2025 Compensation Trends Report
Discover how top European tech companies are managing compensation – including salary increases, hiring trends, attrition rates and equity strategies.
Will 2025 be the year of cautious optimism?
After a record-breaking few years that saw huge waves of hiring, funding, and attrition – tech companies across Europe are now adopting a more balanced approach, combining cautious strategies with levels of optimism.
This year, leaders are focused on sustainable growth and long-term stability – an outcome shaped by the tech era of hyper-growth and mass layoffs. We can see this in Ravio’s survey of over 90 People and Reward leaders, where 50% of tech companies plan to be more measured with their growth investments in 2025.
Yet, there are positive signs emerging: early stage companies are seeing the highest rates of salary increases and hiring, and 65% of survey respondents are planning to expand headcount in the next 12 months – up from 44.8% last year.
We’ve analysed over 1000 companies and +300,000 datapoints to bring to you the most up-to-date, realistic view on compensation today.
Keep scrolling to explore insights from the 2025 report ↓
Hiring rates have dropped by 15% YoY for all tech companies across Europe
Hiring rates are down overall by 15%, with growth stage companies seeing the steepest decline. Late stage companies continue to have the lowest hiring rates, as they focus on cost efficiency and stability.
Despite this, the demand for top talent remains, particularly in Engineering. Our report reveals that 40% of companies are still prioritising hiring Engineering talent in the next 12 months, signalling that even in a more cautious environment, the demand for these skills remains high.
Attrition rates are down significantly across every stage of growth
Attrition rates have dropped significantly across European tech, with overall rates down by 33% compared to last year.
Growth stage companies have the lowest rates of attrition at 15% this year, while early stage companies have the highest attrition rates at 18% this year.
In terms of job functions, Engineering has the lowest attrition rate, signalling strong retention in this critical area. On the other hand, the People function continues to experience higher levels of turnover, underscoring ongoing challenges for HR teams.
Salary increases are up at early stage companies, but down everywhere else
Overall, the size of salary increases are down by 14% compared to last year, with the average base salary increase across all companies sitting at 5%.
Early stage companies are bucking the trend, increasing the size of salary increases by 7% YoY, showing optimism and the results of VC funding in this segment.
The report also highlights differences across job functions, with Engineering, Marketing, and People all seeing a significant drop in the size of salary increases as companies move away from inflated tech boom salaries.
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