Tech sector closing in on banking industry wages, research finds

Tech sector closing in on banking industry wages, research finds

Amazon is handing junior staff hefty pay packets worth more than £90,000, as the tech sector narrows the salary gap on the banking industry, research has found.

The online retail giant is offering entry-level salaries worth £75,000, coupled with an annual bonus of £15,000, according to the salary benchmarking site

The study revealed Apple was the second largest tech payer, with starter staff pocketing a £72,000 salary and an £11,000 bonus.

The research suggests the technology industry's aggressive pay policy for junior staff is closing in on the financial sector, although tech bonuses are still lagging behind their counterparts in the City.

Alice Leguay, Emolument co-founder and chief operating officer, said "With glamorous brands, novelty offices, breakthrough managerial styles, the leading technology firms were already attractive employers.

"Now, with an aggressive push on junior pay, they are outpacing traditional financial and professional services firms when it comes to campus pulling power.

"Working for a top investment bank no longer epitomises the graduate dream, especially since financial industry remuneration has taken a bashing in the last few years, in line with bankers' reputations.

"Banks are trying to shake up their corporate cultures and offer more flexibility and work-life balance, but cannot compete with technology giants making their staff feel they are making a social mark on their time."

The firm analysed the global salary data between 2012 and 2016 of 641 entry-level staff with between zero and three years' experience, and 504 senior employees with 10 to 13 years' experience.

It found that Google offered a junior salary of £59,000, topped up with a £14,000 bonus, while Microsoft provided a total pay packet of £46,000, comprising a £40,000 salary and a £6,000 bonus.

It added that while the major telecoms companies - including BT and Vodafone - pay "very respectable starting salaries" of £30,000 with no bonuses, they fail to match up to their tech rivals.

However, the gap becomes smaller at a senior level, with Apple offering a £74,000 salary and a £23,000 bonus and Vodafone providing a £65,000 salary and a £5,000 bonus.

The study said: "While bonuses in technology remain smaller than in banking, the diminishing pay differential added to the on-trend corporate culture and a flexible working environment with better work-life balance and many perks make up an irresistible package for Generation Y."

More in this Section

Coronavirus: Global oil demand to fall first time in a decadeCoronavirus: Global oil demand to fall first time in a decade

Four Star Pizza raises dough for UK expansionFour Star Pizza raises dough for UK expansion

Five Guys records €1.1m lossesFive Guys records €1.1m losses

More weedkiller lawsuits but this time it’s not RoundupMore weedkiller lawsuits but this time it’s not Roundup


FOR many of us, health insurance is high on the list of financial products which that we tend to avoid changing out of fear and confusion.Money and Cents: cover all the bases for best health insurance

Anya Taylor-Joy plays the titular Emma in the latest adaptation of Jane Austen’s romantic comedy about the spoilt, meddling matchmaker who means well, says Laura HardingAnya Taylor-Joy: ‘Emma is my little monster’

Setting sail to travel the world as part of your job has a romance all of its own but for marketing manager Máire Cronin and engineer Mark Crowe it led to love.Wedding of the Week: Cruise ship co-workers Máire and Mark sail off into sunset

One of the genres that has seen exponential growth in the podcast world is the sleepcast. Open Spotify on your phone in the evening and a number of offerings are available, writes Eoghan O'SullivanThe Podcast Corner: podcasts that will put you to sleep

More From The Irish Examiner