Tech salaries continue to increase as firms search for talent

Tech salaries are still on the rise, according to research by job marketplace Hired, but despite the small talent pool, many think the power will soon lie with hiring firms rather than candidates.

In its 2022 State of tech salaries report, Hired said tech salaries in the UK, US and Canada increased over the past year across almost all roles, and the salary gap between remote working and in-office working is closing.

But opinion on whether talent still has the most power over the tech job market is split, with 51.5% of those asked saying they feel like they have more power during the recruitment process than employers, but 27.2% think the power will shift to employers by the beginning of 2023.

Josh Brenner, CEO of Hired, said: “Hired’s survey data tells us that while there is some sentiment of a power shift to employers in the next six months, the majority of candidates are considering leaving their current role.

“They’re driven by the potential for more lucrative opportunities and an overall better fit. Expectations on salary, pay raises and work flexibility remain sky high, placing the onus on employers to execute the right strategies to attract, hire and retain top talent.”

Tech is becoming such an important part of all firms and industries, but those looking for experienced tech workers are finding it difficult to fill roles – for example, in 2022 the amount of time it has taken from advertising a job to hiring someone increased year on year (YoY) in the UK, US and Canada – taking around 68 days on average in the UK, an increase from 50 days in 2021. Globally, however, the time it takes to fill a remote role has stayed almost the same for the past three years, at 40 days.

Because of the small pool of talent, tech workers have become more demanding in some cases. Hired found that 89.9% of candidates would either start looking for a new job when they are denied a raise, or try to negotiate other benefits, with half of employees expecting salary increases by next year.

Over the past 12 months, the average number of interview requests per candidate was higher than the number of candidates looking for a particular position.

In April, May and June of 2022, there were around 2.5 people for every advertised tech job, but candidates were receiving around 3.6 interview requests. The gap between available candidates and interviews offered was highest in February 2022, where job seekers each received an average of 5.9 interview requests, but there were only 1.6 candidates available per job posted.

Salaries have continued to increase in the sector across the US, Canada and UK. Tech salaries in the UK were lower than elsewhere in 2022 – while the average tech salary in the UK increased YoY from £76,000 in 2021 to £83,000 in 2022, the UK is still behind the US and Canada when it comes to average tech salary, with Canada averaging 133,000 Canadian dollars, and US $159,000 in the US this year.

While salaries for more junior candidates stayed the same in the US and dropped in Canada over the past year, salaries for people with between one and two years’ of experience increased in the UK.

However, tech workers do not think increased tech salaries are matching the increased cost of living, and 57.1% of employees plan on job searching over the next six months to find the perfect role.

The report said: “As the market for talent remains competitive, companies have kept salaries high to win over top talent, meet candidate expectations, and prevent future job-hopping. Whether this softens as companies re-evaluate compensation remains to be seen.”

Remote working, especially since the pandemic, is not only becoming an increasingly popular demand, but the salary for people who are remote is also on the rise. In June of 2021, only 13% of tech talent were looking for a remote-only role, whereas the number rose to 32% in June 2022.

Average remote working salaries across the US, UK and Canada topped the charts at $162,000 in 2022. In the UK, the average remote only tech salary is only slightly less than overall average tech salaries at £79,345 in 2022, an increase from £73,146 in 2021 and £68,651 in 2020.

Money remains a main driver for a third of those in tech, with almost 33% of those asked who were already fully or partially remote saying they would be willing to have a fully in-person role for more money. However, flexible working was the top-voted benefit potential candidates wanted over the past year.