One aspect of the tech industry saw ups and downs in 2023, but one thing was constant: the average pay for tech workers. The tech employment marketplace Dice has released its 19th annual Tech Income Report, which indicates that the average tech income in 2023 will be $111,193 (up from $111,348 in 2022).

According to Dice CEO Art Zeile, "This plateau in salary growth represents a correction more than a red flag, especially given the huge surge in compensation coming out of the pandemic." Most businesses have a very people-focused business approach, and they are generally very frugal with their spending. Therefore, they must carefully consider how they manage their spending when it comes to paying their employees; nevertheless, pay is only one part of an employment contract. Technology professionals also place a high value on benefits, flexibility in general, and the capacity to work from home.

The Majority of IT Experts Are Open to Change

The fact that 93% of working technology professionals are either looking for a new job or are open to hearing about one, is another important finding in this year's Tech Salary Report.

That is probably due to a decrease in job satisfaction: The percentage of tech workers who were unhappy with their pay increased from 30% in 2022 to 35% in 2023. This is hardly surprising, given that 12% of computer workers reported a decline in their salary in 2023—more than twice as many as those who reported a decrease in 2022 (6%). According to Dice, there will be a lot of turnover in 2024 as tech workers consider taking on new positions, particularly those in non-tech sectors that might offer greater security and stability. In 2023, the aerospace and defence sector paid IT workers the highest average wage ($130,574) and had the second-fastest salary growth rate (7.4%).

The following industries completed the top five with the highest average tech salaries:

1. Programming ($130,559)

2. Pharmaceutical, medical, and biotechnology ($128,141)

3. Finance / Banking ($126,226)

4. Advice ($125,160)

Now is the perfect moment for recruiters from outside the tech sector who are in charge of finding and employing qualified tech personnel. They have been looking for this talent for years.

Not Just Tech Leaders Are Seeing High Salary Growth

Like in prior years, companies are still willing to pay top dollar for tech professionals with the ability to lead teams in bringing about significant change through the combination of their technical and soft skills: solutions architects, principal software engineers, programme analysts, and CEO/CIO/CTO positions.

Even though these jobs pay the highest wages in technology, they may not have experienced the greatest increase in 2023. The following roles saw the fastest salary growth:

1. Administrator of Systems (+11.2%)

2. Developer of Software (+6.5%)

3. Manager/Program Analyst (+6.1%)

T4. Specialist in Computer or Desktop Support / Help Desk Technician (+4.8%)

T4. Developer for.NET (+4.8%)

Help desk technicians' pay has increased significantly over the last two years (+6.9% in 2022 and then another 4.8% in 2023), most likely as a result of in-office work becoming more common following the epidemic. Although their average pay of $58,549 is far less than the average tech wage nationwide, these individuals are essential in resolving issues for full-time, remote, and hybrid office workers.

Acquiring Proficiency in Crucial Areas Enhances Prospects for IT Professionals

In recent years, Dice has observed that talents related to data have become increasingly in-demand and highly compensated. Companies of all sizes are realising that having access to data can make the difference between failing and dominating their industry.

With an average compensation of $137,917, Service Oriented Architecture (SOA) was the highest-paying expertise for technology professionals in 2023. That was a 3.4% drop from 2022, though. The following skills did see wage increases year over year: VoIP (+6.7%), VSAM (+9.6%), Parallels (+9.1%), SQLite (+8.9%), MS Dynamics (+7.0%), and SQLite (+8.9%).

Gaining advanced jobs and greater wages can be facilitated by acquiring complex skills and maintaining them current for technology professionals seeking more chances and even a modicum of career stability.

Strategic Benefits Close Retention Gaps in Tech Talent

For technology workers, the most important benefits are health insurance, paid time off, 401(k) matching or a pension; naturally, remote work and flexible schedule possibilities rank highly as well. If the organization is to successfully fill its open IT roles, these benefits ought to be a crucial component of the packages offered.

While secondary benefits are less significant, they do provide a tactical advantage to organisations that cannot compete on pay. Although they don't score as highly as the previously listed major benefits, Dice research indicates that in the last few years, options like stock programmes, wellness programmes, work-from-home stipends, and exercise reimbursements have been more and more popular.

Additionally, Dice has shown that there are the biggest differences between the advantages that employees receive and what they desire in these secondary benefits. As an illustration:

1. A work-from-home stipend is valued by 53% of computer professionals, yet just 19% of firms provide it.

2. 54% of IT workers think stock programs are important, yet just 25% of companies provide them.

3. While only 43% of firms provide it, 67% of computer professionals believe that training and education are important.

"There's no denying that generative AI made its debut in 2023. In terms of benefits, organizations should consider assisting their tech workers in acquiring the necessary skills for the future, such as those related to data science, artificial intelligence, and generative AI, says Zeile. 

"The majority of non-tech businesses concentrate on their main occupational group. If you work for a healthcare organization, its priorities are nurses and doctors rather than technology professionals and their particular requirements. However, the majority of technology workers believe that their careers will be built on acquiring the necessary computer skills to be relevant in the future, thus the greatest thing those businesses can do to draw in and keep tech talent is to prioritize training and education."

2024 is a Year of Adaptation and Opportunity 

Notwithstanding early setbacks in the tech sector, a recession was avoided in 2023, and the low rate of tech unemployment suggests that there will always be a need for qualified workers. Employers and IT workers alike must change as we traverse the rapidly changing tech landscape in 2024 to take advantage of new opportunities.

A significant opportunity among them is artificial intelligence. The majority of tech workers' occupations will be drastically altered by AI's growing prominence, which will automate several tasks and even create new roles like prompt engineering and chatbot development. To stay relevant and attract ever-higher salaries, these tech workers must adopt cutting-edge technology and keep improving their skill sets.

The Dice Tech Salary Report provides a thorough analysis of salary trends, benefit differentiators, and regional shifts in a year that is expected to see significant advancements in both the economy and technology. This information helps tech professionals and the businesses that depend on them succeed in the rapidly changing tech industry.