While low unemployment had previously spurred significant growth in regards to tech salaries, 2017 somewhat bucked the trend, at least when it comes to the average pay over all specialties. However, certain skill sets are highly valued, allowing salaries in those areas to soar. Additionally, whether you work as a full-time employee or a contractor also plays a role regarding the level of compensation you can likely obtain today.
Across all specialties, the average salary tech pros received was $92,712 in 2017. This reflected only slight growth (a 0.7 percent increase) when compared to 2016.
However, IT contractors saw a 5 percent increase year over year, with the average hourly rate being $72.32.
Additionally, specific skill sets achieved above-average growth when it came to pay. For example, PAAS professionals had compensation rates around $127,702 in 2017, a marked increase from 2016 levels where the average was $120,403.
Some other skills that outpaced the slow growth trend were MapReduce, Elasticsearch, Redshift, and Cloudera.
Tech Salaries in Silicon Valley
The average tech salary in the Silicon Valley region was notably higher than the national average, reaching $114,654. Along with a high demand for skilled IT workers in the area, the difference can likely be partially attributed to the increased cost of living in California. But, that doesn’t mean that Silicon Valley salaries don’t outpace other regions with high costs of living.
For example, New York is considered a more expensive state, but the average pay rate there came in at only $103,941. Similarly, Washington DC had salaries below the six-figure mark, at $99,937, even though the cost of living is generally seen as higher.
Additionally, tech salaries have experienced some significant increases over the past few years. Between 2013 and 2017, the change was measured as an 8.4 percent increase, which is certainly notable.
However, in 2017, the region did experience a slowdown, with growth only coming in at 0.4 percent.
What These Trends Mean
At times, there can be a significant disconnect between what tech professionals believe their skills are worth and what the market data suggests is reasonable. This can make filling vacant positions difficult for companies as a skilled candidate may have a stated salary expectation that isn’t within their budget, or workers can assume that they are underpaid, leading to frustration, when they are actually well within the standard.
Ultimately, both sides would be well-served by researching the going rates for particular skill sets and using that information to set their expectations. This can ensure that businesses are offering a suitable salary for the skills and experience they hope to find and that candidates aren’t over or undervaluing their capabilities when seeking a new job.
If you are interested in learning more, are seeking a new position, or are looking to hire additional team members, the professionals at The Armada Group can help. Contact us today to see how our services can benefit you.