Tech salaries contracted in 2023 after hiring pullback

Dive Brief:

  • Following years of back-to-back growth, tech salaries contracted slightly in 2023, according to a Dice report released Tuesday. The company surveyed over 6,000 jobseekers between August and October.
  • The average tech job salary fell to $111,193 in 2023, down from $111,348 in 2022. By contrast, salaries grew 9% between 2019 and 2021, the company said.
  • Despite the salary pullback, tech workers remain optimistic about talent demand. More than nine in 10 tech workers say they’re looking for another job actively or are open to hearing about potential opportunities. 

Dive Insight:

Last year undid a long streak of growing compensation for tech professionals, a consequence of economic concerns and tech-sector turbulence. But the dip in salary growth doesn’t immediately translate to oversupply. 

Job postings for tech positions soared in January according to a CompTIA report, indicating employers are staffing up to drive forward with modernization plans.

“Effectively all of your tech talent is susceptible to a pitch for a new opportunity,” said Art Zeile, president and CEO of Dice parent company DHI Group, in an email. “The only thing that is inhibiting their departure is the current state of the economy, which may change quickly when it ultimately does.”

Compensation satisfaction, a key driver of talent attrition or retention, is an area to watch for CIOs. Nearly half of IT workers surveyed by Dice said they’re unhappy with their current compensation.

To complement attractive salaries, leaders can enhance benefits packages, according to Zeile. Additionally, the shift toward AI adoption is an opportunity to implement training initiatives. 

Work flexibility is another major driver of talent attraction.

“Tech professionals want the option to work from home and know that they can largely get it with organizations that respect the tech culture,” Zeile said. “You get an A+ if you offer a work from home stipend that defrays some of the extra costs of working from home.”