Hired Releases Annual Report on State of Tech Salaries in 2021
Salaries and demand for tech talent are at an all-time high globally; demand shifts to lower cost of living regions and junior candidates flatten average U.S. tech salaries, particularly in New York City and San Francisco, while average remote salaries grew
Hired, the leading AI-driven hiring marketplace that matches tech and sales talent with top companies, has released its annual report, Hiring in the Great Resignation: 2021 State of Tech Salaries, which uncovers how the shift to remote work has impacted tech salaries across different markets, roles, and industries. Analyzing Hired’s marketplace data and an additional survey, the report provides companies with insights on compensation, benefits, and remote work trends in tech and offers guidance on how to navigate changing candidate preferences and hiring needs amid the “Great Resignation.”
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Key findings include an increase in global tech salaries in most cities, including a 5% increase in average remote salaries from 2020 to 2021. Increased demand for junior candidates lowered overall salary averages in New York City and San Francisco between 2020 and 2021, but salaries for experienced candidates (2+ years) increased across all markets. Average tech salaries for remote roles and candidates in smaller markets (tier 2 and tier 3 in the 2021 State of Tech Salaries report) have seen the largest increases. To keep up with the demand for talent, companies are hiring faster than ever across all markets, with 30 days to hire in the U.S. and 34 days in the U.K., down 25% on average from a year ago.
“As companies look to maximize their talent pipelines and meet high demands, we see that the majority of open job positions on Hired’s marketplace are now open to remote – a 5x increase since January 2020. Remote work preferences from Hired candidates are also at a record high, with over 90% indicating a preference for remote roles,” said Josh Brenner, CEO of Hired. “While the Great Resignation causes many challenges, employees leaving their jobs in droves also means that companies have an incredible opportunity to hire some of the best, diverse talent that’s on the market right now. Increasing hiring efficiency and offering the right benefits will be absolutely critical to compete for top tech talent.”
The findings are based on the analysis of more than 525,000 interview requests and 10,000 job offers facilitated through Hired’s marketplace from January 2019 through June 2021. Hired also surveyed over 1,200 tech employees about their remote work, salary, and benefits preferences.
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Additional key findings from the 2021 State of Tech Salaries report include:
- Tech workers’ money would go much further in cities such as Dallas and Atlanta compared to major tech hubs. When adjusting average salaries for cost of living, making the average $165k salary in San Francisco would be the equivalent of making $243k in Dallas. Only Washington D.C. and New York City top San Francisco’s steep cost of living.
- Flexible work options remain a necessity to compete for tech talent. Almost all tech workers want to work remotely to some degree, with 52% favoring a remote-first model with flexibility to go to an office, and 33% wishing to stay fully remote indefinitely. Only 1% are interested in returning to an office full-time.
- Lowering salaries for remote workers might increase turnover. 74% of tech workers said they would start looking for a new job if their salaries were to decrease or if they were denied a raise over the next six months. 35% expect salaries to increase up to 10% over the next half year.
- Base compensation is not everything for candidates. 76% are willing to accept a lower base salary in exchange for other forms of compensation such as equity and flexible work options. Younger, less experienced tech workers value tuition reimbursement and more experienced tech professionals count childcare services and paid parental leave as top benefits outside of compensation.
- Employer transparency around remote compensation and other pay structures is critical. There are mixed opinions among candidates on how remote salaries should be determined. 45% of candidates disagree with using the cost of living of the employee’s location as a baseline.
