In 2022, Software Developer Salaries continue to increase in the U.S. (and many other parts of the world). The high demand for Software Engineers to catalyze corporate digital transformation(s) has put consistent upward pressure on Software Engineering compensation.
Technology Occupations Grow
The New York Times reported that “Employment in tech occupations has grown this year, to a record 6.39 million in November according to government statistics.” Between 2021 and 2031, the Bureau of Labor Statistics (BLS) projects that the job outlook for Software Professionals is expected to grow at 25%, significantly faster than average.
Software Engineer Salaries Increase
A recent report from Dice found that the average tech salary in the United States in 2022 was $111,348, an increase of 2.3% from the previous year.
Salaries in the top U.S. Tech Hubs are significantly higher than average. The top 5 tech hubs and salaries:
- Silicon Valley, 145K
- Boston, 130K
- Seattle, 129K
- Portland, 128K
- NYC, 122K
Actual Company Expense for Software Developers
BLS estimates that the cost of benefits as a percentage of employee salary is 31%. This means that a company employing a Software Developer at the U.S. average of 111K, has another 31% of expense in benefits (e.g., healthcare, retirement, etc.).
So the average fully-freighted expense for an average software professional in the United States is 145K or approximately $75 per hour.
U.S. Bureau of Labor Statistics (BLS)
In tech hubs, the costs are higher. A Software Developer working in Seattle with a salary of 129K is actually costing their employer 169K per year in expenses or approximately $88 per hour.
According to the Dice report, the U.S. cities with the fastest growing technology salaries include Phoenix, AZ, growing at a whopping 26%, Tampa, FL, growing at 19% and Columbus, OH growing at 16%.
Future Outlook for Software Professionals
The economic value of digital transformations for companies of all types means that Software Professionals will be in high demand for the foreseeable future.
