Technology professionals have expressed dissatisfaction with their compensation, even though the average salary is just above six figures. According to a recent study by Dice, this frustration could be exacerbated by layoffs within the industry.
In late 2023, Tech Job Board researchers surveyed 6,166 registered users and visitors to gauge tech workers' sentiment regarding pay. Participants held a variety of roles, ranging from solution architects and software engineers making more than $100,000 a year to technical writers and help desk technicians making less than six figures a year.
The study found that the average annual salary for tech workers surveyed was $111,193, slightly lower than the average reported by Dice the previous year. In contrast, the average annual salary for full-time workers in America is $59,384, based on the fourth quarter of 2023 data from the U.S. Bureau of Labor Statistics.
But tech workers surveyed expressed growing dissatisfaction with their pay, even though they earn nearly twice the average American salary. The survey found that 35% of respondents said they were “somewhat” or “very” dissatisfied with their pay, an increase of 5% from the previous year's findings. .
“Given the slowdown in salary growth, this is not surprising,” Dyce said in the study regarding the pay dissatisfaction findings. “Significantly more technology professionals (12%) reported their salaries have decreased this year, but only 6% reported their salaries have decreased in 2022.”
The study points out that among those who express dissatisfaction with their income, satisfaction levels vary depending on age and career advancement. Early-career technical employees reported higher levels of dissatisfaction compared to employees with 15 or more years of experience.
Growing income dissatisfaction among technology professionals may be due in part to widespread layoffs across the technology industry. Tech giants like Meta, Amazon, and Google cut around 263,000 tech jobs in 2023 to cut costs, Layoffs.fyi reports.
More than 49,000 tech jobs have already been cut as of March, and analysts expect further cuts as companies shift their focus to generative AI and hiring AI talent. The technology industry is known for its lucrative compensation packages, which can reach up to $718,000 a year for software engineering roles, but Dice is hinting at a change.
Tech giants appear to be lowering salaries compared to previous years, potentially making it harder for workers to secure comparable pay at other companies. This trend can contribute to growing frustration among technology professionals.
