Over the last few years, the tech industry has faced ups and downs; from uncertainty at the beginning of 2020 to rapid expansion in 2021 to The Great Resignation in 2022, tech workers have spent the last few years constantly reevaluating their careers.
As 2022 brings its unique challenges with rising inflation, recession fears, high interest rates, market volatility, and an uncertain job economy, it’s essential to take note of key tech salary trends. From the popularity of cybersecurity roles to a rise in sign-on bonuses, a promising tech job market speaks to better pay for tech workers but more competition for employers. Here are some information technology salary trends to stay on top of.
Tech unemployment is fairly consistently at record lows, and talented, high-performing workers typically have their pick of the litter when it comes to tech jobs. For example, even in June 2022, amidst tech volatility, tech unemployment dropped to 1.8% from 2.6% in May. As a result, employers have to pay more in salaries than they did a few years ago to retain the same workers, and it’s also more expensive for them to hire a new employee — 30 to 40% more to replace that team member, to be exact. Talent retention is now more important than ever.
With the rise in flexible, remote work combined with some tech companies mandating a return to the office, many tech organizations are facing a battle of location-based pay. Historically expensive metro cities like San Francisco or New York saw significantly higher salaries and cost of living for tech workers. However, with teams more spread out and employees moving to cheaper areas, there continues to be a battle over whether those employees take a pay cut due to their new location’s cost of living. Tech giants like Apple, Google, and Meta famously cut the pay of employees who decided to relocate from San Francisco and not return, but smaller tech companies have the chance to win over in-demand applicants with fair compensation across the board. Employers and hiring managers will continue to see a push for universal salaries going into 2023.
The tech industry is no stranger when it comes to outsourcing; it’s always been popular to utilize contractor positions for temporary help, a highly specialized role, or to support internal teams without adding headcount. Outsourcing continues to be effective for cutting costs and obtaining high-quality IT talent, but employees are seeing a tech salary trend of talent wanting higher-than-ever contractor fees. Like with full-time roles, contract IT positions can be competitive and still come with great pay.
With 94% of CEOs saying cyber security is a top concern for their organization, it makes sense that an engineering technology salary outpaces all other positions. Auxis.com found a cyber security analyst experienced a 16.3% jump in pay compared to a cloud engineer who only saw a 6.3% increase or a data architect with a 3.2% increase. In the specific cybersecurity field, an ethical hacker earns the highest tech salary with annual pay of $119,289, followed by an information security engineer with a salary of $105,106 and a security sales engineer’s salary of $97,282.
Some specific roles saw higher jumps than others, but overall, market value compensation is rising across the board. “Salaries increased by 9.5% on average across major tech hubs for experienced hires,” according to a recent press release by Motion Recruitment. One of the most compelling IT salary trends, the increase in average pay across the industry speaks to all the promising growth trends across job opportunities, future career trajectories, and the growing importance of IT in everyday life. CNBC shared that, despite the economic downturn, many tech workers can still expect above-average mid-year raises.
For many hard-to-fill roles, sign-on bonuses are popular. According to Motion Recruitment, sign-on bonuses are being offered about five times more, and workers are comfortable asking for a sign-on bonus if one isn’t offered upfront. Job applicants also feel comfortable asking for better work-life balance, education reimbursements, and other extra perks. These amenities and bonuses are no longer truly “extra;” they’re now considered standard for any tech employer looking to stay competitive and relevant with tech salary trends.
Technology is one of the best fields in which to develop a long-term career, mainly due to its competitive pay and consistent growth. These IT salary trends showcase how the industry is rapidly expanding despite recent economic downturns. Advantis Global hires for the top 1% of tech companies, ensuring you have access to some of the best tech jobs in the industry with the highest tech salaries. Work with a recruiter for interview coaching and resume guidance, and apply to open tech positions.
If you’re looking to get paid more, gain location flexibility, access better benefits, and advance your career, get in touch with Advantis Global today to take advantage of positive tech salary trends.