After several years of economic uncertainty and layoffs, salaries paid to US tech talent are once again some of the world’s most competitive. And in at least one significant US jobs category — sales and marketing — there is now pay equity between women and men.
Those are among the findings of an analysis our company conducted of more than 150,000 anonymized employment contracts in more than 100 countries for software engineers, product designers, and sales and marketing professionals. That includes three countries — the US, Canada and the UK — which tend to be the most competitive with one another for top talent.
This good news about the state of American tech talent, innovation and competitiveness comes at a time when that standing has been a source of public concern.
Much of the higher compensation for tech workers is presumably driven by the widely acknowledged skills gap, particularly in AI. For US software engineers, for example, median compensation had dropped below $100,000 during the big waves of tech layoffs in 2022 and 2023. But by the end of the second quarter of 2024, the most recent period in our analysis, it had rebounded to $122,000 — perhaps driven in part by the soaring demand for AI skills.
The US compensation level was second only to Canada, whose much smaller population has fewer tech workers for employers to compete for.
Overall, our survey indicates that when it comes to one of the factors that really matter to global talent — compensation — US tech workers are in high demand. And whether it’s companies based in the US or global employers offering remote contracts to Americans, the global business world is willing to pay what it costs to attract and retain that talent.
Here’s a deeper dive into the data:
Software Skills Are in High Demand
For the people with the skills for in-demand tasks like writing code or developing AI models and algorithms, the US jobs market has some idiosyncrasies. One is the much higher potential portion of compensation that comes from stock or equity grants.
In positions where equity is part of the package, the median US compensation for a software-and-data engineer is $151,000 a year — the highest anywhere in the world — assuming the typically four-year vesting program pays out. That translates to an additional 35% a year in compensation, beyond salary. Of the countries we looked at, only Germany comes close, with a combined $135,000 in annual pay and equity.
Unfortunately, another characteristic of the US labor market for software engineers and data scientists is a stark gender gap. Women represent only 10.3% of workers in this category, roughly in line with the UK and Germany. And that disparity translates into a compensation gap. The median US compensation for men in software and data is $155,000, compared to $120,000 for women. Similar pay gaps are found in all other countries we surveyed.
Tech Product Development and Design
This line of work also has a gender gap, although a slightly narrower one. For jobs that might involve software development and design, or overseeing such activities, women hold 41% of the positions.
And women in those roles have median compensation of $128,000. While a bit closer to the male median of $150,000, it’s still a sizable gap. The same pattern is evident in other countries, although typically at lower pay scales.
Tech’s Silver Lining for Gender Parity
Tech sales and marketing is one area where, in the US at least, there is full pay parity between men and women — median compensation of $100,000.
That’s second to the top figure in the UK. But there, the gender disparity is still sizable: $105,000 for men, compared to $92,000 for women. Canada shows a comparable gender gap, at $84,000 for men but only $77,000 for women.
Why women, who hold 42% of jobs in tech sales and marketing in the US, have been able to achieve pay parity deserves further study. One factor might be that sales performance is easy to quantify — the more a person sells, the better one is rewarded.
But why this parity doesn’t translate to other countries — maybe there’s a cultural component? — would be worth researching.
The Takeaway on Tech Take-Home Pay
Our findings lead to several steps that employers can take to remain competitive and retain the best talent:
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Recognize the need for competitive compensation.
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If inflation is a factor, ensure your pay scales include bi-annual adjustments or regular cost-of-living increases.
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Offer equity, which especially in tech, is widely sought by employees and can ensure longer-term loyalty.
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Given the all-too-common gender gap in compensation, position your organization to attract female talent by closing that gap.
For the global business world, the survey indicates that the US has bounced back as a top competitive market for tech talent. And for companies everywhere, the value proposition is clear: The relatively high cost of skilled US tech workers is well worth the price.