The information technology (IT) industry continues to evolve at a break-neck speed. Emerging technologies and shifting work models create changes in the job market and salary trends. Understanding these dynamics is crucial, particularly if you’re plotting your entry into the field. Being informed lets you navigate your career path and maximize your earning potential.
Continue reading to learn about current and future IT Salary Trends that can make or break your career decisions.
Table of Contents
The State of Tech Salaries
Job seekers will have peace of mind knowing that the demand for tech talents remains robust. According to Motion Recruitment’s latest IT Salary Guide, the year-over-year (YOY) growth for IT and Tech Salaries in 2024 is 1.8%, slowing down from two percent in previous years. This upward trend reflects continued demand for tech jobs across the industry.
But which factors affect salary trends in this field? Here are some insights:
Location
Various factors affect a tech worker’s salary across different settings, including education, experience, expertise, position, and job responsibilities. The location, however, plays a significant role in determining your potential earnings. Primary tech hubs like Silicon Valley command the highest wages, with the average salary pegged at USD$141,618 as of 2023. Tech companies in Boston, Denver, and Seattle also offer increasingly competitive salaries. (1)
Remote IT Work
Planning to become a remote IT worker or considering a move? Keep in mind that salary adjustments for off-site employees are becoming more nuanced. Some companies adopt a standard approach regardless of worker location, while others consider geographic differentials based on local job market conditions.
Industry
Other sectors are keeping pace to attract top talents. Financial services firms, for example, try to match or exceed the average tech salary reserved for tech firms, particularly for roles in fintech development or quantitative analysis.
Healthcare technology is another sector that’s offering substantial salary growth. Organizations in this industry are investing in digital health solutions and data analytics. As a healthcare IT specialist, you’ll find opportunities that combine above-average compensation with the satisfaction of improving patient care.
Taking heed of these factors is crucial if you’re seeking a new job in the tech sector. While IT professionals dream of getting hired at a prestigious company, it’s important to look beyond the numbers. You might find that less popular IT hubs offer an optimal balance of salary and living costs.
Skills That Command Premium Pay
The skills that attract top dollar are constantly evolving. However, certain specializations are currently seeing strong salary growth. Consider earning certifications in these fields if you want to stand out in the tech job market:
- Machine learning operations (MLOps)
- Cybersecurity
- Cloud computing
- Kubernetes
- Full-stack development
- Data science and engineering
- Infrastructure automation
Some of these positions can earn you up to six figures at mid-career levels. It will help if you refer to reliable sites that frequently publish an updated tech salary guide. There, you’ll get ideas about the average pay for high-demand and emerging skills.
Experience Levels and Career Progression
Your tech salary growth follows a predictable progression. The pace of advancement can vary significantly. For example, the average salary for entry-level positions in software development starts at USD$86,265, but you can expect substantial jumps with each career move. Mid-level positions often see salaries increase by at least 20% over entry-level roles. Senior job titles can add around 30% or sometimes double starting salaries. (2)
In some cases, strategic job-hopping can accelerate your salary growth. While internal raises typically range three percent annually, changing employers often results in higher pay increases. According to Pew Research, 51% of employees who changed jobs reported getting more pay from April 2020 to March 2021. Additionally, 54% of those who stayed saw their real earnings rise, but this figure decreased to 47% in 2021 to 2022. (3)
Staying in the same company, however, is a personal decision. Some workers prioritize job satisfaction, work-life balance, and company culture over pay. The best way to approach this is to know what matters most to you and weigh the pros and cons of leaving and moving forward.
The Full Compensation Picture
Your base salary is just one piece of the puzzle. Tech companies often offer attractive compensation packages to attract top talents. Stock options, restricted stock units (RSUs), and employee stock purchase plans (ESPPs) can add substantial value to your compensation package, particularly at public companies or well-funded startups.
Benefits packages have similarly evolved. You might find companies offering unlimited paid time offs (PTOs), remote work stipends, professional development budgets, and comprehensive health coverage. These benefits may not directly reflect on your salary. Still, they can be invaluable if you’re seeking tech jobs that prioritize team member well-being and career progression above all else.
Negotiating As a Tech Professional
Requesting for a higher base salary or more comprehensive benefits is a common practice.
An IT professional’s negotiating power is often strongest when starting a new position. This is where your knowledge of salary trends can help you. Come prepared with market data, salary reports, and specific achievements that demonstrate your value. Additionally, be ready to discuss non-salary components like the ones discussed earlier. Don’t forget to network with those in similar roles to gather insights into current pay rates and ask for negotiation tips.
Your success in this field doesn’t always rely on getting more money but creating a win-win solution. Take time to understand the company’s constraints and be prepared to suggest creative ways to work around these limitations.
Future Outlook and Emerging Trends
The Bureau of Labor Statistics (BLS) estimates that about 377,500 tech positions will open yearly from 2022 to 2032. Information security, software development, and quality assurance specialists are highly sought after. Computer and research sectors—under which artificial intelligence (AI) job positions are classified—complete the list. (4)
These traditional roles will always remain valuable. However, technologies are evolving to create new career paths you may not have considered. In the next few years, you’ll likely see growing demand for experts in:
- Edge computing and 5G technologies
- Quantum computing
- Sustainable technologies and green IT
- Extended reality (XR) development
- Autonomous systems orchestration
- Biomimetic AI development
Some of these fields are in their infancy stage, so expect to have a steep learning curve. Your efforts will be paid handsomely as they become more critical to business operations in the future.
Key Takeaway
The tech field is vast, complex, and always changing. It can be challenging to know which path to take to maximize your earning potential. But knowing how the industry evolves and keeping tabs on the salary trends can help you make informed decisions about your next move.
Developing in-demand skills will position you for success in the dynamic tech job market. When paired with soft skills like adaptability, critical thinking, and creativity, you can become the best candidate for any position.
References
- 1. “Average tech salary in the United States in 2023, by tech hub”, Source: https://www.statista.com/statistics/1275807/us-tech-salary-by-tech-hub/
- 2. “Software Developer Salary Guide (2024)”, Source: https://www.coursera.org/articles/software-developer-salary
- 3. “Majority of U.S Workers Changing Jobs Are Seeing Real Wage Gains”, Source: https://www.pewresearch.org/social-trends/2022/07/28/majority-of-u-s-workers-changing-jobs-are-seeing-real-wage-gains/
- 4. “2024 Tech Industry Statistics”, Source: https://www.forbes.com/advisor/education/it-and-tech/tech-industry-statistics-and-facts/
