2022-2023 Tech Compensation Trends

2022-2023 Tech Compensation Trends

The world of technology has been rapidly changing since 2020, and it has brought with it numerous challenges for tech professionals. Factors such as COVID-19, remote work, The Great Resignation, and massive layoffs in Big Tech have led to fluctuating salaries. However, despite the challenges, the compensation of tech professionals has continued to grow, and this trend is set to continue in 2022 and beyond.

Low Unemployment Rate and Salary Growth

Many companies across various industries rely heavily on technology and need to continue their digitization initiatives to stay competitive. This has led to a low tech unemployment rate of 1.5% in January 2023 and a 2.3% increase in the average tech salary in 2022 (which grew to $111,348).
Nearly every organization needs tech professionals across various roles for new projects, core operations, digital upgrades, data security, product and platform support.

Industries with the Highest Average Tech Salaries

Demand for tech talent remains high, and attractive salaries are available, although not necessarily in the most traditionally interesting industries. Consulting, medical/pharmaceutical, and banking/finance industries had the highest average tech salaries, with consulting at the top with an average of $131,995.

Top Occupations for Fastest Growing Tech Salaries

The top three fastest-growing tech salaries by occupation are product manager, DevOps engineer, and program manager. These positions are expected to experience significant growth in the coming years.

Experience Matters

Respondents with 3-5 years of technical experience saw 6.6% growth YoY, while experience in other ranges of years had less than 5% growth in average salary. In other words, early-career tech professionals have seen some of the biggest salary bumps.

Ultra-specialized Skill Sets and High Salaries

Ultra-specialized skill sets are in high demand, leading to continued growth in salaries and compensation for tech professionals. Tech professionals with specialized skills also earned high salaries, with solutions architects earning an average of $155,934, principal software engineers earning $153,288, and systems architects earning $151,364.

Data-related Skills Are in High Demand

Data-related skills are becoming increasingly important, and demand higher pay with growing salaries. Specialized skills like Elasticsearch, Apache Kafka, Teradata, and Redis are among the highest-paying skills, with salaries ranging from $140,290 to $143,619.

Soft Skills Are Important Too

In addition to technical skills, soft skills such as communication and collaboration abilities are also important for tech professionals in management and team leader roles. It’s important for tech professionals to continue developing their skills in order to stay competitive in the industry.
Data Source: Dice