below target.
When looking at specific career levels, the median value of incentives fell below target for all except those in the career (S3) and expert (S5) levels. In contrast to the professional career levels, at sales band actuals far exceeded targets at the 90th percentile (see Figure 8).
Long-term incentives (LTIs) are common among TMG organisations, especially those with U.S. headquarters. When compared to other industries, the percentage of LTI eligibility across UK’s TMG companies tends to be the same, except for the biopharmaceutical and life sciences (BPLS) industry, where LTI eligibility is highest. However, as a percentage of base salary, LTI tends to be the highest in the TMG sector (see Figure 9).
This pattern continues to the professional band, where LTI is considered for junior levels to encourage retention as well as reduce pressure on fixed costs caused by increase base salaries each year (see Figure 10).
Comparing TMG pay trends against the general industry also is worthwhile to explore.
TMG organisations are turning to variable pay and LTIs to encourage high performance, promote retention and reduce the strain of fixed costs on salary budgets. In a time of persistent inflation and economic uncertainty, cash is king in the minds of most employees. To address employee expectations while maximizing their budgets, TMG companies are leveraging other components of their total rewards package to find and keep the talent they need to move their business forward.
