What is the Average Tech Salary Increase When Changing Jobs?

Considering a new career move promising greater challenges, impact, and rewards? If a pay raise factors into your decision, review the averages first.

Overall, data shows technology professionals in the U.S. see average salary increases around 15-22% when changing employers. However, depending on your specific skills, experience level, certifications, role, geographic region and other variables, your potential jump may differ significantly.

This guide examines the latest compensation statistics to provide tech employees and employers clarity on realistic salary increase expectations during job transitions. Key details include:

Table of Contents

  • Overall Tech Salary Increase Averages
  • By Industry and Role
  • Impacts of Remote Work
  • By Years of Experience
  • By U.S. State and Region
  • By Age and Generation
  • The Industries With the Fastest Wage Growth
  • Economic Projections Ahead
  • Negotiation Tips for Tech Candidates
  • Making Data-Driven Decisions

Let’s dive into the numbers to optimize your next career move and salary boost…

Overall Average Tech Salary Increases

When considering a new job opportunity, naturally you will compare the proposed compensation. According to recent industry data, technology candidates often see sizeable jumps in base pay when changing roles.

For example, the 2022 Dice Tech Salary Report found that among over 1,250 surveyed technology professionals:

  • 81% received a pay increase when changing employers
  • The average salary increase equaled 15.7%

However, specialized fields and in-demand skillsets can potentially drive offers even higher. For instance:

  • Machine learning engineers received average raises around 21-22%
  • Data engineers and scientists saw increases averaging 17-20%
  • Software developers (all levels) averaged around 15-18%

So depending on your niche, quantified expertise, and negotiating leverage, salary boosts above 20% are within reach.

When exploring new job options, this data provides an approximate baseline to gauge if the compensation offered reasonably aligns to your value in the market. Significant deviation may signal room for additional negotiation.

Now let’s examine how other factors also influence average earnings increases for tech talent changing roles…

By Industry and Role: Where Biggest Jumps Happen

Along with specialty, the roles and industries offering the highest average salary increases include:

Software/Application Development

  • Backend Developer – 16%
  • Frontend Developer – **15%
  • Full-stack Developer – 17%
  • Mobile Developer – 14%

Technology Consulting

  • IT Consultants – 20-25%
  • Systems Integrators – 18-22%
  • Digital Transformation Consultants – 20-28%

Information Security

  • Cybersecurity Analysts & Engineers – 16-20%
  • Information Security Managers – 18-25%

Data/AI

  • Machine Learning Engineer – 21-22%
  • Data Engineer – 17-20%
  • Data Analyst/Scientist – 15-19%

Cloud Computing

  • Cloud Architect – 20-23%
  • Cloud System Engineer – 18-20%

Project Management

  • Technology Project Managers – 12-18%

The highest paying industries include:

  • Software & Internet – $104,566 average salary
  • Computer Hardware & Networking – $103,529
  • IT Services & Consulting – $97,717
  • Finance & Banking – $97,483
  • Aerospace & Defense – $96,645

So while opportunity exists across tech occupations, targeting growing disciplines with undersupplied talent accelerates leverage to command the highest realistic salary increases when changing jobs.

Impacts of Remote Work on Tech Salaries

The rise of remote work also influences average tech salary increases when changing jobs in the last few years.

With more companies supporting permanent remote or hybrid policies for technology teams, candidates enjoy greater geographic freedom to explore new roles. This drives increased competition for talent globally, empowering higher salary demands.

In fact, LinkedIn’s 2022 U.S. Emerging Jobs Report found that among the fastest growing tech jobs with rapidly expanding remote options:

  • 55% of blockchain developer openings now offer remote work
  • 47% of robotics engineer roles now include remote
  • 43% of data science manager positions now have remote
  • 42% of AI specialist opportunities now include remote

Likewise, concentrated tech hub markets like Silicon Valley and New York City have experienced talent migration to more affordable regions. This also nudges compensation higher for in-demand specialist roles.

So remote work multiplies pay negotiation leverage for skilled tech professionals by expanding company options regionally. Expect to utilize this influence for years as flexible policies become standardized.

By Years of Experience: More Expertise Means Bigger Jumps

While some entry-level technology graduates accept lower comparative offers to gain crucial experience, those with specialized expertise command greater average salary increases when changing roles.

For example:

  • Recent grads tend to see more modest jumps around 5-15% higher, depending on field/role demand
  • After 5-10 years seasoned experience, average boosts often range from 15-22%
  • With 10+ years of niche expertise and quantifiable achievements, increases reach 20-30%

This data highlights the importance of deliberately developing high income skills that drive career advancement and enable negotiations.

Let‘s examine the average salary increases software developers specifically can expect to better understand how experience, contribution, and leverage play into compensation growth over time…

By Software Developer Experience Level

Entry-Level Software Developer (1-3 years)

  • Avg Existing Salary: $69,749
  • New Job Avg Salary: $80,130
  • Avg Increase: 15%

Mid-Level Software Developer (3-7 years)

  • Avg Existing Salary: $96,768
  • New Job Avg Salary: $112,294
  • Avg Increase: 16%

Senior Software Developer (7+ years)

  • Avg Existing Salary: $121,736
  • New Job Avg Salary: $142,625
  • Avg Increase: 17%

So while even junior developers see respectable earnings jumps changing roles, specialized technical contributors with proven high-impact deliverables can expect even greater average boosts over 20%, especially in leadership positions.

By U.S. State and Region: Where Salaries Are Rising Most

Accounting for geographic differences, these states and metro regions lead technology salary increases in 2023 when changing jobs:

States With Highest Salary Increases

  1. Washington – Avg Increase Up To: 22%
  2. Colorado – Avg Increase Up To: 20%
  3. Georgia – Avg Increase Up To: 18%
  4. Virginia – Avg Increase Up To: 18%
  5. Texas – Avg Increase Up To: 17%

Metro Regions With Top Salary Increases

  1. Austin, TX – Avg Increase Up To: 24%
  2. Atlanta, GA – Avg Increase Up To: 21%
  3. Denver, CO – Avg Increase Up To: 19%
  4. Dallas/Fort Worth, TX – Avg Increase Up To: 17%
  5. Washington, D.C. – Avg Increase Up To: 17%

Low costs of living coupled with booming technology sectors result in soaring wage competition in these areas currently. So researching regions with positive growth trends allows workers to maximize earnings.

By Age and Generation: Experience Still Pays Off

We‘ve established that more years developing expertise typically equates to higher salary offers. But does employer ageism affect experienced technology professionals over 50?

While research confirms age bias exists in isolated instances, performance ultimately drives negotiations. Specialized contributors continue leveraging valuable niche skills late into careers for increased average salary gains.

For example, PayScale data on tech workers changing roles shows:

20 to 35 years old

  • 75th Percentile: +18% salary increase
  • 25th Percentile: +12% salary increase

36 to 50 years old

  • 75th Percentile: +21% salary increase
  • 25th Percentile: +13% salary increase

Over 50 years old

  • 75th Percentile: +23% salary increase
  • 25th Percentile: +14% salary increase

So while even younger high performers see healthy jumps…professionals 36 and beyond consistently average higher percentile salary increases when changing tech jobs.

Seasoned experts still negotiate greatest gains overall, disproving assumptions that older tech workers lack career advancement opportunities. Let your niche expertise and proven contributions do the negotiating.

Industries With the Fastest Current Wage Growth

Beyond individual bargaining power, macroeconomic trends also influence average nationwide wage growth:

Fastest Growing Technology Wages By Industry

  1. Oil & Gas Extraction: +7.2%
  2. Scientific Research & Development: +5.9%
  3. Tech Services & Consulting: +5.6%
  4. Software Publishing: +5.3%
  5. Data Processing & Hosting: +5.2%

So when considering changing jobs, target sectors investing heavily in technology for maximum salary increase potential.

Economic Projections: Where Tech Wages Are Headed

Economy-wide inflation and job market volatility introduce uncertainty around future earning potential. However, most expert projections remain bullish on sustained technology wage growth exceeding national averages.

Here are key indicators to track based on latest salary trends…

Tech Occupation Unemployment Remains Extremely Low

Unemployment among tech occupations held at just 2.3% to finish 2022 – marking full employment compared to 3.7% rate nationally across all jobs. These shortages further accelerate compensation.

Talent Gap Drives Increased Hiring Budgets

With over 650,000 open computing jobs lacking qualified talent to fill them, employers allocate more recruitment dollars to attract technical staff – including higher salaries.

Continued Strong Investment Growth

Venture capital and growth equity funding keeps pouring into software startups. Late stage private company investment exceeded $195 billion in 2022. This sparks hiring surges and wage competition.

*Higher Inflation Expectations

Despite cooling inflation due to Fed rate hikes, analysts expect prices to remain higher long-term, driving sustained wage growth. Technology solutions remain priorities too.

So while broader economic uncertainty causes hiring freezes for some companies, skilled tech professionals continue commanding outsized average salary increases when changing jobs in most sectors.

Tips For Negotiating Your Maximum Realistic Salary Increase

Equipped with applicable average tech salary increase benchmarks, ensure you optimize negotiations for your next career move by:

– Auditing Your Niche In-Demand Skills: Verify you invest in specialized training and certifications that employers value most. Identify adjacent skills with high growth potential too.

– Quantifying Your Value: Calculate key performance metrics and project successes showcasing your unique abilities and production level comparative to team members.

– Researching Industry Standards: Use resources like Glassdoor and PayScale to reference appropriate salary ranges based on your experience level and geographic region.

– Consulting Recruiters: Discuss averages and ask recruiters what current realistic increases look like for your specific situation during the interview process.

– Specifying Your Value Proposition: What unique capabilities make you the ideal candidate worth investing in above the rest? Make sure the employer understands specifically why you deserve above or beyond average compensation.

With deliberate preparation, you can optimize favorable salary outcomes when considering new career opportunities.

Making Data-Driven Job & Salary Decisions

By understanding the latest average tech salary increase statistics when changing roles, both candidates and companies can make more informed compensation decisions during hiring and retention.

While exceptions exist, the benchmark percentages throughout this guide provide realistic ranges to anchor expectations. Combined with macro employment trends and negotiation tips, technical professionals and leadership gain useful decision-making context.

References the key data most relevant to your situation and skills when navigating your next career move. What salary increase experience can you share with others? Feel free to comment your lessons learned below!

Similar Posts