Hired, a recruiting marketplace matching tech and sales talent with top companies around the world, released its annual report: 2022 State of Tech Salaries: Navigating an Uncertain Hiring Market. The report provides one of the most in-depth analyses of the 2022 hiring environment, detailing insights on global compensation trends, benefits, and remote work shifts.Key Findings on the State of Tech Salaries
Key findings include a global increase in salaries* across nearly all tech roles, driven primarily by the growth in salaries of experienced professionals (3+ years of experience). While Hired data shows the number of companies seeking remote junior-level talent has grown, local salaries for junior-level candidates have failed to grow as quickly as more seasoned professionals.
The highest salary offers (local averages) are:
Average local salaries for candidates in mid-size markets (Boston, LA, and Seattle) have quickly caught up to salaries on par with larger tech hubs (New York and SF).
As remote dominates as the preferred work model, remote salaries have continued to outpace local salaries (15 out of 17 markets had higher remote salaries, up from 13 markets in 2021) – with remote roles paying $3,000 more on average globally.
Average remote salaries climbed to $162,950 this year, ranking third highest overall in the report after SF Bay Area and New York average local salaries.
The top three highest paying markets in the US for remote salaries remained in 2022 with salaries climbing for all three markets across the board YoY:
In the US, SF Bay Area was the only market where local salaries topped remote salaries (by 1%).
“The hiring climate this year has been full of contradictions and challenges,” said Josh Brenner, Hired CEO. “We’ve seen climbing salaries, aggressive hiring, and layoffs – all at once. However, the hiring landscape remains competitive as companies innovate and diversify their teams through remote work.
We’re seeing salaries rise globally as employers expand their talent pools and candidates find more opportunities outside their backyards.
To ride out this storm of uncertainty, we recommend a shift from hyper-growth to more efficient growth. Be responsive and attentive to what’s important to employees, stay the course on DEI initiatives, and continue to nurture your employer brand.”
These findings are based on the analysis of more than 907,000 interview requests over 47,000 active positions, facilitated through Hired’s marketplace from January 2019 through June 2022.
Hired also surveyed over 2,000 tech professionals on their salary, benefits, and flexible work preferences. This year, Hired also asked survey respondents for opinions around cost of living challenges, salaries in light of inflation, DEI rollbacks as companies tighten resources, location versus role-based compensation, and willingness to job search in a volatile market.
For more details regarding the methodology and definitions, please download the report.Additional key findings from the 2022 State of Tech Salaries report include:
The US sees the highest local salaries for the role on average at $196,000 and Engineering Management remote salaries are $198,000 – the highest paying salary overall across every market globally. Also, roles outside of engineering (Design, Data Analytics, and Quality Assurance) saw the highest salary increases this year, with remote salaries for all roles rising in 2022.
Businesses of all sizes are more open to interviewing candidates from other locations (4.4 markets in 2022 up from 3.3 at the beginning of 2021). Candidates showed an increased preference for remote-only roles, with 32% of all active job seekers open to “Only Remote” roles on the Hired platform (as of June 2022), up from 18% in January 2022.
In 2022, the time to acquire tech candidates is up to a 60-day average time-to-hire in the U.S. and 68 days in the U.K. Remote roles took 40 days to fill, up slightly from 39 days in 2021.
Philadelphia (+12%), Dallas/Fort Worth (+11%), and Denver (+11%) showed the highest average local salary increases across all markets. Other highest growth markets were Toronto and London, globally, which ranked above Boston, New York, SF Bay Area, and Seattle this year in terms of YoY salary growth.
Salary levels at corporates (companies with 300+ employees) versus startups (companies with <300 employees) in the US narrowed to the smallest pay difference to date since 2019.
Even as Hired survey data shows some sentiment of a power shift to employers in the next six months (27% of employees feel that employers will have more power by 2023). If denied an expected raise in the next six months, the majority (90%) would start looking for a new job immediately, while half of the respondents expect salary increases by 2023.
Factoring in the cost of living, earning an average tech salary of $176,000 in the SF Bay Area would be equivalent to making $223,729 in Atlanta in 2022. In contrast, earning an average SF tech salary in New York (highest COL out of all US markets) is like earning $153,000. Despite overall tech salary increases in 2022, 42% of remote respondents and 29% of local respondents do not feel that their salaries have kept up with rising inflation and living costs.
When asked if they would be willing to return to work in the office, if it meant greater job security, over half (54%) of candidates stated yes, but would start looking for other jobs with more flexible remote work options immediately. Only 33% of respondents would trade remote work for a fully in-person role with a higher salary.
Surveyed candidates’ most compelling benefits from 2021 to 2022 remained the same (flexible work, paid time off, and health insurance benefits), but this year candidates would be willing to trade in a higher salary for practical benefits (health insurance and 401K retirement matching) versus stock/equity in 2021.
61% of surveyed candidates are worried the 2022 economic climate will lead to a rollback of DEI efforts, with 14% of respondents reporting they have already seen deprioritization.
Hired is the most efficient way to fill tech and sales roles today. With unbiased insights, DEI tools, skill assessments, and dedicated Customer Success Managers, Hired works with over 10,000 companies around the world to match thousands of active and qualified candidates to employ their full potential.
With better data, curated matches, and higher acceptance rates, employers save an average of 45 sourcing hours per role with the Hired solutions suite. Backed by The Adecco Group, Hired is rated by G2 as a leader in Recruiting Automation, Job Search Sites, and Diversity Recruiting.
Hired is committed to building equity in the hiring process through a more representative talent pool, using bias reduction features, customized assessments, and salary bias alerts to help remove unconscious bias when hiring. For more information, visit hired.com.
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