Technology salaries in the United States saw the biggest jump in more than a decade, according to the “2013-2012 Salary Survey” from Dice, a career site for technology and engineer professionals. Tech professionals earned a greater than 5 percent increase in average annual wages to $85,619, up from $81,327 in 2011.
For a Limited Time receive a
FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with
customized information for your industry, location, and job.
Get Your Report Now!The increase in wages comes at a time when the vast majority of tech professionals (64 percent) are confident they could find a favorable new position in 2013, and when employers are stepping up to the plate to retain and motivate staff with more interesting or challenging assignments, increased compensation and the ability to telecommute, according to respondents, according to Dice.
"Employers are recognizing and adjusting to the reality of a tight market," said Scot Melland, chairman, president, and CEO of Dice Holdings, Inc., "The fact is you either pay to recruit or pay to retain, and these days, at least for technology teams, companies are doing both."
When asked the primary reason for changes in compensation, 36 percent of technology professionals tagged company actions, like merit or company-wide raises and internal promotions, as the root cause. Meanwhile, another 19 percent of respondents changed jobs during the year which brought a salary increase along with the move.
After a considerable jump last year in both size and frequency, average bonuses were down a touch to $8,636 from $8,769 in the previous year; however, slightly more tech professionals 33 percent versus 32 percent received the extra payout in 2012.
"In the early stages of the recovery, companies were staying flexible by using performance pay to reward their top performers," added Melland. "Now, companies are writing the checks that will stick. With a 3.8 percent tech unemployment rate, no one wants to lose talent."
In fact, tech professionals just starting out, those with 2 years or less experience, earned their first year/year increase (8 prcent) to $46,315 in 3 years.
And, there was a milestone at the other end of the spectrum: Average salaries for tech professionals with at least 15 years of experience topped 6-figures for the first time, growing 4 percent year/year to $103,012.