Survey: Salaries, Bonuses and Contract Rates Rising for Technology Professionals
Average salaries, bonuses and contract rates for technology professionals in the U.S. rose year-over-year, according to the annual Dice Salary Survey.
YOY technology salaries saw the biggest leap since the survey began more than a decade ago, up 7.7% to $96,370, and bonuses increased 7% from 2014, with the average bonus at $10,194. In 2015, 37% of technology professionals received a bonus, unchanged from last year, but up from 2009 when 24% earned the extra payout.
Contract workers saw a 5% raise in hourly compensation, with contractors earning $70.26 per hour. Tech contractors working in industrial/chemical, professional services, healthcare and utilities/energy segments were paid higher than overall tech contract rates.
“It’s a good time to be in technology and to be an IT contractor,” said Healthcare IT Leaders President Brad Elster. “As the demand for IT contractors to help health systems replace or upgrade their EMRs continues to grow, the compensation for health IT jobs should increase as well.”
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More experienced technology professionals were more likely to receive a bonus, as well as those in the banking/financial, telecom, hardware, entertainment/media and utilities industries. Average salary increases were greatest among entry-level technology workers (with one to two years’ experience), suggesting there is wage pressure for entry-level technology jobs, and employers are willing to pay for new talent.
“The competition for tech talent today is undeniable,” said Bob Melk, President of Dice. “Demand for skilled talent and low unemployment rates for tech professionals aren’t making the hiring landscape any easier. Employers realize offering competitive pay is a necessity. What’s promising is the tech industry recognizes the need to fill open seats as well as to reward tech talent for their hard work.”
Reasons for salary increases were*:
- Merit raise (38%)
- Changed employers (23%)
- Internal promotion (10%)
- Cost of living (8%)
- Mandated company-wide increase (6%)
- Became employed – full time, first job, etc. (5%)
- Higher commission or bill rate (4%)
- Other (3%)
- More hours, overtime (2%)
- Counteroffer (0.9%)
- Obtained certification (0.6%)
Technology professionals are becoming more satisfied with their pay at 53% noting satisfaction, up from 52% last year. Plus tech professionals’ confidence in job prospects remained high, with 67% claiming they could find a favorable new position.
*Percentages total more than 100% due to rounding.