Are tech professionals happy with their current salaries? That’s a critical question for not only tech pros, but also employers who want to retain their best and brightest employees. Dice’s latest Tech Salary Report offers some crucial insight into the professional happiness of those working in tech—and it’s not rosy.
In fact, last year saw tech compensation satisfaction at an all-time low, with only 41 percent of tech professionals reporting they were either "very" or "somewhat" satisfied with their compensation. This represents a significant decline from previous years, as an equal percentage, 42 percent, now express active dissatisfaction with their compensation packages—up notably from 35 percent in 2023.
This growing dissatisfaction appears to be driven by multiple factors:
- A record 59 percent of tech professionals feel underpaid compared to their peers, up from 54 percent in 2023. Dating back to 2021, the amount of tech professionals feeling underpaid has steadily grown each year.
- Less than half (45 percent) of tech professionals received a salary increase in 2024, down significantly from 55 percent in 2023.
- The rate of employers offering several key benefits (401K, Health insurance, PTO, Remote work, etc.) appears to be declining.
People’s perception of their salary is also impacted by their sense of security and stability, two things that are heavily influenced by external factors. For starters, tech professionals face very real economic concerns, such as a rising cost of living, which impacts the buying power of a salary that, in many cases, did not increase this year. In fact, according to our recent Tech Sentiment Report, only 31 percent of tech professionals felt optimistic about the economy in 2024.
Additionally, there is a strong narrative within tech communities that the job market is difficult to navigate and more layoffs are on the horizon. Only four in ten respondents to our tech sentiment survey felt confident about their ability to find a satisfactory new role in the current hiring market.
Job Security Fears Drive Career Moves
Amidst this unhappiness, it’s important to remember that the tech industry's response to another year of economic pressure included more layoffs. Nearly one in five tech professionals in our survey experienced a layoff—a seven percentage point increase from 2023. Another 25 percent express concerns about potential layoffs at their companies, particularly among younger professionals aged 18-24—34 percent of whom report layoff anxiety.
Also interesting: tech professionals over 45 were more likely to be laid off than their younger counterparts. Considering that many of these older tech professionals sit in management roles, this aligns with broader industry observations about the reduction of middle management roles, a phenomenon Business Insider discussed in their recent article, “The Great Flattening is Here to Stay”.
According to that publication, these middle management positions are being permanently removed from organizational structures, with no indication these roles will return. This structural shift results in a major change for experienced tech professionals on the management track, especially those who assumed they’d stay in such roles for a long time.
This combination of increased layoffs and layoff anxiety are creating a self-perpetuating cycle of concern among tech professionals, where fears about job security increase job searching, which in turn may lead to shorter tenures in roles and less institutional loyalty. In fact, job searching has shifted dramatically in response: 47 percent of employed tech professionals are actively seeking new positions, up sharply from 29 percent in 2023.
For employers, this potentially creates a nightmare situation where unhappy tech pros jump at new opportunities, stripping away crucial experience and talent just when companies need it most. For tech professionals unhappy in their current roles and payouts, and potentially worried about layoffs, you have a few options:
- Discuss your concerns with your manager: Do you want better benefits? Potentially a salary bump? If someone specific is bothering you, bring it up in a constructive way with your manager—you may find your company more than happy to give you at least some of what you need.
- Search for a new role: If you want to land a new role, make sure your skills are up-to-date. Possessing knowledge in cutting-edge arenas such as artificial intelligence (AI) can also expand your opportunities.
There’s much more data and insights in this year’s edition of the Dice Tech Salary Report! Check it out.
