Hired has released a report titled Hiring in the Great Resignation: 2021 State of Tech Salaries which uncovers how the shift to remote work has impacted tech salaries across different markets, roles, and industries.
Analyzing Hired’s marketplace data and an additional survey, the report provides companies with insights on compensation, benefits, and remote work trends in tech and offers guidance on how to navigate changing candidate preferences and hiring needs amid the “Great Resignation.”
Key findings include an increase in global tech salaries in most cities, including a 5% increase in average remote salaries from 2020 to 2021.
Average tech salaries for remote roles and candidates in smaller markets have seen the largest increases.
“As companies look to maximize their talent pipelines and meet high demands, we see that the majority of open job positions on Hired’s marketplace are now open to remote – a 5x increase since January 2020. Remote work preferences from Hired candidates are also at a record high, with over 90% indicating a preference for remote roles,” said Josh Brenner, CEO of Hired.
“While the Great Resignation causes many challenges, employees leaving their jobs in droves also means that companies have an incredible opportunity to hire some of the best, diverse talent that’s on the market right now. Increasing hiring efficiency and offering the right benefits will be absolutely critical to compete for top tech talent.”
Additional key findings from the 2021 State of Tech Salaries report include:
- Flexible work options remain a necessity to compete for tech talent. Almost all tech workers want to work remotely to some degree, with 52% favoring a remote-first model with flexibility to go to an office, and 33% wishing to stay fully remote indefinitely. Only 1% are interested in returning to an office full-time.
- Lowering salaries for remote workers might increase turnover. 74% of tech workers said they would start looking for a new job if their salaries were to decrease or if they were denied a raise over the next six months. 35% expect salaries to increase up to 10% over the next half year.
- Base compensation is not everything for candidates. 76% are willing to accept a lower base salary in exchange for other forms of compensation such as equity and flexible work options. Younger, less experienced tech workers value tuition reimbursement and more experienced tech professionals count childcare services and paid parental leave as top benefits outside of compensation.
- Employer transparency around remote compensation and other pay structures is critical. There are mixed opinions among candidates on how remote salaries should be determined. 45% of candidates disagree with using the cost of living of the employee’s location as a baseline.
The findings are based on the analysis of more than 525,000 interview requests and 10,000 job offers facilitated through Hired’s marketplace from January 2019 through June 2021. Hired also surveyed over 1,200 tech employees about their remote work, salary, and benefits preferences.
Download the complete report here [pdf].