In-house Design Teams Expand, Agencies Shrink — What This Means for Salaries

Tech · 5 min read

Since 2024, many product-driven companies have prioritized building internal design capabilities, reducing reliance on external agencies for core product work. This trend has redirected many senior hires in-house, increasing competition for talent and driving up salaries for permanent roles.

Agencies that remain competitive focus on specialty offerings—brand systems, AR/VR, and high-end research—but generally face tighter margins and lower salary bands than product companies. Designers moving from agency to in-house roles often see salary increases but must adapt to longer product cycles and closer cross-functional collaboration.

HR teams say the shift favors designers interested in measurable product impact and career ladders tied to company performance. Conversely, designers drawn to varied client work and rapid project changes may find fewer agency roles that match prior compensation levels.