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UK salaries trail the US as businesses brace for Autumn Budget impact, Deel data reveals

With hikes to National Insurance announced during the Autumn Budget set to increase the cost of doing business, UK businesses are bracing themselves for possible reduced investment, hiring freezes, lower pay, price increases and jobs moving overseas – particularly with markets like the US strengthening.

New global salary data from Deel, the all-in-one global hiring and HR platform, sheds light on how compensation in the UK is lagging behind the US — a gap that could have significant implications for UK businesses striving to remain competitive on the global stage during these uncertain times.

According to Deel’s analysis of hundreds of thousands of contracts, UK salaries continue to fall short of their US counterparts, especially in technical roles.

 

Key findings from the data include:

  • Stagnant salary growth in the UK: While technical roles in the US have seen salary increases of roughly 15% over the past 18 months, the UK has only experienced a modest 3% rise.
  • Compensation gap: The average salary for a full-time employee (FTE) in the US stands at $125,000, significantly higher than the UK’s average of $102,000 — a gap of $23,000.

In terms of specific roles, UK professionals face even wider disparities compared to their US counterparts:

  • UK Software Engineers earn $123k on average, up just 2% year-on-year (YoY), compared to US Software Engineers who saw a 68% increase, bringing their average salary to $131k.
  • UK Product Managers’ salaries dropped by 10.9% YoY to $116k, while US Product Managers enjoyed a 23.2% YoY rise, earning $144k on average.
  • Account Executives in the UK saw a 5.5% YoY drop to $104k, compared to their US peers who now earn $100k after an 11.1% increase.

 

Despite these challenges, there is some optimism when it comes to gender representation and compensation. In the UK, female representation in technical roles has seen a notable increase, signalling progress towards closing the gender gap. However, female workers globally still earn less than their male counterparts, with women in technical roles earning on average $88k in the UK compared to $109k for men. The US shows a similar trend, with women earning $128k versus $150k for men in technical positions.

 

Matt Monette, UK Country Manager at Deel, comments on what this means for UK businesses:
“Deel’s data underlines the significant challenges that UK businesses face in attracting top talent, especially when competing with US firms that can offer more competitive compensation packages. With the Autumn Budget introducing changes that could further increase the cost of hiring, it’s crucial for UK businesses to give a holistic review to their approach to employee engagement and benefits. We want British businesses to stay competitive, and that includes how they attract and retain top talent against a global landscape.”