Figure Baltic Advisory ICT sector survey in Estonia
8/13/2024
This year's Figure Baltic Advisory compensation survey of the information and communications technology (ICT) sector shows that wage pressures are no longer as strong and that this year's salary growth has been almost half of that of the last year. However, it is still difficult to find new staff and for some jobs the wage rally continues as before.
The 2024 survey covered 116 ICT organisations and collected salary data for a total of 16 055 jobs. "Salary pressures in the ICT sector are showing signs of easing. Wages are still being raised, but at a slower pace and to a lesser extent," said Irja Rae, partner and Head of the Compensation Team at Figure Baltic Advisory. This year, 76% of ICT workers saw their wages rise. Last year, 89% of employees in the sector enjoyed a pay rise. Compared to last year, the pace of wage growth also slowed. Average wage growth is 7,5% this year, compared to 12.9% last year.
The shortage of staff remains a major factor affecting wages in the ICT sector. This year, 57% of the participating organisations have increased their headcount, and 71% plan to do so by the end of the year. 99% of respondents also plan to increase their employees' monthly basic salary in the next 12 months. "ICT professionals therefore have reason to expect salary increases in the coming year," said Rae. "In a situation where there has been a shortage of staff for several years, companies are flexible and highly value talent that they already have. This is demonstrated by both the continued salary increases and the extreme flexibility in terms of working conditions and benefits. The ICT sector is characterised by the fact that the standard in the sector provides for the possibility of remote work and flexible working hours. These benefits are offered to their employees by virtually all the organisations surveyed. More than 80% of the employers in the sector also allow part-time working, organise a variety of social events, offer their employees sporting incentives and food and drink at the workplace, and gift-giving for special occasions is common," Rae added.
The highest median salaries for expert level employees are in cloud services, systems architecture, software development, data technology and data science. However, salaries for entry-level professionals are growing faster in several ICT fields. "This can probably be interpreted as the sector desperately needing more people, and in order to attract new entrants, salaries are being raised in advance in areas where the shoe is particularly tight. For example, in the field of data analytics, salaries for entry-level professionals rose by 16% this year," Rae said. The environment is changing fast, there is a shortage of skills in new or emerging fields, and when everyone needs people with certain skills at the same time, these expectations are immediately reflected in salary levels. As of 1. June 2024, the median basic salary in the ICT sector was €3 919, and the median annual salary for the whole year (including performance fees) was €49 186.
The ICT sector pay survey reflects Estonian pay trends and practices. It includes information on pay levels and practices in different occupations. The survey is carried out by Figure Baltic Advisory as part of a general pay survey which has been conducted in all three Baltic States since 1995.
The aim of the survey is to provide organisations with the objective information they need to make smart decisions about employee remuneration. The survey provides an overview of the current state of the pay market, compares changes with the previous year and describes organisations' expectations and assessments of employee pay.