The UK economy may be struggling for growth but its technology sector is outperforming — not just in output but also in its appeal to workers.
Tech groups feature heavily in the FT’s latest ranking of the country’s best employers and make up half of the top 10 companies.
Executives and industry observers say that as well as good pay and benefits, the sector’s attractiveness stems from its mix of skills, relevance, prospects and purpose in an era of heightened anxiety about job security.
“The narrative of the tech sector is very upbeat compared with many others,” says Lynda Gratton, professor of management practice at London Business School and founder of consultancy HSM Advisory.
“If people feel they’re in a company that’s going somewhere, firstly it means they’re going to have a job. But if they’re in a company that’s growing it also means their career has the potential to grow with it — and their skills will also be building.”
Leon Butler, UK and Ireland general manager at IBM, which came fourth in the FT ranking, echoes the sentiment.
“It’s great to be able to work for a company that . . . is recognised to be doing well,” he says, adding that this brings “not only a lot of pride, but also a lot of energy” to the workforce.
Growth in the UK tech sector has far outstripped that of the broader economy in recent years, averaging 4.2 per cent a year since the start of 2010, Office for National Statistics figures show, against average annual GDP expansion of 1.6 per cent. Employment in the digital sector grew from 1.39mn filled jobs in 2014 to 1.77mn in 2024, according to the latest figures from the Department for Science, Innovation and Technology.
The boom has brought attractive levels of pay and generous benefits — a typical UK programmer is paid 40 per cent more than the average worker — while a flexible approach to office presence is widespread.
But also crucial to the sector’s appeal is training in the skills that some believe will offer a degree of protection from any AI-driven reshaping of the employment landscape.
“Tech companies have been leading in terms of the way they think about investment in employees,” says Katie Obi, chief people officer at OneAdvanced, a Birmingham-based enterprise software specialist that ranked sixth. “Investment in skilling, and investment in pay and benefits — offerings to make the environment work really well for people.”
Obi points out that the sector recognises the need for constant updating of skills: “It’s difficult to sit here even now and say ‘these are going to be the skills that are valuable in two years’ time’.”
Gratton also highlights the notion that being part of the tech sector may be a hedge against AI disruption.
“People worry that they’ve not got the right skills,” she says. “They worry that AI is going to take their job. And I think the feeling is, if you’re in a tech sector job, then you’re more likely to be trained in AI-focused skills. So you’re more likely to build the sort of skills you know will be required.”
However, there are signs that tech jobs are also particularly vulnerable as the use of AI spreads for tasks such as coding. A host of major companies have announced thousands of lay-offs explicitly linked to AI, the FT has reported.
Beyond personal development, Butler highlights the breadth of work available in the tech sector.
“Our teams are able to work on some amazing projects including critical infrastructure”, he says, citing IBM’s recent contract to develop a new communications network for the UK emergency services.
But he also notes the company’s partnerships with the Wimbledon tennis tournament and the Ferrari F1 team, saying “IBMers get to do some pretty cool things as well . . . that adds to the culture and the experience.”
Butler stresses the importance of government support for the sector, referencing the recent decision to offer free AI training to 10mn people in AI by 2030, via a programme in which IBM is a partner. “I think government have really stepped forwards on this,” he says, adding that the creation of a national, centralised AI Skills Hub had “been an amazing step forwards”.
Obi also notes the importance of a “purpose connection” with work, citing her company’s work in sectors such as healthcare, education, government and housing.
“People are really interested in coming to work to solve those problems for our customers — and for society too.”
But while the sector’s growth has brought opportunities, it also carries risks, according to Gratton.
“What you notice with tech firms is they’re very quick to grow and very quick to shrink — they have a very flexible labour market and have no problems in bringing people in and letting people go,” she says.
“So that’s the deal. You’re going to have a great time, possibly. You’re certainly going to learn new skills. But you might not keep your job.”
However, for Butler, the rise of the tech sector — and the increasing role of technology in people’s lives — means its appeal is here to stay.
“It’s the fastest-evolving industry in the world — innovation is accelerating every day,” he says.
“It shapes how societies are communicating, how we learn, how we work, how we solve problems. And whereas many years ago, maybe it was less relatable, it’s now really intuitive. People relate to it because every single day we’re dealing with technology.”
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