Despite numerous lay-offs across major tech companies, we continue seeing the IT industry booming, with IT average salary growing at a rapid pace as well. And there are always specific forces behind.

Let's take a look at the key drivers of salary increase, and explore how businesses can follow the market dynamics. Having a clear understanding of the actual situation will help you stay competitive, while attracting and retaining top talent.

How Much Does IT Make? High Demand for Specialized Skills

With the IT industry beating all other sectors in terms of demand, it can seem that the market has become oversaturated. In reality, supply continues to be low in comparison with demand. IT industry expands, with more and more companies stepping into the path of digital transformation and looking for experts in cybersecurity, cloud computing, and machine learning to help them navigate today's complex tech world. These are the in-demand skills companies of all sizes seek to have. Specialists are seeing growing salaries as companies compete for their expertise.

How much does an IT make across roles? Take a look at some of the most in-demand roles:

Tech (role-based)

Software Developer

USA

Western Europe

LATAM

Asia

$130K

$109K

$98K

$101K

Mobile Developer

USA

Western Europe

LATAM

Asia

$120K

$85K

$50K

$78K

Cloud Engineer

USA

Western Europe

LATAM

Asia

$137K

$77K

$65K

$72K

Full-Stack Developer

USA

Western Europe

LATAM

Asia

$146K

$67K

$77K

$55K

ML Engineer

USA

Western Europe

LATAM

Asia

$155K

$74K

$40K

$115K

Blockchain Engineer

USA

Western Europe

LATAM

Asia

$143K

$82K

$50K

$90K

Data Engineer

USA

Western Europe

LATAM

Asia

$131K

$65K

$112K

$62K

AL Developer

USA

Western Europe

LATAM

Asia

$100K

$90K

$50K

$70K

Cybersecurity Specialist

USA

Western Europe

LATAM

Asia

$124K

$72K

$66K

$75K

VR Engineer

USA

Western Europe

LATAM

Asia

$125K

$69K

$50K

$80K

DevOps Engineer

USA

Western Europe

LATAM

Asia

$140K

$70K

$60K

$80K

Project Manager

USA

Western Europe

LATAM

Asia

$90K

$85K

$80K

$30K

QA Engineer

USA

Western Europe

LATAM

Asia

$60K

$55K

$50K

$78K

The IT average salary indicated in the table means annual base salary in US dollars, excluding benefits and bonuses. Source: Glassdoor

To understand how much IT professionals make, it's important to be up to date with current market events. For instance, we see the demand for cybersecurity experts growing as new cyber threats emerge. Besides, we see a massive migration of data to the cloud, which requires corresponding specialists to lead the change. The more specialized the expertise, the more it will be reflected in a specialist's compensation.

Average Salary for IT: Talent Shortage and Retention Challenges

The growing need for IT talent doesn't have the same pace as the number of new specialists landing in the IT market. This global shortage drives up IT wages. As a result, companies compete for the limited pool of qualified candidates. They often offer higher pay to get the best people. But hiring is only half of the story. Working on retention is as important.

Many companies understand this and invest heavily in retention and upskilling of the existent talent. McKinsey & Company indicate the top reasons why specialists are switching jobs. This can help to carve retention strategies, potentially saving costs on new recruitment campaigns.

Retention Strategies in Action

To keep top IT professionals, companies must go beyond offering competitive average salary for IT sector. Some sought-after working conditions among top specialists are flexible remote work options, opportunities for professional growth, and solid health coverage. Some other perks seen in the market include equity or stock options for current employees. In today's environment, businesses that overlook these extra perks will find it hard to retain their best talent.

Digital Transformation Shaping IT Salaries

Over the last couple of years, digital transformation has reached the new heights. Statista shows a sharp rise in worldwide spendings up until 2027. From products to services and across all industries, companies rush to develop their digital infrastructure. Consequently, we see this reflected in demand for IT specialists and their salaries. Areas like cloud computing, AI, and automation are especially in the top.

This shift shows how businesses now see technology. They are constantly investing in their digital capabilities, relying on IT professionals to lead these efforts. How much do IT professionals make? As companies continue to advance digitally, the demand for specialized IT roles will keep rising, pushing wages even higher.

Niche Specializations: Where Mastery Pays Off

In today's job market, it's the specialists in a particular area who command the highest salaries. Niche specializations usually require additional experience or training, which explains the difficulty to fill in these positions. As a result, companies offer better conditions and higher compensations to attract the desired specialist.

One role that's seeing significant growth is the AI engineer. With AI becoming more important across industries, AI engineer salary trends show a sharp increase. These professionals develop intelligent systems and algorithms that automate processes or extract insights from data, making their expertise highly sought after.

For those interested in a versatile role, following a full-stack developer roadmap can be rewarding. The same applies for similar positions, where a specialist wants to gain extra experience and adjust skills per market needs.

Total Compensation: Beyond Base Salary

When evaluating job offers in the IT field, it's important to evaluate the whole compensation package. While startups and corporations don't have the same means, they have numerous possibilities to attract talents with more than just compensation. Benefits can also include flexible working hours, retirement plans, stock offers, or professional development possibilities.

Key Components of Total Compensation

• Performance-Based Bonuses. Some companies have annual bonuses based on employees' performance. Others can offer different rewards at the end of every project.

• Equity/Stock Options. This type of benefit usually applies to startups who invite their team members to contribute to a company's success.

• Flexible Work Arrangements. While some companies require on-site or hybrid assignments, others give specialists the flexibility to work remotely, which is positively seen by the majority of developers.

• Professional Development. Companies that provide opportunities for learning and certifications appeal to professionals focused on long-term career growth.

These benefits can greatly impact total compensation and often become a deciding factor for top candidates when considering job offers.

Influence of Location on IT Salaries

Historically, location was a major factor in setting salaries. However, today, companies can recruit talent globally, and professionals no longer need to be confined to a particular region to land a well-paying position.

This shift also affects businesses. The cost to hire an app developer directly depends on a specialist's location. With the access to global talent, companies can now find a balance between reaching top specialists and managing their expenses.

How Much Does IT Pay for Remote Work?

With the rise of remote work, the way companies approach compensation is evolving.

• Location-Agnostic Salary Models. Many organizations are moving toward salary structures that focus on an employee's skills and experience rather than their geographic location.

• Increased Competition for Talent. This shift allows businesses in smaller or less expensive regions to compete for top talent, leveling the playing field with companies in traditionally high-salary areas.

• Benefits for Employees. Specialists now have more opportunities to live in affordable areas while working for foreign companies.

As this trend continues, we can expect IT salaries to become less influenced by location, placing greater emphasis on expertise and experience.

Certifications and Continuous Learning

How much does IT pay for certified specialists? Certifications can make a whole difference in choosing a specialist for the project and setting up their base salary. They definitely add more skills and experience, increasing the specialists' pay range. Many employers seek for specialists with certificates on purpose, willing to pay more to get the required skills.

Certifications and IT Degree Salary

In the fast-paced IT industry, certifications help specialists advance quicker in the career ladder. An information technology degree salary can be enhanced with relevant certifications. The examples include AWS certificate or Google Cloud certificate.

Beyond certifications that increase IT degree salary, continuous learning is also essential in IT field. By adjusting to emerging technologies and new frameworks, professionals open the door to promotions and salary hikes. Many companies invest in IT training programs to help their employees gain valuable IT skills. These programs can boost an employee's expertise and contribute to average salary growth over time.

How Company Size Impacts IT Compensations

Company size often influences how much IT professionals earn in there. Larger corporations typically focus their offers on higher base compensations and benefit packages. How much does IT pay in small businesses? They usually have more attractive offers in terms of flexibility and development programs.

Comparison: Startups vs. Corporations

How much do IT jobs pay? When choosing between working for a startup or a large corporation, IT professionals often weigh their career goals and work preferences.

• Startups: Usually provide lower base salaries but compensate with equity, bonuses, and opportunities for rapid career advancement.

• Corporations: Offer higher pay and more job stability, though career progression may be slower, with fewer opportunities for equity.

Ultimately, the choice depends on individual priorities. Specialists will stick to what is more relevant to them in the definite point in time.

Team Staffing Services and Payroll Services

To manage their workforce effectively, some companies use team staffing services and payroll services. These services can significantly change the hiring process and impact the final cost of a talent. Not only do companies save time with such services, but also can significantly reduce their costs.

Cost of Onboarding a New Employee and Dealing with Fake Candidates

Hiring new talent isn't just about the average IT salary. Businesses also need to consider the cost of onboarding a new employee, which includes training and the time it takes for them to become fully productive. Moreover, companies must be cautious of fake candidates who may exaggerate their skills. This makes thorough vetting processes essential to ensure the right fit.

Final Thoughts

As IT salaries continue to grow, we experience a global talent shortage caused by the ongoing digital transformation. By operating and understanding these trends, HR professionals could correctly sharp their recruiting campaigns to attract top talent.

For IT professionals, continuous learning and certifications are essential to remain competitive and exceed in career growth. Staying ahead of these trends is crucial for both companies and individuals to thrive in this fast-paced industry. Because after all, being proactive is what allows us to grasp better opportunities

FAQ

by Viktoria Semeniuk
on October 10, 2024. Share on LinkedIn Post on Twitter

Viktoria is our Talent Acquisition specialist, the talent guru of Outstaff Your Team. With extensive experience in IT, programming, and HR, she is the one who finds the best tech talent gems across markets and geographic locations. Meticulously working with the requirements for the job offerings, she identifies and engages the best candidates that will be the future match for the tech positions. She elaborates sourcing strategy and keeps her finger on the pulse with the competitive market.