Despite layoffs, tech workers still have the upper hand. Here’s what they want.

Despite layoffs, tech workers still have the upper hand. Here’s what they want (Courtesy of the Jacksonville Business Journal) — Layoffs have been on the rise in the tech world for several months, but so have salaries for tech workers.

It’s one of many disconnects in an intense battle for talent that continues to vex employers — particularly those companies on the hunt for workers with tech skills.

“The hiring climate this year has been full of contradictions and challenges,” said Josh Brenner, CEO of Hired Inc. “We’ve seen climbing salaries, aggressive hiring, and layoffs — all at once.”

Hired, a San Francisco-based job matching platform, recently analyzed more than 907,000 job interview requests and conducted a survey of more than 2,000 tech workers to spotlight changing dynamics in the recruitment arena.

One big takeaway? Workplace flexibility remains a great differentiator in the battle for talent.

The majority (54%) of remote tech employees said they would be willing to return to the office for greater job security but said they would also start looking for a new job. Only 33% said they would trade remote work for an in-person role with a higher salary.

That’s not to say tech workers aren’t expecting pay bumps — not in an era when employers are planning their largest raises in 15 years. About 90% said they would start looking for a new job if they are denied a raise in the next six months.

Recruiters have consistently told The Playbook tech workers have been able to command some of the highest average raises during the Great Resignation.

Jeremy Darron, Northeast technology and digital practice leader at talent firm Vaco LLC, recently told us the majority of tech companies are increasing salaries for established employees and entry-level hires alike.

Darron said entry-level salaries are significantly higher than just three to four years ago. Some software engineer roles are paying 50% more than they were a few years ago.

Top markets for tech salaries

Remote work has been a significant factor in the increases.

Brenner said the rise of remote work has forced salaries higher globally as companies expand their talent pools and candidates are able to pursue jobs outside of their metro areas.

Remote workers are also earning more than their in-office local counterparts — a trend that’s accelerating. Remote worker salaries are outpacing local salaries in 15 of the 17 largest markets, with New York and Seattle being the exceptions. That’s up from 13 of the 17 markets in 2021.

On average, remote roles pay $3,000 more on average ($162,950) with San Francisco leading the way ($174,063).

San Francisco continues to lead the way for average tech salaries at $174,063, followed by Seattle ($168,069), New York City ($161,128) Boston ($158,548) and Austin ($157,612).

Meanwhile, an exodus of tech workers from the largest hubs drove up tech salaries elsewhere, with salaries rising 12% in Philadelphia, 11% in Dallas and 11% in Denver. We further analyzed that trend in our recent Migration Nation package.

Tech workers in Atlanta are getting the best bang for their buck of the 17 cities analyzed, with workers there earning the highest average salary when accounting for cost of living. Making $176,000 in San Francisco would be the equivalent of making $223,729 in Atlanta, for example.

Hired’s research found 32% candidates are pursuing remote-only roles compared to just 18% earlier this year.

Brenner said best practices in this environment include being responsive to what’s important to employees. That certainly includes remote flexibility, but Brenner said staying the course on DEI initiatives and a shift toward more efficient growth are also recommendations.

“If there’s a north star in this tumultuous time, it’s that companies must be nimble when it comes to hiring,” Brenner noted.

The outlook for hiring

Despite a rash of layoffs among venture-backed startups and hiring freezes involving major tech companies, experts say the prospects of a recession have not had much — if any — impact on the overall job market.

The latest data from the Bureau of Labor Statistics found while overall job openings fell to about 10.7 million, total unemployment is just 6 million.

Additionally, the quit rate held steady at 2.8%, or about 4.2 million workers — still far above historic averages — and the national layoff rate once again held steady at 0.9%, despite the uptick in the tech sector.