Tech Salaries Continue Upward Momentum With 2.3% Increase in 2022
CENTENNIAL, Colo.–(BUSINESS WIRE)–The average salary for a technology professional in the United States increased to $111,348 in 2022, up from $108,857 in 2021. The continued upward trend in tech salaries represented in the 2023 Tech Salary Report, released today from tech career marketplace Dice, is a strong indicator that technology professionals remain in high demand in the U.S.
The growth in tech professional compensation may come as a surprise to some, given the headwinds facing Big Tech and many tech-focused companies. But with many companies across industries reliant on technology and needing to continue digitization initiatives to stay ahead of their competitors, it’s easy to see why the tech unemployment rate fell to 1.5% in January 2023 and the average tech salary increased 2.3% in 2022.
“The salary growth in 2022 is yet another indicator that, even with the turbulence in segments of the tech world, demand for skilled technology professionals remains historically high,” said Art Zeile, CEO of Dice, a DHI Group brand. “While we are in an uncertain economic climate, nearly every organization still has a huge need for tech professionals across many roles. New projects, core operations, digital upgrades, data security, product and platform — these require support from experts, and that’s why we’ll continue to see salaries and compensation grow, especially for ultra-specialized skill sets.”
Tech Salary Highlights by Skills, Location and Industry
- Tech professionals looking to maximize their market value and avail themselves of higher-pay opportunities should consider learning data-related skills such as Elasticsearch, Apache Kafka, Teradata and Redis, which landed employees more than $140,000 a year — well above the 2022 average tech salary of $111,348. Considering the importance of data management and security to organizations today, the additional cost is worth it for those in need of highly specialized tech professionals.
- In terms of increased salaries, several cities continue to break new ground with impressive double-digital growth for tech workers – Phoenix (+26%), Tampa (+19%), Columbus, Ohio (+16%), Portland (+16%) and Charlotte (+11%).
- When it comes to highest average salary on the state level, Massachusetts is at the top of the list for highest average tech salary. Oregon took second place, and California came in third.
- Established industries showed they are willing to pay competitively for the right skill sets and experience. Consulting was the highest-paying industry at $131,995, followed by medical/pharmaceutical at $129,118, and finance and banking at $128,571. Traditional tech appeared in the fourth spot, with an average salary for the software industry at $124,071. Aerospace and defense rounded out the top 5 with an average salary of $121,560.
How Organizations Can Win the Competition for Top Tech Talent
In a market where demand for talent is outpacing supply and there are many open tech roles to choose from, it’s no surprise that 52% of tech professionals are considering their options and have said they are likely to change employers in the next year (Dice 2022 Tech Sentiment Report).
This is a big opportunity for companies to secure new talent, but it doesn’t mean it will be easy. Since tech professionals are in such high demand, companies need to attract them in creative ways. The data on benefits presented in the Dice 2023 Tech Salary Report supports the notion that tech professionals are gravitating towards workplaces that cultivate a healthy work/life balance in addition to competitive compensation. With this in mind, leaders can attract and retain top tech talent by offering a holistic suite of benefits including remote and flexible work schedules, work-from-home stipends, bonus opportunities, professional development, encouraging employees to take PTO, and investing in wellness programs.
“We are still in a candidate-driven market, and whether they are being forced out of jobs or choosing to leave, technology professionals will continue to have their choice of roles in well-established industries outside of Big Tech,” said Art Zeile. “The tech professionals who win the top jobs will be those who take advantage of this golden opportunity to invest in new skills and explore new industries, and those who understand their value. For the many leaders across the U.S. who need tech talent, now is your chance to attract the very best, and an understanding of what tech professionals want in their next role can go a long way.”
In 2022, we reported the average tech salary as $104,566. Based on our organizational focus of delivering information specific to technology professionals, we narrowed our analysis this year to only report on core technical job functions based on self-reported data. This same adjustment was made to the 2021 dataset, which is reflected in the comparisons above and in the 2023 Dice Tech Salary Report.
Dice is a leading tech career hub connecting employers with skilled technology professionals and providing tech professionals with career opportunities, data, insights and advice. Established in 1990, Dice began as one of the first career sites and today provides a comprehensive suite of recruiting solutions, empowering companies and recruiters to make informed hiring decisions. Dice serves multiple markets throughout North America. Dice is a DHI Group, Inc. (NYSE:DHX) brand.
About DHI Group, Inc.
DHI Group, Inc (NYSE: DHX) is a provider of AI-powered career marketplaces that focus on technology roles. DHI’s two brands, Dice and ClearanceJobs, enable recruiters and hiring managers to efficiently search for and connect with highly skilled technologists based on the skills requested. The Company’s patented algorithms manage over 100,000 unique technology skills. Additionally, our marketplaces allow technology professionals to find their ideal next career opportunity, with relevant advice and personalized insights. Learn more at www.dhigroupinc.com.
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