IT & Technology Salaries: Tech Pay Trends

Jobs in the tech sector remain a hot commodity. The allure of the tech industry is not just in its capacity to transform lives and businesses — it’s also the lucrative career opportunities it presents. However, it can also be a volatile and uncertain industry, as many tech workers learned in the massive layoffs throughout 2023.

While the tech industry is still regaining its footing in a post-isolation era, it continues to be an attractive career path for those who understand how to position themselves. 

Diving into the heart of the technology labor market, we present an in-depth analysis of IT salaries, revealing how location and role are critical to earning potential. Whether you’re charting your course in the tech world or seeking insights into the industry’s salary trends, read on to understand how to navigate the lucrative waters of the IT profession.

IT salaries: Trends of 2024

As we enter 2024, the technology sector continues to offer growth and opportunity, shaped by rapid advancements and an ever-increasing reliance on digital solutions. Here are some of the main salary trends impacting the industry this year.

Average salary growth is slowing

Layoffs were a significant concern in 2023 as many tech companies, large and small, restructured after the large COVID-19 boom. However, tech talent is still in demand, and almost 79% of those laid off got a job within three months.

Dice’s Tech Salary Trends found that the average earning dropped $155 in 2023 compared with the year prior. Compare that with an average growth of 2.3% in years prior.

Demand for emerging tech is increasing

Employers are no longer handing out bonuses and wage increases. There’s still plenty of opportunity to earn more. Employees need to look at growing their skills to attract better positions and earn more money. 

Leaders are willing to invest in skilled tech workers who provide in-demand skills to grow their businesses. In fact, companies and hiring managers are routinely offering increased salaries for skills in the following domains:

• Cybersecurity

• Cloud

• AI and machine learning

• Software development

• Data science and database management

(Increase your worth! Earn a cloud certification, DevOps certification, or security certification.)

Increase of contract work

Cost optimization is the critical issue of 2024. In Everest Group’s 2024 Key Issues Study, leaders cited cost and margin as their leading challenges. A focus on being economical has led many leaders to leverage the growing number of freelance and contract tech workers.

Elsewhere, 62% of managers stated that they plan to hire more contract IT professionals to leverage specialized skills and support for their critical projects. Plus, 43% said they are open to hiring interim roles.

Employees are looking for change

With stagnant wages and a focus on doing more with fewer resources, many employees are looking for a change. In one study, 93% of tech workers said they were actively looking or open to new work opportunities.

Top IT Salaries in 2024

With that understanding of the market today, let’s turn to tech roles with the overall highest salaries (on average).

Cloud Solutions Architect

Cloud Solutions Architects are crucial in designing and implementing cloud computing strategies for organizations. Their work involves ensuring cloud systems are efficient, scalable, and secure. 

The demand for Cloud Solutions Architects continues to grow as many companies rely on Cloud technology to remain cost-effective and competitive in the market today. They earn $157,978 on average, but their salaries can go as high as $200,000 per year.

(Check out the growth trends for cloud technologies.)

Blockchain Software Engineer

Specializing in blockchain technology, Blockchain Software Engineers develop and implement digital solutions for secure online transactions. Blockchain Engineers make between $107,000 and $168,000 on average. However, seasoned professionals have reported earning up to $378,000 on Levels.fyi, highlighting the lucrative potential of this role.

(Sharpen your blockchain knowledge: blockchain podcasts & blockchain conferences and events.)

Cloud security engineer

Security is a crucial concern for companies as breaches continue to rise. Cloud Security Engineers fill this crucial job by protecting cloud-based systems and data. They are critical in developing secure cloud frameworks and policies to mitigate risks and ensure compliance. 

Cloud Security Engineers make $122,153 on average, with experienced employees earning up to $180,000

Cloud Engineer

Cloud Engineers specialize in designing, implementing, and managing cloud services. They ensure the reliability and scalability of cloud resources, playing a critical role in digital infrastructure management. As a result, they make $131,578 on average, with top earners making up to $167,349 a year.

Machine Learning Engineer

Machine learning is the newest and most exciting technology that organizations can’t wait to get their hands on—they’re willing to pay top dollar to get it. In fact, one company recently attracted attention for offering a $900,000 salary for an AI role. 

Machine Learning Engineers apply algorithms and data science techniques to create systems that learn and make predictions or decisions. While the average Machine Learning Engineer salary is $161,766, exceptional talent reported earning as much as $459,000 on Levels.fyi.

Data Scientist

Data Scientists analyze complex data to extract actionable insights. They employ statistical analysis, machine learning, and data processing techniques to solve business challenges, making them invaluable in data-driven decision-making, earning them $128,429 on average and up to $171,437 a year.

Information Security Analyst 

Information Security Analysts protect an organization’s computer networks and systems. They focus on implementing security measures to guard against cyber threats and vulnerabilities. 

The average salary for an Information Security Analyst is $107,427 a year, with experienced employees earning up to $161,878 annually.

IT Salaries by City

While role plays a crucial role in salary scales, location is a close second factor. Certain cities have emerged as hotspots for IT professionals, offering not just competitive salaries but also vibrant tech ecosystems, opportunities for innovation, and a quality of life that attracts top talent. 

Here are some of the top cities for IT salaries:

San Jose, California

Average salary: $206,000

As the heart of Silicon Valley, San Jose is synonymous with cutting-edge technology and innovation. IT professionals here work alongside the world’s leading tech companies and startups, benefiting from unparalleled networking opportunities, venture capital presence, and a culture of innovation.

Grass Valley, California

Average salary: $136,000

Grass Valley offers a unique blend of small-town charm and tech-centric jobs, particularly in broadcasting and digital media technology. Its proximity to Silicon Valley also provides access to the broader tech ecosystem while offering a more relaxed lifestyle.

Washington, D.C.

Average salary: $125,000

The capital city is a hub for cybersecurity, IT consulting, and government contracting jobs. IT workers in D.C. benefit from the convergence of technology and policy, making it ideal for those interested in the intersection of tech and government.

New York City, New York

Average salary: $131,000

NYC’s diverse economy hosts a booming tech sector with strengths in fintech, media, and e-commerce. The city’s dynamic market and global connections offer IT professionals extensive career opportunities and the chance to work on transformative projects.

San Francisco, California

Average salary: $155,000

San Francisco is at the forefront of technological innovation, home to giants like Twitter, Uber, and Salesforce. The city’s tech workers enjoy access to a vast network of tech companies, startups, and angel investors, fostering a culture of creativity and advancement.

(Splunk is proud to be born and raised in San Francisco, too! Learn about what Splunk does.)

Seattle, Washington

Average salary: $135,590

Known as the home of tech giants Amazon and Microsoft, Seattle offers IT professionals opportunities in cloud computing, e-commerce, and software development. Its natural beauty and vibrant culture complement the city’s tech-friendly environment.

Boulder, Colorado

Average salary: $141,500

Boulder is recognized for its burgeoning startup scene, supported by a strong entrepreneurial community and access to funding. IT workers in Boulder enjoy a balance of innovative work in a city known for its quality of life and outdoor activities.

Dallas, Texas

Average salary: $122,000

Dallas’s growing tech scene is fueled by a diverse economy, with strengths in telecommunications, information technology, and a flourishing startup ecosystem. The city offers IT professionals competitive salaries, a lower cost of living, and no state income tax.

Keeping ahead of IT Salary Trends

The IT sector offers lucrative and fulfilling career paths for those passionate about technology and innovation. As the industry evolves, staying informed about the latest trends, salary benchmarks, and emerging tech hubs will be essential to navigating a successful career in technology. 

Whether you’re just starting out or looking to make your next career move, the opportunities for growth, impact, and financial reward in IT have never been better.