Tech Talent Exodus: Record Job Seeking Amidst Declining Benefits
"Companies that want to attract and retain the best need to go beyond competitive salaries."
The tech job market is heating up, but not necessarily in a good way for employers.
A new survey from Dice reveals a record 47% of tech professionals are actively looking for new jobs, a significant jump from 29% last year. This surge in job seeking comes as employers are scaling back benefits and perks.
Key Takeaways for Tech Talent
- Salaries are up, but satisfaction is down: While the average tech salary reached $112,521 in 2024 (a 1.2% increase), tech workers are less satisfied with their compensation than ever before. This dissatisfaction may be linked to companies cutting back on benefits like health insurance and professional development opportunities.
- AI and machine learning skills are in high demand: Professionals with expertise in these areas command a salary premium of up to 17.7%.
- Mid-career professionals see salary gains: Those with 3-5 years of experience enjoyed a 6% salary increase.
- Silicon Valley still reigns supreme (for now): Despite a 7.3% year-over-year decline, Silicon Valley maintains the highest average tech salaries.
- Job seekers prioritize the "total package": Beyond salary, tech professionals are looking for job security, professional development, and flexible work arrangements.
What's driving the exodus?
The Dice report points to a "disconnect" between what tech professionals value and what employers are offering. Companies have been reducing benefits across the board, including:
- Training and education opportunities: Down 6 percentage points in 2024.
- Remote work options: Down 4 percentage points year-over-year.
- Merit raises: Only 36% of tech professionals received merit raises in 2024, compared to 41% in 2023.
The Bottom Line
The tech job market is always competitive. Companies that want to attract and retain the best need to go beyond competitive salaries. This shows an overall worrisome trend of job seekers working in jobs that lack fulfillment, which can hamper your bottom line and create a low energy work environment. Job seekers can help by more clearly communicating which perks are a priority when considering a job, and which ones are not that important to you. By bringing transparency to every negotiation, both sides can save time and get fair market value.
What do you think? Are you currently looking for a new tech job? What are your top priorities in an employer?
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