Czechia needs more IT experts, but wage growth is stagnating

The demand for IT specialists in the Czech Republic continues to surge, driven by the boom in IT and business services, growing cyber attacks, and digitalization of companies and state administration. However, wage growth for many IT professions continues to stagnate.

According to a comprehensive salary survey by staffing agency Grafton Recruitment, SAP system consultants, cloud specialists, data analysts, and developers are the most sought-after job positions. Most positions reach a monthly six-figure salary, though wages have recently been stagnant—despite high demand for IT employees.

"Wages that are rising are mainly only seen in employees whose base salary was at the lower end of the wage range for their given position and region [of employment]," explained Martin Malo, director of Grafton Recruitment.

The lowest wage found in the survey was CZK 38,000 for a second-level technical support specialist in the Zlín region. In several Czech areas, manual data testers have a lower salary range of CZK 40,000. Junior programmer positions have a lower limit of CZK 45,000 in the Pilsen or Zlín regions. 

The survey also found that companies are increasingly combining roles and preferring recruitment to the status quo. This trend is driven by the need for IT specialists to possess a broader range of skills. Additionally, the preference for flexibility among IT specialists is on the decline, with many opting for employment over freelance work.

Despite efforts to equalize wage levels across the Czech Republic, Prague and Brno still offer the highest salaries. The IT director, software development director, software architect, and IT manager are among the highest-paid positions, with salaries exceeding CZK 200,000 in some cases.

Malo noted that companies are limiting remote work and preferring employees to return to offices. "Although it is a relatively bold decision, and companies risk an outflow of employees or less interest from applicants, it seems that it has not caused any significant resentment among employees," he said.

The survey also highlighted the growing demand for business services, which is characterized by the wide adoption of technologies, including robotic automation and artificial intelligence (AI). Data from the Association of Business Service Leaders in the Czech Republic showed that companies that deployed AI grew at twice the rate of the industry average in terms of number of people.

Overall, the Czech IT sector is expected to grow by 15,000 workers this year, reaching 175,000 employees. ABSL managing director Jonathan Appleton said that the business and IT services sectors are on track to employ 200,000 people by 2025.