Salary compression, offer stacking, and the Python hiring squeeze

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Your read on the market is directionally right, and the important bit is this: it is a two-speed market.

At a macro level, the UK market is still soft. Reuters reported Adzuna vacancy numbers fell in December, with vacancies down 15% year on year, while average advertised salaries were still up 6.8% year on year. That is a weird mix, but a very real one: fewer roles overall, higher pay pressure where companies need results fast.

Indeed Hiring Lab also flagged that UK posted wage growth slowed to 4.3% in December, down from 5.7% three months earlier, which supports the idea that broad wage growth is easing even while certain specialist roles stay expensive.

Then you zoom into tech and the picture changes again.

Ravio’s 2026 compensation report says median salary increases across European tech held at 5.0%, hiring rates were broadly stable at 28.6%, and the UK still had the highest absolute hiring rate at 32% despite cooling from prior peaks. The key line is underneath that headline: AI/ML hiring grew 88% year on year, with AI/ML roles carrying a 12% pay premium on average.

That is exactly how you end up with this market behavior:

Not because the whole market is hot, but because the top slice is.

Gartner found 44% of prospective candidates received multiple job offers in 1Q25, which was down from the peak two years earlier. So yes, the frenzy is lower than peak mania. But the more important datapoint for today is that 53% of candidates said higher compensation was their main decision driver when accepting an offer.

That is the bit hiring managers feel in practice.

Even when multiple-offer rates are lower than the peak, comp sensitivity can still be high. In other words, fewer people may be juggling three offers, but the ones you actually want are still choosing hard on pay, growth, and speed.

Reuters also reported on 9 February that UK starting salaries for permanent staff saw their biggest rise in nearly 18 months, while permanent placements were still contracting, just at a slower rate. The REC/KPMG survey also noted vacancies fell for the 27th month in a row. That is another two-speed signal: demand is cautious, but pay for new hires is still being used as a lever.

The runway concern is real, and you are not imagining it.

Ravio explicitly notes early-stage companies are dialing back salary increases while prioritising runway extension, even as AI talent competition remains intense. That suggests a likely 12-month split:

That last point matters. If a company cannot compete on base salary, it needs to compete on:

Otherwise, they are just "the lower offer." Human nature remains consistent in the worst possible way.

Do not re-anchor your entire comp band because one £250k to £300k package exists in a different risk/reward category.

Instead:

This stops your process turning into improv.

If compensation is the top decision driver for 53% of candidates, stop pretending it is polite to wait until the end. Validate range alignment before the final interview and confirm what would make a move compelling.

If you are paying above normal bands, demand above-normal signal:

This protects both the hire and the runway.

In a market where selective companies are paying aggressively, slow process is a pricing problem. The longer you wait, the more likely another offer lands, expectations reset, or your own budget gets used against you.

The best candidates are not only getting paid more. They are easier to say yes to.

What moves outcomes right now:

A useful frame for interviews:

That is the language that justifies comp.

This week was a good example of what "modern Python shipping" looks like: the core web/tooling stack kept moving fast.

The stack you keep seeing in serious Python teams is converging around:

Candidates who can operate that stack cleanly, and explain why, are the ones clearing higher bars.

A few useful signals from the last 7 days that support the "selective but expensive" thesis:

This one is for engineers who want real ownership without the chaos tax of a brand new company.

A 12-person startup that has been operating for 8 years, originally as a consultancy, pivoted into an AI product in 2025 and is now in a strong commercial position:

This is a strong option for someone who wants startup upside with more proof than promises.

If this edition helped, forward it to someone who builds or hires in Python.

Josh Smith
LinkedIn: Josh Smith (Python Recruitment)
Email: [email protected]
Phone: 01727 225 552