{"id":13064,"date":"2026-04-09T10:05:49","date_gmt":"2026-04-09T09:05:49","guid":{"rendered":"https:\/\/mspglobal.com\/blog\/?p=13064"},"modified":"2026-04-02T16:39:45","modified_gmt":"2026-04-02T15:39:45","slug":"msp-salary-trends-2026-pay-smarter","status":"publish","type":"post","link":"https:\/\/mspglobal.com\/blog\/msp-salary-trends-2026-pay-smarter\/","title":{"rendered":"MSP salary trends in 2026: Don\u2019t pay more, pay smarter"},"content":{"rendered":"\n

If the last few years felt like a salary arms race, 2026 is shaping up to be something very different.<\/p>\n\n\n\n

The latest data from ConnectWise\u2019s 2026 Annual IT<\/a><\/span> Solution Provider Compensation Report<\/a> shows a clear shift in how IT solution providers\u2014and MSPs in particular\u2014are thinking about pay. Wage inflation is cooling. Incentives are under scrutiny. And perhaps most importantly, the link between how much you pay and how well you perform is being fundamentally challenged.<\/p>\n\n\n\n

For Managed Service Providers<\/a>, this isn\u2019t just a data point. It\u2019s a strategic turning point.<\/p>\n\n\n\n

Here\u2019s what\u2019s really happening\u2014and what to do about it.<\/p>\n\n\n\n

Wage inflation is cooling, but not disappearing<\/h2>\n\n\n\n

Across the global dataset, one trend stands out immediately: the era of aggressive remuneration increases is ending.<\/p>\n\n\n\n

After peaking in 2022, wage inflation declined through 2023 and stabilized in 2024. By 2025, the report shows a continued downward trend in top-level salary increases (above 6%). And for 2026, that trend continues\u2014with roughly 50% fewer roles expected to receive top-tier increases compared to 2025.<\/p>\n\n\n\n

Europe reflects this shift\u2014but with its own twist.<\/p>\n\n\n\n

In 2025, 25.6% of European employees received increases above 6%: the highest of any region. But heading into 2026, nearly half of employers (49.8%) are planning modest increases of just 0.1%\u20133.0%, with only about a quarter still offering top-tier raises.<\/p>\n\n\n\n

This signals a rebalancing. MSPs are no longer chasing talent with ever-higher salaries. They\u2019re regaining cost control\u2014and refocusing on sustainable growth.<\/p>\n\n\n\n

Higher pay doesn\u2019t equal higher performance<\/h2>\n\n\n\n

Here\u2019s the uncomfortable truth for many MSP leaders: the best-performing companies are not the highest-paying ones. According to the report, best-in-class (top 25% by profitability) IT solution providers actually pay:<\/p>\n\n\n\n

~8% less than the median<\/p>\n\n\n\n

~13% less than the bottom quartile<\/p>\n\n\n\n

That\u2019s not a rounding error. That\u2019s a structural advantage. So what\u2019s going on?<\/p>\n\n\n\n

The report\u2019s authors claim that top performers aren\u2019t winning by outspending competitors on salaries. They\u2019re winning by designing smarter businesses.<\/p>\n\n\n\n

They narrow their service stack. They standardize delivery. They hire and develop junior talent. And they build operational maturity that reduces reliance on expensive, highly specialized staff.<\/p>\n\n\n\n

For MSPs\u2014many of whom operate in fragmented, multi-market environments\u2014this is a critical insight. The question isn\u2019t \u201cAre we paying enough?\u201d It\u2019s \u201cAre we structured to need to pay this much?\u201d<\/p>\n\n\n\n

Variable pay is still underused\u2014and that\u2019s a problem<\/h2>\n\n\n\n

If there\u2019s one area where MSPs consistently leave performance on the table, it\u2019s incentive design.<\/p>\n\n\n\n

The report highlights a strong correlation between profitability and variable compensation. Best-in-class firms pay almost double the proportion of variable pay compared to bottom-quartile peers.<\/p>\n\n\n\n

And yet\u2026 even they\u2019re not doing enough.<\/p>\n\n\n\n

Typical variable pay levels today:<\/p>\n\n\n\n