​The recent rise in the UK’s National Living Wage, now sitting at £12.71 per hour from April 2026, is a positive step forward for lower-paid workers. But across the market, we’re seeing a growing challenge emerge: pay compression.​

As highlighted in recent HR discussions, the gap between entry-level, mid-level, and even some leadership roles is narrowing. The result? Many professionals are starting to question whether the step up in responsibility is still worth it, and more importantly, whether they’re being paid what they truly deserve.

From our perspective at Primis, this is something we’re seeing play out daily across the tech and digital markets.

Why This Matters for Candidates

Pay has always been important. But in 2026, perceived fairness is everything.

We’re speaking to increasing numbers of candidates who feel:

• Undervalued in their current role

• Less motivated to step into leadership positions

• Frustrated by minimal salary increases despite increased responsibility

In many cases, the issue isn’t just salary, it’s lack of visibility on market value.

The Market Reality: Your Internal Salary ≠ Your Market Value

One of the biggest challenges with pay compression is that internal salary structures often lag behind the external market.

Businesses are balancing:

• Budget constraints

• Internal pay parity

• Rising costs

But the external hiring market moves differently.

This creates a gap where:

• New hires are often brought in at higher salaries

• Existing employees fall behind

How a Recruitment Partner Helps You Close That Gap

This is where working with a specialist recruitment partner like Primis becomes a real advantage.

1. Access to Real-Time Market Data

We provide candidates with accurate, up-to-date salary benchmarking across the UK, Europe, and US, not just generic ranges, but what companies are actually paying today.

This gives you:

• Confidence in negotiations

• Clarity on your true market value

2. Positioning You for the Right Opportunities

Not all roles are created equal, and not all companies approach compensation the same way.

We work closely with:

• High-growth companies

• VC/PE-backed businesses

• Market-leading tech teams​

Meaning we can position you in opportunities where:

• Pay aligns with responsibility

• Progression is clearly defined

• Compensation is competitive and transparent

3. Supporting Negotiation (Without the Risk)

Negotiating salary internally can be difficult.

Externally, through an agency:

• Conversations are objective and data-led

• We advocate on your behalf

• We help balance salary, bonus, equity, and overall package

This ensures you’re not leaving value on the table.

4. Looking Beyond Salary

As the market evolves, the best opportunities aren’t just about base salary.

We help candidates assess:

• Equity and long-term upside

• Flexibility and working models

• Career progression and scope

• Company stability and growth

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What Should Candidates Do in This Market?

If you’re feeling the impact of pay compression, there are a few key steps to take:

• Benchmark yourself externally, don’t rely solely on internal reviews

• Understand your skills vs market demand

• Be open to conversations, even if you’re not actively looking

• Work with recruiters who specialise in your market and can provide real insight

Final Thoughts

Minimum wage increases are an important and necessary shift, but they’re also reshaping how pay is structured across organisations.

For candidates, this creates both:

• Challenges (compression, slower progression)

• Opportunities (to re-evaluate and realign with the market)

The key is having the right information and the right support. At Primis, we’re here to make sure candidates are not only aware of their value, but are positioned to realise it.