If you’re a tech professional, you’ve probably wondered how pay at tech companies compares to those outside of the tech industry. Can you make more money working for a retail or manufacturing firm than a software company?
Dice’s latest Tech Salary Report delves into that very question. The bottom line: salaries among tech professionals working at a technology company are 2.9 percent higher on average than those offered to tech professionals in other industries. The average salary for tech professionals inside the tech industry hit $112,335 last year; for those working outside the tech industry, the average salary was $109,170.
We also noticed a considerable difference between salary satisfaction inside and outside the tech industry. Forty-nine percent of tech professionals working for a tech company are satisfied with their compensation, compared to only 34 percent of satisfied tech professionals not working for a tech company.
Overall, salaries stayed level last year. The average salary was $111,193, down very slightly from $111,348 in 2022. That’s quite a change from previous years, when tech salaries generally rose; for example, the average tech salary spiked 9 percent between 2019 and 2021.
However, it’s important to keep in mind that certain tech hubs and specialized skills enjoyed year-over-year salary increases. For example, up-and-coming tech hubs such as Philadelphia and San Antonio saw notable pay bumps; combine that with the lower cost of living in many of these metro areas (at least compared to San Francisco and New York City), and you’re looking at significant gains. And if you have the skills that employers want—such as artificial intelligence and data analytics—chances are good you’ll have sufficient leverage to extract higher compensation and superior benefits.
We’ve broken down the report into the following sections for your reading pleasure:
As we proceed through 2024, always remember that you have the ability to influence your salary, especially if you’re jumping jobs or even industries.
