Tech News Briefing is your guide to what people in tech are talking about. Every weekday, we’ll bring you breaking tech news and scoops from the pros at the Wall Street Journal, insight into new innovations and policy debates, tips from our personal tech team, and exclusive interviews with movers and shakers in the industry.
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Wage Inflation Trends, Remote Work Insights, and Retention Strategies for MSPs in 2025 with Peter Kujawa
Manage episode 477580989 series 2555839
Content provided by Dave Sobel and MSP Radio. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Dave Sobel and MSP Radio or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Peter Kujawa from Service Leadership discusses the findings of the 2025 Annual IT Solution Provider Compensation Report, focusing on the trends in wage inflation and employee retention within the managed service provider (MSP) sector. The report reveals that wage inflation peaked in 2022 but has since improved, largely due to the cooling off of the remote work trend and significant layoffs in the tech industry. This shift has led to a more stable job market, particularly in the U.S. and Australia, while Europe continues to experience stubborn wage inflation.
The conversation also delves into the current state of remote work, revealing that only 9.6% of employees are working fully remotely, while 42.6% are exclusively in the office. Kujawa notes that hybrid work models are likely to persist, especially among national and international MSPs. The data indicates that companies that maintained remote work longer faced more challenges when transitioning back to the office, highlighting the importance of flexibility in modern work environments.
Retention rates are another critical focus, with the report indicating that employees with one to three years of experience have a significantly higher turnover rate compared to those with eight years or more. Kujawa emphasizes the importance of structured onboarding and mentorship programs to improve retention, particularly for new employees and managers. He points out that investing in training and support for new managers is equally crucial, as their turnover rates are alarmingly high.
Finally, the discussion touches on the relationship between employee retention and profitability. The report shows that the best-performing MSPs tend to pay lower salaries but offer higher performance-based incentives, creating a more enjoyable work environment. This trend suggests that MSPs need to rethink their compensation structures, focusing on performance pay and aligning incentives with factors that employees can control, such as productivity and customer satisfaction, rather than broader financial metrics like EBITDA.
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Manage episode 477580989 series 2555839
Content provided by Dave Sobel and MSP Radio. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Dave Sobel and MSP Radio or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.
Peter Kujawa from Service Leadership discusses the findings of the 2025 Annual IT Solution Provider Compensation Report, focusing on the trends in wage inflation and employee retention within the managed service provider (MSP) sector. The report reveals that wage inflation peaked in 2022 but has since improved, largely due to the cooling off of the remote work trend and significant layoffs in the tech industry. This shift has led to a more stable job market, particularly in the U.S. and Australia, while Europe continues to experience stubborn wage inflation.
The conversation also delves into the current state of remote work, revealing that only 9.6% of employees are working fully remotely, while 42.6% are exclusively in the office. Kujawa notes that hybrid work models are likely to persist, especially among national and international MSPs. The data indicates that companies that maintained remote work longer faced more challenges when transitioning back to the office, highlighting the importance of flexibility in modern work environments.
Retention rates are another critical focus, with the report indicating that employees with one to three years of experience have a significantly higher turnover rate compared to those with eight years or more. Kujawa emphasizes the importance of structured onboarding and mentorship programs to improve retention, particularly for new employees and managers. He points out that investing in training and support for new managers is equally crucial, as their turnover rates are alarmingly high.
Finally, the discussion touches on the relationship between employee retention and profitability. The report shows that the best-performing MSPs tend to pay lower salaries but offer higher performance-based incentives, creating a more enjoyable work environment. This trend suggests that MSPs need to rethink their compensation structures, focusing on performance pay and aligning incentives with factors that employees can control, such as productivity and customer satisfaction, rather than broader financial metrics like EBITDA.
💼 All Our Sponsors
Support the vendors who support the show:
👉 https://businessof.tech/sponsors/
🚀 Join Business of Tech Plus
Get exclusive access to investigative reports, vendor analysis, leadership briefings, and more.
👉 https://businessof.tech/plus
🎧 Subscribe to the Business of Tech
Want the show on your favorite podcast app or prefer the written versions of each story?
📲 https://www.businessof.tech/subscribe
📰 Story Links & Sources
Looking for the links from today’s stories?
Every episode script — with full source links — is posted at:
🎙 Want to Be a Guest?
Pitch your story or appear on Business of Tech: Daily 10-Minute IT Services Insights:
💬 https://www.podmatch.com/hostdetailpreview/businessoftech
🔗 Follow Business of Tech
LinkedIn: https://www.linkedin.com/company/28908079
YouTube: https://youtube.com/mspradio
Bluesky: https://bsky.app/profile/businessof.tech
Instagram: https://www.instagram.com/mspradio
TikTok: https://www.tiktok.com/@businessoftech
Facebook: https://www.facebook.com/mspradionews
Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
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Similar to Business of Tech: Daily 10-Minute IT Services Insights
Tech News Briefing is your guide to what people in tech are talking about. Every weekday, we’ll bring you breaking tech news and scoops from the pros at the Wall Street Journal, insight into new innovations and policy debates, tips from our personal tech team, and exclusive interviews with movers and shakers in the industry.
…
continue reading
Technical interviews about software topics.
…
continue reading
Android Backstage, a podcast by and for Android developers. Hosted by developers from the Android engineering team, this show covers topics of interest to Android programmers, with in-depth discussions and interviews with engineers on the Android team at Google. Subscribe to Android Developers YouTube → https://goo.gle/AndroidDevs
…
continue reading
Best Business Podcast (Gold), British Podcast Awards 2023 How do you build a fully electric motorcycle with no compromises on performance? How can we truly experience what the virtual world feels like? What does it take to design the first commercially available flying car? And how do you build a lightsaber? These are some of the questions this podcast answers as we share the moments where digital transforms physical, and meet the brilliant minds behind some of the most innovative products a ...
…
continue reading
The day's news made fast, fair and fun – in 10 minutes. Erica Mandy is like a trusted friend who always 'gets' both sides. She's a veteran journalist who was tired of talking heads, alarmist headlines and monotone voices, so she created something different. The NewsWorthy is packed with politics, tech, business and entertainment from a variety of sources -- brought together in one, convenient place (and with a fun twist). Join the thousands of people already listening each weekday!
…
continue reading
Industry expert Mikah Sargent, brings you interviews from tech journalists who make or break the top stories of the week. Get the freshest perspective and in depth insight into the fast-paced world of technology from Tech News Weekly. Records every Thursday at 2:00pm Eastern / 11:00am Pacific / 19:00 UTC.
…
continue reading
Join Larry Mantle weekdays for lively and in-depth discussions of Los Angeles and Southern California news, politics, science, entertainment, the arts and more. More AirTalk at www.kpcc.org.
…
continue reading
The show that helps you maximize your wealth by turning complex financial situations into actionable advice. On Your Money. Your Mission., we answer the questions you’ve been asking about -- financial planning, investing, retirement and everything in between. Whether you’re navigating the complexities of the market or looking for the best ways to save or spend your money, tune in to hear from experienced financial advisors with JFG. Walk away from each episode with savvy tips and financial t ...
…
continue reading
The Slate Daily feed includes new episodes from more than 30 shows in the Slate Podcast Network. You'll get thought provoking analysis, storytelling, and commentary on everything from news and politics to arts, culture, technology, and entertainment. Discover new shows you never knew you were missing.
…
continue reading
Investor Shayle Kann is asking big questions about how to decarbonize the planet: How cheap can clean energy get? Will artificial intelligence speed up climate solutions? Where is the smart money going into climate technologies? Every week on Catalyst, Shayle explains the world of climate tech with prominent experts, investors, researchers, and executives. Produced by Latitude Media.
…
continue reading
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