Tech Salary Satisfaction
Tech Salary Satisfaction
Overview
While 2024's modest 1.2% average salary increase might suggest that employers again have the upper hand when it comes to tech hiring, our data reveals the workforce is readjusting its expectations and making moves.
With 47% of employed tech professionals actively job hunting (up from 29% last year) and record-high compensation dissatisfaction, it’s clear that last year’s job-market turmoil is translating into a notably strong urge to jump jobs. For organizations everywhere, this impulse can severely impact productivity, innovation, and the ability to preserve institutional knowledge; for tech professionals, there's the potential for leverage when dealing with hiring managers and recruiters.
In this chapter, we discuss the nuances underneath the dissatisfaction rate, and how tech professionals can utilize current trends to further their careers.
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Key Findings
Tech compensation satisfaction hit an all-time low in 2024.
Nearly half of tech professionals in our survey are actively seeking a new role, up significantly in 2024.
More tech professionals were laid off in 2024, jumping 7 percentage points from 2023.
The percentage of tech professionals indicating their salary has increased from one year ago is down significantly from 2023.
Overall Satisfaction Reaches Historic Low
2024 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% of tech professionals feel underpaid compared to their peers, up from 54% in 2023. Dating back to 2021, the amount of tech professionals feeling underpaid has steadily grown each year.
- Less than half (45%) of tech professionals received a salary increase in 2024, down significantly from 55% in 2023.
- The rate of employers offering several key benefits (401K, Health insurance, PTO, Remote work, etc.) appears to be declining. We discuss this at length in our next chapter.
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% 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
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% express concerns about potential layoffs at their companies, particularly among younger professionals aged 18-24—34% 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 them, 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% of employed tech professionals are actively seeking new positions, up sharply from 29% in 2023.
How, if at all, have you been impacted by tech layoffs that have been in the news recently?
Approximately how long did it take to find your current job after being laid off?
Describe Your Job Seeking Status
Traditional Pay Increases Fade Away
The share of tech professionals that claim their yearly income either didn't change or decreased from the previous year has grown significantly year-over-year. Additionally, merit-based raises, traditionally the primary driver of salary increases, have become less common in 2024. Only 36% report receiving a raise, down five percentage points from last year. Significantly fewer professionals received bonuses, as well, at 31% compared to 39% in 2023.
The rise in consulting roles (15% of respondents, up from 9% in 2023) has naturally led to fewer professionals receiving traditional employment benefits such as raises and bonuses. Even so, more tech professionals experienced a compensation decrease year over year, regardless of employment type.
Income Change from One Year Ago
What is the main reason for your salary increase?
What is the main reason for your salary decrease?
What Makes A Happy Tech Worker?
What else drives compensation satisfaction (or dissatisfaction) in tech? Our analysis uncovers interesting patterns in satisfaction levels that cut across experience, specialty, and demographic lines.
This satisfaction divide highlights the growing importance of role specialization, particularly in rising technologies like AI, where professionals report significantly higher compensation.
More Satisfied:
- Consultants
- Tech professionals with 15+ years of experience
- Professionals age 55+ (despite being more likely to report salary decreases)
- Those with security clearances
- Software developers/engineers
- Professionals in Atlanta
Less Satisfied:
- Women in tech
- Professionals at companies in decline
- Education and healthcare industry workers
- Those not involved in AI development
- Early-career professionals
Recruitment Opportunities for 2025
Demand Fair Compensation
Don't settle for less than you deserve. Research industry standards, negotiate assertively, and advocate for pay equity. If you feel undervalued, consider exploring other opportunities.
Leverage the Talent Shortage
Use the pressures of the current job market to negotiate better compensation, flexible work arrangements, and career advancement opportunities. Don't be afraid to consider switching jobs if your current employer isn't meeting your needs.
Demand Transparency
Seek clarity about your company's financial health, growth plans, and layoff policies. If your employer is hesitant to provide information, it may be a red flag.
Prioritize Your Career Growth
Invest in your skills, seek out mentorship, and actively network with other professionals. Don't be afraid to take on challenging projects and step outside of your comfort zone.