News: Tech talent unhappy with compensation despite six-figure salaries - Study tells why

Compensation & Benefits

Tech talent unhappy with compensation despite six-figure salaries - Study tells why

Tech workers, earning nearly double the average American salary, showed increasing dissatisfaction with pay, with 35% reporting they were "somewhat" or "very" dissatisfied.
Tech talent unhappy with compensation despite six-figure salaries - Study tells why

Tech professionals are expressing dissatisfaction with their compensation, despite earning an average salary slightly above six figures. According to a recent study by Dice, this frustration may be exacerbated by job cuts within the industry. 

In late 2023, researchers from the tech job board surveyed 6,166 registered users and visitors to gauge tech workers' sentiments regarding their salaries. The participants encompassed various roles, ranging from solution architects and software engineers earning over $100,000 annually to technical writers and help desk technicians earning below six figures. 

The study revealed that the surveyed tech workers had an average annual salary of $111,193, slightly lower than the previous year's average reported by Dice. In contrast, the average annual salary for full-time American workers is $59,384, based on Q4 2023 data from the US Bureau of Labour Statistics. 

However, despite earning nearly double the average American salary, surveyed tech workers expressed growing dissatisfaction with their pay. The study revealed that 35% of respondents reported feeling "somewhat" or "very" dissatisfied with their compensation, marking a 5% increase from the previous year's findings. 

"Considering the slowdown of salary growth, this is not surprising," Dice wrote in its study regarding its findings on pay dissatisfaction. "Significantly more tech professionals (12%) reported that their salaries went down this year; In 2022, only 6% reported a decreased salary." 

Among those expressing dissatisfaction with their earnings, the study noted variations in satisfaction levels based on age and career progression. Early-career tech workers reported higher dissatisfaction compared to those with over 15 years of experience. 

The increased dissatisfaction among tech professionals with their incomes could be attributed, in part, to widespread layoffs across the tech sector. In 2023, tech giants such as Meta, Amazon, and Google cut approximately 263,000 tech jobs to reduce costs, as reported by 

As of March this year, over 49,000 tech positions have already been eliminated, with analysts anticipating further cuts as companies shift focus towards generative AI and hiring AI talent. While the tech industry has been known for its lucrative compensation packages, reaching as high as $718,000 annually for software engineering roles, Dice indicates a shift. 

Tech giants appear to be offering lower salaries compared to previous years, potentially making it challenging for workers to secure comparable pay elsewhere. This trend could contribute to growing frustration among tech professionals. 

Read full story

Topics: Compensation & Benefits, #Layoffs, #HRTech, #HRCommunity

Did you find this story helpful?



How do you envision AI transforming your work?