Salaries of tech workers working remotely are surpassing those working in the office, with salaries remaining at all-time highs despite global instability, according to a new report.
Hired’s 2022 State of Tech Salaries: Navigating an Uncertain Hiring Market found that after a brief dip during the pandemic, tech salaries continue to rise and wages for remote jobs are growing faster than standard local jobs.
For the report, Hired analyzed more than 907,000 interview requests across 47,700 active positions on its platform and also surveyed 2,000 tech professionals about salaries, benefits and flexible working preferences.
The report only focuses on the United States, Canada and the United Kingdom.
While 2021 was the big layoff in the workplace, 2022 was one of uncertainty, volatility and contradiction, with fears of potential recessions freezing hiring at tech companies.
But according to the Hired report, so far so good for tech workers.
Salaries have risen across the board in all three jurisdictions, and it’s still a candidate market for now, hired CEO Josh Brenner said.
“Employers continue to hire remote workers and tap into new talent markets. In contrast, some high-profile companies have moved to return-to-the-office policies despite opposition from the majority of workers,” said Brenner.
“If the tide shifts toward an economic slowdown, will the pendulum swing more in favor of employer demands?”
Nearly 100 percent of all respondents said they prefer remote or hybrid work.
Earlier this year, 18 percent of job seekers said they were open to “only remote” positions. By May, that number had risen to 31 percent.
And those remote roles pay an average of $3,000 more across the three countries.
Fifteen of the 17 markets analyzed had higher remote salaries compared to fixed-location roles. This was a jump from 13 locations last year.
The San Francisco Bay Area was the only place in the US where local salaries were higher than remote jobs, while in London, remote salaries were 3.6 percent lower than fixed-location roles.
Raise your salary or I’m out of here
According to the poll, candidates still feel empowered to ask for pay rises.
Almost 90 percent of those surveyed said they would immediately start looking for a new job if they were denied an expected raise in the next six months.
And only half said they expected that increase over the next year.
“They are driven by the potential for more lucrative opportunities and an overall better suitability,” Brenner said.
“Expectations for salary, raises and work flexibility remain sky-high, placing a responsibility on employers to implement the right strategies to attract, hire and retain top talent.”
That could change in the future, however, as more than a quarter of workers surveyed believe power will shift to employers by early next year, while 24.3 percent believe the candidate-driven market will continue.
The study found that salaries have increased for almost all technical positions except for product management.
The San Francisco Bay Area still leads with an average local salary of $174,063, followed by Seattle at $168,069 and New York at $161,128.
The highest-paying tech role is Engineering Management, with an American average of $196,000.
Of the locations surveyed, Toronto and London saw the highest year-over-year salary increases.
Despite these general increases, employees surveyed said they felt their salaries did not reflect the increased cost of living.
More than 40 percent of remote respondents and 29.1 percent of local respondents said they feel their salaries have not kept pace with rising inflation and the rising cost of living, and just over 20 Percent of candidates surveyed strongly agreed that pay should be determined by where the candidate would be based.
The time it takes companies to hire employees has slowed globally, with US companies taking an average of 60 days to fill a vacancy, down from 52 days last year. Canada is 54 days and the UK is slowest at 68 days.
Brenner said the research should be used by companies when re-evaluating their hiring strategies.
“Ideally, these valuable insights will spark meaningful conversations within organizations about hiring strategies, including the structure of compensation packages, flexible work arrangements and other talent initiatives,” he said.
“If there’s a North Star in this turbulent time, then companies need to be quick on hiring. Discover new ideas, rethink strategies, and rework hyper-growth models into efficient growth models.
“It’s the best way to have a steady path to recruiting and retaining top talent.”
The report confirms findings earlier this year that fully remote technicians earn almost twice as much as their full-time office counterparts. Landing.Jobs’ GGlobal Tech Talent Trends 2022 The survey found that tech professionals across all regions reported higher salaries when they worked fully remotely or had flexible working arrangements.
That’s good news for Australians, as the country leads the world in recruiting telecommuters, nearly double the global average.