Tech sector narrowing salary gap on banking industry, 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 Emolument.com.
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."