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Tech Salary Trends 2023: Will Software Engineers Continue to Make the Big Bucks?

Last updated on: 
January 11, 2024
|
by 
Vartika Rai
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About The Author!
Vartika Rai
Vartika Rai
Product Manager at Interview Kickstart. With exceptional experience with tech giants like Microsoft, she is a curious lady for the vast scope of NLP, Big data analytics, ML and data science.

Ever since the COVID pandemic emerged in late 2019, workplaces across the world have had to adjust and readjust to changing market dynamics constantly. The software engineering marketplace, too, has seen tech companies, large and small, trying to identify and respond to emerging demand and supply trends.

In this article, we delve into the tech salary trends of 2024 to gain insights on software engineering salary trends and their impact on the earning potential of software engineers in the year to follow.

Software Engineer Salary 2024

It’s no secret that software engineering ranks among the highest-paying job industries in the world. It’s also common knowledge that software engineering salaries in the US continue to be the most lucrative globally. 

Average Software Engineer Salary US 2024

According to salary information cited on Indeed, the average annual base software engineer salary in the US is $117,120 (based on salary information last updated on the site on Jan 4, 2022).

The average annual senior software engineer salary in the US is $147,338 (Indeed).

Total compensation (TC) for software engineers includes other components besides base salaries, such as cash bonuses, stock options, allowances, etc. Software engineers continue to earn handsome TC packages with several skilled software professionals bagging top-notch offers from FAANG companies.

FAANG+ Software Engineer Salaries

FAANG+ companies pay the highest software engineering salaries globally. These companies are always at the cutting edge of technology, looking for top talent with excellent skills in advanced or emerging technologies. 

Google Software Engineer Salary

According to Glassdoor, the average annual Google software engineer salary in the US is $251,215 (based on salary information last updated on the site on December 21, 2023).

Amazon Software Engineer Salary

According to Glassdoor, the average annual Amazon software engineer salary in the US is $188,436 (based on salary information last updated on the site on December 21, 2023).

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Facebook (Meta) Software Engineer Salary

According to Glassdoor, the average annual Facebook (Meta) software engineer salary in the US is $171,553 (based on salary information last updated on the site on December 20, 2023).

Check out these 10 Highest Paying FAANG Tech Jobs.

Will Software Engineering Salaries Increase or Decrease in 2024?

Software engineering has become a desirable career path, considering how lucrative software engineering job salaries can be compared to other industries. 

On the supply front, a growing number of new graduates flood the software engineering job market every year. Additionally, an increasing number of tech professionals opting for career changes in software engineering jobs enhances the talent pool. 

Some argue that:

  • The software engineering job market is becoming saturated with software products and software professionals.
  • Easy availability, maybe even an oversupply, of talent could foreshadow a reduction in software engineering salaries. 
  • Commoditization of software development will drive demand and salaries down.
  • A crash in the software tech industry is inevitable without adequate demand for software products.

While this may be a possibility for entry-level engineers performing standardized tasks, in the larger scheme of things, software engineering salary growth is likely to follow the present trend of being driven by demand for skilled and experienced software engineers.

Technologies are ever-changing, with current technologies becoming commonplace or redundant, popular technologies becoming more advanced, and new technologies emerging and evolving. 

More companies and industries are discovering the need and usefulness of different software applications. Increased adoption of software technologies across various verticals will continue to drive demand for software engineering professionals.

Take a look at some Salary Negotiation Tips and learn what not to do during salary negotiation.

Factors Influencing Software Engineer Salary in 2024

Software engineers will be compensated primarily based on their:

  • Experience
  • Expertise/Skill

Senior software engineers with many years of experience are always in demand, given that these roles are integral to business transformation and progress. As career ladders narrow in most organizational structures at tech companies, the senior software engineering talent pool also diminishes. Only outstanding software engineers break into senior software positions. 

Experienced software engineers will continue to enjoy high demand and command high salaries. 

Software engineers with advanced and specialized skills, however, are the ones who will continue to draw high salaries, especially those skilled in emerging, in-demand technologies. The more in-demand the skill and role within the industry, the higher the compensation and other benefits. 

Let’s look at some more factors that will affect software engineering salaries.

In-demand Tech Fields

In its latest annual salary guide, Robert Half, a leading HR consulting firm, states that the fields of machine learning, artificial intelligence, data analysis, data privacy, cloud computing, and cybersecurity will drive demand for software engineers.

Earnings-wise, some of the most lucrative tech fields include network architects, cloud engineers and architects, big data engineers, and DevOps engineers.

  • The average big data engineer salary is approximately $153,050
  • The average DevOps engineer salary is roughly $123,113.

Software Engineering Positions

According to Glassdoor, certain software positions enjoyed higher demand than others. Professionals in these positions stand to earn higher salaries at higher levels. 

Location

The guide also talks about location playing a role in determining software engineering salaries. For example, software engineering jobs in California and New York offer higher salaries (+40% to +41%) than the national average.

Company Performance

Another factor to consider in understanding whether software engineer salaries will see a rise or fall in the future is understanding how tech employers are and will continue to perform. 

Demand for software professionals will continue to grow as long as employers enjoy demand for their products and services. FAANG and Tier-1 companies pay software engineers top salaries because they can afford to pay above-average salaries to attract and retain top talent.

Check how to Triple Your Salary as a Software Engineer in Three Years here.

Projected Average Tech Salary Increments in 2024

  • The ‘Salary Guide 2024’ by Robert Half predicts that salary increments will be higher for certain specialities such as cyber-security, cloud, AI and ML, Software development and data science and database management.
  • The guide mentions that companies aim to lure top talent by offering attractive signing bonuses and cash incentives in addition to base salaries.
  • Many workers are also eyeing advantages such as remote work options for which salaries will be based on company locations and not worker locations.
  • As per the report, 88% of the companies surveyed offer additional perks in response to the pandemic. This includes health insurance, dental insurance, paid family leave, professional development reimbursements, gym memberships, child care assistance, home office equipment stipends, etc.

In-demand Tech Skills Linked to Higher Software Engineering Salaries

As per the information given from the Robert Half Salary Guide 2024, it is cited that around 90% of HR managers say that it is challenging to find the best talent in a specific domain. 

Software engineers who will continue to command high salaries develop a suitable suite of software skills, technical and non-technical skills. This can either be done by deepening expertise in an existing in-demand field or broadening existing skill sets to adapt to the demand for new skills.

According to the Robert Half report, half of the hiring organizations will employ developers without the proper skill set. By developing skills suited to the top software jobs at top tech companies, software engineers can increase their market value and command higher-than-average salaries.

Take a look at some of the Highest Paying Tech Jobs and Skills 2022.

FAQs on Tech Salary Trends in 2022

Q1. What will be the average software engineer's salary in 2024?

The Robert Half survey suggests that the salary of a software engineer in 2024 can be around $152,500. The study also noted that certain domains would see a much higher average pay hike given the high demand for professionals in these fields. In the coming years, some in-demand IT fields will be in demand, such as cloud computing, data analytics, machine learning, artificial intelligence, cybersecurity, database administration, and others.

Q2. What is a good salary for a software engineer?

As per indeed.com, a software engineer's annual salary in the US is $1,39,784, plus a $21,757 cash bonus. 621,362 salaries were reported as of December 21, 2023.

Q3. Which tech jobs pay the highest software engineering salaries in the US?

According to Indeed, average tech salaries are the highest for the following IT jobs: Software engineers, Cloud Engineers, Full Stack developers, IT Security Specialists, Data Scientists, DevOps engineers, System Engineers, Mobile developers, Software architects, and Software Engineering Managers.

Q4. Will software engineers continue to enjoy high demand in 2024?

The US Bureau of Labor Statistics predicted a 22% increase in employment for software developers, QA analysts, and testers for the 2020-30 decade. The demand is expected to be driven by the increasing demand for new smartphone applications, the adoption of software products and services in various industries, such as healthcare, and a growing number of products that will integrate software. Cyber attacks and threats will also increase cybersecurity requirements and act as demand drivers.

Q5. Why are software engineering salaries so high? Will software engineering salaries decrease soon?

Average software engineering salaries for tech professionals who perform routine tasks or have standardized skills may fall. Software engineers who can adapt to changing technologies and assist companies in realizing their visions and keeping businesses growing and competitive can command higher-than-average salaries.

How to Upskill to Earn Lucrative Software Engineering Salaries in 2024?

Landing software engineering jobs that pay high salaries is no easy task. However, software engineers can efficiently upskill to land offers from top tech companies with the proper training.

Interview Kickstart alums have repeatedly proved this. Since 2014, we have helped thousands of software engineers upskill and train for tech interviews to land offers from leading tech companies, including Google, Facebook, Amazon, Apple, Netflix, and Microsoft.

As pioneers in technical interview prep, our team of instructors, comprising actual hiring managers and tech leads from FAANG companies, are well-versed in identifying and developing the right skills for in-demand software engineering jobs. 

Our proven methodology includes a comprehensive curriculum on how to crack the most challenging tech interviews and negotiate top-of-market salaries. We also offer career guidance, including proven methods to negotiate the best software engineering salary based on your market value. 

Our pioneering domain-specific courses are designed to help software engineers develop specialized skills to gain a unique competitive edge. Our courses are also designed to help software engineers become trend-proof, i.e., with the right skills, you can become the kind of software engineer tech companies want to hire irrespective of present trends.

Register for our free webinar to learn how you can upskill to earn lucrative software engineering salaries in 2022 and beyond.

Posted on 
January 20, 2022
AUTHOR

Vartika Rai

Product Manager at Interview Kickstart | Ex-Microsoft | IIIT Hyderabad | ML/Data Science Enthusiast. Working with industry experts to help working professionals successfully prepare and ace interviews at FAANG+ and top tech companies

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