Tech salaries dip slightly in 2023, turnover expected
COLORADO, UNITED STATES — Average salaries for technology professionals decreased slightly to $111,193 in 2023, a 0.1% dip from 2022, according to the annual Tech Salary Trends report by tech career marketplace Dice.
Dice CEO Art Zeile called the plateau a “correction more than a red flag” stemming from an uncertain 2023 market rather than a cause for concern.
“Most companies are being very cautious about expenses in general, and most companies’ business model revolves around people… Compensation is just one component of an employment contract. Benefits are another component technology professionals prioritize, as are the ability to work from home and flexibility in general,” Zeile explained.
The report draws on survey data from over 6,000 registered Dice users. Occupations like cloud architects/engineers saw a notable salary decline of 15.8%, while product managers experienced a 6.7% drop.
According to the latest edition of Dice’s Tech Salary Report, last year’s average tech salary was $111,193, down very slightly from $111,348 in 2022. The year's turbulent economy had a downstream impact on tech compensation and more. https://t.co/hnVcg71kVN
— Dice.com (@Dicedotcom) January 30, 2024
However, systems administrators saw an 11.2% increase, while software developers and program analysts/managers witnessed salary growth of 6.5% and 6.1%, respectively.
Dice also revealed that 6% fewer tech workers were content with their compensation, prompting a “migration from the coasts,” with major tech hubs like Silicon Valley experiencing a 3.3% salary decrease, while less costly regions saw compensation rise — Wisconsin (+16.9%), Tennessee (+13.6%), and Utah (+11.1%).
“As a result, we predict that 2024 will be a year of significant turnover as tech professionals act on their dissatisfaction and jump to new roles, possibly in new industries,” the report stated.
Meanwhile, artificial intelligence (AI) and data analytics skills are in high demand, with a 10x increase in AI-related job postings since 2022. These skills have outpaced other growth areas like cybersecurity and cloud engineering.
