Service Leadership Inc.®, a ConnectWise company, has released the findings of the highly anticipated 2025 Annual IT Solution Provider Compensation (Remuneration) Report™. This report serves as the industry’s leading resource for compensation data and best practices.
The Service Leadership report stands out for its unique ability to correlate compensation data with managed service provider (MSP) profitability performance. This enables a comprehensive analysis of the differences in compensation practices between top-performing companies and lower-performing ones. Additionally, the report’s exclusive focus on MSPs sets it apart from other compensation reports that include positions only tangentially related to the MSP business model.
As MSPs face the challenge of meeting increased demand for IT solutions with limited resources, this report plays a vital role in their success by providing valuable insights into MSP-specific compensation data as well as appropriate compensation structures and mutually beneficial incentive strategies.
The report features 400+ pages of data and analysis broken down by position and experience level. The data gathered in this report was collected from a record number of MSPs worldwide who participated in a compensation survey conducted in October and November 2024.
In addition to its comprehensive coverage of W2 (T4 in Canada, P60 in the U.K., Income Statement in Australia, and Gross Earnings in New Zealand) compensation for more than 50 billable, sales, and management positions commonly found in MSPs, the 2025 report provides detailed insights into variable incentive compensation, average bill rates, and annual earnings percentage increases. The data is broken down by region, city tier, and, where possible, by metro area.
New in this year’s report is full-time equivalent (FTE) churn, which provides valuable insights into workforce dynamics, costs, employee satisfaction, and organizational performance. It helps organizations make informed decisions and implement strategies to optimize their workforce management practices.
Key highlights from the 2025 compensation report
- Wage inflation peaked in 2022 for MSPs worldwide and has shown significant improvement since, with roughly one-fourth as many employees projected to receive top-level increases in 2025 as 2022.
- In 2024, top-performing MSPs provided lower compensation increases compared to the bottom quartile MSPs, indicating a difference in compensation strategies.
- Remote work remains relatively low in the MSP industry, with only 9.6% of employees working 100% remotely, a slight increase from 8.7% the previous year. Additionally, 42.6% exclusively work in the office while 73% spend at least three days or more working on-site.
- Employees with 1-3 years of experience have a 3x higher FTE churn rate compared to employees with 8 or more years of experience.
Peter Kujawa, EVP & GM of Service Leadership and IT Nation, expressed the immense value of the report, emphasizing its significance for any MSP aiming to maintain competitiveness in the marketplace. He stated, “This report is an invaluable resource that provides MSPs with the actual costs required to recruit and retain employees, which is crucial for achieving success.”
Additionally, Kujawa highlighted the positive trend in wage inflation, noting that after reaching its peak in 2022, there has been a consistent downward trend extending into 2024. He further explained that the projected total annual earnings (TAE) increases for 2025 are expected to be significantly lower than those of 2024. This development is seen as promising news for MSPs, as it is likely to have a positive impact on their bottom-line profitability.
Receive a complimentary executive summary and learn how to purchase a full copy of the Service Leadership Index 2025 Annual IT Solution Provider Compensation Report.
