Tech Salaries Plateau in 2023, 93% of Tech Professionals Open to New Opportunities

Rhea-AI Summary

Dice's 19th annual Tech Salary Report predicts major shifts in 2024 as technology professionals eye new opportunities for growth. The average salary for technology professionals remained flat at $111,193 in 2023, compared to $111,348 in 2022. Dice CEO Art Zeile attributes this plateau in salary growth to a correction rather than a red flag, especially after the surge in compensation post-pandemic.

Insights

Market Research Analyst

Observing the stagnation in technology professionals' salaries as reported by Dice's Tech Salary Report, one can infer a significant trend that might influence the tech industry's labor market dynamics. A flat salary growth year-over-year suggests a cooling period following the post-pandemic compensation surge, which could lead to increased job mobility as professionals seek better opportunities. This plateau might be a reflection of broader economic conditions, such as inflationary pressures or a possible recalibration of the tech boom witnessed during the pandemic. Organizations might exercise caution in their spending, including compensation packages, which could impact talent acquisition and retention strategies.

From an investment perspective, companies that can efficiently manage their wage bills while still attracting top talent could see a competitive advantage. Conversely, firms that fail to offer competitive compensation may struggle to maintain their workforce, potentially affecting productivity and innovation. Investors should monitor tech companies' hiring practices and wage growth as indicators of their operational efficiency and ability to navigate the changing economic landscape.

Financial Analyst

The flat growth in tech salaries highlighted by Dice is a noteworthy indicator for investors, as it may signal how tech companies are managing their expenses amidst economic uncertainties. A cautious approach to salary increments could reflect an attempt to preserve margins and profitability in a potentially challenging market. This fiscal prudence could be well-received by investors looking for stability and cost control in their portfolio companies. However, it's also crucial to consider the potential long-term impacts on innovation and growth if salary stagnation leads to a talent drain within the industry.

Companies that maintain a balance between cost containment and competitive compensation are likely to be more resilient. Investors should evaluate not just the salary figures but also the total compensation packages, including stock options and other benefits, which can be critical in attracting and retaining tech talent without disproportionately inflating the wage bill.

Economist

The data presented by Dice serves as an economic indicator, reflecting broader trends within the tech industry and possibly the economy as a whole. Salary plateaus in a high-growth sector like technology could be symptomatic of an impending economic slowdown or a sector-specific adjustment. This development might have a dampening effect on consumer spending and confidence, particularly among tech professionals, which is an important demographic given their typically higher discretionary spending power.

Additionally, this trend may influence the Federal Reserve's monetary policy decisions regarding interest rates, as wage growth is a key factor in inflationary trends. If the tech sector, a significant contributor to economic growth, exhibits signs of wage stagnation, it could lead to a more dovish stance on rate hikes, which in turn has implications for the stock market and investor strategies.

In its 19^th annual Tech Salary Report, Dice predicts major shifts in 2024 as technology professionals eye new opportunities for growth

CENTENNIAL, Colo.--(BUSINESS WIRE)-- In a year characterized by ups and downs for those in tech, one thing remained flat in 2023: the average salary for technology professionals. In its 19^th annual Tech Salary Report, tech career marketplace Dice (a DHI Group, Inc. brand; NYSE: DHX) reports an average tech salary of $111,193 in 2023 (compared to $111,348 in 2022).

“This plateau in salary growth represents a correction more than a red flag, especially given the huge surge we saw in compensation coming out of the pandemic,” says Dice CEO Art Zeile. “Most companies are being very cautious about expenses in general, and most companies’ business model revolves around people. So, when they think about managing their expenses carefully, it means managing what they’re doing to compensate their people; but compensation is just one component of an employment contract. Benefits are another component technology professionals prioritize, as are the ability to work from home and flexibility in general.”

Most Tech Professionals Are Interested in Change

Another key finding in this year’s Tech Salary Report is that 93% of employed technology professionals are either looking for a new job or willing to hear about a relevant new opportunity.

That is likely driven by a decline in salary satisfaction: In 2022, 30% of tech professionals were dissatisfied with their salaries, and that rose to 35% in 2023. Not surprising, considering the percentage of tech professionals who reported their salaries had decreased in 2023: 12%, double the percentage who reported a decrease in 2022 (6%).

Dice predicts that 2024 will be a year of significant turnover as tech professionals entertain new roles, especially ones in non-tech industries that may provide more stability and security. The aerospace and defense industry had the highest average salary for tech professionals in 2023 ($130,574), along with the second-fastest salary growth rate (7.4%).

Rounding out the top five industries for highest average tech salary were:

2. Software ($130,559)
3. Medical / Pharmaceutical / Biotechnology ($128,141)
4. Banking / Finance ($126,226)
5. Consulting ($125,160)

For recruiters outside the tech industry who are responsible for attracting and hiring skilled tech talent, now is the time to source and land the talent they’ve been seeking for years.

Tech Leaders Aren’t the Only Workers With High Salary Growth

As with previous years, companies are still willing to pay top dollar to tech professionals who can use their combination of technical and soft skills to guide teams in driving significant change: CEO / CIO / CTO positions, as well as solutions architects, principal software engineers and program analysts.

While these positions command the highest tech salaries, they weren’t necessarily the ones that saw the most growth in 2023. The roles with the fastest growth in salary were:

1. Systems Administrator (+11.2%)
2. Software Developer (+6.5%)
3. Program Analyst / Manager (+6.1%)
T4. Help Desk Technician / Computer or Desktop Support Specialist (+4.8%)
T4. .NET Developer (+4.8%)

Help desk technicians have seen significant salary increases in the past two years (+6.9% in 2022, and then another 4.8% in 2023), likely due to the re-emergence of in-office work after the pandemic. While the average salary of $58,549 is well below the overall average tech salary, these employees are critical in solving problems for remote, hybrid and full-time office workers.

Mastering Key Competencies Elevates Tech Professionals’ Opportunities

Over the past few years, Dice has repeatedly seen data-related skills top the estimations of salary and demand; from small businesses to large enterprises, there’s a rising awareness that data means the difference between failure and market-beating success.

The top-paying skill for technology professionals in 2023 was Service Oriented Architecture (SOA), with an average salary of $137,917. However, that was a decrease of 3.4% from 2022. Skills that did have year-over-year salary growth include VSAM (+9.6%), Parallels (+9.1%), SQLite (+8.9%), MS Dynamics (+7.0%) and VoIP (+6.7%).

For technology professionals who want more opportunities and even a measure of job security, mastering complex skills — and keeping them up to date — can be leveraged for more advanced roles and higher salaries.

Strategic Perks Bridge Gaps in Tech Talent Retention

Health insurance, paid vacation, and 401(k) matching or a pension top the list of must-have benefits for technology professionals; unsurprisingly, remote and flexible schedule options are also high priority. These benefits should be a key part of company packages if they want to be successful in filling their open tech roles.

Secondary benefits don’t hold as much importance, but they do offer companies who can’t compete on salary a strategic way to differentiate themselves. While they don’t rank as high as the key benefits previously mentioned, Dice data shows offerings such as stock programs, work-from-home stipends, wellness programs and fitness reimbursements have continued to grow in popularity in the past few years.

These secondary benefits are also areas where Dice has found the largest gaps in what benefits employees want versus what benefits employees have. For example:

• Work-from-home stipend: 53% of tech professionals consider it important, but only 19% of employers offer it.
• Stock programs: 54% of tech professionals consider it important, but only 25% of employers offer it.
• Training and education: 67% of tech professionals consider it important, but only 43% of employers offer it.

“There’s no question that, in 2023, we saw the advent of generative AI. What companies should be thinking about in terms of benefits is helping their technology workforce to have the relevant skills — skills associated with data science, artificial intelligence, generative AI — for the future,” Zeile says. “Most non-tech companies are focused on their primary occupational cohort. If you’re working for a healthcare company, they are focused on doctors and nurses, as opposed to the technology workers and their distinct needs. But most technology workers think about their careers as being an accumulation of the right tech skills to be relevant in the future, so the best thing those companies can do is focus on training and education as a benefit to attract and retain tech professionals.”

2024 is a Year for Opportunity and Adaptation

Despite initial setbacks in tech, a recession was averted in 2023 and tech unemployment remained low, indicating continued demand for skilled professionals. As we navigate the dynamic landscape of tech in 2024, both tech professionals and employers must adapt to seize emerging opportunities.

One of those large opportunities is artificial intelligence. The continued importance of AI will fundamentally change how most tech professionals do their jobs, automating many processes and even creating new positions, such as chatbot building and prompt engineering. However, these tech professionals will need to embrace cutting-edge technologies and continue to upgrade their skillsets to stay relevant and command increasingly higher pay.

In a year poised for economic and technological advancement, the Dice Tech Salary Report is a comprehensive analysis of salary trends, benefit differentiators and regional shifts that equips tech professionals and the companies who rely on them with the insights needed to thrive in the ever-evolving world of tech.

Methodology

Collection of Data

The 2023 Dice Salary Survey was administered online by Dice.com among registered Dice job seekers and site visitors between August 30, 2023, and October 31, 2023. Respondents were invited to participate in the survey in two ways: 1) via an email invitation to Dice’s registered (searchable) database members and 2) through a notification via website banner on Dice.com user profile page. A total of 6,166 completed surveys are represented in this report (this number excludes unemployed respondents, students, incomplete responses and those who work outside of the U.S.).

Data Weighting

In each year of the survey, the data are reviewed to assess the need for data weighting to ensure that the overall data properly reflect the universe of Dice.com job seekers. Examination of the data from 2023 showed a weighted data adjustment was needed for two variables — gender and age. The impact on the mean salary results from the weighting for the 2023 data increased the average salary by +$7,898.

Job Posting Data

Job posting data was gathered by Dice’s partner, Lightcast (formerly Emsi Burning Glass), which has a database of more than 1 billion current and historical job postings worldwide. Data was used from Lightcast to complete city, occupation and skill callouts.

About Dice

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 technology professionals based on the skills requested. The Company’s patented algorithm manages over 100,000 unique technology skills. Additionally, our marketplaces allow tech professionals to find their ideal next career opportunity, with relevant advice and personalized insights. Learn more at www.dhigroupinc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240130482578/en/

Media Contact

Mari Shirley

dicemedia@dice.com

(303) 267-4602 x664602

Source: DHI Group, Inc.

FAQ

What is the average tech salary reported in 2023?

The average tech salary reported in 2023 was $111,193.

Who released the 19th annual Tech Salary Report?

The 19th annual Tech Salary Report was released by Dice, a tech career marketplace.

What is the ticker symbol for Dice's parent company?

The ticker symbol for Dice's parent company is DHX.

What does Dice CEO Art Zeile attribute the plateau in salary growth to?

Dice CEO Art Zeile attributes the plateau in salary growth to a correction rather than a red flag, especially after the surge in compensation post-pandemic.